Perceived social responsibility and preference for a bank: a survey of Nairobi residents

Abstract

The social responsibility of business organizations is becoming and irrepressible issue. Probing questions are being raised from many quarters, and as business managers become even more prominent and are seen as powerful individuals, they cannot evade public insistence that they act in a socially responsible manner. Moreover, if company strategy is the overriding guide to company action - then the social impact of strategy must be confronted. The banking sector has not been left behind in its promotion of Corporate Social Responsibility - banks are increasingly engaging in social responsibility issues to help combat society's problems. This study sought to find out whether the banks perceived as most socially responsible are also the most preferred by Nairobi residents. To enable the study of these factors, the researcher randomly selected 60 Nairobi residents, mainly household heads, from various estates in the city. 30 respondents were required to complete 'Questionnaire a', which was on rating the banks according to one's preference, the other 30 respondents were required to complete 'Questionnaire b' which was on rating a bank according to the respondent's perception of the bank's engagement in social responsibility. The top seven banks, as quoted in 'Market Intelligence' magazine, July 2002, issue were used for the purpose of this research. The mean scores for the banks on both variables were plotted on a graph. The results showed that there is a match between preference for a bank and its engagement in social responsibility issues. The banks that scored high in involvement in social responsibility also scored high in preference. Our problem statement can then be answered by stating that from the research conducted, the banks perceived as most engaging in social responsibility issues are also the most preferred by Nairobi residents.