Effect of corporate social responsibility practices on organizational performance-a case of telecommunication sector companies in Kenya
Date
2023
Authors
Mwania,L. M.
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Publisher
Strathmore University
Abstract
There are several factors that affect the performance of telecommunication firms in Kenya. In order for these firms to succeed, it is paramount that they develop appropriate drivers for the organizations’ performance, key among them is the practice of corporate social responsibility. However, this area seems to have limited empirical studies based on a developing market context, moreover within the telecommunications sector. The primary objective of the study was to examine the effect of Corporate Social Responsibility practices on organizational performance in Kenya's telecommunications sector, with particular emphasis on mobile telephony companies’ responsibilities in four areas, namely economic, legal, ethical, philanthropic, and how these responsibilities or practices influence the performance of telecommunications sector companies. The specific objectives were to establish the effect of economic CSR practice on the performance of telecommunication firms in Kenya, to establish the effect of legal CSR practice on the performance of telecommunication firms in Kenya, to establish the effect of ethical CSR practice on the performance of telecommunication firms in Kenya, and to establish the effect of philanthropic CSR practice on the performance of telecommunication firms in Kenya. The study adopted a survey-based descriptive design. The study’s sample size was 204 staff members from the telecommunication companies selected using purposive sampling. Structured questionnaires were used to collect data which was then analyzed using descriptive statistics i.e mean and standard deviation and inferential statistics, correlation analysis, and multiple regression analysis in SPSS software Version 25.0. The results were presented using percentages, and tabulations. From this study, the findings indicated that economic corporate social responsibility practice, legal corporate social responsibility practice, social corporate social responsibility practice, and philanthropic corporate social responsibility practice presented a significant relationship with the performance of telecommunication sector companies. This study contributes to theory by building on the theoretical framework such as Stakeholder theory and improving on the understanding of CSR practices and the possible effects that CSR practices could have on organizational performance. The study's findings do offer a solid foundation for further research. This study used Carol’s CSR Model which includes economic, legal, social, and philanthropic responsibilities as the link between CSR and the performance of telecommunication firms. The study recommends that future studies should therefore consider other variables or moderators in this relationship to determine how CSR practices produce results in the new contexts.
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Citation
Mwania, L. M. (2023). Effect of corporate social responsibility practices on organizational performance-a case of telecommunication sector companies in Kenya [Strathmore University]. http://hdl.handle.net/11071/13429