Effect of Corporate Social Responsibility on Orgaisational Performance: A study of Water Bottling companies in Garissa County, Kenya

Abstract

The current world of business management is full of dynamism and firms are using Corporate Social Responsibility (CSR) as a strategic tool to compete aggressively if and only if it has a return or an economic advantage to the firm in the future. The general objective of this study was to find out the effect of corporate social responsibility on organization performance of bottled water companies in Garissa County, Kenya. Specific objectives are: determining how the economic activities of CSR affect organizational performance; to establish how the social activities of CSR affect organizational performance and to determine how the environmental activities of corporate social responsibility affect organizational performance of bottled water companies in Garissa County. Stakeholder theory, corporate social performance theory, and agency theory was used to underpin the study. The current research made use of a survey research design. The target population was 100 and the researcher used census sampling technique, to measure the entire sample of 100 for this study. The researcher used questionnaires to collect primary data while secondary data was obtained from company records. A pilot study was conducted to validate and confirm reliability of questionnaires. Primary data gathered was sorted, edited, coded and analyzed using descriptive statistics and regression analysis with the help of SPSS software. Hypothesis was tested at an Alpha level of 0.05. The beneficial of the finding includes the government, private sector, Non- Governmental Organizations and bottling water companies. The recommendation from the research indicated that there is a positive effect between CSR and organization performance.