Investment in Corporate Social Responsibility and Sustained Growth in Commercial Banks in Kenya

Abstract

The study provides a test of the relationship between investment in Corporate Social Responsibility and sustained growth of commercial banks in Nairobi County- Kenya. The study used the Regression analysis technique to estimate the coefficients α,and β, in the function; Y= α + β X where Y was the sustained growth indicator and X was amount funds spent in CSR. The predictive simple regression model was subjected to a sample of 13 commercial banks over a period of five years (2006-2010). The study revealed that 11.0% of banks’ sustained growth can be explained by investing in CSR activities. This implies that there exists a positive relationship between investment in CSR and banks’ sustained growth. It was evident from the study that banks’ management can use investment in CSR activities to create a platform for improvement on their brand value, promotion and enhance social insurance. The study used a cross sectional survey design.