Corporate Social Responsibility and Business Strategy at National Industrial Credit Bank in Kenya

Abstract

The banking sector is one of the most profitable industries in Kenya with the profits rising even in times of global economic turbulence. This has largely been attributed to the increased use of technology in its operations, expansion of the branch networks and innovations of new products that meet the evolving needs of the modern client. The increase in profitability has led to increased expectations by the society towards contributions made by the banking industry towards making it a better place annd hence the interest in banks’ corporate social responsibility (CSR) programmes. CSR has in itself evolved from being just an activity to give back to the society to a key source of competitive advantage for organizations that engage in the practice. National Industrial Credit (NIC) Bank is among the fourty three banks competing in the Kenyan market and is involved in CSR. The study set out to establish the CSR practices the bank engages in and also to find out if the activities are supportive of the bank’s strategic objective. The research design was a case study and both primary and secondary data were used in the accomplishment of the stated objectives.The study found out that NIC Bank participates in various CSR activities in various sectors though they have not been linked to the business strategy in the past. The study recommends that CSR in the bank should be linked to the business strategy in order to reap more benefits from the practice.