The Effect of Corporate Social Responsibility on Corporate Image in the Banking Industry: The Case of Selected Private Banks in Ethiopia
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Date
2023-06-08
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A.A.U
Abstract
In today’s customer-driven world, where customer trust is everything, CSR, is a significant deal for financial organizations. A bank’s corporate social responsibility program creates opportunities to think ahead of profit maximization and allows benefiting of its respective stakeholders. The aim of this study is to examine the effect of CSR on corporate image in selected private banks in Ethiopia, namely Dashen, Cooperative Bank of Oromia and Berhan Banks. The study employed stratified sampling method to select these three banks among 29 private banks operating in the country. The target population consist 3,932 permanent clerical employees working in head office departments of the selected banks. Samples of 350 employees were selected using simple random sampling technique. The study employed standardized, scholarly tested and valid questionnaires as an instrument for data collection. On the other hand to test the reliability of the instrument the Cronbach alpha test was used and all items found reliable. Descriptive and inferential statistics tools and tests like mean, standard deviation, Pearson correlation and multiple linear regression analyses were used to examine the relationships and effects between CSR and corporate image. The responses of sample respondents were analyzed using SPSS version 26. The findings of the study revealed that community oriented, employee oriented, natural environment oriented, supplier oriented, customer oriented and shareholder oriented CSR dimensions have a positive and significant effect on corporate image of selected banks measured by variables like products and services, trust, social expectation and corporate personality. The study recommends that banks should aggressively engage on and frame their CSR activities in a way that can best address the interests of their stakeholders, by doing so they can ultimately improve their corporate image.
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CSR, community oriented, employee oriented, natural environment oriented, shareholder oriented, customer oriented and shareholder oriented, corporate image