Drivers for Commercial Banks Investment In Corporate Social Responsibility In Nyeri Town, Kenya

Abstract

The purpose of this study was to assess the drivers of commercial banks investing in Corporate Social Responsibility in Nyeri town. The specific objectives addressed by this study were; to assess the extent to which philanthropy has influenced banks to invest in Corporate Social Responsibility (CSR); to analyze the level at which the desire to build a corporate image drives the banks to invest in CSR and finally to evaluate how investing in CSR has been used as a marketing strategy for the banks and their products. The literature review revealed that Corporate Social Responsibility is a fast growing area being embraced not only by banks but also by the other private and public corporate organisations. There was tangible evidence of work done for charity globally by the banks and other organisations in diverse areas like health, education and environment conservation. The research was conducted by administering questionnaires among bank managers who were purposively identified as the branch manager, operations manager, marketing manager and the public relations manager who were well informed about the intent and operations of the CSR in the bank. A survey was carried out and the data collected was coded using Statistical Package for Social Sciences (SPSS), analyzed through regression and correlation methods. The findings have been tabulated and explained in a descriptive form enhanced by frequency tables, figures and inferential statistics. Findings indicated that banks undertake CSR primarily to give back to the community who have assisted them be where they are. They have helped to alleviate very immediate problems affecting the community in their locality. In the process of assisting, they have used the opportunity to market their products and also promote the corporate image of the banks which have appeared as responsible corporate citizens .The researcher however noted the field is rich in study as the impacts of the CSR activities in the society need to be assessed. There is also need to analyze and determine whether there is a direct correlation between financial input of banks in CSR and the growth of banks in terms of customer base or capital growth.