Corporate Social Responsibility and Performance of Geothermal Development Company Limited in Kenya
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Date
2020-10
Authors
Njau, Rose Waithera
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
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.
Description
A Research Project Submitted to the School of Business in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration (Strategic Management Option) of Kenyatta University October, 2020
Keywords
Corporate, Social Responsibility, Performance, Geothermal Development Company Limited, Kenya