The Influence of Corporate Social Responsibility on Competitive Advantage of Equity Bank Kenya

Abstract

The study sought to answer the question whether or not the overall competitiveness of equity bank Kenya is influenced by corporate social responsibility. The study was conducted with a focus on Equity bank, Eldoret branches (Eldoret town branch and the Eldoret Market Branch. To study had the following objectives; To determine the effect of Corporate Social Responsibility on the innovativeness of Equity bank, to find out the role of Corporate Social Responsibility on customer loyalty in Equity bank, to investigate the effect of Corporate Social Responsibility on the organizational brand at Equity bank. The study was built from the background which was then highlighting the specific problem in the statement of the problem. The study reviewed the relevant literature on the past and present studies and materials in a bid to expose the gap existing that necessitates conducting of this study. The study was based on the competitive advantage theory and the Corporate Social responsibility theory. The study due to its social science nature adopted the descriptive research design. Primary data collection was used for the study because the researcher deemed it suited for obtaining first-hand information form the subjects. The main data collection instrument was an interview schedule. The process of data collection also involved seeking the services of a research assistant who helped in conducting the interviews. The process of conducting the interviews took approximately 8 working days. The researcher also got an official letter from the institution that certifies their membership with the institution. The study found an existing strong relationship between CSR and the organization’s competitiveness. The study concluded that CSR initiatives enhance the competitiveness of the organisation. The study also concluded that the competitive aspects of an organisation affected by CSR to a greater extent include innovation, customer loyalty, profit, growth and performance. The findings indicated that performance, profit, customer loyalty and innovation were the most affected aspects of an organization’s competitiveness as compared to aspects such as growth.