A Insight into Corporate Social Responsibility in Kenya

ABSTRACT Corporate social responsibility (CSR) has risen to prominence in recent years, and has subsequently been identified as having the potential to make significant positive contributions to developing countries (Visser, 2006). Yet, CSR practices vary from country to country. This dissertation questions the way in which CSR manifests itself in Kenya. The research uses the concept of CSR within a framework of corporate social performance (CSP) to investigate CSR in Kenya. The research adopts the central tenets of institutional theory (IT) as used in sociology. Institutional factors are assumed to influence CSR, and subsequently are used to evaluate CSR in Kenya. Through web content analysis of seventy companies operating in Kenya, and web based surveys, this dissertation demonstrates the various types of CSR present in Kenya. Companies display different interpretations and practices of CSR. Motivated by various pressures in the institutional environment - regulative, normative and coercive companies focus on different issues and formulate different CSR processes. Thus, the pattern of CSR is not consistent across Kenya. However, isomorphism between companies does occur, both between and across industries, which accounts for similar CSR approaches taken by certain companies. The dissertation shows that CSR is motivated by institutional factors. It also shows that the understanding of CSR in Kenya differs from those in developed countries. Whereas CSR is understood to be mainly altruistic with the sole aim of contributing to the welfare of society in Kenya, companies originating outside Kenya recognise its potential for achieving economic objectives. Accordingly, companies display different types of CSR reflecting their different motivations. These motivations are closely linked to institutional pressures. Domestic companies are heavily influenced by local norms and socio-economic conditions. International companies are more influenced by their stakeholders and peers who encourage CSR consistent with global norms. As the need to develop CSR in response to local needs has come to the forefront of the CSR agenda, companies are tailoring their CSR policies and practices accordingly. The dissertation discusses the implication of the findings to practice and policy, proposing that the lack of government regulations and effective CSR institutions in Kenya need attention