Effects of Corporate Social Responsibility on Profitability of the Telecommunication Firms in Kenya
Abstract
The concept of corporate social responsibility has prevailed since time immemorial and has
for a long time paved way for organizations’ to have moral, ethical, and philanthropic
responsibilities in addition to their responsibilities to earn a fair return for investors and
comply with the law. Business analysts have documented that CSR benefits the
organization by pushing the business to the next level while at the same time benefiting the
society. CSR has been associated with financial performance for organizations but this area
has not been well researched. The main objective of this study was to assess the effects of
corporate social responsibility programs on organizations’ financial performance in Kenya.
The study will help both private and public companies to realize the need of establishing
CSR for achievement of the competitive advantage and improved performance. The study
was carried out at Kenyan Telecommunication Firms. The research instrument was an
interview guide and data was collected through a drop and pick later method of the
questionnaire. The data was then analyzed and the findings recorded by use of tables and
figures. The process involved tallying up responses, computing percentages of variations in
response as well as describing and interpreting the data in line with the study objectives
through use of SPSS. The results are based on a response rate of 90% (n=10). The study
concludes that CSR has a positive impact on an organizations financial performance and
recommends that the organisations should have a well-planned and effective CSR
approaches in order to enhance brand and company reputation as well as improve efficiency,
reduce the risk of business disruptions, and open up new opportunities driving innovation.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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