Abstract:

This study assessed the roles and impact of mission statements in the Zambian banking industry and envisaged the quality of the mission statements using a Nine Point Scale model given by Fred R. David. A total of 19 commercial banks formed the sample. A combination of quantitative and qualitative research design approaches was used. The data was obtained from annual reports for the period 2010 to 2017, these were provided by either the central bank or obtained from websites of commercial banks. The SPSS 20 and MS-Excel were used for data analysis. The Pearson correlation model was used to analyses the variable associations. The return on equity (ROE) and the return on investment (ROI) were used for Bank performance measurement. The study disclosed that the length of mission statements in terms of sentences ranged from 1to 2 sentences and the number of words ranged from 3 to 32 words. Twelve (12) banks scored above average and 7 banks scored below average. It may be summarized that broadly banking system’s mission statement score in Zambia was well above the average score card of mission statement and majority of the banking setups were keen to incorporate their philosophy, products and services and customers concern but less focus on concern for employees and self-concept. Overall, there was a weak, negative correlation between mission statement and return on equity. Also, an overall weak, negative correlation between mission statement and return on investment.

Keywords: Mission Statement, Commercial bank, Performance, Roles, Components, Content Analysis.

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