Empirical Analysis on the Influence of Stakeholders' Medical Financing on Corporate Performance

Corporate social responsibility activities have environmental, economic and social contribution on a society. The challenge for the firms is to establish to what extend do CSR activities on internal stakeholders' impact on the performance. This study is on influence of CSR activities on the firm performance of Kenya Commercial Bank in Kenya. The objective of the research study is to determine the effects of CSR activities on internal stakeholders of KCB on firm performance. The study was steered by the following research objectives: to examine the influence of medical financing for internal stakeholders on firm performance, to assess the influence of education financing for internal stakeholders on firm performance and to establish the influence of benevolent assistance for internal stakeholders on firm performance. The study was guided by four theories which have been classified as: instrumental, political, integrative and ethical. The premise of the theories is that corporations, in their efforts to prosper, should take into account not only the needs of shareholders, but also the needs of a wide variety of stakeholders, thus having a multi-stakeholder perspective. The research was conducted through a case study research design which involved interviewing KCB employees and managers. The study targeted the employees and managers of KCB based in their head office. The sample size was 309employees of Kenya Commercial Bank. Stratified sampling was used to classify the respondents. For the top management and the middle level management, purposive sampling was employed. The study then used simple random sampling to pick other employees. The collected data was analyzed with the help of SPSS version 23.0 to generate descriptive statistics in frequencies, means and percentages. The findings indicated that majority (86 %) of the respondent strongly agreed that the medical financing given to their dependants was satisfactory,(88 %) of the respondent strongly agreed that the employer provides sufficient access to personal growth through educational financing and majority (86 %) of the respondents strongly agreed that they were satisfied with the benevolent support which the employer gives a bereaved employee. Based on the findings, it was concluded that medical financing, education financing and benevolent financing influence the performance of the firm. It is conclusive thus that the bank should strive to provide such things to its employees. The researcher made the following recommendations:The bank should come up with better medical scheme for its employees, it should train its employees regularly and the bereaved employees and those with other related problems should be assisted by the bank.