Managerial attitudes toward business social responsibility: The case of bank managers in Nairobi.

Abstract

This study sought to answer four questions in relation to the business social responsibility concept. First, it sought to determine the extent to which top level managers in banks in Nairobi were aware of the basic dimensions of the business social responsibility concept. Secondly, it sought to determine the attitudes of managers toward the arguments for and against the concept. Thirdly, it sought to determine the relative importance of the social responsibility criteria as an indicator of organizational performance, from the bank managers' point of view. Fourthly, the study sought to determine some of the activities that constitute social responsibility in the banking industry and the obstacles to the implementation of the social responsibility policies and programs. The popUlation of interest included all commercial banks in Nairobi. The information sought in the study was collected using a structured questionnaire and personal interviews. Fifteen managers from various banks completed the questionnaires and five were interviewed.

Concerning the assue of managers' awareness of the social responsibility concept, it was found that the bank managers are well aware of some aspects of the concept. In relation to attitudes toward the arguments for and

against the concept of business social responsibility, it was found that the bank managers, in general, perceived the arguments in

favour of the concept to be more important (valid) than the arguments against it. In regard to the relative importance of social responsibility as an indicator of organisational performance, the category representing society (i.e the perceived importance of the firm's social responsibility to the society as an indicator of the firm's ove.raLl performance) was ranked very low (i. e seventh) among the seven indicator-categories of organisational performance. The category representing personnel (i. e the perceived importance of the firm's social responsibility to its workers as an indicator of the firm's overall performance) was

ranked fairly high (i. e third) among the seven

categories.

inidcator

As far as involvement in socially responsible activities is concerned, it was found that the banks are socially responsible to their employees (personnel) as well as to the larger society in various ways. The spectrum of activities constituting social responsibility in the banking industry was found to be quite wide. In regard to the problems of implementation of the concept, it was found that most managers will not implement social responsibility if it will adversely affect their profit performance. Managers also felt that they have to cut back on social responsibility issues in difficult economic times. In conclusion, it was deduced that the pursuance of high

profits through provision of competitive customer services, remains the single most important business goal as far as bank managers are concerned.