The link between corporate social responsibility and corporate strategy among companies listed on the Nairobi stock exchange

Abstract

The objective of this study was to establish how corporate social responsibility is linked to corporate strategy among companies listed on the Nairobi Stock Exchange. This was a descriptive study conducted through a census, which targeted all companies listed on the Nairobi Stock Exchange. The data was collected with the help of a structured questionnaire. . A response rate of 81% was achieved out the targeted 48 respondents, the data was analyzed with the help of descriptive statistics i.e. frequencies, percentages, mean scores and standard deviations. The findings indicate that all the organizations had a corporate planning department, a vision and mission statement, explicitly stated corporate objectives, conducted long-term business planning which were considered very important to the organizations. The planning process resulted into explicit! formal organizational corporate plans in all the organizations which to a great extent were implemented once developed. Corporate social responsibility department was present in all the firms, formal ! explicit organizational corporate strategic plan included CSR plan in majority of the firms. The initial preparations and analysis done by the organizations were; business environmental analysis, societal needs assessment, organizational internal analysis, social cost -benefit analysis, environmental impact analysis and budgetary allocations. Most of th~. organizations had corporate strategies and objectives with regard the impact of their activities on the environmental components, funded by providing for them in the budget and as contingencies. However, these measures are in place to a less extent to curb the impact of their activities on physical environmental. The benefits mainly offered to the Vlll employees were circumstantial leave, medical cover, Insurance cover and competitive remuneration. The main measures adopted by the organization in dealing with HIV / Aids pandemic were assuring victims of job security and anti-discriminatory policies. Other measures adapted to a less extent were, free guidance, counseling, testing and provision of free ARV s. These measures were reflected to a large extent in the organizations corporate strategy. All the organizations advertised their products and to a large extent these organizations had put measures in place to ensure that advertisement of their products/ services were truthful and fair and reflected in most of the organization's corporate strategy. In majority of the organizations, there were in-built channels of dealing with consumer complaints. There were policies against corrupt practices which were clearly spelt out as one the corporate objectives of the organizations.