Corporate social responsibility and competitive advantage in multinational food and beverage companies in Kenya

Abstract

This research project is carried out using cross sectional survey methodology to determine the relationship between CSR and competitive advantage in the Multinational food and beverage companies in Kenya. In the past two decades the industry has had a remarkable change as many new small scale or local entrants have ventured into this industry. In addition other players from other countries have also come in to widen the choices available to the customers. In response to this market dynamism, there has been declaration that a percentage of their revenue generated from selling was intended to fund say the bright but needy students. In addition, others had gone as far as partnering at grass root level with the communities. For instance they could provide them with necessary knowledge in keeping their cattle and assure them of a dairy market for the same for instance Nestlé Kenya‟s partnership with Kabiyet‟s farmers. The objective of this research is to determine the corporate social responsibility of multinationals in food and beverage in Kenya and to establish whether these companies enjoy better competitive advantage than those that do not. The findings of this research shows that there is a relationship between Corporate Social Responsibility and indeed those that engage in it enjoy better competitive advantage.