Effect of Internal Corporate Social Responsibility on Firm Financial Performance : Evidence from Kenya Commercial Bank

This study investigated the effect of internal corporate social responsibilities on financial performance in Kenya commercial bank. The study was guided by social exchange theory. The explanatory research design was used to find cause effect relationship. The study's target population was 283 employees from 3 branches of Kenya Commercial Bank in Uasin Gishu County in Kenya. Stratified and random sampling technique was used to select a sample size of 165. Primary data was collected using structured questionnaire and interviews schedule. Data was analyzed using descriptive statistics such as measures of central tendency and inferential statistics such as Pearson correlation and multiple regression models. Multiple regression model was used to test the hypotheses. The study showed that employee welfare (β1 = 0.172, s.e (β1) =0.041, ρ=0.000) and equity (β2 = 0.097, s.e (β1) =0.043, ρ=0.026) had significant effect on financial performance of firm, thus, internal CSR practices enhance firm financial performance. Therefore, the study recommends that firms should encourage and promote employee welfare so that employees have the gusto to perform tasks and renewed energy. Moreover, equity should be implemented fully