The relationship between corporate social responsibility and performance of health management organizations in Kenya

Abstract

The aim of the study was to determine the relationship between Corporate Social Responsibility and the performance of Health Maintenance Organizations in Kenya. The first objective of the study was to determine the extent to which HMOs in Kenya embraced CSR. The second objective of the study was to establish whether the practice of CSR had any impact on the performance of HMOs in Kenya. To achieve this, the study adopted a census survey in which all the 21 HMOs in Kenya were studied. The data was collected using questionnaires. Collected data was analyzed using descriptive statistics such as frequency distributions and percentages. The study established that according to 93% respondents, HMOs in Kenya engaged in CSR activities to large extent. The areas in which the HMOs participated in CSR practices included supporting children’s homes, environmental protection, supporting education and fighting the spread of HIV/AIDS (96%). Other areas include employee and supplier welfare. Cost is no longer a factor of consideration as the respondent organizations view investment in CSR as an opportunity to give back to society. In as much as the investment in CSR may result in increased operating costs and asset utilization, the research has established that it leads to increased revenue and profitability (35%). The practice also helps build brands and motivate employees thereby leading to increased productivity (45%), retention and satisfaction (42%). Participation in CSR according to the findings of this study ensures customer growth, market penetration and customer satisfaction. The study therefore concludes that to a large extent there is a positive correlation between Corporate Social Responsibility and performance of HMOs in Kenya. The study recommended that all organizations should engage in CSR as a strategy to increase revenue and profitability. The study also recommended that organizations adopt CSR practices as a marketing tool.