CORPORATE SOCIAL RESPONSIBILITY AS A COMPETITIVE STRATEGY AND ITS EFFECT ON PERFORMANCE OF MOBILE TELEPHONE SERVICE INDUSTRY: A CASE OF SAFARICOM KENYA
Salome Njoki Nyoro - Jomo Kenyatta University of Agriculture Technology, Kenya
ABSTRACT
Corporate social responsibility (CSR) involves incorporation of society’s interests into the activities of the company. This is done through carrying out activities that impact on government, customers, suppliers, employees, shareholders, communities and the environment. The practice of corporate social responsibility has been a subject of debate for the last decade. While proponents argue that CSR has an impact of a company’s competitive advantage, critics argue that CSR is nothing but a fad. This study sought to find out the effect of corporate social responsibility to performance of mobile telephone service providers focusing on Safaricom Kenya. The main objectives of the study were to investigate the extent to which CSR was practiced as a competitive strategy by Safaricom Kenya and the effect on Safaricom’s performance. The information from this study might be helpful to Safaricom as it strives to remain a market leader as far as its reputation through corporate social responsibility is concerned. The study drew its literature and theories from marketing and strategic management research and authorities in the related disciplines. The study was descriptive and involved collection of both qualitative and quantitative data. The study’s population was drawn from the company’s management. The population was purposely selected from the groups which have knowledge on competitive strategies employed by Safaricom Kenya. The sample for this study was 155 respondents drawn from the various levels of management. Interviews and questionnaires were the main data collection tools and were designed by the researcher. Qualitative data was analyzed manually using thematic summaries and interpretations. Quantitative data was summarized using descriptive and statistics through excel and SPSS programs. The data was presented in tables and charts. The study revealed that CSR has played a key role in customer acquisition and retention, enhancement of brand reputation and increased usage of the company’s products and services. The study recommends that Safaricom should strengthen its CSR strategy to remain competitive. Other companies wishing to remain relevant should also consider engaging in CSR activities as competitive strategies in their companies.
