Reinventing Corporate Social Responsibility in Kenya Through Government Regulation

Abstract

Corporate Social Responsibility (CSR) a Corporate Governance principle has been adopted across the globe. However, individual countries have embraced this concept in their own unique ways. In Kenya, Corporate Social Responsibility has taken the shape of philanthropic acts by corporations. While this is commendable, corporations in Kenya are yet to fully appreciate Corporate Social Responsibility and use it to address some of the problems that plaque corporations. While philanthropy is one dimension, Corporate Social Responsibility embodies other important facets that corporations need to incorporate. This paper examines the need to move away from philanthropic Corporate Social Responsibility and address other aspects of social responsibility in Kenya. It looks into various Corporate Social Responsibility strategies such as anti-corruption measures, recognition and enforcement of human rights, environmental stewardship, stakeholder engagement and sustainability reporting that corporations can pay attention to in the long run for their own benefit and their stakeholders at large. Further, it examines how lack of proper regulation has led to neglect of important aspects of Corporate Social Responsibility by corporations and how government regulation can come in to improve uptake of Corporate Social Responsibility in Kenya. This study concludes that Kenya as a developing nation needs to embed the concept of CSR among its businesses if it is to attract investments from around the world; investors are not only looking to invest in highly profitable businesses...