The research of Branco and Rodrigues (2006),
using banks of Portugal as a sample to
examine the CSR in Portugal, it is widely used in CSR activity for the banking
sector. So as a reference to our approach the four components of CSR behavior
(costumer & products, local community, environmental protection and
satisfaction of human resource), were applied in our study, we will take into
account the Branco and
Rodrigues (2006) as approach to measure the CSR policies components. With
respect to the four component of CSR behavior (costumers & products, local community, environmental
protection and satisfaction of human resource) we made reference to  recent studies in this field, for example, the research of Botshabelo et al. (2017), using a sample of
13 Botswanans banks. Examined
the impact of voluntary CSR disclosure and investigated
what factors
determine the level of information disclosed in their annual reports, over a period of three years, from 2012 to 2014,
the findings provided evidence that banks in Botswana are engaged in voluntary
CSR behavior and they are disclosing more information about human
resources behavior and community involvement.
The research of Jain et
al. (2015) using a sample of six large banks of Asian-pacific
multi-country (Australia, China, India and Japan) examined the impact of
voluntary CSR disclosure in the banking industry, over seven years (2005-2011),
provided evidence that the banks are engaged in voluntary CSR policies.
Particularly, the findings revealed that the Chinese and Indian banks had a
fewer degree of CSR behavior on human resource behavior category comparative to
the Japanese and Australian banks. The Australian banks were in the top
position promoting diversity and equity and the Japanese banks were leading in promoting
work/life balance. According to the communities’ behaviors, the findings revealed
that the Chinese and Indian banks were increasing commitments in CSR
activities.

Taking into account the
findings of the prior study, we
selected only four elements of social responsibility behavior according to
Mozambican characteristics to know how each related to FP. Therefore, we
hypothesis as follows: H2: All the dimensions of CSR practice have
an individual significant and positive effect on the FP of Mozambican Banks. (Model 2). And, we provide four testable sub-hypothesis as
following:

·        
H2(1):
The customer & products provided are positively related to FP;

·        
H2(2):
The local community is positively related to FP;

·        
H2(3):
The environmental protection is positively related to FP;

·        
H2(4):
The satisfaction of human resource is positively related to FP.

Kvasi?, Cerovi? and Drazenovi? (2016),
using website content analysis investigated whether banks in Croatia CSR disclosure
policies depends upon their market share and that community
involvement
affected the degree of CSR information dissemination in their annual reports.
The results support the hypothesis and suggested that the Croatian banks are
engaged in Online CSR disclosure, however, the
banks have been disclosing information mostly about customers & products,
comparatively on community involvement, while only few amount of attention was
paid regarding human resources activities and environmental protection initiatives,
leading to the rejection of the second hypothesis. Similarly, Kiliç (2016), examined the impact of CSR activity using a sample of
25 Turkish’s banks applying website content analysis to determine the CSR
behavior and using the Kruskal-Wallis
metrics to evaluate the impact on the different groups in the sample. The results provided evidence that the banks were disclosing mostly information about
products and customers on their websites. However, they no disclose information
about the environment and energy. And, the online CSR disclosure level was significant
in multiple exchange listed banks. Similarly, the study of Platonova et al. (2016),
above provided evidence that the disclosed information on “mission &
vision” activities and “products & services” activities are statically
positive related to the FP of Islamic Banks in the Gulf Cooperation Council region. So we hypothesis as follows:

H2a:
Banks are primarily disclosing information regarding their costumer and
products. (Model 2).

Nelling and Webb (2009),
Using of 600 U.S. Firms over the period from 1993 – 2000, investigated the causal impact of CSR behavior on FP,
applying the KDL index as a score of CSR activities and using accounting
metrics to determine the level of firm profitability. The main conclusions are:
a) CSR policies and profitability are positively correlated; b) larger
companies may
have more option to engage in CSR activity. c) Finally, they indicated that an
efficient stock market performance will encourage topnotch firms to investment
in CSR behavior, but CSR activities have an insignificant impact on firms’
profitability. More recently, Rodriguez-Fernandez et al. (2016), carried out a similar research focusing on the bidirectional
relationship between FP and CSR behavior. Using a sample 107 firms-years observations of Spanish listed firms
on the Madrid Stock Exchange covering the year of 2009. The outcome provided
empirical evidence that CSR behavior is statistically and positively related to
financial performance and vice versa. Suggesting that CSR behavior increases
firms’ profitability and the higher profitability was driven by CSR activities,
in that way making positive relations in
both directions. In General, these prior
studies lead to the following hypothesis:

H3:
Ceteris paribus, better
profitable firms are those that adopt greater CSR activities, (Model 3).

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