Influence of corporate social responsibility on performance of financial institutions in Kenya:A case of Barclays Bank in Nairobi county
This research aimed to assess the influence of Corporate Social Responsibility (CSR) on the Performance of financial institutions, a case of Barclays bank of Kenya in Nairobi County. In relation to organisational performance, firms have varied reasons for involvement in CSR; ranging from a long term strategy of creating and gaining competitive advantage to also include concern for society. This study will provide a broad understanding of the influence of CSR on performance of financial institutions. Objectives of the study were: to assess the influence of corporate philanthropy on performance, assess the influence of staff volunteerism on performance, and examine the influence of workplace policies and the influence of supplier sourcing diversity on the on the Performance of financial institutions. The study adopted a descriptive research design that made us of both descriptive and explanatory methods aimed at establishing the influence of Corporate Social Responsibility on the Performance of Barclays bank of Kenya (BBK). The target population for this study was 300 staff of the management cadre who undertakes their work within Barclay’s branches and head offices geographically located within Nairobi County. Stratified random sampling was used to select the sample for the study by dividing the study population into: top, middle and lower levels of management. There after simple random sampling was used to select the sample in proportion to the size of each stratum for the study. By using this method, 40% of the study population was selected giving a sample size of 120 respondents. So as to ensure that the data collected is free from bias, the study made use self-administered questionnaires to collect primary data from the sample. This structured questionnaire only had close ended questions. The questionnaires were distributed to the sampled respondents and collected three days later, this was done so as to give room and time to the respondents to fill. The validity of the research instruments was ensured by conducting a pilot test using fifteen respondents chosen outside the sample. Review of the research instruments was done following the outcomes of the tests. To ensure the questionnaire captured the information required, expert advice was sought from the supervisor. Completed instruments were assembled, edited, coded and interpreted in relation to the research objectives. Data analysis was done using descriptive statistics by the aid of Statistical Package of Social Scientists (SPSS) version 18 software program. Data collected was analyzed using descriptive statistics; frequencies and percentages. The researcher checked the data for completeness and correctness then coded the data and summarized the responses into frequency tables. The study had a response rate of 80%. The findings of the study revealed that corporate social responsibility has a bearing on the performance of financial institutions. It highlighted that Staff involvement aids in marketing the institution as well as reinforcing the brand image. This contributes to increased profitability. The symbiotic relationship between stakeholders – the institution, the suppliers, customers, staff as well as the community plays a key role in enhancing performance of the financial institutions. A CSR foundation was also found to be one avenue that can help organisations have coordinated corporate social responsibility (CSR).