Corporate Social Responsibility and Philanthropy (A Case of Equity Bank Ltd)

Abstract

Purpose: This study is an attempt to provide Kenyan decision-makers with some insights into the drivers and challenges that organizations face as they strive to implement and advance corporate social responsibility (CSR). The study was guided by the following specific objectives: (i) to examine the extent to which Corporate Social Responsibility and Philanthropy have been adopted by Equity Bank Ltd; (ii) to assess factors that influenced Equity bank’s involvement in CSR activities; (iii) to evaluate the corporate social responsibility and philanthropy initiatives undertaken by Equity bank Ltd; and (iv) to investigate the value of adoption of corporate social responsibility and philanthropy in Equity Bank Ltd. Methods: The current study is qualitative in nature. A case study was used to undertake the current research. The population of the study was the managers of Equity Bank Ltd based at the Head office in Nairobi, whose number stood at 25. A structured approach to collecting data was utilized. For purposes of the current study, an interview guide was used to conduct personal interviews with all the 25 Heads of departments. Since all the managers are based at the Head office, they received the questionnaires through hand delivery. In addition, personal face to face and telephone interviews were conducted with all the respondents, aided by an interview schedule. In this case the researcher was able to obtain additional information to corroborate findings from the questionnaire. Data analysis: For purposes of the current study, the data was analyzed by employing descriptive statistics such as percentages, frequencies and tables. The information was presented and discussed as per the objectives and research questions of the study. Findings and Discussions: The study utilized qualitative techniques in the collection of data. The study covered all the Heads of departments of Equity Bank Ltd based at the headquarters in Nairobi. All the 25 respondents were interviewed, guided by an interview schedule. The findings are based on the responses of the Heads of departments of Equity Bank Ltd are as follows:- The most striking feature of the responses to the survey is that the respondents are in near unanimity that CSR is very much a part of the domain of corporate action and that ‘passive philanthropy’ is no longer sufficient. A significant portion of respondents recognize CSR as the means to enhance long-term stakeholder value; CSR creates a ‘feel good’ factor about the company, which is increasingly instrumental in retention of talented professionals; A distinct customer preference for companies with a social conscience; The increasing expectation of shareholders that their companies be sensitive to the needs of society; One of the most important drivers of CSR identified by the survey is that good corporate citizenship and CSR initiatives are directly linked with improved brand reputation; The second most important aspect of CSR, according to the survey report, is that it provides an opportunity to improve relationships with local communities; The survey also showed that most companies do not have a systematic approach to CSR implementation and they do not commit resources for it in a planned manner. The factor hindering adoption of CSR on a wider scale is lack of comprehension and capacity to implement it; and The survey felt that industry associates have also a critical role to play in shaping of experiences and rewarding best practices. It suggested the inclusion of CSR as a subject in business schools to ensure that the managers of the future are imparted with the requisite skills and sensitivities.