Corporate Social Responsibility and Performance of Telecommunications Firms in Kenya

Empirical studies show that corporate firms make substantial contributions to the political infrastructure and socio-economic development of both developed and developing countries through corporate social responsibility (CSR). However, in the telecommunications industry, there is limited literature demonstrating the influence of CSR on firm performance. Telecommunications firms in Kenya spend an estimated one billion shillings annually on CSR, yet some firms have shown exemplary growth while others have experienced declining fortunes. This study aimed to determine how CSR influences the performance of telecommunications firms in Kenya, focusing on the specific objectives of environmental responsibility, consumer protection, philanthropic responsibility, economic expectations responsibility, and ethical responsibility. The study employed a descriptive research design with a positivism philosophy, targeting telecommunications firms in Kenya. A sample size of 393 respondents was determined using Yamane's formula, and stratified random sampling was used to select respondents from each firm. Questionnaires were administered to collect data. Quantitative and qualitative data were analyzed using SPSS Version 23 and Excel, with descriptive statistics presenting findings in tables and charts, and inferential statistics utilizing basic and multiple regression analysis. The study found strong correlations between the performance of telecommunications firms and environmental responsibility (r=0.859, p=0.023<0.05), philanthropic responsibility (r=0.838, p=0.001<0.05), consumer protection (r=0.796, p=0.028<0.05), economic expectations responsibility (r=0.855, p=0.042<0.05), and organizational culture (r=0.877, p=0.000<0.05). The interaction between organizational culture and combined CSR explained 14.1% of the variations in firm performance, with an overall significant moderating influence (F (5, 298) =373.752, p<4.66E-126<0.05). The study concluded that economic expectations responsibility had the greatest influence on the performance of telecommunications firms in Kenya, followed by philanthropic responsibility, environmental responsibility, and lastly, consumer protection. Recommendations include government-provided tax breaks or financial incentives for firms demonstrating strong CSR commitment and practitioners prioritizing stakeholder engagement throughout CSR planning and implementation processes. The study recommends that the government should consider providing tax breaks or other financial incentives to firms that demonstrate a strong commitment to CSR, thus fostering a culture of responsibility within the industry. Practitioners should also prioritize stakeholder engagement throughout the CSR planning and implementation processes.