Drivers for Participation in Corporate Social Responsibility by Commercial Banks in Kenya

Abstract

Purpose: The study sought to analyze the drivers for participation in corporate social responsibility by commercial banks in Kenya. The study was guided by the following specific objectives: to determine the factors influencing participation in corporate social responsibility by commercial banks in Kenya; to analyze the drivers for participation in corporate social responsibility by commercial banks in Kenya; to evaluate the specific CSR activities undertaken by the commercial banks in Kenya; to assess the business case for corporate social responsibility in commercial banks in Kenya; and to examine the possible recommendations that could be employed by commercial banks to enhance effectiveness of the CSR activities they undertake. Methodology: A descriptive survey was undertaken, focusing on all the commercial banks registered and licensed to undertake commercial banking business in Kenya, whose number stood at 45 as at December, 2008. The respondent from each of the commercial banks was the Chief Executive Officer. A representative sample of 27 commercial banks, representing about 60 per cent of the whole population was selected to participate in the study. Primary data was collected with the aid of a semi-structured questionnaire that was administered by hand delivery. Data pertaining to the profile of respondents was analyzed by employing content analysis while data pertaining to the objectives of the study was analyzed by employing descriptive statistics. Statistical Package for Social Sciences was used in the analysis. Computation of frequencies in tables, charts and bar graphs, mean scores and standard deviations were used in data presentation. Findings: The key findings of the study indicate that the factors influencing participation in corporate social responsibility by commercial banks in Kenya can be categorized into four - economic factors, legal factor, ethical factors and philanthropic factors.

Keywords: Corporate social responsibility; Commercial banks.