Influence of Innovative Corporate Social Responsibility Strategies on Performance of Deposit-taking Savings and Credit Cooperative Societies in Nairobi County, Kenya

Abstract

Corporate Social Responsibility (CSR) has gained prominence in management practice, strategy and research. The practice of CSR has been undertaken differently by various organizations in line with their varied business models, strategic objectives and the need for sustainable interventions. Whereas CSR plays a critical role in integrating social and environmental objectives into a firm’s corporate activities, there is an increasing interest of the business community and the society in general on performance and sustainability of the CSR activities and initiatives in the communities within which organizations operate. The question as to whether it pays to invest in CSR initiatives or not is still unresolved in literature which lacks empirical and holistic evidence on sustainability of performance hence the foundation for this study’ interest in how to make CSR profitable and sustainable The objective of the study was to determine the influence of Innovative Corporate Social Responsibility Strategies (Responsibility Related Values, Environmental Responsibility, Philanthropic Social Responsibility and Green Innovation Strategy) on Performance of Deposit-Taking-SACCOs in Nairobi County, Kenya. This study was anchored on Stakeholder Theory and hence supported by the Resource-Based View (RBV). The study adopted a descriptive survey design with a target population consisting of 135 managers from all the 45 SASRA-compliant deposit-taking SACCOs in Nairobi county, Kenya. Primary data was collected using structured questionnaire which was self-administered vis drop-and-pick method. The returned questionnaires were checked for completeness, after which the complete questionnaires was coded, and the data entered into the SPSS Version 25 for analysis which involved the use of frequencies, descriptive, and inferential analysis techniques. The results were presented in form of tables using percentages, frequencies, measures of central tendency as well as some measures of dispersion. Essentially, the study established that: a positive but weak and statistically significant association between responsibility-related values and performance exists; a positive and statistically significant correlation between environmental responsibility and performance of the deposit-taking SACCOs; positive but weak and statistically insignificant association between philanthropic social responsibility and performance; and a weak, positive but statistically significant relationship with performance of the deposit-taking SACCOs. The study recommends that the organizations should emphasize and practice the responsibility-related valued at a higher scale. In addition, the Sacco Societies Regulatory Authority’s regulations should entrench ethical values in their regulations and incorporate such values in their governance systems and structures. The deposit-taking SACCOs should prioritize their contributions to environmental sustainability by partnering with like-minded organizations to synergize for mutual benefits and establish direct relations with the communities around to enhance their visibility and impact. The study also recommends the adoption of contemporary green practices that have proven to be efficient and sustainable to minimize unnecessary costs. Further studies should replicate this study with a focus on housing SACCOs. In addition, a comparative study should be conducted to unearth some differences or similarities in innovative CSR strategies and performance of SACCOs in areas with high economic activity and rural SACCOs in Kenya. Future studies should establish global benchmarks and guidelines for efficient and effective execution of the Innovative CSR strategies.