The effects of corporate social responsibility on strategic marketing by Kenyan firms: a case of Safaricom Ltd
Karugu, Anthony M
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This study aimed at examining the effects of corporate social responsibility in strategic marketing by Kenyan firms with a focus on Safaricom Limited. It was guided by three objectives namely to determine the extent of commitment by management to integrate CSR in strategic marketing, to determine whether CSR practices are embedded in the corporate strategic framework, to establish how CSR influences market share, to establish how CSR influences company image, to establish how CSR influences sales, and to establish how CSR influences competitive advantage. This study used a case study approach. The population of study consisted of senior management Safaricom Limited and management of Safaricom Foundation. The senior management was drawn from the departments of finance, operations, human resource and administration, marketing, and customer care. A sample of five (5) respondents was picked randomly from each department. The sample size for the employees was 25 respondents. Data was collected using closed ended questions and a few open-ended questions. Measures of central tendency (mean, median and mode), percentages, and frequencies were computed for quantitative variables. The Statistical Package for Social Sciences (SPSS) software was used to aid in analysis of the quantitative data. The results of quantitative analysis were presented using charts and tables. Content analysis was done for the qualitative data collected through interviews and questionnaires open-ended questions. Results of qualitative analysis were presented in prose. It was established CSR has focused on strategic marketing and the extent of commitment on CSR by the company is high as shown through resource allocation and management decisions. Resource allocation and management decisions were rated highly with a mean score of 4.43 and 4.38 respectively. CSR was also found to be integrated in corporate strategy at Safaricom Limited as it occupies its rightful place, helps boost other corporate functions, and its projects have achieved what they should. This was confirmed by 21 (95%) of the respondents who agreed that CSR is integrated in corporate strategy at Safaricom Limited. CSR at Safaricom Limited influences company image. Company image was rated to a great extent as indicated by a mean score of 4.73. The study also found that CSR influences market share at Safaricom Limited. Influence of CSR on market share was rated to a great extent with a mean score of 4.14. CSR influences sales indirectly through marketing and customer good will. Influence on sales was rated to a moderate extent with a mean score of 3.82. CSR has also lead to competitive advantage at Safaricom Limited through influencing and shaping business leaders agenda's making them favourable to the company. This was confirmed by a mean score of 4.27. CSR is an important aspect of marketing and its imperative that a clear understanding and appreciation of CSR among the employees will lead to better performance. This study is therefore recommending that employees should be trained on CSR. This study also recommends that further study be carried out to develop a model that will quantify the effect of CSR on other corporate functions.