CORPORATE SOCIAL RESPONSIBILITY AS A DETERMINANT OF PERFORMANCE IN SUPERMARKETS IN ELDORET TOWN, KENYA

Abstract

The main purpose of this study was to establish the relationship between corporate social responsibility and firm performance in Supermarkets in Eldoret Town. The study was guided by the four corporate social responsibility constructs namely: Community initiative on firm performance, Employee relations on firm performance, Government relations on firm performance and Customer wellbeing on firm performance. The study utilized the stakeholder theory. The study adopted the descriptive research design. The target population was 6,335 out of which a sample size of 108 was used for the study. Stratified and simple random sampling was used to select respondents. Both descriptive and inferential techniques were utilized in data analysis. The multiple regression model was also used in analysis. Results indicated that, community initiative had a significant relationship on firm performance (β =0.042, p < 0.017). Employee relations had a significant impact on firm performance, (β = 0.061, p< 0.001). Government relations had an impact on firm performance (β = 0.268, p< 0.001) and finally customer wellbeing and firm performance had a positive relationship (β = 0.051, p< 0.024). The study made the following recommendations. On community initiative, it is vital for supermarkets to provide recreational services to the community in order for it to increase its sales volume. Under employee relations on firm performance of supermarkets, there is need for supermarkets to promote employees welfare through provision of educational, recreational, housing and credit facilities. Recommendations on government relations, Supermarkets should be responsible for disposal of wastes and residues and they should comply with government laws descriptive survey and regulations, hence the government will have more confidence in regard to the operation of supermarkets. On customer wellbeing on firm performance by supermarkets, supermarkets should carry out extensive promotion of education of customers about products and their use. The study contributed to literature review, policy and development of measurements of scale. The study recommends that further studies should be carried out to explore the relationship between CSR and profitability and to determine whether those relationships hold consistently over time.