Corporate Social Responsibilityand Performance Of Geothermal Development Company Limited In Kenya

ABSTRACT

Corporate Social Responsibility simply refers to how business organizations impact

stakeholders’ interest. Corporate Social Responsibility plays a vital role in

organizational performance. The main objective of the study was to investigate the

effect of corporate social responsibility on performance geothermal development

company limited in Kenya. The specific objectives that guided the study were to

examine the effect of philanthropic social responsibility, environmental social

responsibility, educational social responsibility and ethical social responsibility on

performance. The study was guided by social exchange, stakeholders’, path-goal and

fiduciary capitalism theories. A descriptive research design was used in this study.

The study targeted Geothermal Development in Kenya. This study target respondents

were a total of 1081 employees of Geothermal Development Company in Kenya. The

research used a stratified method of sampling. The respondents were selected using

simple random sampling method. The sample size consisted of 108 respondents. The

researcher used both a closed and an open-ended questionnaire to collect primary. A

pilot study was carried out to 10 respondents who did not participate in the final study

to test the validity and reliability of the questionnaires. Validity was ensured through

content validity test and reliability was ensured using cronbach alpha coefficient test.

Descriptive statistics such as mean and standard deviation were used to interpret

quantitative data. Qualitative results from the open ended questions were thematically

evaluated in accordance with the research objectives and delivered in narrative form.

Inferential statistics utilized multiple regression methods because this study involved

more than one explanatory variable. The study established that philanthropic social

responsibility, ethical social responsibility, environmental social responsibility and

educational social responsibility had a positive and significant effect on organizational

performance. The study concluded that the adoption of corporate social responsibility

practices improves the transparency of the operations of the company, ensures

accountability and improves the profitability of the firm. The results show that

corporate social responsibility generally has a positive impact on all an organisation's

performance indicators. The study recommended that the organizations must draw in

everybody's consideration and guarantee they comprehend why the organizations are

doing this, what their jobs will be, and what the organizations need to accomplish. To

indeed have an effect the organizations should think outside about the container. For

instance, if the organizations are driving a reusing plan to diminish pointless waste,

the organizations could support a nearby reusing philanthropy, make time in

individuals' schedules for them to go out into the network and gather reusing or even

complete a supported rushed to bring issues to light.