The Influence Of CSR On The Brand Image Among Kenya Commercial Banks

Abstract

Corporate social responsibility is described as creating financial success in methods that uphold ethical ideals and respect individuals, communities, and the environment. Performance of socially responsible corporations is linked to several benefits for the bottom line. First off, businesses that exercise social responsibility have better brands and reputations. Socially responsible businesses also encounter fewer unfavorable uncommon situations. Companies that are seen as having a strong commitment to CSR frequently have an improved capacity to recruit and retain personnel Effectively, it is being argued more and more that doing socially conscious corporate action is necessary to safeguard the bottom line and increase shareholder value by raising a brand's reputation. Therefore, there is a need to evaluate how such activities affect the brand image given the increased interest in Corporate Social Responsibility (CSR) in the banking industry. However, the Kenyan banking industry hasn't given this link any attention. Therefore, the study sought to ascertain how CSR affected brand perception from the perspectives of Kenya's listed commercial banks. The study was also based on the following specific objectives, to: explore the influence of corporate philanthropy on the brand image of Kenya commercial banks; establish the impact of corporate environmental protection on the brand image of Kenya commercial banks and find out the impact of community volunteering on the brand image of Kenya commercial banks. Attribution theory and the Triple Bottom Line Model (TBL) served as the foundation for this study. A descriptive study design was used by the researcher. The study focused on all Kenyan listed commercial banks. All 11 of the listed banks were chosen as the sample size for the study using a census sampling approach. The NSE provided the secondary data that were used in this investigation. Financial statements from the listed companies served as the data source. The Income statements and the Balance Sheets were among these. The study's foundational accounting ratios were calculated using the data. Multiple linear regressions and descriptive statistics were utilized in the study to analyze the data. According to the study's findings, the banks' ongoing CSR initiatives help to increase consumer identification of their brand and market trust since people want to do business with organizations that care about their communities. The study came to the further conclusion that listed commercial banks employ sustainable growth and financial performance to spur economic expansion and create wealth for shareholders. This is accomplished by maintaining brand awareness, increasing consumer loyalty, and encouraging staff participation for networking purposes. The report goes on to say that the wellbeing of society, the environment, and the economy are crucial for attaining sustainable development. All three depend on one another. As a result, the failure of one directly and negatively affects the success of the other two. Consequently, the health of business and society are closely linked. The environment, the economy, and society will all gain from being interconnected and investing in society.