Corporate social responsibility as a means of gaining competitiveness in the South African banking industry

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Date

2016

Authors

Manuhwa, Clarence Nyikadzino

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Abstract

Over time, the concept of corporate social responsibility has gained momentum. The main reason for this is that companies are now embracing the fact that their operations, either directly and/or indirectly, affect the communities and environments in which they operate. As a result, companies, particularly those in the South African banking industry, are increasing their spending on social and environmental developments. Interestingly, it is unclear if such exuberant spending, particularly by the South African banking industry, is providing a win-win situation for both the banking industry and society. Against this backdrop, the purpose of this study was to analyse the extent to which CSR was utilised to enhance competitiveness in the South African banking industry. A qualitative content analysis was conducted on publicly available CSR secondary data on the big four banks, namely FirstRand, Standard Bank, Barclays Africa and Nedbank. Interviews as a source of primary data were not carried out because the banks had reservations about sharing information in interviews. The banks’ sustainability and annual reports were the main sources of information. The literature on CSR and competiveness clearly underlines the importance of integrating CSR into the core business operations of a company if CSR is to yield a win-win situation for both business and society. This win-win situation is what enhances competitiveness in the form of attraction and retention of exceptional employees, innovative social products and services, and improvement in reputation within society. The research findings do show that all four banks were involved in varied CSR activities, however, Nedbank and Standard Bank performed better than FirstRand and Barclays Africa in terms of the enhancement of competitiveness through their CSR activities. This was achieved through the efficient alignment of their CSR strategy with their core business operations. Therefore, the key message is that companies need to strive to align their CSR strategy with their core business operations if they are to enhance their competiveness through their CSR initiatives.

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MBA

Keywords

Social responsibility of business -- South Africa. Bank management -- South Africa.

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