Critical Investigation: CSR's Role in Enhancing Brand Image (Banking)

This dissertation critically investigates how Corporate Social Responsibility (CSR) can enhance brand image within the banking sector, using NRB Bank in Bangladesh as a case study. The research explores the background of CSR, the banking industry in Bangladesh, and NRB Bank's profile. It identifies the research aims, objectives, and questions, including the challenges faced by NRB Bank in implementing CSR, the benefits derived from CSR activities, and the impact of CSR on brand image. The literature review covers CSR, brand image, stakeholder theory, and various brand equity models. The methodology outlines the research philosophy, approach, design, method, strategy, data collection and analysis techniques. The data analysis section presents the results and findings, followed by conclusions, recommendations, limitations, and suggestions for further research. The dissertation aims to provide insights into how CSR can be effectively utilized to enhance brand image and gain a competitive advantage in the banking sector.

Dissertation

Table of Contents
CHAPTER 1: INTRODUCTION ...................................................................................................5
1.1 Background of the study...................................................................................................5
1.2 Purpose of study...............................................................................................................5
1.3 Statement of problem.......................................................................................................6
1.4 Background of industry....................................................................................................6
1.5 Background of the company.............................................................................................7
1.6 Research Aims and Objectives.........................................................................................7
1.7 Research Question............................................................................................................8
Hypothesis..............................................................................................................................8
1.8 Chapter Preview...............................................................................................................8
LITERATURE REVIEW................................................................................................................9
2.1 CSR...................................................................................................................................9
2.2 Brand image....................................................................................................................10
Impact of CSR on brand image of company........................................................................11
Carroll's CSR Pyramid.....................................................................................................12
Traditional Conflict Model:.............................................................................................15
Added Value Model: .......................................................................................................16
Multiple Goals Model:.....................................................................................................17
Stakeholder theory ..........................................................................................................17
Keller's brand equity model.............................................................................................19
Aakers brand equity model .............................................................................................22
Brandz Model:.................................................................................................................24
TRIPLE BOTTOM LINE................................................................................................25
RESEARCH METHODOLOGY...................................................................................................28
3.1 Research Philosophy......................................................................................................28
3.2 Research Approach.........................................................................................................28
3.3 Research Design.............................................................................................................29
3.4 Research Method............................................................................................................29
3.5 Research Strategy...........................................................................................................30

3.6 Data collection Method..................................................................................................30
3.7 Sampling technique and size..........................................................................................31
3.8 Data Analysis..................................................................................................................31
3.9 Time Horizon..................................................................................................................31
DATA ANALYSIS........................................................................................................................32
4.1 Questionnaire..................................................................................................................32
RESULTS.............................................................................................................................33
Data Interpretation................................................................................................................50
4.2 Research Instruments......................................................................................................59
CONCLUSION..............................................................................................................................60
5.1 Reliability And Validity.................................................................................................60
5.2 Ethical considerations.....................................................................................................60
5.3 Limitations of the research.............................................................................................60
5.4 Scope for further research..............................................................................................61
5.5 Timeline..........................................................................................................................61
REFERENCES..............................................................................................................................62
Carroll's CSR Pyramid.....................................................................................................62
Traditional Conflict Model..............................................................................................63
Added Value Model.........................................................................................................64
Multiple Goals Model......................................................................................................65
Stakeholder theory ..........................................................................................................65
Keller's brand equity model.............................................................................................66
Aakers brand equity model .............................................................................................67
Brandz Model..................................................................................................................68
TRIPLE BOTTOM LINE................................................................................................69

Research Title: ”Critical Investigation on How CSR can enhance Brand Image in Banking
sector”.
CHAPTER 1: INTRODUCTION
1.1 Background of the study
Corporate Social Responsibility is seen as the broad concept which clearly reflects
integration of environmental as well as social concern in business activities. In other words, it
can be said that corporate social responsibility is the efforts of a company which is placed to
contribute their proportion for societal development in positive manner. In modern businesses
world, business organisations are using CSR activities for enhancing their brand image among
customers (Crowther and Seifi, 2018). It also improve sustainability of company at marketplace.
In addition to this, it has also been analysed that CSR activities are directly contributing in
placing positive impact over society. Furthermore, it can be said that indulging into CSR
activities also helps company in enhancing their brand image among customers, other business
holders, government of operating country and other related places which will definitely provide
various benefit to them. This present dissertation will deeply evaluate that how CSR activities
will help NRB bank in improving its brand image in Banking sector.
1.2 Purpose of study
The main purpose of this research is to enhance knowledge of NRB bank on CSR
activities so that they can use it for improving or enhancing its brand image at marketplace.
Another, purpose of the NRB bank is to gain competitive advantage at market place by using
CSR activity (Hopkins 2016). In context to researcher, it can be said that this research will also
improve knowledge of researcher about the chosen company and its operations which will
eventually help them in working effectively with the similar company in future. In addition to
this, another purpose of researcher is to enhance their professional as well as personal skills that
will contribute in conducting more better research in future. The research will also open up
numerous of options for NRB bank by which they can grab opportunity which are available at
market place. By adopting these opportunities, NRB bank can maximise sustainability of
company and also raise its profitability ratio.

1.3 Statement of problem
NRB bank is serving its banking services in Bangladesh. It has been realised by the bank
that competition in Bangladesh within banking sector is very dense. Thus, it is core requirement
of NRB bank to focus on building up its brand image in front of customers as well as
government so that they can sustain longer at market place. On the basis of this, it has been
identified by its management team that CSR activities are one among the best way which helps
every company in enhancing its brand image among the customers and other related person.
Therefore, with the help of this research, NRB bank will enhance its knowledge on CSR
activities. This also provide guidance to the NRB bank that how they can use CSR activities for
improving their brand image at market place. Along with this, it will also suggest company about
best feasible CSR activities that can be easily used by NRB bank (Tingchi, 2014).
1.4 Background of industry
In Bangladesh, the first bank naming Dacca Bank was established in 1846. It was not
very successful in making profits so it was purchased by Bay of Bengal in 1862. After the
independence of Bangladesh, banking sector started its journey with six nationalised
commercialised banks, nine foreign banks and three state owned specialised banks. Banking
sector attained a significant expansion by the entrance of privatise banks. There are two types of
banks in Bangladesh i.e. scheduled and non scheduled banks. Scheduled banks are those banks
which were maintained by the Bangladesh bank order (Khojastehpour and Johns, 2014). On the
other hand, Non scheduled banks are those banks which are established for a specific or definite
objective. These banks cannot perform all functions of a schedule bank. In Bangladesh, there are
around 59 schedule banks which operates under guidance of Bangladesh bank. Scheduled banks
are divided into different banks such as specialised banks, state owned commercial banks,
private commercial banks, conventional private commercial banks, Islami Shariah based PCB
and Foreign commercial banks. In addition to this, Non bank financial institution are those which
are governed under Financial Institutional act, 1993. These are controlled by Bangladesh Bank.
These are not able to issue pay orders, cheques or demand drafts. They conduct various business
operations like bridge financing, lease financing, syndicated financing, private placement of
equity etc.

1.5 Background of the company
NRB bank is also known as Migrants sponsored Banking system. It is a new banking
structure in which initial capital is given by non-resident Nationalists. This bank has many
objectives and lending-deposit functions. The main objective of this bank is to limit their
dependency on International financial institutions for external financing. NRB bank Ltd.
Provides a wide variety of services and products for retail, corporate and Small medium
enterprise. The vision of this bank is to become a leading financial institution to invest money for
Bangladesh corporates and individuals and reach international markets (VISION, MISSION &
VALUES, 2019). NRB Bank's mission is to become best financial services provider of
Bangladesh. They aim to strengthen relationships by giving correct solutions that connects
expertise, professionalism and financial strength. NRB bankers are reliable financial advisors
who find ways in expanding their business globally (Fatma and Rahman, 2016). NRB bank
foster ideas to improve their performance and be competitive in market. NRB Bank is working
towards building it's brand image in front of customers and stakeholders. They are investing in
Corporate social responsibility activities, educational programmes, Natural disaster and
calamities management for helping people and in this way they are able to enhance their
reputation and image as well.
1.6 Research Aims and Objectives
Research aims and objectives are formulated by researcher which guides them as well as
their team member to complete the same research in right direction. Research aim is considered
as broad statement which specifies actual motive of the research. It simply emphasises that what
is going to be done for what purpose (Van Manen, 2016). Whereas, research objective divides
prepared aim into sub topics and focuses on ways through which prepared aims can be achieved.
Research objectives are required to be feasible and accurate so that desired outcome can be
attained. In context to present dissertation for NRB Bank, research aim for this have been stated
as below:
Research Aim
The chosen aim for present research is “To Critically Investigate How CSR can enhance
Brand Image in Banking sector. - A study on NRB Bank, Bangladesh.”
Research Objective:
 To identify different challenges that are faced by NRB bank while implementing CSR.

 To determine various benefits that are gained by NRB Bank through its CSR activities.
To examine how CSR activities have improved the brand image of NRB Bank.
1.7 Research Question
Research questions are considered as the essential part of overall research project which
provide guidance to researcher to conduct this research in right direction by evaluating its each
and every aspect (Wildemuth, 2016). Research questions are basically formulated on the basis of
research objectives. It is basically a first active step of every research project that helps in
attaining desired outcome of the study.
 What the challenges NRB bank is facing on implementing CSR?
 What are the benefits that NRB Bank is getting through CSR activities?
 Does CSR activities have improved the brand image of NRB Bank?
Hypothesis
H1: Does CSR activities have improved the brand image of NRB Bank?
H0: Does CSR activities have declined the brand image of NRB Bank
1.8 Chapter Preview
Present research have been completed in effective manner by following specific format.
With reference to the present research, its structure will include overall five chapters which are
defined as below with their brief description:
Chapter 1: Introduction
It is the first and foremost section of research which will briefly provide basic details of
overall study. It will cover information about background and purpose of company, industry and
research, Further it will determine specific aims and objectives for the same research which is
going to be attained.
Chapter 2: Literature review
The next chapter of this dissertation will provide in-depth knowledge on CSR activities
and its contribution in enhancement of brand image of NRB bank. In this section, views and
perception of different authors will be represented on the aims and objectives so that their
desired outcome can be achieved effectively.
Chapter 3: Research Methodology

It is the third section of dissertation that starts after completing literature review section.
It will include different kinds of tools and techniques that will support in collecting data for
specific research in order to obtain feasible outcome for it.
Chapter 4: Data Analysis
At this chapter, all of the collected data will be analysed on the basis of prepared aims
and objective for the purpose of checking authenticity of this research. It also provides detailed
information upon the findings.
Chapter 5: Conclusion and Recommendations
In the last chapter of this dissertation, overall conclusion will be drawn on findings. It
will also include few recommendation for the company by which its brand image can be
improved effectively with the help of CSR activities.
LITERATURE REVIEW
Literature review refers to the scholar paper which contains present information on
specific topic in order to attain appropriate conclusion for the same. It is a kind of framework
that allow reader to enhance their knowledge on specific topic so that they could identify finding.
In this section, researcher presents thoughts and perception of different authors on similar topic.
This section critically evaluate information on the basis of common finding that has been
presented by different authors. In context to present research, the section will provide in depth
information on formulated objectives (Mostafa and ElSahn, 2016). For enhancing efficiency and
authenticity of this section, investigator will also refers certain articles given by various authors.
Thus, Literature review will cover up information on three different topics which includes
challenges faced by NRB Bank at during implementation of CSR activities, its benefit to bank
and evaluation of effect over CSR activities that improve brand image. All sub parts of Literature
review section have been defined as below:
2.1 CSR
As per the thoughts presented by Caramela, (2018) Corporate Social responsibility was
started in companies in the late 1960s and early 1970s. In the late nineteenth and twentieth
century the corporate paternalist used their wealth to support philanthropic ventures. Corporate
Social responsibility is also known as sustainable responsible function that varies from industry
to industry and from country to country (Vilar and Simão, 2015). According to the world

business council for sustainable development, CSR is defined as the commitment of organisation
to function ethically and help in economic development and improving the lifestyle of
employees as well as society. It is defined as a form of of corporate self regulation integrated into
a business model. It has been analysed that CSR activities are considered as the strategies which
are adopted by companies in which they performs official activities in a systematic, society
friendly and ethical way so that overall community could be developed. These activities are
mainly adopted by companies for improving their brand image among customers, employees,
suppliers, shareholders and other business related persons. With the changing time, requirement
of economic development is considered as the main thing which influences companies to adopt
CSR activities so that they could contribute their development in society and sustain longer at
market place (Adewale and Rahmon, 2014).
2.2 Brand image
According to the thoughts of Pahwa, (2017), Brand image can be defined as a bundle of
associations in the minds of target and potential customers. It is impression of brand in view of
customers which is developed over a period of time. A strong and good brand image helps
company to attract and retain more customers. It is formed in minds and eyes of customers
which is based upon experience and interaction with brand. Banks should make efforts to
enhance brand image in a unique and positive manner. A strong brand image delivers many
benefits to companies which helps in profit maximisation, developing better business-customer
relationship, increasing trust level and helps in introduction of new products within same brand
name. In other words brand image is also referred as impression of company in front of
customers which they develops in their mind over in specific time period. It has been analysed
that every company wishes to formulate their image among customers as it helps them in
sustaining longer at market place which results in more profit generation (Hadfield-Hill, 2014).
In context to banking sector, it has been evaluated that this industry becoming competitive day
by day which influences companies and firms belonging to this sector to indulge into activities
which influences their brand image in positive manner. It has been identified that business
organisations are now a days using different activities like CSR and social work so that they
could create their positive brand image among customers. These activities not only improving
brand image of company but it also provides monetary benefits and other effective opportunities

to companies which contributes in making them successful. Their are many ways to enhance
brand image in an organization which are discussed below:-
Different Ways to enhance brand image
 Conduct brand audit- Brand plays a very important role in profit maximisation. Brand
is everything for banks and includes products, services, customer service, marketing
messages, employees and branch appearance. These factors should be monitored and
audited regularly. Brand audit helps in performance evaluation of brand of NRB bank.
Brand audit if conducted in NRB bank will help in knowing shortcomings and criticisms.
So, that brand can be enhanced at right time.
 Be true to you- Trust and authenticity is imperative for success of brand. A simple
articulation of what you do and what you are good at will help in enhancing brand image
of a company. NRB bank must be authenticate and honest while providing services and
selling its products (Krasodomska, 2015).
 Improve your Culture-The crucial factor for brand image is organisation's culture.
Culture of an organisation defines uniqueness which helps in gaining competitive edge. It
is key element to how customers “see” for a organization. NRB bank to enhance its brand
image must emphasis on improving culture by paying good attention.
 Develop brand standards for your staff- Brand image can be enhanced by developing
brand standards for employees and staff. Training can be a good step, but also requires a
brand guide which helps in knowing every aspect of brand identity and how staff can
improve the brand image. NRB bank should focus on creating and establishing standards
for employees and staff so that they achieve it and helps in enhancing brand image.
Impact of CSR on brand image of company
On the basis of perception of Carnevale and Mazzuca, (2014), it has been analysed CSR
activities plays an essential role in the business growth of any organisation as it improves brand
image of company in industry as well as customers. It can be said that if business organisation
uses CSR activities that customers automatically feels attracted to company because they thinks
that company is serious about social issues and contributing their share for improving it
effectively. Along with this, it also develops brand image of company in front of government.
Positive image of company in front of government helps them in taking permission for different
projects. This makes it easier for them to succeed effectively in their particular profession. This

results in excessive business growth for company. On the other hand, Mostafa and ElSahn,
(2016), have represented that brand impact of CSR activity is not always positive for company. It
might results negatively on company's image too. With reference to banking sector, it has been
evaluated that competition in this industry is constantly increasing with the every passing day.
This influences organisation to adopt best feasible and effective CSR activity that could help
them in improving their brand image among customers. As per evaluation, it can be said that
some times these efforts result negatively for company and also affects its brand image in
unsupportive manner.
Furthermore, it can be said that positive impact of CSR activities provides benefits to the
company which directly enhances their profitability ratio.
Carroll's CSR Pyramid
The Pyramid of CSR was first introduced in the year 1979. In the year 1991, this model
was extracted in four- part definition which is popularly known as CSR pyramid. It is a simple
yet useful framework for the company which help in the argument of how and why organisation
should meet their responsibilities or duties towards society (Dabic and et. al., 2016). Base of this
pyramid is economic responsibility which is the necessary and basic requirement for any
business. Second stage of this pyramid is legal responsibilities which is mandatory for every
business organisation to follow (Azadegan and et. al., 2018). Third stage of this model is ethical
responsibility where every organisation has to work in an ethical and moral manner. Top of the
pyramid consist of philanthropic duties where company has to contribute for the welfare and
development of the society. Detail explanation of these responsibilities of Carroll's pyramid are
as follows:
Economic: It is the first and necessary responsibility for any corporation to earn profit.
To reward both investors and owners profit is necessary as well as for the growth and
development of organisation. If a company fails to fulfil the economic condition then it will go
out of the competitive market (Spence, 2016).
Legal: For successfully operating business activities various rules and regulations are
made by the government of the country. Every company has to follow these laws for the smooth
running of organisation.