The Effect of Corporate Social Responsibility on Brand Equity: The Case of Commercial Bank of Ethiopia
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Date
2018-10-16
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Addis Ababa University
Abstract
The purpose of this study was to test the effect of Corporate Social Responsibility (CSR) on Brand Equity of Commercial Bank of Ethiopia. Schwatr’s and Caroll’s (2003) three domains approach of CSR is used. Brand Equity is viewed based on most commonly cited model of Aaker’s (1996). Both descriptive and linear multiple regression analysis used to evaluate the relationship between (dependent variable) brand equity against with the independent variables (CSR domains of Ethical Domain, Legal Domain and Economic Domain). The research design was quantitative and to reach at the final sample unite from a population of about 15.9 Million customers of CBE multi-stage sampling method was employed. The analysis is made in support of SPSS version 21 statistical software. Descriptive statistics and multiple linear regression analysis method is used.
The researcher has selected samples of 384 from the total population of Commercial Bank of Ethiopia customers focusing on four district offices located in Addis Ababa city and collected the primary data from these respondents using questionnaire. The findings of this study show that all three domains of Corporate Social Responsibility have significant and positive effect on Brand Equity of Commercial Bank of Ethiopia. The study further revel that, the R-square value is 0.59, which means 59% of the variation in Brand Equity of Commercial Bank of Ethiopia, is explained by the explanatory variables namely Ethical domain of CSR, Legal domain of CSR and Economic domain of CSR, the overall Corporate Social Responsibility three domains. Therefore, CSR activities have positive effect on brand equity. This helps the bank to retain customers and attract prospective customers, and this leads the bank to be more profitable and sustain on gaining competitive advantage in the banking industry by not ignoring the wellbeing of the society
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Corporate Social Responsibility, Ethical domain of Corporate Social Responsibility, Brand Equity