A Dissertation Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Science in Accounting and Finance (Msc. A&F) of Mzumbe UniversityThe major objective of this study was to assess the relationship between corporate social responsibility (CSR) activities and financial performance (FP): case of CRDB bank Mbeya branch. Specific objectives for the study were; to assess CSR activities the bank offers to the community, to examine the relationship between expenditure on CSR activities and Financial Performance measured by deposits, loans & advances, pre-tax profit and after-tax profit and to identify the challenges to CSR activities. In carrying out this study, corporate social responsibility CSR spending was independent variable while dependent variables were deposits, loans & advances, pre-tax profit and after-tax profit as measure of financial performance of a bank. The study used Purposive sampling technique and Convenience sampling technique during the process of data collection from the study respondents of which a sample of 120 respondents was selected. Data were collected using both Primary and Secondary sources (documentary review and questionnaires). Statistical Package for Social Sciences (SPSS) was used to analyze data where statistical tools applied were correlation analysis, percentages and trend analysis. The data were analyzed and results indicated that; there are different types of CSR activities the bank is providing to the community in Mbeya city and that there was intercorrelation between independent variable CSR spending/expenses and dependent variables (bank deposits, loans & advances, pre-tax profit and after-tax profit) at CRDB Mbeya branch. The study concluded that since the independent variable (CSR spending) found to be highly correlated to dependent variables (bank deposits, loans & advances, pre-tax profit and after-tax profit), then CSR activities is positively related with financial performance of CRDB Mbeya branch. For the challenges facing CSR, the results indicated high costs in provision of CSR activities, CSR provided is basing in urban areas while excluding remote areas like in villages, some organizations are not willing to engage in CSR activities, lack of enough knowledge about the importance CSR activities to the community and less funds are budgeted for and approved to provide CSR activities. The study recommended that, CRDB should continue engaging into CSR activities specifically in remote areas where currently is not covered by any CSR activity.