Influence of Corporate Social Responsibility on Customer Choice: A Survey of Selected Commercial Banks in Nairobi

Abstract

Corporate social responsibility (CSR) is defined as categories of economic, legal, ethical and discretionary activities of a business entity as adapted to contribute to the values and expectations of society (Joyner & Raibom, 2002).  CSR is also the continuing commitments by any business organization whereby they emphasize the ethical elements in their management and overall organizational structure (Richardson et al, 2003). At the same time, companies are responsible for national economic development by improving the quality of life of the whole workforce and their families as well (Abbott & Monsen, 2002).

Any corporation’s business goal is to provide value and incentive to its shareholders. Therefore, profit-oriented corporations or organizations are not a charitable organization although sometimes it is in their direct interest to support charitable activities. Furthermore, sometimes corporations or organizations carry out certain activities that governments should undertake, although they are not government agencies. It is beneficial for the corporations to carry out such socially responsible activities.  CSR is defined as categories of economic, legal, ethical and discretionary activities of a business entity as adapted to contribute to the values and expectations of society (Joyner & Raibom, 2002). CSR is also the continuing commitments by any business organization whereby they emphasize the ethical elements in their management and overall organizational structure (Richardson et al. 2003).  At the same time, companies are responsible for national economic development by improving the quality of life of the whole workforce and their families as well (Abbott & Monsen, 2002).

CSR involves various aspects such as economic factors, legal requirements, ethical orders and discretionary demands.  In this high-tech era, business environments are susceptible to changes in these factors.  In order to be a leading security service provider, each firm must be fully aware and sensitive to the impact of these factors.  The effect of these factors may add to the firm’s corporate image and financial performance. CSR actually portrays the image of the firm itself.  It shows what the company has done to fulfill its corporate duty to ensure the firm is not only good in providing the service but also plays its roles by contributing something to the community (Tilt, 2004).  In order to have a good relationship with the community, the firm should do something beneficial for the community.  Within the company itself, there is also a platform for social contribution especially to the employees.  Carroll (1999) argued that all the players in this industry compete on gaining a strong customer basis.  They work very hard to attract as many customers by adapting a comprehensive marketing strategy, offering valuable packages or schemes as well as high quality service.  As any other service oriented provider, all players need to maintain a high customer satisfaction level in order to ensure their survival in the industry (Coelho et al., 2003).