Effects of Internal Corporate Social Responsibility Practices On Employee Job Satisfaction: Evidence from Commercial Banks In Kenya

Abstract

The importance of Internal corporate social responsibility (CSR) has become an important issue for banks to address, however, these issues have been neglected and do not appear to have the desired impact on all employees as expected by the management. Therefore this study intended to determine the effects of internal CSR practices on employee job satisfaction among the commercial Banks in Kenya. The study was to ascertain the effect of workplace health and safety conditions, work life balance, pay and benefits, and equality and diversity, on employee job satisfaction. The study was guided by Social exchange theory, the theory of planned behavior and Stakeholder theory. Explanatory research design was used. The study targeted 283 employees from 17 Commercial Banks in Uasin-Gishu (Kenya Commercial Bank data base, 2013). Stratified and random sampling technique was used to obtain sample size of 165 employees. The study used questionnaires as a tool for data collection. In order to test the reliability of the instrument, Crobanch alpha test was used. The study adopted both descriptive statistics and inferential statistics such as Pearson correlation and multiple regression analysis to estimate the causal relationships between internal CSR and employee job satisfaction, and other chosen variables. Study findings indicate that workplace health and safety, pay and benefit, equality and diversity, and work-life balance has a positive and significant effect on employee job satisfaction. Thus, the study concluded that pay and benefits are motivating factor to employees’ job satisfaction, fair treatment of workers in accordance with their individual needs and circumstances in the workplace contributes to employee job satisfaction. Therefore the study recommends that organizations should include the development of health management policies to implement health practices as a way of improving employee health. There should be diversity training programs with compulsory participation for all employees and offer equal opportunities for employees in terms of promotion and also education scholarships. There is also need for the organization to provide allowances for employees on participation of social responsibility