Corporate social responsibility as a means of gaining competitiveness in the South African banking industry
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.
Description
MBA
Keywords
Social responsibility of business -- South Africa. Bank management -- South Africa.