| dc.description.abstract | Corporate Social Responsibility (CSR) is basically what an organization does to
positively influence the society in which it exists. It could take the form of community
relations, volunteer assistance programs, healthcare initiatives, special education /
training programs and scholarships, preservation of cultural heritage and beautification
of cities/towns. The main purpose of this study was to determine the forces driving
commercial banks in Kenya towards CSR.
A descriptive survey was used in this study. It enabled the researcher to describe the
findings in terms of their means and modes across the commercial banks under study.
The population focused on the 43 commercial banks in Kenya. A questionnaire with
open ended and closed ended question was developed by the researcher and used in
data collection. Company’s reports on CSR issues and journals were used to gather
secondary data. Data analysis tools used in the research were Excel and SPSS and data
was presented in form of tables and graphs.
The study revealed that forces driving commercial banks towards the CSR activities
included the shifting paradigms and criticality of stakeholder’s relationships, shrinking
role of government, increased customer interest and changes in their preferences and
also not forgetting the growing investor pressure. The benefits that accrue to banks
practicing CSR are the improvement corporate image and reputation in the market
through public relations marketing, direct acquisition of new customers and enhancing
good governance relations.
Out of the 43 institutions on which the questionnaires were administered, only 29
responded. This gave a response rate of 68 percent. This limited the study as it targeted
all the licensed commercial banks in Kenya. The second limitation of the study was
that it focused mainly on the banking industry. The study was based on descriptive
survey as the research design which is generalized in nature. Another study could be
done using a case study as it is more specific. Further research could be a similar study
to be carried out on other companies that are not in the category of commercial banks
to find out forces motivating other companies to practice CSR.A research project can
also be done on public institutions to see the factors and benefits they will get from
engaging in CSR activities.
In conclusion it was noted that banks should channel more resources to CSR activities,
set-up specific departments comprising specialized personnel with the sole mandate of
initiating and implementing CSR activities as well as measuring the impact of this
activities on the intended targets and on the banks financial performance. | en |
