Institutional factors influencing financial institutions uptake of corporate social responsibility in Kenya: a case of financial education programmes in Nairobi city county.

Abstract

Corporations across the globe understand that all their operations wield a certain effect to the society and the community from which they operate. In sectors such as oil and gas, drilling activities aimed to extract the raw material from the ground surface results in massive emission of toxic chemicals which destroy the surrounding environment. As such, many corporations undertake Corporate Social Responsibility (CSR) initiatives which are geared towards, giving back to the society. In the financial sector, players in the industry engage in numerous CSR initiatives, which include, offering bursaries, sponsoring sports and medical camps. However, there doesn’t exist a comprehensive guideline on the models through which CSR programs can be implemented. In addition, there is limited information on the contributing factors that influence players in the financial sector integrate CSR initiatives within their operational framework. The study focused on the implementation of financial education within Nairobi County. The study examined factors, notably; organization culture, corporate objectives, leadership style, marketing strategy and the influence they have on the uptake of CSR by commercial banks in Kenya. The target population for this study included all the active field employees attached to top 5 commercial banks in Kenya that have registered foundations which have actively participated in CSR initiatives for the past 3 years. The study will adopt descriptive statistics research methodology. The study established that organization culture forms a critical determinant for the uptake and subsequent success of corporate social responsibility initiatives by commercial banks. The study found that organization culture anchors the organizational value system in line with objectives to implement initiatives that gives back to the society. The study found that consideration and subsequent embrace of CSR initiatives is implemented is based on the organizations strategic operational goals. The study concludes that organization culture, corporate objectives, leadership strategy and marketing strategy wield a positive correlation with strategic commitment by commercial banks integrate strategic initiative like commercial social responsibility within its operational framework. The study recommends for the professionalization of the CSR programs and the institutionalization of the CSR projects.