ABSTRACT
The current study aims to investigate how MFIs in Saudi Arabia and India operate financially and socially, putting emphasis on the financial inclusion aspect, and how such aspects relate to CSR. It examines this by finding out how a CSR approach that focuses on communities, workers, and customers influences the ability of MFIs to remain financially viable through Return on Assets. According to research, such CSR activities as improving consumer relationships, employee welfare, and community building have tremendous positive impacts on the performance of MFIs in finance, as these institutions help achieve the two objectives together: poverty reduction and financial empowerment. There is need for balance since the short-term negative impacts on CSR activities, even though fundamental to overall sustainability, emerge from a study. As long as social, environmental, and financial objectives are combined and successfully met, results will show that CSR is indeed a potent instrument through which MFIs can boost long-term socioeconomic development and financial inclusion.
Keywords
Corporate Social Responsibility (CSR), Microfinance Institutions (MFIs), Social Performance, India, Saudi Arabia, Targeting Customers, Employees, Communities, Return on Assets (ROA).