Effects of Corporate Social Responsibility on Market Share of Nestlé Kenya Limited

Abstract

Corporate social responsibility has become a very important and critical element in any organization that is operating in the 21st century. Multinational organisations have understood that CSR is such an important and huge concept that cannot be ignored in these ever-changing and competitive business environment.CSR is when a business carry’s on its operations to morally upright, while adding financial gains to organization as it strives to improve the personal satisfaction of its employees, their families and the society in which it operates in at large. There is a new business concept that has also been adopted by upcoming businesses called Creating shared value.CSV is new business concept that strikes a balance in creating economic balance while simultaneously addressing society needs and challenges. The purpose of this research was to find out the effects of corporate social responsibility on the market share of of Nestlé Kenya limited. The study opts to achieve one objective that is, effects of CSR on the market share of Nestlé Kenya limited. The study adopted a case study research design and data was collected through an interview guide. In addition secondary data was collected from the company website and other materials at hand. The senior most management staff was selected to be the respondents who had worked for a period of 4 to 17 years in the organization. The findings indicated that the company engages in CSR activities but very few activities, that are giving funds to school, Milo kids festival and caring for the environment that it operates in. The study found out that of Nestlé Kenya limited majorly focuses on CSV as a business strategy and has three key factors that it focuses on. The three CSV projects are water, nutrition and rural development. These CSV projects have helped to improve the market share of the company from 15% to 20% within the last five year, something that CSR has not been able to achieve. The study found out that CSR was a not a sustainable business concept that would be used by an organisation.CSR had only managed to improve the market share of the company up to 2%.The study found out the company’s two main projects like the Nescafe project and Nestlé health kids programme had not only increased the company’s market share but had also improved the company’s sales, improved its image not only to the employees but to the society at large. The study recommends that the organization to increase more of its CSV activities. The study suggest that there are further areas to be researched they are effect of creating shared value on the performance of Nestlé Kenya limited. Also impact of having women in leadership since the managing director, are Human resource women in leadership holding quite a high position in the organization.