Corporate Social Responsibility and Performance of Geothermal Development Company Limited in Kenya
Njau, Rose Waithera
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Corporate Social Responsibility simply refers to how business organizations impact stakeholders’ interest. Corporate Social Responsibility plays a vital role in organizational performance. The main objective of the study was to investigate the effect of corporate social responsibility on performance geothermal development company limited in Kenya. The specific objectives that guided the study were to examine the effect of philanthropic social responsibility, environmental social responsibility, educational social responsibility and ethical social responsibility on performance. The study was guided by social exchange, stakeholders’, path-goal and fiduciary capitalism theories. A descriptive research design was used in this study. The study targeted Geothermal Development in Kenya. This study target respondents were a total of 1081 employees of Geothermal Development Company in Kenya. The research used a stratified method of sampling. The respondents were selected using simple random sampling method. The sample size consisted of 108 respondents. The researcher used both a closed and an open-ended questionnaire to collect primary. A pilot study was carried out to 10 respondents who did not participate in the final study to test the validity and reliability of the questionnaires. Validity was ensured through content validity test and reliability was ensured using cronbach alpha coefficient test. Descriptive statistics such as mean and standard deviation were used to interpret quantitative data. Qualitative results from the open ended questions were thematically evaluated in accordance with the research objectives and delivered in narrative form. Inferential statistics utilized multiple regression methods because this study involved more than one explanatory variable. The study established that philanthropic social responsibility, ethical social responsibility, environmental social responsibility and educational social responsibility had a positive and significant effect on organizational performance. The study concluded that the adoption of corporate social responsibility practices improves the transparency of the operations of the company, ensures accountability and improves the profitability of the firm. The results show that corporate social responsibility generally has a positive impact on all an organisation's performance indicators. The study recommended that the organizations must draw in everybody's consideration and guarantee they comprehend why the organizations are doing this, what their jobs will be, and what the organizations need to accomplish. To indeed have an effect the organizations should think outside about the container. For instance, if the organizations are driving a reusing plan to diminish pointless waste, the organizations could support a nearby reusing philanthropy, make time in individuals' schedules for them to go out into the network and gather reusing or even complete a supported rushed to bring issues to light.