The Effect of Corporate Social Responsibility (CSR) on Brand Equity (BE) in Commercial Banks between Awash International Bank S.C and Commercial Bank of Ethiopia in Dire Dawa, Ethiopia

Abstract

The objectives of this study was to examine the effect of CSR on brand Equity in Commercial Banks particularly between Awash Bank and Commercial Bank of Ethiopia in Dire Dawa Multidimensional corporate social responsibility (philanthropic, ethical, legal, and economic) on brand equity (brand awareness, brand association, perceived quality, and brand loyalty)in the banking industry, specifically were investigated the case of Awash Bank branch and Commercial Bank of Ethiopia branch in Dire Dawa Districts. Descriptive and explanatory research design quantitative methods were used and also using non-probability sampling technique. This study was used quantitative data collection tools self-administered structured questionnaires for collecting information. Both primary and secondary data sources were used to satisfy both the general and specific objective of the study. The data collected were analyzed through both descriptive and inferential statistics. Inferential statistics such as such as independent-samples t-test and ordinal logistic (O logit) regression data analysis were used. The survey findings the bank managers should be considered, CSR activities can create a positive impact on a bank’s image, as perceived by its customers. Although three CSR components (Legal, Ethical and Economic domains) are found significant, they vary in terms of their importance by the banks’ customers. However, Philanthropic domain of CSR is not significantly influence on Brand Equity in commercial banks particularly Awash Bank and Commercial Bank of Ethiopia in Dire Dawa thus, need to realize and incorporate these activities into their corporate strategy if they want to obtain and sustain a good level of competitive advantage, it will create a positive influence on society engaging in charitable activities, donating to the society and protecting the environment. Keywords: Brand Equity, CSR, Economic, Ethical, Legal, Philanthropic, and Commercial Banks DOI: 10.7176/RJFA/13-7-04 Publication date: April 30 th 2022