Factors influencing the practice of Corporate social responsibility by standard Chartered bank in Kenya

Abstract

In recent times, there has been an evident tremendous growth in the adoption of Corporate Social Responsibility (CSR). This growth shows that CSR proliferates on the boardroom agenda across many sectors and thus proves that modern corporations understand the need to give to their business a more holistic sense in order to ensure their viability. In the context of international organizations operating in diverse host countries, the objective of this study was to determine factors that influence the practice of CSR in Standard Chartered Bank-Kenya. Data was collected by use of an interview guide from 61 senior managers, middle level managers and staff working directly in the corporate affairs department. Descriptive statistics was used in analyzing primary data while secondary data was analyzed by use of content analysis. The findings indicate that the bank has various CSR activities ranging from health, education, environment and general community support strategies. Among factors that came out as influencing CSR in SCB included corporate strategy, accountability, enhancement of stakeholder relations, company integrity and stakeholder cooperation. However, among all these factors, stakeholders’ welfare and relations appeared to be favored by the respondents as a key influencing factor in the adoption and implementation of CSR. Based on the fact that profitability of the bank as a factor, despite being among those mentioned lacked a tangible evidential justification, the study among other recommendations, recommended further studies that would be able to draw a link of CSR and any measurable financial benefits for the bank.