Vol III Issue VIII, October 2017 ISSN 2412-0294
© Munyi, Mbugua 2344
http://www.ijssit.com
EFFECTS OF CORPORATE SOCIAL RESPONSIBILITY ON CUSTOMER
SATISFACTION OF COMMERCIAL BANKS IN KENYA
1*
Norah Munyi
norahmunyi@gmail.com
2**
Dr. Doris Mbugua
dvmbugua@jkuat.ac.ke
1* 2**
Jomo Kenyatta University of Agriculture and Technology.
Abstract
Corporate Social Responsibility has gained an
increasingly high profile in recent years. Due to the
increased competition with so many corporations
offering the same goods and services, consumers
can now make the buying decisions based on many
factors including how much good a business is
doing outside its premises. Companies in Kenya
pursue CSR by a way of improving the staff
welfare, implementing community development
programmes such as building schools,
dispensaries, drilling bore holes, funding sporting
activities, the establishment of scholarship funds
for needy children rehabilitation and maintenance
of roundabouts within Central Business District
among others. This study sought to find out the
effects of CSR on customer satisfaction of
commercial banks in Kenya, this being the general
variable. The specific objectives of the study were
to find out how, corporate philanthropy, staff
volunteerism and customers education influences
the customer satisfaction of commercial banks in
Kenya. The study was anchored on slack resource
theory, stakeholders’ theory, integrative social
contract theory and Good Management Theory to
explain the objectives. Descriptive research design
was employed and data was collected using a
questionnaire. The population of interest was the
43 registered commercial Banks in Kenya, where
the researcher visited the head offices for these
banks for data collection. Data was collected using
self-administered questionnaires. Data was
analysed using descriptive statistics with the help of
Statistical Package for Social Sciences (SPSS) IBM
2015 version. In addition linear regression model
was used to assist in the determination of the
relative importance of each of the four objectives
on the customer satisfaction of Commercial banks
in Kenya. The study concluded that corporate
philanthropy significantly and positively affects
customer satisfaction in commercial banks in
Kenya. In relation to staff volunteerism, the study
found that they exist a significantly positive
relationship between staff volunteerism and
customer satisfaction in commercial banks in
Kenya. From the findings, the study also concluded
that education significantly and positively affects
customer satisfaction in commercial banks in
Kenya. The study recommends that the investments
in corporate philanthropy should enhance brand
reputation of the company. Furthermore, the study