Shareholders’ Perception of Company’s Involvement in Corporate Social Responsibility: a Case of Safaricom Limited

Abstract

The purpose of this study was to determine shareholders‟ perception of company involvement in CSR at Safaricom Limited. The study also sought to establish whether the shareholders believe CSR reduces the shareholders‟ wealth. This was a descriptive study that was conducted by use of questionnaires. Data was collected through structured questionnaires. The study targeted 100 East African Individual shareholders of Safaricom Limited. 93% response rate was achieved. The data was analyzed through Factor Analysis mode with the help of SPSS software. The findings of this study show that philanthropic giving enhances the company‟s image and continuous disclosure of CSR activities in the company‟s annual returns increases the company‟s reputation. The findings of this study also show that most shareholders perceive CSR as worthwhile and that it should continue and its participation promotes good relationship among citizens of the country. From the findings of the study across various perspectives of CSR, most shareholders to a large extent are in support of CSR since they agree positively to the CSR statements provided in the questionnaire. The study also revealed that majority of the respondents agree that Safaricom Limited involvement in CSR activities reduces the share value and consequently affects the shareholders wealth. CSR as a concept is wide and this study only aimed at shareholders‟ perception of Corporate Social Responsibility at Safaricom Limited. The sample used is not representative of the population as a whole and cannot be generalized. This study is a valuable contribution to the development and promotion of CSR principles at Safaricom Limited. The managers and the policy makers may revise the strategies and policies with the expectations of the shareholders. The study concludes that the perception by the shareholders at Safaricom Limited is largely positive and in the long run it should continue its participation in CSR as a way of giving back to the community. The key recommendation for this study is that Safaricom Limited should continue contributing to charitable organization since it fosters economic growth of the nation .The study suggest further research on other aspects of CSR like the role that philanthropic plays in shaping company‟s perception among their stakeholders. Key words: Corporate Social Responsibility, Perceptions, Safaricom Limited, Corporate Social responsibility Aspects.