Sports sponsorship as a communication tool used in corporate reputation management: a case of kcb bank

Abstract

Corporate social responsibility (CSR), a corporate communications endeavour, uses several tools one of which is sports sponsorship with the intent of enhancing reputation of firms. KCB Bank engages in many CSR activities with sports sponsorship standing out. This study sought to establish the reputational gains accrued by KCB Bank from the various sports sponsorship activities it engages in. Many studies have been done on CSR and its influence on reputation and other aspects of the company but few on sports sponsorship specifically and its impact on corporate reputation. KCB Bank is known for sponsoring sports thus the objectives of this study were: To identify sport sponsorship types employed by KCB Bank in building its reputation; To determine the image stakeholders have towards KCB Bank as a sports sponsor; and To Establish the effect of sports sponsorship on KCB Bank’s corporate identity. A case study design was used in order to gain in-depth infom-ration about KCB Bank. This study was premised on Stakeholder Theory as it focuses on the impact of a company’s activities on stakeholders whereby these activities may result in a positive or negative view of the company. Purposive sampling was used to select participants who had information pertinent to this study. This study was conducted in Nairobi County and participants in this study were external stakeholders of KCB Bank. Respondents included l0 players from KCB Rugby Football Club, 10 supporters (fans), IOKCB agents and 15 KCB clients. Qualitative and quantitative methods of data collection were used. Qualitative data was sought through content analysis from KCB Bank’s website and online sources and an interview schedule. Quantitative data was generated using a Likert type scale questiomiaire. Findings from this study revealed that KCB Bank’s reputational capital is enhanced because it sponsored sports. The KCB Bank’s corporate image is favourable as stakeholders have a good feeling towards it, trust, admire and respect it on account of sponsoring sports. The KCB Bank’s corporate identity is outlined by its values and vision. Its values serve to inform decisions to sponsor sports which also draws it nearer to its vision of becoming the preferred financial solutions provider in Africa with global reach. Corporate entities, based on understanding of benefits accruing from sports sponsorship, will be encouraged to sponsor sports or continue sponsoring it with society being a beneficiary