Corporate Social Responsibility by banks
As banks in the world including banking in kenya, have continued to make super profits in these hard times, they have embraced corporate social responsibility (CSR)
Justification of Corporate social responsibility by banks
The banks through Corportate social responsibility are giving back to the community to improve the communities in which they operate. Corporate social responsibility is mandated in many countries for corporates.Banks have discovered that it is equally important for business growth apart from providing excellent customer service and even coming up with very innovative products. It has therefore usual to see in the media banks highlighting their Corporate Social Responsibilities undertaken during specific periods.
Options taken by banks as Corporate Social Responsibility
- Education Foundations for the less privileged yet bright students
- Provision of much needed water, either by funding drilling of boreholes in arid and semi arid areas or where communities have no access to clean water
- building of classrooms or schools facilities like libraries
- hold marathons to support eyesight and/or heart operations for the people who are unable to afford the same.
Benefits of Corporate Social Responsibility to the Bank
Even though Corporate Social Responsibility is seen as of great benefit to the communities the banks also benefit from it. Some of the benefits are listed below
- Loyalty by the existing customers due to corporate social responsibility. The existing customers are proud to be associated with the bank that is having a positive impact on the community and are likely to continue banking with them
- Corporate Social Responsibility helps a bank to attract new customers. This is especially true for members of the community targeted by the bank. The new accounts opened lead to business growth and new opportunities.
- Corporate Social Responsibilities boosts the morale of the existing employees as they are proud to be associated with such a bank. This pride in the employer increases employee productivity and reduces staff turnover resulting in reduced costs associated with hiring and training of new staff.
- Corporate Social Responsibilities also singles out the bank as an employer of choice as most potential employees look to them as their ideal employer therefore they are easily able to acquire the best skills in the market.
- Corporate Social Responsibility activities act as advertisement opportunities for the banks’ products. The products sold to the community are seen more than just bank products but as products that result to Corporate Social Responsibility
- Corporate Social Responsibilities helps in brand reinforcement among the populace. People generally easily associate such a bank and learnt to trust the bank viewing it as the one that cares for the welfare of the community.
Budgets must include the amounts that would be ploughed back to the community banks. Corporate Social Responsibility activities are important and cannot be ignored.