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Gracemary Gathoni Muchiri - Catholic University of Eastern Africa, Kenya

Dr. Joseph Okumu - Senior Lecturer, Catholic University of Eastern Africa, Kenya

Dr. Abraham Kiflemariam - Senior Lecturer, Catholic University of Eastern Africa, Kenya


Despite its worldwide approval by business enterprises and state corporations, CSR remains a topical issue for state corporations in Kenya. The Kenyan government has made CSR a requirement for state corporations as indicated on the Code of Governance for state corporations in Kenya. However, parastatals have not fully embraced this government’s directive and remains a discussion on its effect on State Corporation’s business strategy. The main objective in this survey is to examine the effects of CSRon organizational performance of state corporations in Kenya. This study used a survey research design to establish the dynamics that exist between CSR and performance of organizations with specific focus in ICDC. The targeted population in this study constituted of all the staffs that worked at ICDC as well as thirteen managers from the investee clients. The surveyor to obtain primary data from respondents utilized self-issued questionnaires. The gathered data was managed by sorting, coding and keyed into a SPSS from which descriptive statistics were deduced using tables, graphs and charts for easier understanding. In testing the significance between dependent and independent research variables, researcher used a multiple regression model. The study conclude that environmental conservation, philanthropic CSR andethical CSR have a positive andsignificanteffect on Organizational Performance. The study also concluded that minimization as well as utilization of packaging material that are friendly to the environment play a very useful role in promoting sustainability of the environment. In addition, the study concluded that treating of workers fairly as well as upholding the highest ethical degree for workers is an effective way for firms to demonstrate their ethical CSR. As a result of this, the survey recommended that firms should ensure that they embrace CSR in their bid to improve their overall financial performance. Also, it was recommended that a firm should make sure that their CSR are well aligned with their overall objectives, persona and culture.

Full Length Research (PDF Format)