Corporate Social Responsibility and Brand Image in Banking Industry; a Case of Kenya Commercial Bank Ltd

Abstract

Corporate social responsibility is a concept born of the premise that both for profit and not for profit organizations have various stakeholders whose different interests are affected one way or the other by an organization's goals, operations or the behavior of its members. Corporate Social Responsibility in the banking sector is becoming a well established notion in the service industry and financial institutions are coming round to the idea that there is more to invest than just to focus on the figures. This study was carried out to determine the role played by CSR in brand image in Kenya Commercial Bank. To KCB, the findings of the study will be important to the bank's senior management as well as its middle level management in their day to day decision making and enable managers of corporate companies to gain a better understanding of the role of CSR in brand management. Interview guides were the primary method of data collection. The data collected was first coded, followed by data entry and analysis. Content analysis was used to make numerical comparisons among and within the collected information. Findings revealed that engaging in CSR not only fulfills the duty of providing for the needy in our societies but also promotes the image of a company. The study findings also revealed that engaging in CSR is not only beneficial to KCB' s stakeholders in terms of improvements in levels of education, better health, conservation of the environment entrepreneurship opportunities and aid to avert natural calamities but also to the Bank with regards to brand loyalty which translates to new business and the retention of existing business. Such an issue can be addressed as matter of policy through publicizing of CSR activities and establishment of critical linkages and relations with the media as well as increased community involvement in CSR activities. CSR is not about free goodies. It is an effort by organizations to deploy their resources in a way that helps the organizations build a mutually productive and sustainable business relationship between them and the communities with which they do business. If well implemented, CSR is a win-win initiative for both the organization and the CSR beneficiaries. This information can be utilized by KCB as a means of creating new interventions as a matter of policy in such areas.