Corporate Social Responsibility and Organizational Performance at Base Titanium in Kenya

Abstract

Corporate social responsibility (CSR) involves firms integrating social and environmental concerns into their business operations. Reason for this is that all organizations operate with the aim of creating value for the stakeholders but at times end up destroying it through their operations. This can result in poor performance and rejection of the businesses and their products by the society. Therefore firms seeking to survive for long, gain and sustain high performance need to be seen as socially responsible. This study sought to ascertain whether corporate social responsibility affects organizational performance at Base Titanium. The study was anchored by two strategic management theories namely Stakeholders theory and Legitimacy theory. The study was a case study which utilized both secondary and primary information. Primary data was gathered using an interview guide while secondary information was acquired from the company’s website and publications. The unit of study was on Base Titanium Limited which is the largest mining company in Kenya and is based in Kwale County. The company has a robust CSR program which is based on four pillars which are Community Infrastructure, Community Health, Livelihood Programs and Education. Qualitative data was collected from top management of Base Titanium who are in a position to critically articulate how CSR initiatives have impacted on the performance of the organization. The data was then scrutinized thematically using content analysis method. The discovery was that the corporate social responsibilities undertaken by Base Titanium were on education, economic empowerment, health of the community members and community infrastructure. These initiatives were aimed at improving the quality of life and standards of living for the residents and were guided by the environmental policy, the employment policy and Act, the energy management policy and occupational health and safety policy. The findings revealed that CSR programs have positively impacted the performance of the company, with interviewees noting that the company enjoys positive reputation, acceptance of its products and enhanced business partnerships. Because improved performance in this research was determined through self-reporting by the senior managers of Base Titanium which in itself can be biased, the study proposes a similar study to be executed using a different study design and a comparison of findings done. It also recommends further studies to be carried out in the entire mining sector in order to obtain a holistic view.