The link between corporate social responsibility and corporate strategy among companies listed on the Nairobi stock exchange
Abstract
The objective of this study was to establish how corporate social responsibility is linked to
corporate strategy among companies listed on the Nairobi Stock Exchange.
This was a descriptive study conducted through a census, which targeted all companies
listed on the Nairobi Stock Exchange. The data was collected with the help of a structured
questionnaire. .
A response rate of 81% was achieved out the targeted 48 respondents, the data was
analyzed with the help of descriptive statistics i.e. frequencies, percentages, mean scores
and standard deviations. The findings indicate that all the organizations had a corporate
planning department, a vision and mission statement, explicitly stated corporate objectives,
conducted long-term business planning which were considered very important to the
organizations. The planning process resulted into explicit! formal organizational corporate
plans in all the organizations which to a great extent were implemented once developed.
Corporate social responsibility department was present in all the firms, formal ! explicit
organizational corporate strategic plan included CSR plan in majority of the firms. The
initial preparations and analysis done by the organizations were; business environmental
analysis, societal needs assessment, organizational internal analysis, social cost -benefit
analysis, environmental impact analysis and budgetary allocations.
Most of th~. organizations had corporate strategies and objectives with regard the impact of
their activities on the environmental components, funded by providing for them in the
budget and as contingencies. However, these measures are in place to a less extent to curb
the impact of their activities on physical environmental. The benefits mainly offered to the
Vlll
employees were circumstantial leave, medical cover, Insurance cover and competitive
remuneration.
The main measures adopted by the organization in dealing with HIV / Aids pandemic were
assuring victims of job security and anti-discriminatory policies. Other measures adapted to
a less extent were, free guidance, counseling, testing and provision of free ARV s. These
measures were reflected to a large extent in the organizations corporate strategy.
All the organizations advertised their products and to a large extent these organizations had
put measures in place to ensure that advertisement of their products/ services were truthful
and fair and reflected in most of the organization's corporate strategy. In majority of the
organizations, there were in-built channels of dealing with consumer complaints. There
were policies against corrupt practices which were clearly spelt out as one the corporate
objectives of the organizations.
Citation
Masters of business administrationSponsorhip
University of NairobiPublisher
school of Business, University of Nairobi