The institutionalization of corporate social responsilibity in state corporations in Kenya

Abstract

Corporate social responsibility has become a critical aspect of business operation and more so for legitimacy in the society at all corners of the world business. Businesses are striving to get recognition for their responsibility on their sensitivity towards the relationship with their stakeholders. The benefits enjoyed by the socially responsible business can con be overload by then compliant ones hence the need to take the path of institutionalization of CSR in their business operations. Through incorporation of CSR programs into the daily operation of the institutions it gives it a competitive edge in the competitive market. Organizations need to explore various ways and means to incorporate these programs in their operations in order to be accountable to all their stakeholders. This is a study of state corporations in Kenya. The objective of the study was to determine the extent and factors influencing institutionalization of corporate social responsibility is state corporations in Kenya. State corporations are business units owned, managed, and controlled by the central ,state or local government with a view to maximize social welfare and uphold the public interest. They have undertaken incorporation of corporate social responsibility into their operations at different levels. Institutionalization of CSR in their operations can be understood to be as the incorporation of CSR programs into their day to day dealings. The data for the study was collected from primary source. This was done through questionnaires which were administered to the managing directors of the sampled state corporations. The SPSS and content analysis methods were used to analyze the data collected. xiii The study established that most state corporations have already embraced operations that indicated that the have institutionalized CSR even if it’s not fully. The indictors that were put across to the respondents by the researcher indicated that corporations have taken various routes in their course of institutionalization of CSR hence it has been done to great extent. The study also established that state corporations are driven by various factors in order to incorporate CSR in their operations. The stand out factor was government legislation. Though it was not clear why this was the case, it would be considered to be the correct position due to the mandate of the State Corporations which are outlined in the government policies. The need to adhere to the expectation from the controller who is the government concludes the high influence.