Corporate Social Responsibility and Performance of Safaricom PLC in Nairobi City County, Kenya
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Date
2025
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Publisher
Kenyatta University
Abstract
Safaricom Plc, the leading telecommunications company in Kenya, has consistently demonstrated strong operational performance over the years. The company has consistently reported impressive revenue figures, showcasing its ability to generate substantial income. However, in recent years, Safaricom Plc Kenya's performance has shown a decline due to increased competition, regulatory changes, and economic uncertainties that have impacted its financial results. Thus, the purpose of this study was to look at how Safaricom Public Limited Company's performance in Nairobi City County, Kenya, was affected by corporate social responsibility. The particular goals were to investigate how Safaricom Public Limited Company's performance in Nairobi City County, Kenya, was impacted by environmental social responsibility, ethical social responsibility, philanthropic corporate responsibility, and economic corporate responsibility. The study was guided by the triple bottom line theory, the resource-based view theory, the stakeholder theory, and the Carroll theory. This study employed a descriptive research design. The analytical unit was Safaricom Plc, situated in Nairobi City County, Kenya. The observation unit consisted of 144 employees, including 55 senior-level managers and 89 middle-level supervisors. To guarantee that each respondent was fairly represented, the stratified sampling approach was used to split the respondents into two groups. The responders were chosen by simple random selection. There were 105 responses in the sample. The study used a semi-structured questionnaire. Respondents who were not part of the main study at Safaricom Plc were given ten surveys. The study employed face validity, criterion validity, and content validity to ensure a strong relationship between the test and its intended assessment. The reliability of the surveys was assessed using the Cronbach Alpha test. Qualitative data was presented narratively through the use of content analysis. Quantitative data was examined using descriptive statistics like mean and standard deviation. Furthermore, inferential statistics such as correlation analysis and multiple regressions were employed to determine the impact of each variable. The results were displayed using tables and graphs. The study found that the company's performance was much enhanced by environmental social responsibility, ethical social responsibility, philanthropic corporate responsibility, and economic corporate responsibility. According to the study's findings, Safaricom's dedication to environmental social responsibility draws in prospective investors who are increasingly searching for businesses that follow sustainable business practices. By exhibiting a dedication to moral behavior, Safaricom builds credibility and trust with its clients, which increases client satisfaction and retention. By tackling social concerns and encouraging community growth, Safaricom is able to identify and reach underserved markets, growing its customer base. Its economic social responsibility programs also show the company's dedication to the community and economy, which fosters consumer trust and boosts sales and customer retention rates. According to the report, Safaricom should implement sustainable business practices, like using renewable energy sources, cutting waste, and consuming less energy. All staff can receive thorough training from Safaricom that focuses on moral behavior and corporate social responsibility. Safaricom can create a thorough corporate social responsibility (CSR) structure that prioritizes areas and fits well with its company goals and community requirements. By regularly reporting on corporate social responsibility efforts and including stakeholders in discussions about the company's influence on the community, Safaricom can make sure that its business practices are transparent and that it upholds high ethical standards
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration (Strategic Management) of Kenyatta University, September, 2025
Supervisor:
1.Felistus Makahamara