PHILANTHROPIC RESPONSIBILITY AND PERFORMANCE OF TELECOMMUNICATIONS FIRMS IN KENYA
PHILANTHROPIC RESPONSIBILITY AND PERFORMANCE OF TELECOMMUNICATIONS FIRMS IN KENYA
Suleman Mwakuphundza Toyya - Doctor of Philosophy in Business Administration, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Wario Guyo, (PhD) - Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Everlyn Datche, (PhD) - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Empirical studies show that corporate firms make substantial contribution to the political infrastructure and the socio-economic of the developed and the developing countries through corporate social responsibility. However, in the Telecommunication industry, there’s limited literature to show that Corporate Social Responsibility influence the performance of firms. As stated by the Communications Authority of Kenya, telecommunication firms in Kenya spend an estimate of one billion shillings annually on corporate social responsibility. However, some of these firms have shown exemplary growth, while their counterparts’ fortunes have been dwindling over the years. Due to the existing contradictory stance coupled with mixed results on performance of these firms, there is need to determine how philanthropic responsibility influences performance of Telecommunication firms in Kenya. This study used a descriptive research design. The design utilizes the positivism philosophy due to its ease of replication of the findings. The target population was the telecommunication firms in Kenya. The sample size was 393 respondents determined from Yamane’s formula. Stratified random sampling was used to select the respondents to constitute the sample size from each firm. Questionnaire was administered to collect the data from the respondents. This study also carried out a pilot study to test for validity and reliability of the research instruments. Quantitative as well as the qualitative data were gathered, put into code, evaluated using statistical packages for social sciences (SPSS Version 23) computer software, and excel. Descriptive statistic was used to analyse the data in frequency distribution and percentages that were later used to present findings in tables, charts. Inferential statistics was used to analyse data namely, basic and multiple regression analysis. The study found that there was a strong correlation between the performance of telecommunications firms and philanthropic responsibility (r=0.838 and p=0.001<0.05). The study concluded that philanthropic responsibility has a statistically significant influence on performance of telecommunications firms in Kenya. The study deduced that while philanthropy plays a role in financial fluctuations, its influence may not be as pronounced as other CSR dimensions. The study emphasizes the need for strategic considerations in philanthropic initiatives, highlighting the importance of timing and nature in influencing firm performance. Practitioners should also prioritize stakeholder engagement throughout the CSR planning and implementation processes. Actively seeking input from employees, customers, and the local community ensures that CSR initiatives are not only well-received but are also tailored to meet specific needs. This engagement fosters a sense of shared responsibility and enhances the effectiveness of CSR programs.
