Effects of Social Responsibility Initiatives on Performance of Safaricom Kenya Limited

Abstract

The aim of the study was to find out the effect of CSR initiatives on Safaricom. The research questions that were addressed in this study were; what is the effect of CSR initiatives on sales? What is the effect of CSR initiatives on market share? What is the effect of CSR initiatives on brand?  A survey to investigate and come up with the answers to the research question was conducted at Safaricom limited using descriptive design. A sample of 75 respondents was used to conduct the survey at Safaricom limited where structured questionnaires were issued to the selected sample using stratified sampling technique. The data was entered and analysed using SPSS statistical tool to generate correlation figures as well as frequencies and percentages. The information was further presented using figures and tables and related with the literature review.

The study investigated the Effect of CSR in Sales, from the study, it was established that there is the effect of CSR initiatives on the sales of Safaricom Limited. It was found out that as a result of CSR initiatives, there has been an increase in the levels of sales, increase in capital employed, increase in profitability as a result of an increase in sales and increase in return on investment. In addition, the research found a relationship between CSR initiatives and Sales increase. As such, it can be said that CSR initiatives have an effect on Sales at Safaricom. It was recommended that Safaricom limited should continue implementing the CSR initiatives as they were found to have more benefits. Such continued implementation would ensure that the company continues to enjoy the benefit of good brand reputation, increased sales revenues and larger size of market share. Nonetheless, even as the sales levels increases, Safaricom must ensure that the product quality is high so as to meet the customer needs efficiently even as the sales values increases as a result of CSR initiatives. Future researchers can investigate the impacts of CSR initiatives on competitive advantage. In this case, the study would look at how CSR initiatives have helped the company under investigation achieve a competitive edge over its competitors through the increase of sales.

Again, the study investigated the Effect of CSR Initiatives on Market Share. The study established that there is the effect of CSR initiatives on the market share of Safaricom Limited. It was found out that as a result of CSR initiatives, the has been increase in the market share, increase in return on investment as a result of increase in market share, increases in customer preference for Safaricom products compared to the competitors and enjoy economies of scale as a result of a bigger market share than competitors. In addition, the research found a relationship between CSR initiatives and market share increase. As such, it can be said that CSR initiatives have an effect on market share at Safaricom. It was recommended that Safaricom limited should continue implementing the CSR initiatives as they were found to have more benefits. Such continued implementation would ensure that the company continues to enjoy the benefit of good brand reputation, increased sales revenues and larger size of market share. In addition, Safaricom limited should identify the aspects of market share which CSR affects, i.e. the market value or volume so that they are able to know what products to offer to these markets that have increased as a result of CSR initiatives. In future, researchers can focus on investigating the specific aspects of CSR initiatives and how they influence the specific aspects of market share, i.e. the market volume and market value and how each aspect interrelate.

Finally, the research investigated the Effect of CSR Initiatives on Brand. The study found out that there is the effect of CSR initiatives on the on Safaricom Limited brand. It was found out that as a result of CSR initiatives, the brand has become more reputable, brand growth has brought about increase in financial performance, earning customer loyalty and create a brand reputation in an honest and reliable manner. In addition, the research found a relationship between CSR initiatives and market share increase. As such, it can be said that CSR initiatives have an effect on Safaricom Limited Brand. It was recommended that Safaricom limited should continue implementing the CSR initiatives as they were found to have more benefits. Such continued implementation would ensure that the company continues to enjoy the benefit of good brand reputation, increased sales revenues and larger size of market share. In addition, Safaricom in future would need to consult the recipients of CSR initiatives so as to enhance their services to them. This is because it is easy for competitors to copy the initiatives and render the same services which would make the CSR initiatives by Safaricom a routine. However, if they do market research, they would offer services that the recipients want at that specific moment making it hard for the competitors to copy. This way, they can continually gain a competitive edge through brand reputation. In future, researchers can look at CSR initiatives relating to customers and corporate governance through CSR reporting and its impact on the organisational brand. The study can either be conducted at Safaricom limited or another company practising CSR initiatives.