Effects of corporate social responsibilty on brands performance in the banking industry: a case study of Family Bank Kenya limited
Most organizations have realized the importance of integrating Corporate Social Responsibility (CSR) in their operations. Commercial banks too have embraced the concept of incorporating Corporate Social Responsibility. CSR is a way of giving back to the community within which organizations operate. It is a concept whereby business organizations consider the interest of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders as well as their environment. This obligation shows that the organizations have to comply with legislation and voluntarily take initiatives to improve the well-being of their internal stakeholders as well as for the local community and society at large. The purpose of this study was to establish the effects of corporate social responsibility on brands performance in the banking industry. The study focused on Family Bank Limited. The study sought to achieve one objective: to establish the extent to which corporate social responsibility affects the performance of brands in the banking industry in the case of Family Bank Limited. The study adopted a case study research design and data was collected through an interview guide from 30 senior managers from the 15 Family Bank branches that are within the Nairobi CBDA. The findings indicate that the bank has is very keen on incorporating CSR activities in their operations. The bank has a CSR policy that supports Education, health, sports and there are also keen on young talent development. It was clear from the study that Family Bank’s market share has greatly improved helping them spread into more towns in the country due to their well thought and executed CSR activities. The adoption of a sound CSR policy by the bank has helped them become and strong and successful brand in the industry. It has made it the fastest growing bank in the country. There is a lot of good will on the ground and this has positively impacted their performance. The study recommends that more studies be conducted on more than one bank so as to avoid the overgeneralization of the findings. The study also recommends the banks to explore other CSR activities that are being offered by the other financial institutions so as to be at par with the industry standards. This could help them penetrate areas where they have not been able to penetrate.