A Cost benefit analysis of the extent of Corporate Social Responsibility participation by Kenyan commercial banks

Abstract

This study provided the test of the relation between the extent of the CSR participation by commercial banks and the type of CSR activity, the cost and the benefits derived from the undertaking. Many institutions have of late come to appreciate the importance of integrating Corporate Social Responsibility (CSR) in their operations. CSR may be defined basically as a means that corporates indulge as giving back to the society that they operate in. The main objectives of this research was to assess the effect of the different types of CSR activities, costs and benefits of CSR participation and the extent of participation by commercial banks in Kenya. The research design used was a descriptive and cross-sectional survey. The researcher depended on primary sources of data mainly through the use of a questionnaire to commercial banks in Kenya. This data was then statistically studied using multiple regression analysis. The population used was 42 commercial banks and a sample of 30 banks was used to conduct the study. The results depicted a strong correlation between the dependent (participation in CSR) and independent variables (types, cost and benefits of CSR). Additionally, the benefits, cost and type of CSR have a direct relationship with the firm's CSR participation.