Effects Of Corporate Social Responsibility On Financial Performance Of Commercial Banks In Kenya

Abstract

Corporate social responsibility (CSR) is a significant notion that is progressively being deliberated and adopted worldwide. Various stakeholders are demanding the incorporation of social activities in the organization’s daily practices. Some of the reasons why companies adopt CSR are; compliance with the law, to enhance a competitive advantage, others do it because it is the right thing to do for the society. This study thus sought to establish the effects of CSR activities on performance in financial terms of 42 commercial banks in Kenya with focus on economic social responsibility, discretional social responsibility and ethical social responsibility activities. A cross- sectional simple descriptive research design was used in this study. The study will exclusively used primary data by administering questionnaires to all the 42Commercial banks in Kenya. Financial performance was the dependent variable while economic, discretional and ethical social responsibility as the independent variables in the study.