| dc.description.abstract | Strategic Corporate philanthropy has for long been mistaken with cause related
marketing. This is mainly because cause related marketing deals with the concentration
of giving on a single cause or admired organization for example sponsorship of the
Olympics. However, as opposed to cause-related marketing, SCP involves the emphasis
on social impact rather than publicity.
Given that, most Kenyan banks have embarked on SCP, albeit without a general
benchmark or backdrop of information on its impact, through the costs incurred, on the
financial books. There is need to fill this knowledge vacuum towards harnessing the
resources of the corporate firms-banks in this case and hence reducing wastage or helping
in shoring up profits.
This study sought to determine the aforementioned construct of social impact within the
confines of SCP and hence ensuring delivery of profits and specific margins to the
commercial banks in Kenya. This was through a survey of 43 banks, and two respondents
in each given bank. The respondent rate was 65% (56 questionnaires), and they reflected
a strong correlation between the kind of SCP initiative they were involved in and the
performance of the given banks.
All the 43 selected banks for the research study show that they do engage in philanthropic
activities of various nature. 30% of them note that there is an increase in profitability in
relation to SCP, from the marketing perspective 25% of the respondents said SCP
activities would want to retain the customers. Also 20% of the respondent banks noted a
public relations paradigm as SCP activities play a role in improving the image of the
organization. Combined with CSR and SCP goals 15% of the respondent banks reflected
an interest in addressing the community needs while 8% of the respondent banks noted an
expansion of the target market due to SCP activities. The instruments applied (questionnaires) identified three forms of assessment in the
evolution of corporate philanthropy towards community involvement. The first wave
involved companies adopting sophisticated approaches of setting aside annual budgets
and the second wave entails establishing in-house departments for community affairs.
The final wave involved the complete integration of community affairs with business
objectives. In the course of time, different schools of thought have informed on the
divergent ways of giving or different paradigms.
The study provides proof to the growing demand in changes of organizational
engagement with society and how the interaction is bound to influence their performance.
Overall, the study reflects that consumers should have a positive view of proactive
corporate philanthropic activity. An examination of the amount of funds donated
underscores the importance today’s corporations place on philanthropic activity. The
amounts dedicated to SCP are reflective of the premium placed by the banking industry
on engagement with the society at large, showing that the banks are active participants in
the societies within which they operate. | en |
