George Miriti Kubai
Jomo Kenyatta University of Agriculture and Technology, KENYA
Dr. Esther W. Waiganjo (PhD)
Jomo Kenyatta University of Agriculture and Technology, KENYA

CITATION: kubai, M. G. & Waiganjo, W.E (2014). Relationship between Strategic Corporate Social Responsibility and Competitive Advantage of Commercial Banks in Kenya: A Case Study of Equity Banks’ Wings to fly Program. European Journal of Business Management, 2 (1), 336-341.

ABSTRACT

Corporate social responsibility has become a critical component of organizations that wish to build a strong image of themselves towards the public as an aid to achieving their stated objectives or who merely want to give back to society the gains they make in business. This research wished to understand how strategic CSR activities can influence competitive advantage for organizations. The main objectives of the study were to understand how the various gains from CSR activities including brand management, customer perceptions, customer attraction and retention and empowerment of both beneficiaries and society at large influence sustained competitive advantage for companies. The information from this study might be helpful to Equity bank in its desire to remain a market leader as far as perceptions of society towards it remain positive due to the scholarship program. The study drew its literature and theories from marketing and strategic management research and authorities in the related disciplines. The research was descriptive and exploratory in nature since it sought to assess the variables of interest. It drew its populations from past and present students who have benefitted from the Wings to fly scholarship program. The study drew its participants from selected schools that have Equity scholars within Nairobi and Kajiado counties. The population was identified and selected purposively to cater for only those groups of populations that have experienced direct or indirect impact of the wings to fly program. The sample for this study was 293 respondents drawn from beneficiaries and corporate affairs staff at the bank. Interviews and questionnaires were the main data collection tools and were designed by the researcher. Qualitative data was analyzed manually using thematic summaries and interpretations. Quantitative data was summarized using descriptive and statistics and correlations and then inferences were drawn results. The data is presented in tables and paragraph form and also using descriptive summaries such as percentages, means and standard deviations. The study reveals that CSR has played a key role in influencing good customer perceptions especially among the beneficiaries and they display a great capacity to relate with the bank both now and in the future. The study also recommends that any company wishing to remain relevant has to consider those CSR activities that influence their standing in society and improve their image..

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