CSR IN KENYA: FACTORS THAT DRIVE and AFFECT THE BUSINESS COMMUNITY

CSR IN KENYA FACTORS THAT DRIVE and AFFECT THE championship enterprise COMMUNITYThis paper seeks to address the model of CSR within the Kenyan stage setting and in point the factors that chance on its effective design and the benefits to the topical anesthetic stakeholder community. The evolution and capital punishment of CSR-related activities through knocked out(p) the years in growth countries and in particular Kenya allow for to a fault be dealt with. The investigate questions posed forget be tackled using the mixed regularitys cross-section(a) design as focus get out be on all the sectors of the economy so as to hurt a better catch of the different contributions by these seames and presidential terms. Through this question, I hope to identify the precise ways in which CSR is practised in Kenya period establishing the various headachees that argon committed to this cause. This paper result also highlight the major characteristics of the figure of CSR in Kenya and thus, give businesses insight into which beas lust im rotatement and how they put up do so bit still turning a profit.4. INTRODUCTIONa) argona Topic integrated complaisant certificate of indebtedness (CSR) is an ever evolving concept that comprises of any strategic tool that creates new opportunities for businesses while mitigating and managing the risks to the businesses. The focus of this prove is on the argona of CSR and in particular its practice in Kenya. The topic of choice is whether on that point take been any factors that charter driven and affected the topical anesthetic businesses contributions to the stakeholder community.b) Statement of purposeThe purpose of the get hold of is to quiz what key CSR drivers argon present in Kenya whether there contribute been any factors that bedevil prevented the business organisations in Kenya from substantially contributing to the local community through the practice of CSR. Additionally, the lease go fo rth also nip into spheres of possible improvement by the government and the business community.5. LITERATURE look backwardCSR agent many things to different bulk institutions and as Frankenthal (2001) clearly states, CSR is a vague and intangible term which brook nasty anything to anybody, and therefore is in effect without meaning. These CSR interpretations cast evolved over the last 30 years from being relatively focused on compliance with environmental regulations a search for eco-efficiency to a coarseer concept that combines and balances economic, tender and environmental commitments as part of the drive towards sustainable development.thitherfore, different companies necessitate adopted slightly different interpretations as to what CSR means to them but the underlying message is always the same.Welford (2004 and 2005) has noned that CSR has been adopted in different ways in the different parts of the world.CSR concerns how organisations interact with their stakeh olders, and is colligate to improving sustainable development, health and wellbeing for quite a little, as well as enhancing organisational profits (Price, 2009).This is because over the years, business organisations have come under great pressure from their stakeholders to act in a responsible manner. S so-and-sodals such as Enron and Parmalat (Ruggie 2003 OHiggins 2005), Nikes employment practices and the very recent BP/Shell oil spill have provoked increased scrutiny into business policies and practices.Mullerat and Brennan (2005) deduced from a study carried out by the Italian Union of Chambers of Commerce, Industry, Craft and Agriculture in cooperation with Instituto per i Valore dImpresa that the adoption of CSR-related activities by companies depends on 2 factorsThe size of the business enterprise/ organisation there is a difference on CSR executing between the comminuteder companies and the large ones due to financial personnel differences andThe particular sector of the economy in which the business operates for example, businesses within the agro-industrial, forming construction, manufacturing ICT sectors are much(prenominal) concerned with environmental issues arising from their production processes and product lifespan.Globally, companies that have employed in CSR have come to the realization that their environmental and social encounters indicate to be managed in line with their economic or commercial performance (Little, 2003).In Africa, CSR is still in its infancy stage due to socioeconomic realities such as meagerness, HIV/acquired immune deficiency syndrome and ineffective public system service delivery which have had a significant impact on the drivers, role and function of CSR for companies operating in Africa (Klins, Niekerk Smit, 2010). Thus, CSR activities and projects aspire to resolve challenges set about by communities, which governments cannot fully address. on that pointfore, issues such as the environment, w orkplace, product quality and health safety get much lower priority. CSR in Africa is most a lot associated with multi disciplines or large foreign investors e.g. Coca Cola.Visser, Matten, Pohl Tolhurst (2010) have identified close to of the drivers for CSR in developing countries asCultural tradition where CSR draws deeply from endemic beliefs of philanthropy, business ethics and community togethernessReforms in politicsSocio-economic priorities e.g. alleviation of poverty, annihilation of HIV/AIDSGovernance gapsResponse to crisis such as accidents, catastrophes commercialise accessInternational standardisation through the adoption of global CSR codes investiture incentivesStakeholder activism and traffic hand over chains.CSR is therefore seldom related to the companies core business but rather tends to be positive payback philanthropy, with public dealing benefits (Klins et al, 2010). several(prenominal) priority issues covered by CSR activities in Africa are poverty redu ction, health HIV/AIDS, skills development education, youth development and socioeconomic development.In Kenya, the cultural context is an important factor in defining CSR and this communal culture is captured in the indigenous concept of Harambee which embodies and reflects the strong ancient quantify of mutual assistance, joint effort, social responsibility and community self-reliance (Winston and Ryan, 2008). This concept simply means that collective good outweighs individual gain.According to Gathii (2008), the Kenya spot of Standards (KEBS) has been affectd in drafting guidelines on CSR. These guidelines, in addition to those voluntarily adopted by companies and the current ISO standards, form a backdrop against which to ginmill CSR in Kenya.In Kenya, CSR is often seen as an add-on, peripheral to the core business (Imani Development, 2009). CSR departments are rare and many operate from within marketing, communications, corporate affairs, preparedness or human resources departments (Klins et al, 2010). Furthermore, where CSR policies are established, more often than not, they refer to philanthropic approaches. CSR policy adherence is not typically evaluated in Kenya and corporate leaders involvement tends to be focused on launching community projects, supporting CSR policies and ensuring resources for these projects, rather than embedding CSR in business processes.Regulations that have an impact on CSR are often based on the ratification and subsequent domestication of planetary conventions which mainly focus on workplace issues and the physical environment. Examples of specific national CSR-related legislation in Kenya areVision 2030Kenya National Environment put to death Plan andDraft guidelines (recently developed) by Kenya Bureau of Standards (KEBS)Ponnu and Okoth (2009) in a study through on CSR disclosure in Kenya found that Kenyan companies are relatively small if compared in the international standards. These companies participation in social activities may not be pegged on their financial capability rather, their go outingness and desire for strategic positioning within the society for future economic advantages. Some organisations business committed to practising CSR in Kenya areThe Federation of Kenya Employers (FKE) which fights against HIV/AIDS is a signatory of the Global Compact and is also involved in Kenyas Vision 2030The Kenya necktie of Manufacturers (KAM) has established the Centre for Energy Efficiency saving (CEEC) and has been the focal point of the Global Compact Local Network in Kenya since September 2009The Kenya Private Sector Alliance (KEPSA) is promoting the UN Global Compact and is busy in the field of anti-corruption due east African Breweries Ltd (EABL) founded the EABL Foundation in 2005 which deals with the supply of water, environment, health, education training and opposite special projects, aimed at improving the lives of the people in Kenya, Uganda and TanzaniaSafaricom L td a leading mobile service renderr that has greatly contributed to the Kenya community since 2007 through its sponsorship of various projects under the spheres of community, environment, health, sports and educationIntex Construction Ltd. a Kenyan guild that deals in construction, civil engineering and real solid ground development and is committed to CSR, environmental impact management and bodily Social Investment (CSI)Unilever afternoon tea Kenya Ltd. as part of its CSR agenda is involved in health superintend, employee welfare (housing), community participation (educational scholarships, training of farmers) and environmental care (is a corporate member of WWF and encourages sustainable agriculture) and truth chamfer the Equity Group Foundation focuses on eradication of poverty, hunger and the provision of addition aid, education, gender equality and women empowerment, health, environment sustainability and voluntary service to society by the banks leadership.Kivuitu , Yambayamba Fox (2005), argue that the CSR agenda needs to be locally have if its to make a significant contribution to the local development priorities and it must be relevant to local enterprises, whether large or small.Many scholars outfit that in order for CSR and its policies to produce substantial gains within the Kenyan local community, it needs to be tailored to suit the business practices of the organisations that operate in Kenya.6. RESEARCH QUESTIONSi) General QuestionsHas the practice of CSR in Kenya been victorious overall?What are issues that have benefited from the practice of CSR?How much more can be make by the relevant authorities and businesses?ii) Specific QuestionsWhat are main drivers of CSR in Kenya?How many companies in Kenya practice CSR?How many of these companies are listed on the capital of Kenya convey Exchange (NSE)?Does the Kenyan Government participate in CSR-related activities?Are there any state policies or laws that regulate or taper CSR in Kenya?What are the various ways in which CSR is practised in Kenya?What are the critical success factors that have led to implementation of successful CSR projects in Kenya?How have local issues benefited from CSR-related activities?Are the gains substantial and/or should more be done?7. RESEARCH METHODSi) Design (Strategy Framework)The look questions will be answered using the mixed methods cross-sectional design with a pragmatic worldview which consists of aggregation of some(prenominal) quantifiable and qualitative info sequentially. This approach is based on the assumption that the collection of diverse types of info topper provides a deeper understanding of the research problem posed. The study will commence with a broad survey in order to generalize the results from a essay of the businesses to the population. and then qualitative open-ended interviews will be used to collect exact views from the participants. The strengths of both quantifiable and qualitative r esearch will provide the best understanding of this particular study.ii) SampleSampling is an important part of the research study and this is because its cheaper, faster, practical, and more confidential in nature and lastly it has more in-depth analysis of the research problem.The research will be located in Kenya as this is the topic of the area under study. The population from which the smacks will be selected will be the companies operating in Kenya (both national and foreign internationals). This is because these companies CSR practices are the major focus point of the research study.Sampling will be done through the sequential mixed methods sampling procedure, whereby the results from the QUAN strand will influence the methodology subsequently employed in the QUAL strand. The early sample will be generated through stratified random sampling where businesses will be surveyed and from these results then simple random sampling will be applied so as to investigate the issues t hat have benefited from CSR-related activities in Kenya. The first sample will consist of 30 companies randomly selected fromThe capital of Kenya Stock ExchangeForeign internationals companies operating in Kenya andMedium-sized companies not listed on the NSE.The sustain sample will comprise of 20 issues that have benefited from CSR-related activities and the size of this sample will be inclusive of institutions, individuals or group of individuals, the environment and other local causes.iii) information CollectionThis will be done in 2 stages as the quantitative information collection will build on the qualitative one. Quantitative data on the factors that drive and affect CSR performance by businesses will be through a cross-sectional survey usingClose-ended Online QuestionnairesAdvantages are in that respect is greater flexibility when displaying the questions in mind e.g. through check boxes, pull down menusIt allows a fast response from the participantsIts cheaper to admini ster due to the absence of costs of purchasing paper, stamp and postageThere is no prior arrangement to be doneThey negate any embarrassment to the respondentsThere is no bias from the researcherReduction in the era needed for analysis as the data is smooth in a central database andIts easier to correct any errors do on the questionnaire thus no need for reprinting.Disadvantages areThere is a limited response rate because some people may not have access to the internetThey assume that the respondents are literateThere are people who are not receptive to completing questionnaires online andThere is a bias as the demographic that generally responds to online questionnaire invitations are normally younger people.Structured Telephone InterviewsAdvantages includeRelatively cheaper and speedier than in the flesh(predicate) interviewsThere is a high response rate which is also spontaneous Interviews can be aided where necessaryThe researcher can tape the interviewsHas accessibility to a wide geographical area andHas more anonymity than personal interviews.Disadvantages includeThe participants can terminate the interview at any cadence they wantQuestionnaire will be required so as to guide the researcher on what to askThere is the inevitability of repeat callsRespondents have very little time to thinkThe researcher must have phone etiquetteThe questions presented must be straightforwardNon-verbal cues cannot be read (visual back up cannot be used)The interviews have to be short so as to avoid irritation andThere is the danger of contacting obsolete telephone events while omitting unlisted ones.While qualitative data on the contributions to the local issues will be collected through archive ReviewThe advantages includeThe information contained the documents can be verified independentlyThe review process can be done independently without relying on other sources across-the-boardly andIts cheaper than other data collection methods.The disadvantages includeTh e information uncovered may not be in line with the requirements of the research studyThe documents may be difficult to locate obtainThe information may not be available for public viewingThe documents may be located in a distant archive thus requiring the researcher to travelIt can be a time-sensitive process andThe researcher does not have agree over the quality of data unearthed and thus relies on the information provided in the documents so as to assess the reliability of the sources.Open-ended/in-depth interviewsAdvantages areThey provide more detailed information than the other methods andInformation is collected in a more relaxed atmosphere thus interviewees are more open.Disadvantages of this method areThe respondents may be biased in order to prove a pointThese interviews are time-sensitive due to transcription and analysis of this data andThey produce results that are not substantially generalized due to the small samples chosen.Audiovisual materialsSome advantages of t his type of data collection areIts easier for people to relate to imagesThey provide a gateway for participants to share their perceptions andThey provide extensive data on real-life situations.Disadvantages includeDue to the amount of extensive data collected, they are difficult to analyse andData collected could be easily influenced by the researched thus theres bias.iv) Data Analysis inquiry QuestionData SourceAnalysis PlanWhat are the main drivers of CSR in Kenya?Books, dissertations, periodicals, journals research reports guinea pig/ document analysis of the identified paper-based sources.How many companies in Kenya practice CSR?Company websites, annual reports, periodicals journalsWeb surfeit analysis of the relevant company websites.Document analysis of the relevant company-related documents.How many of these companies are listed on the capital of Kenya Stock Exchange?Nairobi Stock Exchange websiteWeb content analysis of the NSE website.Does the Kenyan government participa te in CSR-related activities?Government reports publicationsContent/ document analysis the accessible and relevant government sources.Are there any state policies or laws that regulate or steer CSR in Kenya?Government statutesDocument analysis of government statutes dealing with CSR in Kenya.What are the various ways in CSR is practised in Kenya?Questionnaires, books, journals, research reports assembly reports. engross of constant comparison (grounded theory) to analyse questions.Document analysis of the obtained documents.Use of SPSS to collate responses to the questionnaires issued.What are the critical success factors that have led to implementation of successful CSR projects in Kenya?Periodicals, dissertations, journals, books, research papersDocument analysis of the books, journals, periodicals, dissertations and research papers unearthed during the research.How have local issues benefited from CSR-related activities?Interviews, company websites, questionnaires, journals, p eriodicalsDocument analysis of journals, periodicals.SPSS analysis of the interviews questionnaires issued.Web content analysis of the various companies identified.Are the gains substantial and/or should more be done?Interviews, questionnaires, research papers conference reports.Document analysisSPSS analysisTherefore, due to the mixed methods research design formulated, the research will undergo the following 5 stages in order to fully answer the research questions posedData ReductionIt will involve the use of memoing, descriptive statistics and cluster analysis.Data DisplayThis will be done through charts, graphs and tables.Data ConsolidationBoth sets of data will be combined to create new ones.Data proportionComparison of data from the quantitative the qualitative data sources will then be done.Data IntegrationLastly, integration of both types of data into one alone will reveal the final picture.v) AssumptionsThe following will be make in relation to this studyThat responden ts will answer the questionnaires truthfullyThat the samples establish the population andThe instruments used have validity and are measuring the desired constructs.8. SIGNIFICANCEThis research study is important as it will examine deeper an area that has not been fully explored by previous scholars while remunerative homage to them. This is due to the fact that CSR is an ever-growing phenomenon that Kenya as a developing state needs to improve on so as to catch up to its developed counterparts. This study is important to the businesses operating in Kenya as it will enable them to gauge themselves and identify areas of improvement at the same time.9. LIMITATIONS DELIMITATIONSLimitationsThe study will be limited by time constraints because of the length of time provided for completing the research. It will also be limited by the number of businesses, institutions willing to participate in the study.DelimitationsThis study will be delineate to companies, institutions operating i n Kenya that have participated in CSR-related activities in the last 10 years.10. ETHICAL ISSUESThe following ethical issues will be taken into circumstance during this studyInformed consent and the participants understanding of their rights. These consents will be both written and oral in natureConfidentiality of any information collected from the participants andAnonymity of the interviewees before, during and after the interviews.11. REFERENCES BIBLIOGRAPHYALKathiri, N.S. (2010) Collecting qualitative Data Online http//www.slideshare.net/highness85/collecting-qualitative-data Accessed on twenty-second November 2010Amaratunga, D. Baldry, D. Sarshar, M. and Newton, R. (2002) Quantitative and soft research in the built environment, Work Study, Vol. 51(1), pp.17-31Baker, M. (2010) The Business in Society, integrated Social responsibleness What Does It Mean? Online http//www.businessrespect.net/definition.php Accessed on twenty-first November 2010Boyce, C. and Neale, P. (2006) C onducting In-depth Interviews A lapse for Designing and Conducting In-depth Interviews for Evaluation Input in supervise and Evaluation 2, Watertown, MA Pathfinder International, pp. 1-12Business in the Community (2010) The CR Academy Online http//www.bitc.org.uk/cr_academy/index.html Accessed on 22nd NovemberChanimal (2004) Quantitative Research Considerations Online http//www.chanimal.com/html/quantitative_research.html Accessed on 19th November 2010Clarke, R.J. (2005) Research Models and Methodologies, HDR Seminar Series, Faculty of Commerce (Spring Session)Crane, A. (2008) corporate Social tariff in developing countries in The Oxford handbook of somatic Social certificate of indebtedness, Oxford University Press, pp.480-484Creswell, J. (2009) The plectron of a Research Design in Research Design qualitative, quantitative and mixed methods approaches (ed.), Newbury Park, Cal. Sage Publications, pp. 3-21Creswell, J. (2009) Research Questions and Hypotheses in Research Desig n qualitative, quantitative and mixed methods approaches (ed.), Newbury Park, Cal. Sage Publications, pp. 129-143Creswell, J. (2009) Collecting Data in change integrity Methods Research in Research Design qualitative, quantitative and mixed methods approaches (ed.), Newbury Park, Cal. Sage Publications, pp. 110-127Dobers, P. and Halme, M. (2009) tower unified Social certificate of indebtedness and developing countries, Corporate Social Responsibility and Environmental Management, Vol. 16, Wiley InterScience, pp. 237-249Driscoll, D. Yeboah, A.A Salib, P. and Rupert, D. (2007) Merging Qualitative and Quantitative Data in Mixed Methods Research How to and Why not, daybook of Ecological and Environmental Anthropology, Vol. 3 (1), pp. 19-28East African Breweries Ltd. Online http//en.wikipedia.org/wiki/East_African_Breweries Accessed on twentieth November 2010Equity Bank Online http//www.equitybank.co.ke/about.php?subcat=9 Accessed on twentieth November 2010Fairbrass, J. ORiordan, L. and Mirza, H (2005) Corporate Social Responsibility Differing Definitions and Practices?Online http//www.crrconference.org/downloads/fairbrass.pdf accessed 25th November 2010Family health International (nd.), Qualitative Research Methods A Data Collectors Field GuideFederation of Kenya Employers Online http//fke-kenya.org/download/hivaidsworkplace.pdf Accessed on 20th November 2010Frankenthal, P. (2001) Corporate Social Responsibility- a PR invention? in Corporate Communication, An International Journal, Vol. 6(1) PP.18-23Gathii, J.T. (2008) Kenya What does CSR really mean?, Business Daily Nairobi, 6 May 2008 http//allafrica.com/stories/200805061150.html Accessed 25th November 2010Imani Development (2009) Corporate Social Responsibility in Sub-Saharan Africa Built In or Bolted On? A Survey on Promoting and Hindering Factors (Eschborn, Germany Deutsche Gesellschaft fr Technische Zusammenarbeit GTZ GmbH/BMZ/British High Commission SouthAfrica)Intex Construction Ltd. Online http//www .intexafrica.com/howwedobusiness.htm Accessed on 20th November 2010Kenya Association of Manufacturers Online http//www.kam.co.ke/?itemId=17newsId=265 Accessed on 20th November 2010Kenya Private Sector Alliance Online http//aquaya.org/wp-content/uploads/Kevit_Desai.pdf Accessed on 20th November 2010Kivuitu, M. Yambayamba, K. and Fox, T. (2005)How can Corporate Responsibility Deliver in Africa? Insights from Kenya and Zambia, Perspectives on Corporate Responsibility for Environment and Development, Issue 3, pp.1-5Klins, U, Niekerk, J. and Smit, A. (2010) Africa in The valet Guide to CSR A Country-by- Country Analysis of Corporate Sustainability and Responsibility, Sheffield, Greenleaf Publishing LimitedLittle, A. (2003) The Business occurrence for Corporate Responsibility Online http//www.bitc.org.uk/resources/publications/cr_business_case.html Accessed on 20th November 2010Mullerat, R. And Brennan, D. (2005) Corporate Social Responsibility and Public Policy in Corporate Social Resp onsibility the Corporate Governance of the twenty-first century, Kluwer Law International pp.79-80Muthuri, J. and Gilbert, V. (2010) An Institutional Analysis of Corporate Social Responsibility in Kenya, Journal of Business Ethics, Springer (August)Neill, J. (2007) Qualitative versus Quantitative Research Key Points in a Classic contestation Online http//wilderdom.com/research/QualitativeVersusQuantitativeResearch.html Accessed on 19th November 2010OHiggin, E. (2005) Ireland Bridging the Atlantic in Habisch, A and Jonker,J. (ed.) Corporate Social Responsibility, Berlin, Germany Springer VerlagOnwuegbuzie, A. and Leech, N. (2006) Linking Research Questions to Mixed Methods Data Analysis Procedures, The Qualitative Report, Vol. 11 (3), pp. 474-498Ponnu, C.H. and Okoth, M.O.A. (2009) Corporate Social Responsibility disclosure in Kenya The Nairobi Stock Exchange, African Journal of Business Management, Vol.3 (10), pp.601-608Price, T. (2009) Corporate Social Responsibility and Stakehold ers in Sustainable Risk Management, Faculty of Advanced Technology, University of GlamorganRuggie, J. (2003) The New World of Corporate Social Responsibility Online http//www.hks.harvard.edu/m-rcbg/CSRI/publications/workingpaper_10_kytle_ruggie.pdf Accessed on 20th November 2010Safaricom Ltd. Online http//www.safaricom.co.ke/index.php?id=388 Accessed on 20th November 2010Teddlie, C. and Yu, F. (2007) Mixed Methods Sampling A Typology with Examples, Journal of Mixed Methods Research, Vol. 1(1), Newbury Park, Cal. Sage Publications, pp.77-100Ufadhili assumption (2004) Corporate Social Responsibility and Development in Kenya, Ufadhili NairobiUnilever Tea Kenya Ltd. Online http//www.eastafricancsrawards.com/downloads/shortlisted/SC_Unilever%20Kenya%20HIVAid.pdf Accessed on 20th November 2010Visser, W. Matten, D. Pohl, M. and Tolhurst, N. (2010) Corporate Social Responsibility in developing countries in The A to Z of Corporate Social ResponsibilityVisser, W. McIntosh, M, and Middleton, C. (2006) Lessons from the other(prenominal) Paths to the future in Corporate Citizenship in Africa, Sheffield, Greenleaf Publishing LimitedWelford, R. (2004) Corporate Social Responsibility in Europe and Asia Critical Elements and Best Practice, Journal of Corporate Citizenship, Issue 13Welford, R. (2005) Corporate Social Responsibility in Europe, North America and Asia, Journal of Corporate Citizenship, Issue 17Winston, B., and Ryan, B. (2008) handmaid leaders as a Humane Orientation Using the eyeball Study Construct of Humane Orientation to Show that Servant Leadership is More Global than Western, International Journal of Leadership Studies 3.2 212-222.World Bank Institute Education Group (2007) Document Review in involve Assessment Knowledge Base, World Bank Organisation Onlinehttp//siteresources.worldbank.org/WBI/Resources/213798-1194538727144/11Final-Document_Review.pdf Accessed on 21st November 2010World Bank Institute (2003) CSR Launch in Kenya in CSR Update, Vol.1 (2), pp.1-812. APPENDICESCUsersLynResearch Methodsbusiness in society diag..gifAppendix 1CORPORATE SOCIAL responsibility QUESTIONNAIREQUESTIONYESNON/ACOMMENTSDoes your organisation have a CSR structure?Have targets been set?Who has overall responsibility for CSR in your organisation?Does your organisation report on CSR?Has your organisation undertaken any type of occupation that has aided the community or protected the environment?Has management accredited training on CSR issues?Has your organisation tried to reduce its environmental impact in terms ofa) Pollution Prevention?b) Waste minimisation recycle?c) Protection of the natural environment?Does your organisation supply clear consummate environmental information on its activities to the local community?Does your organisation have open dialogue with