Assessment of the Impact of Corporate Social Responsibility on the Performance Of A Financial Organization;

Abstract

The study sought to assess the impact of corporate social responsibility on the performance of an organization; a case of CRDB Bank. The study was guided by three specific objectives which were, to examine factors affecting the effectiveness of corporate social responsibility in an organization, to analyse the relationship between corporate social responsibility and organization performance in an organization, to determine the role of corporate social responsibility in ensuring fair payment and ethical employee treatment in an organization. The study was anchored on the Utilitarian theories, Managerial theories, Shareholder Value theory and the Relational theory. The study employed mixed approach. This study employed a case study design. Simple random sampling and purposive sampling was used in selecting the 79 respondents of this research. In this study, primary data was collected using both structured research close ended and open ended questionnaires. Also, secondary data was collected from the bank’s financial statements, periodicals and magazines. The quantitative data analysis was done using Statistical Package for the Social Sciences (SPSS), while the qualitative data was analysed through coding, editing and tabulation. The data was analysed by use of descriptive and inferential statistics to summarize and relate the variables that was collected from administered questionnaires. Findings revealed that the CRDB bank do well in serving community through its social corporate social responsibility initiatives, they also do assert that corporate social responsibility has a very significance effect on the company performance. The study recommends that corporate social responsibility initiatives offered by the bank should reflect behavior characteristics such as gender, age, education level of the stakeholders, the use of media and other advertising agencies in promoting the initiatives and projects as this will increase the awareness to both customers and employees.