Effect of Economic and Legal Corporate social Responsibility on Firm’s Competitive Advantage among Selected Banks in Nairobi County, Kenya
Keywords:
Competitive Advantage,, firm,, banks,, economic and legal responsibility.Abstract
Globalization and stiff competition among industry players has resulted in a remarkable change in the way businesses run and operate, with the quest for excellence and all-round growth key objective of firms. Corporate Social Responsibility (CSR) has emerged as a view that can add to competitive advantage of a firm and suggests that corporate decision –making must take care of a range of social and environmental affairs in order to maximize long-term financial returns. To survive in the industries, firms are always trying to create competitive advantage. However, banks today are facing a myriad of challenges such as high employee turnover, technology change, and bad reputation among others that have threatened their competitive positions. The main purpose of this study was to investigate the effect of corporate social responsibility on firm Competitive Advantage among selected banks in Kenya. The objectives that this study focused on were; to establish the effect of economic and legal responsibility on organizational competitive advantage. The study was informed by stakeholders Theory by Freeman (1984). Explanatory Research Design was adopted in the study. The target population was 848 employees withdrawn from 25 banks within Nairobi city center. Simple random sampling was used to select a sample size of 183 employees. Questionnaire was a tool for data collection. Factor analysis was used to test content validity. The study used correlation, descriptive and inferential statistics. The study adopted multiple regression analysis to analyze data. The major findings from this study revealed that economic responsibility and legal responsibility and have positive relationship to firm competitive advantage. The findings from this study may benefit scholars and futures researchers who may use the findings to find out suggested areas to be researched on or make a comparative study. The investors may also use the findings to ascertain the ideal corporate social responsibility models viable to be considered when investing various projects bank and enable them evaluate the capital appraisal and avoid being distorted by unviable projects.
References
Adeyemo, S. A., Oyebamiji, F. F., & Alimi, K. O. (2013). An evaluation of factors influencing corporate
social responsibili
ty in Nigerian manufacturing companies.
International Journal of Academic
Research in Economics and Man
agement Sciences
,
2
(6), 54.
Ashley, P. A. (2010).
Corporate social responsibility: a role only for business leaders?
. ISS.
Baporikar, N. (2015). Informat
ion strategy as enabler of competitive advantage.
Economics: Concepts,
Methodologies, Tools, and Applic
ations
, 599
-
610.
Baporikar, N. (2015). Information strategy as enabler of competitive advantage.
Economics: Concepts,
Methodologies, Tools, and Applicati
ons
, 599
-
610.
Baroto, M. B., Abdullah, M. M. B., & Wan, H. L. (2012). Hybrid strategy: A new strategy f
or competitive
advantage.
International Journal of Business and Management
,
7
(20), 120.
Brammer, S. J., & Pavelin, S. (2006). Corporate reputation and so
cial performance: The importance of fit.
Journal of management studies
,
43
(3), 435
-
455.
Callister, P. D
. (2005). Law's Box: Law, Jurisprudence and the Information Ecosphere.
UMKC L. Rev.
,
74
,
263.
Carmen, C., &
José, G. M. (2008). The role of technological
and organizational innovation in the relation
between market orientation and performance in cultural organizations.
European Journal of
innovation management
.
Carroll, A. B. (2016). Carroll’s pyramid of CSR: ta
king another look.
International journal of c
orporate
social responsibility
,
1
(1), 1
-
8.
Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of
concepts, research and practice.
International journal of ma
nagement reviews
,
12
(1), 85
-
105.
Chen, C. M.,
& Delmas, M. (2011). Measuring corporate social performance: An efficiency perspective.
Production and operations management
,
20
(6), 789
-
804.
de Graaf, F. J. (2016). CSR as value attunement within governance pr
ocesses: Stakeholder dialogue,
corporate prin
ciples and regulation.
Business and Society Review
,
121
(3), 365
-
390.
Fontaine, M. (2013). Corporate social responsibility and sustainability: the new bottom line?.
International
Journal of Business and Social Sc
ience
,
4
(4).
187
African Journal of Educat
ion, Science an
d Technology, May,
2021, Vol 6, No. 3
Fortis, Z., Maon, F., Frooman, J
., & Reiner, G. (2018). Unknown knowns and known unknowns: Framing
the role of organizational learning in corporate social responsibility development.
International
Journal of Management Reviews
,
20
(2), 277
-
300.
Gaurangkumar, B. C. (2015). Cost benefit ana
lysis of corporate social responsibility (CSR).
Advances in
Management
,
8
(5), 7.
Gloor, P. A. (2006).
Swarm creativity: Competitive advantage through collaborative innovation networks
.
Oxford University Press.
G
reening, D. W., & Turban, D. B. (2000). Corpo
rate social performance as a competitive advantage in
attracting a quality workforce.
Business & society
,
39
(3), 254
-
280.
Gunningham, N. (2009). Environment law, regulation and governance: Shifting architectures
.
Journal of
Environmental law
,
21
(2), 179
-
21
2.
Harmon, P. (2003).
Business process change: a manager's guide to improving, redesigning, and automating
processes
. Morgan Kaufmann.
Ioannou, I., &
Serafeim, G. (2010). The Impact of Corporate Social Responsibility on Investment
Recommendations. In
Acade
my of Management Proceedings
(Vol. 2010, No. 1, pp. 1
-
6). Briarcliff
Manor, NY 10510: Academy of Management.
Joppe, M. J. T. Q. R. V. (2000). The rese
arch process, as quoted in understanding reliability and validity in
qualitative research nahid golafshani
.
The Qualitative Report Volume
,
8
.
Kak, A., & Sushil, H. (2002). Sustainable competitive advantage with core competence: a review.
Global
Journal of
flexible systems management
,
3
(4), 23
-
38.
Kemp, D., Owen, J. R., & Van de Graaff, S. (2012). Corporate soc
ial responsibility, mining and “audit
culture”.
Journal of Cleaner Production
,
24
, 1
-
10.
Konar, S., & Cohen, M. A. (2001). Does the market value envir
onmental performance?.
Review of economics
and statistics
,
83
(2), 281
-
289.
Kostyuk, A., Kostyuk, H., Mozgh
ovyi, Y., & Kravchenko, Y. (2013). Corporate Social Responsibility index
for Ukrainian banks: The essentials for implementation.
Available at SSRN 254
2097
.
Latif, E. (2001). Apologetic justice: Evaluating apologies tailored toward legal solutions.
BUL Rev.
,
81
, 289.
Laursen, F. (2016). New Regionalisms Post
-
Economic Partnership Agreements: What Prospects for
Sustainable Development in Africa and the Car
ibbean?. In
Comparative Regional Integration
(pp.
215
-
234). Routledge.
List, C., & Pettit, P. (2002). Aggr
egating sets of judgments: An impossibility result.
Economics &
Philosophy
,
18
(1), 89
-
110.
McShane, L., & Cunningham, P. (2012). To thine own self be
true? Employees’ judgments of the
authenticity of their organization’s corporate social responsibility pro
gram.
Journal of business
ethics
,
108
(1), 81
-
100.
Morroni, M. (2006).
Knowledge, Scale and Transactions in the Theory of the Firm
. Cambridge University
Press.
Newell, P., & Frynas, J. G. (2007). Beyond CSR? Business, poverty and social justice: an introduc
tion.
Third
world quarterly
,
28
(4), 669
-
681.
Nishandar, V. V. (2015).
Corporate social responsibility
-
the way ahead.
The business & management review
,
5
(4), 127.
Powell, T. C. (2001). Competitive advantage: logical and philosophical considerations.
Strateg
ic
management journal
,
22
(9), 875
-
888.
Raza, A., Ilyas, M. I., Rauf, R
., & Qamar, R. (2012). Relationship between corporate social responsibility
(CSR) and corporate financial performance (CFP): Literature review approach.
Elixir Financial
Management
,
46
(9
), 8404
-
8409.
Sen, S., & Bhattacharya, C. B. (2001). Does doing good a
lways lead to doing better? Consumer reactions to
corporate social responsibility.
Journal of marketing Research
,
38
(2), 225
-
243.
Voss, G. B., & Voss, Z. G. (2013). Strategic ambidexteri
ty in small and medium
-
sized enterprises:
Implementing exploration and
exploitation in product and market domains.
Organization Science
,
24
(5), 1459
-
1477.
Wang, Q., Dou, J., & Jia, S. (2016). A meta
-
analytic review of corporate social responsibility and co
rporate
financial performance: The moderating effect of contextual fac
tors.
Business & Society
,
55
(8),
1083
-
1121.
Wood, D. J. (2010). Measuring corporate social performance: A review.
International journal of
management reviews
,
12
(1), 50
-
84
