The Triple Bottom Line and Strategic Sourcing Decisions among Commercial Banks in Kenya

Abstract

The Triple Bottom Line is a concept that brings together three important dimensions: the economic; the social and the environmental. These three dimensions are important in addressing sustainability in business operations. This study aimed at establishing the relationship between TBL and strategic sourcing decisions among commercial banks in Kenya. The study also sought to establish the extent to which commercial banks in Kenya have adopted TBL in making strategic sourcing decisions. The study adopted a descriptive research design of cross sectional type where a census of all the 43 commercial banks was conducted. Data was successfully collected from 39 commercial banks through a questionnaire. The data was analyzed using descriptive statistics where percentages and frequencies were used to establish the extent of TBL adoption in making strategic sourcing decisions while regression analysis was used to establish the relationship between TBL and strategic sourcing. The findings indicate that most commercial banks in Kenya have adopted TBL in their strategic sourcing decisions to varying degrees. The areas where TBL application was evident include: management of suppliers; meeting customer needs; environmental conservation and community social responsibility. The study also encountered a few limitations such as uncooperative respondents who were unwilling to fill the questionnaires. Some respondents also feared filling the questionnaires due to the high degree of confidentiality that is required in banking.

Keywords: Triple Bottom Line, Strategic Sourcing, Sustainability