Abstract:
This study was about the Corporate Social Responsibility and Customer Loyalty of Micro
Finance institutions in Uganda: A case study of BRAC bank Uganda limited and it was
guided by the following objectives: To find out whether BRAC bank Uganda limited
environmental friendliness promotes customer loyalty, to examine the contribution of
community support to customer loyalty and to find out whether treating employees fairly
promotes customer loyalty.
The study used a cross sectional study design, and this was because the researcher wanted to
gather data once over a period of time in order to answer the research questions. The study
population was 85 with a sample size of 70 respondents which was determined using the
solven’s formula but only 50 were filled and returned. Simple random, purposive and census
sampling techniques were used to select the sample. Self-administered questionnaire and the
interview guide were the main data collection instrument.
The study revealed that environmental friendliness contributes to customer loyalty in the
following ways: encouraging customer associations with the company, making customers feel
part of the company’s operations and encourage close interaction between customers and
employees. The study also found that community support contributes to customer loyalty by
building goodwill with support products, encouraging customer patronization and relating
customers’ value with the company’s value. However, the study revealed that community
support does not promote price evaluation and the study discovered that treating employees
fairly contributes to customer Loyalty by promoting customer satisfaction and making
employees work hard towards customer loyalty. However, the study revealed that treating
employees fairly does not provide betterment of customers neither fulfilling both company
and customers’ objectives.
The study concluded that, corporate social responsibility contributes up to 56.3% to customer
loyalty in BRAC bank Uganda limited. This means the remaining percentage (43.7%) is
contributed by other factors.
The study recommended that, management of BRAC bank Uganda limited should get ways
of promoting price evaluation since community support has failed to contribute 100% to
customer loyalty. Management of BRAC bank Uganda limited should strengthen its
environment such as inviting suggestions from the community, getting more lines of
customer care, extending customer care services closer to the community. And there is need
for the management to come up with strategies that fulfills both company and customer
objectives and this can be done by consulting customers before company strategies are
formulated. The study also came up with areas of further study which include:
Corporate social responsibility and performance of BRAC bank Uganda limited Uganda.
Corporate social strategies and the growth of Miro Finance industry in Uganda.
The effect of corporate social responsibilities to the organizational effectiveness
Description:
A Dissertation Submitted to the School of Business Administration in Partial Fulfillment of the Requirements for the Award of a Degree of Master of Business Administration (Management) of Nkumba University, Entebbe, Uganda