Corporate Social Responsibility Practices and Performance of Firms Listed at Nairobi Securities Exchange, Kenya

Abstract

In Kenya, corporate social responsibility (CSR) is gaining momentum as businesses understand the crucial role it plays in the success of corporations. This is especially the case for global corporations who use it as a strategic marketing tool and continue to reap high profits from the optimistic aspirations of customers attributed to CSR. Whereas CSR is perceived to have a positive effect on outcomes, those opposed to it argue that CSR requires conducting a set of actions that can increase costs potentially. This study project centred on the practices of corporate social responsibility and the success of companies listed on the Nairobi Stock Exchange. The objective of the study was to determine the effect of CSR practices such as Legislation, Economic Consideration, Ethical Responsibility, and Philanthropic Responsibility on firms’ performance. Companies can optimize their returns, recruit, inspire and retain qualified workers by understanding CSR activities and output of NSE-listed companies, and also support researchers who plan to pursue the same subject in their field of specialization. Knowledge was used by other researchers who were examined in the same report. A descriptive research design was employed in the analysis. The target population was 200 workers from section heads and senior management within the NSE of selected 64 companies. No sampling was done from this target population. Responses were obtained via questionnaire implementation. Using descriptive figures, mean frequency tables, and percentages, qualitative findings were assessed. To explain the findings, both descriptive and inferential statistics were used. Descriptive statistics, such as frequency distribution, ratios, means, and standard deviation, were used. The research also used correlation and regression analysis to explain the relationship between the dependent and the independent variables. Numbers, graphs, and charts represented the findings. The study indicated that the company needed to establish a stronger culture that nurtures corporate social responsibility in companies. Companies should follow CSR initiatives that deal with the environment, health, education, and water since these are society's key concerns. Also, the study advises that businesses comply with legal regulations to retain consumers and increase consumer loyalty and eventually boost their results. The study indicated that the company needed to establish a stronger culture that nurtures corporate social responsibility in companies. Companies should follow CSR initiatives that deal with the environment, health, education, and water since these are society's key concerns. Also, the study advises that businesses comply with legal regulations to retain consumers and increase consumer loyalty and eventually boost their results.