Corporate Social Responsibility and Competitive Advantage Perspectives from Employees of Safaricom Kenya Limited
Abstract
Corporate Social Responsibility (CRS) is considered a significant differentiating factor in determining a company's competitive advantage. This study sought to establish how Safaricom Limited has utilized CSR to achieve its competitive advantage in Kenya's mobile industry. Specifically, the study sought to establish how CRS initiatives adopted by Safaricom Limited influence the company image, customer subscription and financial performance. The study was guided by a cross-sectional descriptive research design. The study population included middle-level managers drawn from Safaricom Ltd headquarters in Nairobi. The study used a combination of stratified and purposeful sampling techniques. From the target population of 92 middle-level managers, a sample size of 45 respondents was determined. Both qualitative and quantitative methods were used, and primary data was collected through the use of semi-structured questionnaires. The collected data were analysed using Statistical Package for Social Sciences. The study found that all the CSR initiatives adopted by Safaricom Kenya Ltd (environmental protection and management, health provision, education, autism disaster relief, culture and music, empowerment and poverty eradication) had a positive relationship with the company's competitive advantage. The study concluded that there is an overall positive relationship between CSR initiatives and competitive advantage at Safaricom Kenya Ltd. The study recommended that Safaricom Ltd should review the CSR initiatives based on the extent to which they influence the company's competitive advantage and develop a sustainability plan which will help improve efficiency and cut down operational costs in the company. The study suggests further research should be conducted to examine how political interference affects corporate social responsibility in companies.
Keywords: Corporate Social Responsibility, Competitive Advantage Perspectives and Safaricom Kenya Limited.
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