Relationship Between Corporate Social Responsibility And Financial Performance Of Mobile Telephony Firms In Kenya
The objective of this study was to establish the relationship between corporate social responsibility and firm performance of mobile service providers in Kenya. The study focused on the four mobile telephone companies in Kenya. The data used for the study was mainly qualitative got by sending questionnaires to the mobile companies. The findings were that the issues that had a lot of influence of CSR were employee health and safety issues, the need to control hazardous wastes and the safety of products, but relation with workers unions, retirement benefits issues, non-representation of interest groups in management, and controversy in marketing were not key issues in the CSR policies of the mobile telephone companies in Kenya. The employee related factor that was identified as contributing greatly to CSR was the investment in employee health and safety while the least contributing factor was profit sharing payment programs. Environmental issues contributed greatly to CSR because all the identified factors, namely, green production processes, pollution control programs and use of recycling in production process considered important contributors towards the CSR. The contribution of product characteristics on CSR was significant. The regression analysis found a negative relationship between ROA and CSR. However, the coefficient of CONTROLS variable was 114.67 indicating that there is a strong positive relationship between CSR and CONTROLS. The relationship was not strongly significant as indicated by the F value of 0 with a probability of 1.0. The study recommends that companies should include of nonmonetary activities in their corporate social responsibility maintaining the health and safety, control of hazardous wastes, ensuring green production programs, pollution control, and recycling of recyclable production materials.
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