Browsing by Author "Pakka, Paul"

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    Effect of Corporate Social Responsibility on Performance of Energy Sector in Kenya: A Case of Geothermal Development Company Ltd
    (Kenyatta University, 2025) Pakka, Paul
    Corporate Social Responsibility (CSR) has emerged as a critical strategic component for organizations, especially in developing countries where businesses significantly influence both environmental and social systems. In Kenya’s energy sector, the Geothermal Development Company (GDC) faces the dual challenge of aligning its operations with CSR principles while striving to maintain sustainable organizational performance. This study investigated the effect of CSR on GDC’s performance, specifically assessing the influence of legal, ethical, and philanthropic responsibilities on stakeholder management and organizational effectiveness. The research was anchored on corporate social responsibility theory and stakeholder theory, adopting a descriptive research design. Structured questionnaires were administered to all 54 employees within GDC’s Corporate Affairs Department, selected through a census sampling technique due to the department’s direct involvement with CSR-related initiatives. Prior to the main data collection, a pilot test was conducted with 10 respondents from a similar government energy institution to refine the questionnaire’s clarity and reliability. Validity was ensured through expert review and pre-testing, while internal consistency reliability was evaluated using Cronbach’s alpha. The overall Cronbach’s alpha value for the constructs was 0.81, indicating high reliability across the legal, ethical, and philanthropic responsibility dimensions. Data were analyzed using SPSS Version 23, with both descriptive and inferential statistics employed. Descriptive statistics (means and standard deviations) summarized the respondents’ perceptions, while Pearson correlation analysis assessed the strength and direction of the relationships between CSR components and organizational performance. The findings revealed that legal responsibilities had a significant, positive, and moderately strong correlation with organizational performance (r = 0.570, p = 0.000), with a mean score of 3.95. Ethical responsibilities showed a significant but weaker positive correlation (r = 0.375, p = 0.005), with a mean of 4.02. Philanthropic responsibilities also demonstrated a significant, weak positive correlation (r = 0.389, p = 0.004), with a mean of 3.82. These results underscore the importance of all three CSR dimensions in fostering stakeholder trust and enhancing GDC’s operational performance. The study concludes that fulfilling CSR obligations is instrumental in building community goodwill, promoting regulatory compliance, and achieving sustainable organizational outcomes. The study recommends that the Ministry of Environment formulate and enforce robust CSR policies across parastatals, particularly by ensuring adherence to environmental and energy frameworks such as the Kyoto Protocol, NEMA regulations, and the Energy Bill and Policy of 2012. Additionally, it advocates for stronger collaboration between GDC and regulatory bodies to address environmental concerns and to implement equitable philanthropic initiatives in its areas of operation. By contextualizing CSR within a developing country's energy sector, this research contributes valuable insights to the discourse on sustainable development and the strategic function of CSR in public sector enterprises