The Effect of Corporate Social Entrepreneurship Practices on the Performance of Commercial Banks in Nairobi, Kenya

Abstract

The purpose of this research was to examine the effect of corporate social entrepreneurship practices on the performance of commercial banks in Nairobi, Kenya. The study objectives were to: determine the extent to which corporate social entrepreneurship practices have been adopted by commercial Banks in Nairobi Kenya and determine the effect of corporate social entrepreneurship practices on the performance of commercial banks in Nairobi Kenya. The study adopted a census design. The population of the study was 47commercial banks in Kenya. The data collection instrument used was semi-structured questionnaire which was administered by the researcher through drop and pick method. Statistical Package for Social Sciences (SPSS version 21) was used to analyze the structured questions while the use of descriptive statistics determined mean and standard deviation. Inferential analysis which comprised of multiple regression analysis was used to find the effect of effect of corporate social entrepreneurship practices on the performance at 0.05 significance level. The results were presented in tables. The results of the findings showed that overall, corporate social entrepreneurship was practiced at moderate extent among the commercial banks in Kenya. However, commercialization and financial education were practiced at great extent while online sales, Conversion of waste to by product and social innovation at moderate extent. Regression results indicated that corporate social entrepreneurship practices had significant positive effect on the performance of commercial banks in Nairobi Kenya and it accounted up to 91.7% of performance variation. However, from regression coefficient, a unit increase in Conversion of waste to by product would result to reduction in performance. The study recommends that commercial banks administration partnering with NGOs so as to insure financial products targeting low income earners, commercial banks should not discriminate non informed groups during financial education and lastly, commercial banks to build an investment market that isn‟t necessarily focused solely on start-ups but on taking proven ideas to scale