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

CSR IN KENYA FACTORS THAT DRIVE and AFFECT THE BUSINESS COMMUNITYThis paper seeks to address the concept of CSR within the Kenyan consideration and in grumpy the factors that affect its effective perpetrate and the benefits to the topical anesthetic stakeholder lodge. The growth and implementation of CSR-related activities throughout the years in developing countries and in particular Kenya entrust likewise be dealt with. The research questions posed result be tackled using the fuse methods cross-sectional design as focus testament be on all the sectors of the economy so as to have a better belowstanding of the different contributions by these linees and arrangings. Through this research, I hope to identify the little ways in which CSR is proficient in Kenya while establishing the various businesses that be committed to this cause. This paper allow for also highlight the major characteristics of the practice of CSR in Kenya and hence, give businesses insight into w hich areas need improvement and how they sens do so while still turning a profit.4. INTRODUCTIONa) Area Topic merged kind Responsibility (CSR) is an ever evolving concept that even ups of any strategic tool that creates new opportunities for businesses while mitigating and managing the risks to the businesses. The focus of this report card is on the area of CSR and in particular its practice in Kenya. The topic of choice is whether there have been any factors that have driven and affected the local businesses contributions to the stakeholder residential area.b) Statement of purposeThe purpose of the larn is to examine what key CSR drivers are present in Kenya whether there have been any factors that have prevented the business organisations in Kenya from substantially contributing to the local community through the practice of CSR. Additionally, the subject go away also look into spheres of possible improvement by the government and the business community.5. LITERATURE REV IEWCSR means many a(prenominal) things to different people institutions and as Frankenthal (2001) clearly asseverates, CSR is a vague and intangible term which can mean anything to anybody, and accordingly is effectively without meaning. These CSR interpretations have evolved over the culture 30 years from being relatively focused on compliance with environmental regulations a search for eco-efficiency to a broader concept that combines and balances economic, social and environmental commitments as part of the drive towards sustainable development. at that placefore, different companies have adopted slightly different interpretations as to what CSR means to them but the underlying message is always the same.Welford (2004 and 2005) has famous that CSR has been adopted in different ways in the different parts of the world.CSR concerns how organisations interact with their stakeholders, and is linked to improving sustainable development, health and well upbeing for people, as well as enhancing organisational profits (Price, 2009).This is because over the years, business organisations have come under immense pressure from their stakeholders to act in a responsible manner. Scandals 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 performance between the smaller 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, building construction, manufacturing ICT sectors are more than concerned with environmental issues arising from their production processes and product lifespan.Globally, companies that have engaged in CSR have come to the identification that their environmental and social bear ons need to be managed in line with their economic or commercial performance (Little, 2003).In Africa, CSR is still in its infancy phase angle due to socioeconomic realities such as poverty, HIV/acquired immune deficiency syndrome and ineffective public administration 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 faced by communities, which governments cannot richly address. Therefore, issues such as the environment, employment, product quality and health safety get much lower priority. CSR in Africa is most often associated with multinationals or larg e opposed investors e.g. Coca Cola.Visser, Matten, Pohl Tolhurst (2010) have identified some of the drivers for CSR in developing countries asCultural tradition where CSR draws deeply from indigenous beliefs of philanthropy, business ethics and community togethernessReforms in politicsSocio-economic priorities e.g. alleviation of poverty, eradication of HIV/AIDSGovernance gapsResponse to crisis such as accidents, catastrophesMarket accessInternational standardisation through the adoption of global CSR codesInvestment incentivesStakeholder activism andBusiness supply chains.CSR is therefore seldom related to the companies core business but rather tends to be positive payback philanthropy, with public relations benefits (Klins et al, 2010). or so priority issues covered by CSR activities in Africa are poverty reduction, health HIV/AIDS, skills development education, youth development and socioeconomic development.In Kenya, the cultural context is an important factor in defining C SR and this communal culture is captured in the indigenous concept of Harambee which embodies and reflects the strong ancient value of mutual assistance, joint effort, social responsibility and community assumption (Winston and Ryan, 2008). This concept simply means that collective good outweighs individual gain.According to Gathii (2008), the Kenya Bureau of Standards (KEBS) has been involved in drafting pull backlines on CSR. These guidelines, in addition to those voluntarily adopted by companies and the current ISO standards, form a backdrop against which to measure CSR in Kenya.In Kenya, CSR is often seen as an add-on, peripheral to the core business (Imani emergence, 2009). CSR departments are rare and many operate from within marketing, communications, corporate affairs, training 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 bail is not typically e valuated in Kenya and corporate leadership 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 international conventions which mainly focus on workplace issues and the physical environment. Examples of specific national CSR-related legislation in Kenya are survey 2030Kenya National Environment Action Plan andDraft guidelines (recently developed) by Kenya Bureau of Standards (KEBS)Ponnu and Okoth (2009) in a study do on CSR disclosure in Kenya found that Kenyan companies are relatively small if compared in the international standards. These companies participation in social activities whitethorn not be pegged on their financial capability rather, their involuntaryness and desire for strategic positioning within the society for future economic advantag es. 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 Association of Manufacturers (KAM) has established the Centre for Energy Efficiency Conservation (CEEC) and has been the focal point of the Global Compact Local Network in Kenya since September 2009The Kenya tete-a-tete Sector Alliance (KEPSA) is promoting the UN Global Compact and is active in the field of anti-corruptionEast African Breweries Ltd (EABL) founded the EABL Foundation in 2005 which deals with the supply of water, environment, health, education training and different special projects, aimed at improving the lives of the people in Kenya, Uganda and TanzaniaSafaricom Ltd a leading mobile service provider that has greatly contributed to the Kenya community since 2007 through its sponsorship of various projects under the spheres of comm unity, environment, health, sports and educationIntex Construction Ltd. a Kenyan smart set that deals in construction, civil engineering and real estate development and is committed to CSR, environmental impact focus and bodied neighborly Investment (CSI)Unilever Tea Kenya Ltd. as part of its CSR agenda is involved in health care, employee welfare (housing), community participation (educational scholarships, training of farmers) and environmental care (is a corporate member of WWF and encourages sustainable agriculture) andEquity Bank the Equity Group Foundation focuses on eradication of poverty, hunger and the provision of human-centered 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 owned if its to instal a significant contribution to the local development priorities and it must be relevant to l ocal enterprises, whether large or small.Many scholars agree that in stage 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 achievementful overall?What are issues that have benefited from the practice of CSR?How much more can be done by the relevant authorities and businesses?ii) unique(predicate) QuestionsWhat are main drivers of CSR in Kenya?How many companies in Kenya practice CSR?How many of these companies are listed on the Nairobi Stock Exchange (NSE)?Does the Kenyan Government get into in CSR-related activities?Are there any state policies or laws that regulate or steer 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 loc al issues benefited from CSR-related activities?Are the gains substantial and/or should more be done?7. RESEARCH METHODSi) Design (Strategy Framework)The research questions will be answered using the mixed methods cross-sectional design with a pragmatic worldview which consists of collection of two denary and qualitative data sequentially. This approach is based on the assumption that the collection of diverse types of data best provides a deeper understanding of the research line of work posed. The study will commence with a broad survey in order to generalize the results from a sample of the businesses to the population. Then qualitative open-ended interviews will be used to collect detailed views from the participants. The strengths of both quantitative and qualitative research will provide the best understanding of this particular study.ii) Sample try out is an important part of the research study and this is because its cheaper, faster, practical, and more confidential in n ature and lastly it has more in-depth compend of the research problem.The research will be situated in Kenya as this is the topic of the area under study. The population from which the samples 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 first 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 that have benefited from CSR-related activities in Kenya. The first sample will consist of 30 companies randomly selected fromThe Nairobi Stock ExchangeForeign internationals companies operating in Kenya andMed ium-sized companies not listed on the NSE.The second 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) Data CollectionThis will be done in 2 stages as the quantitative data 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 areThere is greater tractability when displaying the questions in mind e.g. through check boxes, pull down menusIt allows a quicker response from the participantsIts cheaper to administer due to the absence of costs of purchasing paper, belief and postageThere is no prior arrangement to be doneThey avoid any embarrassment to the respondentsThere is no bias from the researcher decrement in the time needed for analysis as t he data is amass in a central database andIts easier to correct any errors made on the questionnaire thus no need for reprinting.Disadvantages areThere is a limited response rate because some people may not have access to the net profitThey 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 usually younger people.Structured Tele resound InterviewsAdvantages includeRelatively cheaper and speedier than personal 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 time they wantQuestionnaire will be required so as to guide the researcher on what to askThere is the inevi tability 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 aids cannot be used)The interviews have to be short so as to avoid irritation andThere is the danger of contacting obsolete telephone numbers 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 extensively andIts cheaper than other data collection methods.The disadvantages includeThe 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 construe 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 easily generalized due to the small samples chosen.Audiovisual materialsSome advantages of this type of data collection areIts easier for people to relate to imagesThey provide a entry 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 difficu lt to analyse andData collected could be easily influenced by the researched thus theres bias.iv) Data analysisResearch QuestionData SourceAnalysis PlanWhat are the main drivers of CSR in Kenya?Books, dissertations, periodicals, journals research reportsContent/ document analysis of the identified paper-based sources.How many companies in Kenya practice CSR?Company websites, annual reports, periodicals journalsWeb content analysis of the relevant company websites.Document analysis of the relevant company-related documents.How many of these companies are listed on the Nairobi Stock Exchange?Nairobi Stock Exchange websiteWeb content analysis of the NSE website.Does the Kenyan government participate 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 Ken ya.What are the various ways in CSR is practised in Kenya?Questionnaires, books, journals, research reports crowd reports.Use 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, periodicalsDocument 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 analysis SPSS analysisTherefore, due to the mixed methods research design formulated, the research will undergo the by-line 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 ComparisonComparison of data from the quantitative the qualitative data sources will then be done.Data IntegrationLastly, integration of both types of data into one whole will reveal the final examination picture.v) AssumptionsThe following will be made in relation to this studyThat respondents will answer the questionnaires truthfullyThat the samples represent the population andThe instruments used have rigorousness 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 forward scholars while paying homage to them. This is due to the fact that CSR is an ever-growing phenomenon that Kenya as a developing country needs to improve on so as to image 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 delimited to companies, institutions operating in Kenya that have participated in CSR-related activities in the last 10 years.10. ETHICAL ISSUESThe following ethical issues will be taken into consideration 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 22nd November 2010Amaratunga, D. Baldry, D. Sarshar, M. and Newton, R. (2002) Quantitative and Qualitative research in the built environment, Work Study, Vol. 51(1), pp.17-31Baker, M. (2010) The Business in Society, bodied Social Responsibility What Does It Mean? Online http//www.businessrespect.net/definition.php Accessed on 21st November 2010Boyce, C. and Neale, P. 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APPENDICESCUsersLynResearch Methodsbusiness in society diag..gifAppendix 1CORPORATE SOCIAL RESPONSIBILITY QUESTIONNAIREQUESTIONYESNON/ACOMMENTSDoes your organisation have a CSR social organization?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 activity that has aided the community or protected the environment?Has management received training on CSR issues?Has your organisation tried to reduce its environmental impact in terms ofa) taint Prevention?b) Waste minimisation recycling?c) Protection of the natural environment?Does your organisation supply clear accurate environmental information on its activities to the local community?Does your organisation have open dialogue with