Relationship between corporate social responsibility and financial performance of commercial banks in Kenya
View/ Open
Date
2013-10Author
Ogolla, Grace A
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The main objective of the study was to determine whether there exist a relationship between
corporate social responsibility and financial performance of commercial banks licensed by
central bank of Kenya. Corporate social responsibility and financial performance in the banking
system have been neglected in many studies conducted in developing counties hence the study
sought to plug that gap. The study adopted casual design. The population of the study comprised
of all the 41 commercial banks licensed by central bank of Kenya that were in operational
between Jan 2007 and Dec 2011.Secondary data was obtained from the audited financial reports
of the central bank of Kenya for the period from 2007 to 2011. A multiple regression model was
adopted to determine the relationship between the two variables. Corporate social responsibility
score was obtained using content analysis of reports of the banks on various components of
corporate social responsibility as reported in their audited financial reports. One major finding of
the study was that there is a strong relationship between the independent variables corporate
social responsibility and the dependent variable financial performance. In conclusion
Commercial banks should enhance efficiency in the banking services so as to improve financial
performance as there was a significant relationship between the two variables. It was
recommended that the commercial banks should invest more in corporate social responsibility to
improve on company performance. Suggestions that in the years to come and given the
availability of a wider pool of data the same could be under taken over a longer time span to
assess whether there are any major difference in the findings when data is taken over a longer
time of ten or more years.
Citation
A Research Project Submitted In Partial Fulfillment Of The Requirement For The Award Of The Degree Of Master Of Business Administration School Of Business, University Of NairobiPublisher
University of Nairobi School of Business