Supply-side determinants of corporate social responsibility support through non-profit organizations by listed companies in Kenya from 2006 to 2010

Abstract

Kenya's businesses are involved in diverse corporate social responsibility (CSR) initiatives, either on their own or with nonprofit organisations (NPOs) and other actors. Although the total sum of money in CSR in Kenya has not been fully ascertained, it is substantial and growing. As NPOs seek to diversify from, and reduce dependence on, over-dependence on foreign donor funding, corporate fundraising will likely increase. The purpose of this study was to identify, describe, analyse and explain the supply-side determinants of CSR support by the listed companies through NPOs in Kenya. The study found that Kenyan listed companies were involved in a wide range of CSR activities, which had been growing at a rate of 11-40% over the period between 2006 and 2010, and that management was generally positive towards CSR. Involvement in business-NPO partnerships was significantly high, general attitudes towards NPOs were also supportive, and support through NPOs was on an increase. The regression results show that there is a significant relationship between whether a company channels its CSR investment through NPOs and the independent variables in the study. However, the most significant positive predictors are total firm CSR investment and motivation for CSR investment. This study improves the current insights into CSR practice in Kenya, especially in regard to NPOs. It has implications for the manner in which NPOs scope for and analyse potential sources of corporate funding, and which variables to focus on. Additionally, it suggests the need to improve best practices in CSR through better regulation, including self-regulation. Finally, the study suggests new areas for possible research and insights into the CSR partnerships between businesses and NPOs.