EFFECTS OF CORPORATE SOCIAL RESPONSIBILITY PRACTICES ON PERFORMANCE OF BLUE-CHIP COMPANIES IN KENYA
Abstract
This study was conducted to determine the effects of corporate social responsibility practices on the performance of blue-chip companies in Kenya. The study findings were useful to organizations in formulating strategies that would assist them to build their corporate image in the increasingly competitive business environment that demands them to be creative and innovative. The study was informed by three theories namely; Carroll’s CSR theory, the triple bottom line theory, and the stakeholder theory. Concerning methodology, the descriptive research design was used to analyze qualitative and quantitative data. The study targeted the leading blue chip firms in the banking, aviation, telecommunication, oil, and fast fast-moving consumer goods sectors. A total of 94 respondents participated in the study. In addition, stratified random sampling was applied to ensure that every respondent had an equal chance of participating in the study. Data collection was done using structured questionnaires administered systematically by the researcher. The data collected was then analyzed using Statistical Package for Social Sciences. Descriptive statistics were presented using percentages, frequency mean, and standard deviation. Inferential statistics identified the relationship and association between the variables. The study concluded that economic responsibility has a negative effect on the performance of blue-chip companies since this may mean that the organizations will have to be obliged to pay taxes that promote economic growth, which in turn affects the performance of the company for instance reducing the retained earnings of the company which is a long term source of finance to the company. Philanthropic responsibility in most cases is usually done by the companies, not for financial gain as this was evident from the study although the relationship is positive responsibility of each company to ensure that ethical practices are embraced in the company since they have a significant and favorable impact on the overall performance of blue-chip companies in Kenya and legal responsibility of a company is key to its existence although legal obligations such as tax can result to a decrease in profits thereby affecting the performance of organizations since one of their financial goals is profit making.
Keywords: Corporate Social Responsibility, Economic Responsibility, Philanthropic Responsibility, Legal Responsibility, Ethical Responsibility, and Organizational Performance.
CITATION: Edukon, S. E., Rotich, A., & Odongo, E. O. (2023). Effects of corporate social responsibility practices on performance of blue-chip companies in Kenya. The Strategic Journal of Business & Change Management, 10 (1), 342 – 354.
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DOI: http://dx.doi.org/10.61426/sjbcm.v10i1.2542
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