Date of Conferral



Doctor of Business Administration (D.B.A.)


Business Administration


Kenneth D. Gossett


Bank managers have transacted six trillion dollars of new loans in low and moderate income (LMI) communities because of the Community Reinvestment Act (CRA) mandate. CRA originated mortgages accounted for over 42% of the defaulted loans because of limited risk strategies. Based on the Aguilera conceptual framework, the purpose of this exploratory single case study was to explore the strategies CSR bank managers used to reduce the risks associated with lending in LMI communities. Data were collected and analyzed from semistructured interviews of five bank managers working in one financial organization located within the U.S. Northeast. Data also included the use of recorded field notes and review of public documents, such as CSR committee minutes and CSR policies and procedures from the organization's website for methodology triangulation purposes. Data analysis included using deductive and open coding techniques. Three themes emerged from the collection of data, which were to reduce risks, follow government guidelines, and training and develop data analytics. Several strategies developed that showed how LMI lending is competitively profitable notwithstanding banks conventional lending strategies. Approaches were using subsidies, marketing through community events that encourage Veterans to use the program, offering education programs for loan officers, regulators, and homebuyers, and measuring the organization's compliance with CRA regulations. The implications for positive social change include adopting effective strategies that could reduce the risks and make lending more available. The success of this study came through risk reduction, corporate and community alliances, and new ideas involved in changing the negative perception of lending.