Challenges of Implementing Corporate Social Responsibility Strategies by Commercial Banks in Kenya
Abstract
The study sought to determine the challenges faced by commercial banks in Kenya in
implementing corporate social responsibility strategies. The objectives of the study were;
to establish the challenges commercial banks in Kenya face in the implementation of CSR
strategies; and to determine how commercial banks in Kenya counter the challenges they
face in implementation of CSR strategies. The research design was descriptive survey
design. The population was 43 commercial banks in Kenya. Study was a census that is all
the 43 duly licensed and operational commercial banking institutions within the country
were used. The data collection instrument was a questionnaire. The data analysis method
was quantitative in nature. Descriptive statistics was used. The particular descriptive
statistics used were means scores and percentages. The software for analysis was SPSS
Version 20. Results indicated that a the macro-environment challenges affecting the
implementation of corporate social responsibility strategies by commercial banks were
overwhelming poverty, culture of a community and high tax rates. Results also indicated
that the industry specific challenges affecting the implementation of corporate social
responsibility strategies by commercial banks were: ability of customers to bargain for
particular CSR projects and bargaining power of suppliers. Results also indicated that the
other challenges affecting the implementation of corporate social responsibility strategies
by commercial banks were incompetent human resources and lack of clear guidelines in
the bank. The study concluded that challenges affecting the implementation of CSR
strategies by commercial banks could be classified into three broad groups which include
macro-environment challenges, industry specific challenges and other challenges. It was
concluded that among the strategies to counter the macro economic challenges they face
in implementation of corporate social responsibility strategies were: community
participation strategy before CSR implementation and that the bank understands the
culture of a community. The strategies to counter the industry specific challenges they
face in implementation of corporate social responsibility strategies were: that the bank
ensures it has structures and the budgets on CSR are made to facilitate effective resource
allocation. The strategies to counter the industry specific challenges they face in
implementation of corporate social responsibility strategies were: high clientele
participation which provides diversity of ideas in CSR implementation and market
analysis on the CSR project. Recommendations are that that in order to tackle the
challenges faced by commercial banks in Kenya in implementing corporate social
responsibility strategies then, the banks should ensure community participation before
CSR implementation and the banks should understand the culture of a community. Bank
should also ensure that it has structures on CSR implementation and the budgets on CSR
should be made to facilitate effective resource allocation. Banks should carry out
thorough market analysis on the CSR project. For effective implementation of CSR the
government should tackle the problem of overwhelming poverty and high tax rates. The
banks should employ competent human resources and give clear guidelines of CSR
implementation.
Publisher
University of Nairobi
Description
Masters