Stakeholder perception and corporate social responsibility activities in the banking sector: a case study of Stanbic Bank Uganda Limited

Abstract

The study investigated stakeholder perception and corporate social responsibility activities in commercial banks, with specific reference to Stanbic Bank Uganda. The specific focus was on stakeholder attitude towards CSR activities, stakeholder perceived benefits of CSR activities and stakeholder perceived motives of CSR activities. A case study research design was used with qualitative and quantitative research approaches. Accordingly, data was collected from six key stakeholder clusters with a total population (N) of 180 individuals and a stratified sample of 130 participants was drawn from this population for the research. The final data collection yielded 82 total responses from respondents, resulting in an overall response rate of 70%. This response rate (70%) includes the 9 key informant interviews that were also conducted. Data was analysed using Pearson’s Correlation Coefficient and linear regression analysis. The findings revealed positive correlations between stakeholder perception and CSR activities of the bank. Specifically, stakeholder attitude (r = 0.429, p < 0.01); stakeholder perceived benefits (r = 0.811, p < 0.01); and stakeholder perceived motives (r = 0.807, p < 0.01), all showed a positive association with the bank’s CSR activities. Regression results also indicated that stakeholder attitude (β = 0.135, P<0.05), stakeholder perceived benefits (β = 0.418, P<0.01), and stakeholder perceived motives (β = 0.399, P<0.05), significantly influence CSR activities and combined, account for 70.8% of the variation in CSR activities at Stanbic bank Uganda limited (Adj R2 = 0.708). In conclusion, the study emphasized the importance of stakeholder perception in shaping the CSR activities of the bank. To improve stakeholder perception of CSR activities, it is recommended that banks should: provide detailed information to stakeholders about their CSR goals, activities, and the impact they are making to the society; make use of compelling stories to illustrate the impact of CSR initiatives to the stakeholders; establish meaningful stakeholder engagements in the planning and implementation of CSR activities; build trust and credibility; and prioritize CSR initiatives that have a tangible and positive impact on stakeholders and society.