| dc.description.abstract | This research was undertaken in order to understand the impact of corporate social responsibilities on firm risks amongst quoted banks in Kenya. The objective of the study was to investigate how CSR impacts on firm risks. A number of studies have been done in Kenya regarding the relationship between CSR and financial performance but none has been carried out to establish the relationship between CSR in relation to firm risks. Specifically, it was expected that by pursuing a series of nominated objectives, this study will help assess consumers, community, employee and other stake holders reactions towards the perceptions of banks as socially responsible entities, in the context of CSR principles The researcher used a descriptive survey by administering a questionnaire to the targeted respondents. Data was analyzed using SPSS software and presented using bar graphs, pies charts and frequency tables. Secondary data was also obtained from Banks to obtain accounting measures of risks. The results show that the firms with CSR did suffer less stock price declines in negative events. Additionally, this study also finds the CSR has greater protection effect for firms with higher intangible assets, and has significant contribution in the safety-related negative events but not in the integrity-related negative events. CSR is not about free goodies. It is an effort by organizations to deploy their resources in a way that helps the organizations build a mutually productive and sustainable business relationship between them and the communities with which they do business. It's thus recommended that banks should adopt portfolio mitigating strategies before investing heavily in CSR activities which are capital intensive to establish the risk return trade off. | en_US |
