CHALLENGES FACING IMPLEMENTATION OF CORPORATE SOCIAL

RESPONSIBILITY PROJECTS IN MILK PROCESSING FIRMS IN KENYA:

A OF CASE OF NEW KENYA COOPERATIVE CREAMERIES

BY OGUTU JULIUS AKEYO

A RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIREMENT FOR THE AWARD OF MASTERS OF BUSINESS
ADMINISTRATION DEGREE IN STRATEGIC MANAGEMENT OF
MOUNTKENYA UNIVERSITY

July, 2024
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 DEDICATION
This research proposal is dedicated to my family and friends for their moral support
and encouragement during the period of my study.

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 ACKNOWLEDGMENT
I wish to give thanks to the Almighty God for giving me the strength, ability, wisdom,
resources and the determination to work on this research proposal. I would like to
thank the fraternity of Mount Kenya University for giving me the support and
encouragement during the entire proposal. I would also like to thank my supervisor,
Dr. Jenifer Wanjiku Muriuki for guidance and technical advice during the research
proposal development.

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 ABSTRACT
Corporate Social Responsibility (CSR) is well considered as an important
managements‟ thinking due to changes in organizations and social environment. CSR
initiatives are believed to be beneficial to the society, environment as well as
businesses. There is an increasing demand for CSR from stakeholders; hence,
businesses have started to incorporate the idea of CSR into their organizational
strategic planning document. CSR aims to generate shared value by working to solve
differing and competing stakeholders‟ interests. This study seeks to establish
challenges facing implementation of CSR projects in milk processing firms in Kenya.
The specific objectives of the study will be to analyze the effects of, legal framework,
market forces and human resource planning on implementation of CSR projects in
milk processing firms in Kenya. Descriptive research design will be adopted in the
study. This study will employ a stratified random sampling to select respondents. The
sample size for this study will be 64 respondents. The closed-ended questionnaires
will use a five (5) point Likert scale to score responses. The data collection instrument
will be subjected to a pre-test, validity and reliability tests, before the actual data
collection. All completed questionnaires will be coded and entered into an Excel sheet
for cleaning, and then imported into SPSS statistical software version 22 for analysis.
The responses will be analyzed for descriptive and inferential statistics. The findings
will help facilitate policy recommendations for enhancing the Milk related CSRs in
the study area and the country as a whole.

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 TABLE OF CONTENTS

DECLARATION .................................................................................................................... ii
DEDICATION ....................................................................................................................... iii
ACKNOWLEDGMENT ....................................................................................................... iv
ABSTRACT ............................................................................................................................ v
TABLE OF CONTENTS ...................................................................................................... vi
LIST OF TABLES ................................................................................................................. ix
LIST OF FIGURES ................................................................................................................ x
LIST OF ABBREVIATIONS/ACRONYM ......................................................................... xi
CHAPTER ONE ..................................................................................................................... 1
INTRODUCTION OF THE STUDY ................................................................................... 1
1.1 Background of the Study ........................................................................................... 1
1.1.1Concept of Corporate Social Responsibility (CSR) ...................................................... 4
1.2 Statement of the problem ................................................................................................ 6
1.2 Objective of the Study ............................................................................................... 7
1.3.1 General Objectives ...................................................................................................... 7
1.3.2 Specific Objectives ...................................................................................................... 7
1.4 Research Questions ........................................................................................................ 8
1.5 Significance of the Study ................................................................................................ 8
1.6 Limitation of the Study ................................................................................................... 8
1.7 Delimitations of the Study .............................................................................................. 9
1.8 Scope of the Study ........................................................................................................ 10
2.2 Theoretical Literature Review ...................................................................................... 11
2.3 Research Gaps .............................................................................................................. 19
2.4 Conceptual Framework ............................................................................................. 21
CHAPTER THREE ............................................................................................................. 22
RESEARCH DESIGN AND METHODOLOGY .............................................................. 22
3.1 Introduction .................................................................................................................. 22
3.2 Research Design............................................................................................................ 22
3.3 Target Population ......................................................................................................... 22
3.4 Sampling Method ......................................................................................................... 23
3.5 Data Collection ............................................................................................................. 24
3.6 Data Collection Methods and Instruments .................................................................... 24

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 3.7 Pilot Testing ................................................................................................................. 25
3.8 Data Analysis ............................................................................................................... 26
3.9 Ethical Consideration ................................................................................................... 26
REFERENCES ..................................................................................................................... 30

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 LIST OF TABLES
Table 3.1 Sample Size………………………………………………………………..23
Table 4.1 Research Work Plan……………………………………………………….28
Table 4.2 Research Budget………………………………………………………...…29

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 LIST OF FIGURES
Figure 2.1 Conceptual Framework…………………………………………….19

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 LIST OF ABBREVIATIONS/ACRONYM
CSR Corporate Social Responsibility
GDP Gross Domestic Product
IT Information Technology
KCC Kenya Corporative Creameries
MKU Mount Kenya University
NACOSTI National Commission for Science, Technology & Innovation

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 CHAPTER ONE
INTRODUCTION OF THE STUDY

1.1 Background of the Study

Corporate social responsibility (CSR) is one of the main avenues for businesses to
respond to the social needs of people in the environment in which they operate
(Pirsch, Gupta and Grau, 2017). It is one of the fundamental concepts that are being
continuously adapted worldwide by firms and organizations. Over the time, society
has raised concern on environment and social issues and has become increasingly
aware of the dangers they can be subjected by the activities being undertaken by the
different corporate entities. People have become much concerned with how
companies practice Corporate Social Responsibility initiatives. Companies are
beginning to realize that competition can only be won by becoming sensitive to the
needs of the society. This can be seen by the efforts various companies are putting to
ensure that the social welfare of the society is at forefront (Pirsch, Gupta and Grau,
2017).

Corporations face difficulty in CSR implementation and in its effectiveness (Jonker

and Witte 2018). The main reason of challenges in practical work is that CSR requires
high cost and corporations in adequate financial resources to train the staff. It is most
commonly understood that the greatest main challenge for implementing and
developing CSR were steady competitive tension, inadequate backing from the
government and other non-government organizations beside the huge cost of
implementation. Moreover, lack of support from customers and investors posed an
additional challenge. Compounding to these, the core challenge in implementation of
CSR was difficulty in changing traditional business practices to CSR agenda that
requires leaders‟ great commitment in managing and in changing their focus and
behavior. Furthermore, the lack of managers‟ expertise and capability to successfully
implement desired changes was also creating a challenge in CSR implementation
process. Edelman (2017) argues that a change is not an easy process and it requires
commitment and hard work to make a desired change.

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Globally, dairy products have a huge market and a profitable industry all over the
world. Since dairy products are almost compulsory part of today‟s diet, so many
countries are self-dependent in this industry but many others are not. In developed
countries around the world, per capita consumption of milk and dairy product is
higher than developing countries (Beghin, 2016). But due to rise in the standard of
living, this gap with developing countries is also getting narrowed down. Due to
change in dietary habits, urbanization, rising income levels, population growth,
demand for milk and milk products have continued to rise in the developing countries.
This trend is evident in East and South East Asian Region, especially in China,
Vietnam and Indonesia, which are considered as high populated countries. This
increased demand is not bad to the economy, but it provides a good opportunity for all
the stakeholders in the dairy chain, from farm producers to the end-product-supplier to
collaborate and work together. And in such way, the people living in rural areas can
enhance their livelihood and earnings by increasing the dairy production
(BeckerOlsen et al., 2018).

With the start of Dairy Campaign in Malaysia by celebrating World Milk Day in June
2018, Dutch Lady Malaysia has become more popular brand. Currently, this day is
being celebrated all over Malaysia to continuously act as a prestigious commitment to
the citizens to persuade consumption of milk and to teach those benefits of milk for
their health. Dutch Lady claims that Corporate Social Responsibility is the one of the
bridges to its business goals; they are dedicated to reveal responsible corporate
behavior crossways all aspects of their operations and as a leading dairy company.
Dutch Lady Malaysia was awarded The Edge Billion Ringgit Club‟s Company of the
Year 2017 Award, for its extraordinary returns and profits to stakeholders over the
period of past three year for its Corporate Social Responsibility activities. These
activities follow their mission of helping Malaysians move forward in life with trusted
dairy nutrition‟. In its corporate social responsibility strategy, Dutch Lady Malaysia is
working on these priority areas in order to share the values with all the stakeholders
(Amran and Devi, 2018).

Regionally, Africa is abundantly endowed with precious natural resources, but still
relies heavily on imported inputs due to lack of domestic capabilities to transform the

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resources into industrial inputs and finished products (AfDB, 2016). The Dairy sector
is widely considered to drive African development due to the labor-intensive and
export nature of the industry. Many African economies are based on raw commodity
exports, which make them highly unsustainable and susceptible to external shocks. In
Africa, manufacturing accounts for about 13 percent of GDP and 25 percent of
exports. However, Africa‟s manufacturing sector is expanding fast through
investments in institutional factors and foreign direct investments (KPMG, 2017).

While acquiring technology to exploit the vast resources, developing countries

encounter the risk of obsolete and harmful technologies and products, and
environmental degradation due to weak regulations, frameworks, institutions,
standards and indices (Ahen, 2015). Enforcement of CSR ensures that firms are
accountable to stakeholders for harmonious coexistence which leads to improved firm
performance and social reputation. The capability of firms to engage in CSR activities
is mainly driven by firm characteristics such as size and age (Galbreath, 2019). This
study used firm size as a control variable since it reveals more details about the firm‟s
capacity (Sanfelice, 2018).

Locally, in Kenya, many manufacturing companies practice CSR activities compared

to the service sector. The practice of CSR in Kenya has continued to grow in both
manufacturing and service companies. These companies disclose and issue out the
CSR report to the shareholders and further disclosed the amount in the annual
financial statements (Gichana, 2017). New KCC Limited as a manufacturing company
is one of the leading dairy processing companies in Kenya. New KCC Ltd operates
since 1908 and is the second largest milk processor in Kenya. New KCC has a daily
milk intake of 350,000 kg of milk collected from five main collection areas (clusters)
Dandora, Eldoret, Miritini, Nyahururu and Sotik.

New KCC Ltd has access to a wide network of milk collection centres in 22 milk
cooling plants and processing factories as well as over 30 satellite milk coolers, with
plans already underway to add 20 new coolers in milk producing areas where new
milk collection centers have already been identified across the country. Its core
business has been the procurement of high-quality raw milk which is then processed,

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packaged and marketed as milk and milk products. NEW KCC is among the largest
milk processing company in Kenya. It controls about a percentage of 35 of the dairy
market shares, as at January2021. The company offers among other products fresh
pasteurized milk, cream, ghee, yoghurt, butter and long-life milk products in Kenya. It
distributes products by use of distribution depots, agents, and sub agents to outlets in
East Africa.

1.1.1Concept of Corporate Social Responsibility (CSR)

“Corporate Social Responsibility is the continuing commitment by business to behave
ethically and contribute to economic development while improving the quality of life
of the workforce and their families as well as of the local community and society at
large. Corporate social responsibility is not a new concept, and it has been more than
fifty years since this concept is known. The number of international as well as local
companies is being increased who are doing a different kind of voluntary CSR
activities, and these are supported by associations within business and industry. The
current attention about CSR in public speeches is the proof of revival of these
activities.

Corporate Social Responsibility (CSR) is a strategy employed by firms to achieve

competitive advantages (Newman et al., 2016). CSR enhances corporate image and
reputation resulting in improved company‟s competitiveness (Togun and Nasieku,
2017). It involves managing multiple stakeholder ties concurrently and therefore
mitigates the likelihood of negative regulatory, legislative or fiscal action, and attracts
socially conscious consumers and investors. Engagement with stakeholders enhances
and sustains a firm‟s revenue generation through improved relationship with
employees, customers and other stakeholders. The relationship between business and
society has witnessed a massive transformation from the traditional view of business
performance as profit maximizing economic agent to a more ethical outlook that
analyzes the greater impact of business on society (Safwat, 2015).

The most important idea behind the call for corporate social sustainability is that
companies in Kenya should be aware of their responsibility; extend their economic,
ecological and social engagement and arrange them according to the processes in the

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company. This is important since the company will give back to the society in which
it operates. In a competitive and multimarket business environment of the today‟s
world, the company is able to sustain this as it enables to create company name that
led to the development of company strategy. According to Werber and Chandler
(2018), the present-day CSR (also known as corporate citizenship, responsibility,
social opportunity and responsible business) involves the relationship between the
corporations and the society that they interact with.

It has been argued that proper management of environment plays a critical role in
improving corporate organization performance (Klassen, and McLaughlin, 2016).
Cheruiyot (2019) also studied the relationship between corporate social responsibility
and organizational performance after conducting research. It was concluded that there
is significant relationship that existed between corporate social responsibility and
firm‟s performance. Investors prefer to invest in companies that practice Corporate
Social Responsibility, as they will ensure that the brand image of the company is
highly attractive. Estimation of organizational performance has been at the core
interest of management and those carrying out research. Many researchers have
focused their attention on the measurement of financial performance without efforts to
measuring non – financial performance.

1.1.2Milk Processing Firms in Kenya

Kenya is the leading milk producer in East Africa. Dairy is the largest agricultural
sub-sector in Kenya in terms of income and employment creation contributing to 4%
to overall GDP. Currently the sector provides income and employment to over 1.5
million households across the dairy value chain including farmers, collectors,
processors, traders, input and service providers The country has around 6.1 million
dairy cows, producing about 607kg/year/cow, and a total annual production around
3.7 million kg of milk.

Different feeding systems are present in Kenya free grazing, semi zero-grazing (with
improved pastures) and zero-grazing. Kenya‟s dairy industry is private sector driven.
In terms of nutrition and food security, almost all Kenyans consume milk on a daily
basis (about 98 kg/capita/year in milk equivalent). The industry‟s growth and

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competitiveness are constrained by low productivity at farm level, seasonality in milk
production, milk quality issues, a huge knowledge and skills gap and lack of
inclusiveness in the dairy value chain. Kenya's dairy sector is known for its
innovations in communication technology for the benefit of small farmers.

Milk processing firms in Kenya use different strategies to survive in this competitive
market. Different firms employ strategies unique to their situation to enable them
survive the stiff competition brought by globalization, liberalization and
computerization (Lesley, 2012). The strategies range from price reduction, offering
employment opportunities to local communities, winning the support of prominent
political personalities, engaging in philanthropic initiatives and other CSR activities,
mergers/partnerships, and acquisitions among many others. Milk processing firms are
now compelled by the realities of the present times to adapt social marketing concept
because consumers have become sensitive to impacts of what they purchase and use.

1.2 Statement of the problem

Corporate Social Responsibility (CSR) is becoming an increasingly important activity
to businesses nationally and internationally. In the implementation of CSR strategies,
organizations are faced by a number of challenges which this paper aims to
investigate. In the light of the importance of strategy implementation as a component
of the strategic management process, the high failure rate of change initiatives due to
poor implementation of corporate social responsibility projects and the fact that a lack
of strategic leadership has-been identified as one of the major barriers to effective
project implementation. Additionally, a poor understanding of the CSR by the
workforce and ineffective communication of the project managers to the workforce
are the most important barriers to effective project implementation in firms (Jooste
and Fourie, 2016).

A number of studies done locally by (Otieno, 2012; Nduku, 2018; Mwiti, 2009;
Okeyo, 2014) attempting to shed some light on corporate social responsibility are
more general or have failed to give detailed insights on challenges faced by
manufacturing firms in Kenya in implementing corporate social responsibility
strategies. Otieno (201) studied the practice of corporate social responsibility of tea

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processing firms in Kenya. Although the study achieved its objectives it did not focus
on the challenges faced by such firms in CSR strategy implementation. Odhiambo
(2016) researched on corporate social responsibility as a strategic tool for
stakeholder‟s mgt in large scale enterprises in Kenya but the study did not focus on all
aspects of CSR strategy implementation or on its challenges.

Nduku (2018) studied the practice of corporate social responsibility among foreign
multinational corporations in Kenya; Mwiti (2009) conducted a survey on the relation
between corporate social responsibility and competitive advantage in the oil industry
in Kenya while Okeyo (2014) did a survey of levels and determinants of corporate
social responsibility among commercial firms in Kenya. Although these studies
attained their objectives, they did not focus on the challenges faced by milk
processing firms in implementing corporate social responsibility strategies. This study
intends to bridge this gap in knowledge by analyzing challenges facing
implementation of corporate social responsibility projects in milk processing firms in
Kenya.

1.2 Objective of the Study

1.3.1 General Objectives

The general objective of this study will be to investigate the challenges facing
implementation of corporate social responsibility projects in milk processing firms in
Kenya, taking Kenya Cooperative Creameries as a case.

1.3.2 Specific Objectives

The following research Objectives will guide the study

i. To analyze the influence of legal framework on implementation of corporate
social responsibility projects in milk processing firms in Kenya
ii. To investigate influence of market forces on implementation of corporate
social responsibility projects in milk processing firms in Kenya.
iii. To determine the impact of human resource planning on implementation of
corporate social responsibility projects in milk processing firms in Kenya.

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1.4 Research Questions
The following research questions will guide the study

i. How does legal framework affect the implementation of corporate social

responsibility projects in milk processing firms in Kenya?
ii. To what extent do market forces affect the implementation of corporate social
responsibility projects in milk processing firms in Kenya?
iii. What is the effect of human resource planning on implementation of corporate
social responsibility projects in milk processing firms in Kenya?

1.5 Significance of the Study

The regulators and the policy makers will use the finding as reference for policy
guidelines on management and control of milk processing firms with respect to CSRs.
They will be able to use the findings of this study to strengthen and or formulate
viable policy documents that effectively address problems faced by dairy sector in
implementing CSR activities. These may relate to regulating those aspects that
threaten to adversely impact on the operations and development of such organizations.

The Manufacturing sector in Kenya will gain a better understanding of the key
components of corporate social responsibility that would facilitate successful
organizations. Specifically, they will be able to understand the benefits derived from
adoption and implementation of CSR activities by the milk processing firms. On the
basis of the findings of the study, the dairy firms in Kenya will implement corporate
social responsibility practices from a point of knowledge.

The study will be valuable to scholars and academicians in advancement of their

knowledge. It will also give them a chance to improve on the studies done on analyze

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challenges facing implementation of corporate social responsibility projects in milk
processing firms in Kenya or close related topics.

1.6 Limitation of the Study

This study may be limited by resistance from some respondents in New KCC due to
disclosure of information required for the study. This is caused by the fact that
company information is highly guarded as confidential to counter the risk of
benefiting rival firms, and also some managers pose to be too busy to find time to
attend to the questionnaire, occasionally delegating to subordinates and interns. This
will be managed by seeking prior consent from respondent firms to participate in the
study, use of introduction letter from the researcher, Mount Kenya University (MKU)
and NACOSTI, engagement of a research assistant to follow up the questionnaires,
use of both email and drop-and-pick methods, availability of the researcher to
respondents whenever clarification will be required, use of a simple generic and
carefully phrased questionnaire, use of a large sample size, and the use of perceived
measures of CSR and challenges facing its implementation as opposed to explicit
measures of each construct.

This study might have limitation to the information to be obtained from the perception
of the respondents on CSR activities. Respondents are inclined to give a positive
image of the company, may overestimate their CSR impact, and may not be able to
identify negative attributes, hence biased response (Ching et al., 2015). In other
department of the firm, the questionnaire might be attended by subordinates who do
not have broad view of the organization. This challenge will be mitigated by the
consideration of secondary data from company websites, publications and newsletters
to authenticate the received responses.

1.7 Delimitations of the Study

Delimitations put a study into a context and define the boundaries of the study
(Marshall and Rossman, 2016). A reader can decide on the usefulness of a study in
other settings by knowing the scope and restrictions of the study (Marshall and
Rossman, 2016). Restrictions on the geographic region, the nature of business, the
size of the firm, and length of operating in business narrowed the scope of this study.

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This study did not include challenges of CSR in other milk processing firms and firms
that are not in other manufacturing sector. The participants may have been
uncomfortable disclosing strategies that are financial in nature and may have provided
information that is inaccurate with the reality of their processes.

1.8 Scope of the Study

The scope of the study will be focused on general objective to analyze challenges
facing implementation of corporate social responsibility projects in milk processing
firms in Kenya in Nairobi County. The research study will be carried out between the
months of April and July 2024.

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 CHAPTER TWO LITERATURE REVIEW

2.1 Introduction
This chapter contains the theoretical foundations of the study. These are the theories
that explain the relationships being tested in this study. The chapter in addition
contains the empirical review of literature. Finally, a summary of research gaps and
conceptual framework is therein provided.

2.2 Theoretical Literature Review

This study will be guided by three theories namely; Michael Porters fives forces
theory, Legitimacy Theory and the Stake Holders Theory. The purpose of the study is
an analysis of the challenges facing implementation of corporate social responsibility
projects in milk processing firms in Kenya.

2.2.1 Michael Porters fives forces theory

This theory informs the study objective. In 1979, Michael Porter came up with a
model for analyzing the structure of an industry. The model is referred to as "The Five
Forces," focus on competitive analysis (Porter, 1998). Mike Porters fives forces
theory focus on the challenges that affect the existence of firms especially after their
notable growth as well as the best strategies to adopt to address the challenges
(Dulčić, Gnjidić & Alfirević, 2012). The entry of new firms affects the performance
of existing firms. Profitable markets that yield high returns normally attract new firms.
It is a norm that when new entrepreneurs are joining the market, they undertake
research to assess the firms that seem to be doing well. This results in many new
entrants leading to competitions and decreased Human Resource Planning for the
already existing firms.

The new firms may enter the market with low prices, high quality products posing a
great threat to the existing firms. When substitute products exist in the market, they
pose a threat to the sale of the products of a given firm. The customers normally
switch to alternatives. This depends on buyer propensity to substitute, price
performance of substitute, buyer switching costs, perceived level of product
differentiation, number of substitute products available in the market, ease of

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substitution, sub-standard product, quality depreciation and availability of close
substitute.

The bargaining power of customers refers to the pressure that customers put to the
firm as regards to the products they want and at what price. Customers are sensitive to
price changes. The buyer‟s power is high if they have many alternatives and low if
they act independently. The main potential factors contributing to this are; buyer
concentration to firm, degree of dependency upon existing channels of distribution,
bargaining leverage, buyer switching costs relative to firm switching costs, buyer
information availability, force down prices, availability of existing substitute products,
buyer price sensitivity, differential advantage of industry products and customer value
analysis. The bargaining power of suppliers mainly focuses on the influence of
suppliers of raw materials, components, labour and services. If the numbers of
suppliers are limited, one has no alternative than to buy from them. They can also
dictate the price at which to supply the goods. Suppliers have also been found to
refuse to provide the firm with the resources. The main factors contributing to this are;
supplier switching costs, degree of differentiation of inputs, presence of substitute
inputs, strength of distribution channel and supplier competition.

In most markets, there are many firms providing the same goods and services. The
level of competitive rivalry is a major determinant of the competitiveness of the firm.
This may lead to change in prices that affect the performance of the firm. The Porter's
five forces frame work is used for qualitative evaluating the strategic position of a
firm. In most cases it is used as a check list. This study focused to assess the market
forces and the extent they affect the performance of dairy firms.

2.1.2 Legitimacy Theory

The Legitimacy Theory was developed was by Suchman (2015). He defines
legitimacy as “a generalized perception or assumption that the actions of an entity are
desirable, proper or appropriate within some socially constructed system of norms,
values, beliefs and definitions. The Legitimacy Theory according to Andrew, (2017)
explains that companies continually seek to ensure they operate within the bounds and
norms of the irrespective societies. For example, accompany would voluntarily report

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on activities if it perceived that is expected to do so by the community within which it
operates.

It is dependent on the assumption that there is a “social contract” between a

corporation and the society within which it operates (Suchman, 2015).

An organizations survival will be threatened if society believes that the business has
not adhered to the social contract. If this happens, the society could terminate the
contract by discontinuing the operations of the business. This may be done by
consumers/clients reducing the demand for organization‟s product or service, the
community may withdraw its labour or financial capital injected into the business and
the government may increase taxes for the business in a bid to discourage actions of
the business that are not in line with the expectations of the community. The social
contract may be explicit or implicit. Explicit terms may be provided by legal
requirements while implicit terms are non-legislated societal expectations. Social
expectations change over time. Therefore, conditions of the social contract are also
amenable to change. This requires organizations to change with the environment and
the organization needs to make changes to show that it is also changing (Dregan,
2017).

The Legitimacy Theory is relevant to this thesis as it brings in the idea of a Legal
Framework. The community within which a corporation is established provides
resources to the corporation. It can thus be said that the community sustains the
corporation; it is therefore only fair that the corporation in turn meets the
needs/welfare of the community. Government regulation comes in to ensure that the
corporation honors/fulfills its end of the organization well-being.

2.2.3The Stakeholders Theory

The stakeholders‟ theory was identified by Edward Freeman 1984 in his popular
book, Strategic Management: A Stakeholder Approach. He defined a stakeholder as
any group or individual who can affect or is affected by the achievement of an
organization’s objectives: he categorized stockholders, lenders,
customers,

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employees, suppliers and management as primary stakeholders who are very
important for the survival and smooth running of an organization while he categorized
the local community, the media, the court, the government, the general public and the
society as secondary stakeholders. He further argued that corporate social
responsibility is about identifying and managing a relationship with key stakeholders
who include individuals and groups with similar interests in a particular organization.
Stakeholders therefore form a link between the strategic objectives of an organization
and the expectations of society (Whetten and Godfrey, 2002)

The theory indicates that the strength of stakeholder-organization relationship is

directly proportional to the benefits stakeholders accrue from their interactions with
the organization. The theory further outlines three aspects of CSR. To start with, the
theory indicates that stakeholders respond to CSR activities based on the degree to
which they obtain personal benefits as a result of the organization engaging in CSR
activities. Secondly, the theory demonstrates that the type of the stakeholder
organization relationship is determined by the type of benefits that the stakeholders
receive. Finally, the theory distinguishes between third party measures of CSR
activities and the perceptions of stakeholders about the organization’s activities
(Clarkson, 2008).

The theory postulates that an organization survival and success is dependent on its
ability to generate sufficient wealth, value and satisfaction for its stakeholders. In
order to understand the stakeholders‟ needs and create long-term values, an
organization has to identify, institute and maintain CSR practices that are acceptable
by the stakeholders at all times (Ayuso and Ricart, 2006).To this end, much of the
research work on stakeholders‟ theory an investigated the external stakeholders
(consumers) leaving an information gap on the internal stake holders.

2.2 Empirical review

This review was chosen to this research proposal as it underscores other researches
which have been carried out and demonstrate the tools employed and their findings
relevant to this research study. This part entails the review of literature in empirical

14
studies conducted by various scholars on challenges facing implementation of
corporate social responsibility projects in milk processing firms in Kenya.

2.2.1 Legal Framework on Implementation of CSR projects

The concept of corporate social responsibility has evolved from the 1950‟s from
being an action of goodwill to being regulated by policies, initiation of rules and
regulations and in some countries, laws as to how the hugely philanthropically seen
activity should be carried out. The concept is now largely engulfed by hard, weak and
soft laws. Hard in the sense of clear-cut requirements for companies and organizations
to execute by way of corporate social responsibility and punishments for those who
fail to comply. Also, there are soft laws which are more conventional and encourage
firms to partake in CSR. Others poorly spoken of are those which have been clearly
initiated by governments but have not been well enforced and coordinated so are as
though they don‟t exist. These are referred to as weak laws. CSR can be promoted
legally through policies, regulations and laws in the domestic, international arena and
sum it all with a legal definition of the concept (Matten and Moon, 2018).

Many countries have been found in the process of coming together to enforce a
regulation to govern their activities concerning CSR. The story is no different in
Europe where fifteen countries have come together to enforce a CSR regulation to
control the actions of firms within the countries in the field of corporate social
responsibility. The regulatory mechanisms in various countries vary as the
governments put into consideration the variety of firms and the uniqueness of the
situations and the stakeholders. Canada in its process to enhance and facilitate
corporate social responsibility, in 2017 implemented a CSR regulation under Prime
Minister Harper. This was to serve the purpose of encouraging firms to meet the
standards of CSR in the country (Klarsfeld and Delpuech, 2018).

According to Waddock and Graves (2017), there is urgent need for legislative frame
work to regulate corporate social responsibility in most countries. In this our modern
age most the contract of employment is out dated, the courts are faced with novel and

15
complicated cases, rather fashion new rules, they still stuck to the time-honored
judicial practice of distilling new wine in old wine skins and this has resulted in
increased incongruity in the law. It is not wise for companies to exercise these
honorable duties in their different whims and caprices, there will be tendency of
abuses of all sorts. There is urgent need to protect the powerless. The courts have an
abiding duty to protect those whose bargaining power is weak against being forced by
those whose bargaining power is stronger to enter into bargains that are
unconscionable. With collective agreement left unenforced, the contract of
employment in countries such as Nigeria is concluded between individual employer
and employee, distorted as it is by inequality of bargaining power. As between
employee and employer, the former is a weak contracting party and from
socioeconomic point of view, the law owes him a duty of protection.

A study by Nyariki and Amwata (2019), on impacts of policy reforms on the livestock
industry in Kenya noted the increased competition which is adversely affecting
performance. This study does proceed to outline how various strategies influence
performance. There are numerous motivations for companies to engage in CSR.
Mostly, they pursue CSR because they believe that these actions will, in return, bring
certain benefits to them. This strategic approach is referred to as enlightened
selfinterest. Studies, conducted, for example, by McGuire et al. (2018) and Solomon
and Hansen (2015) support this perspective. As stated earlier, Bragdon and Marlin
(2012) found that the most profitable firms were the ones with the best Legal
Framework. Related studies on the other hand, concluded different results, such as
CSR legal actions lead to additional costs for a company, which would lead to a
disadvantage in contrast to their rivals without such actions.

2.2.2 Market Forces on Implementation of CSR projects

Companies use different strategies to survive in this competitive market. Different
Companies employ strategies unique to the prevailing market forces to enable them
survive the stiff competition brought by globalization, liberalization and
computerization (Lesley, 2002). The strategies range from price reduction, offering
employment opportunities to local communities, winning the support of prominent
political personalities, engaging in philanthropic initiatives and other CSR activities,

16
mergers/partnerships, and acquisitions among many others. Organizations are now
compelled by the realities of the present times to adapt social marketing concept
because consumers have become sensitive to impacts of what they purchase and use.
Leading the world in corporate responsibility.

New Survey of 600 Firms in 27 countries finds Toyota lead with Google a close
second. In 2016, Reputation Institute introduced the RepTrak Model- a simplified and
standardized scorecard for measuring corporate reputation internationally. The beating
heart of the model is the pulse-the degree to which people trust, admire, respect and
have a good feeling for a company. The findings of the study provide executives with
a high-level overview of their company`s reputation with customers. Rankings along
the corporate social responsibility index aim to give companies a better sense of how
the totality of their institutional activities is perceived by the general public and this
has a lot of influence on buyer behavior.

Carmen-Pillar, Rosa and Lisa (2019) sought to determine the effect of market driven
forces on firm CSR and profitability within short and long periods of time. The
research consisted of listed European firms and the period for the study was the
fouryear duration preceding 2018. The research hypothesized that CSR has a strong
and positive relationship within short time horizons but increases profitability in long
time horizons. The results showed that companies‟ performances increased markedly
in the long-term and only increased in a short-term period of less than 18 months. The
study included large companies and it is recommended that the same study be
conducted to include small companies to improve validity.

A study by Waema (2013) on the effects of competitive strategies on performance of

dairy firms in Kenya focused on description of variables with no analytical approach.
This study focused on analysis of relationship between the market forces and
performance and the study concluded on factors affecting the performance of the
marketing communication tools in dairy firms in Kenya being marketing not noting
that performance is caused by many variables. Another study by Nyariki, (2009), on
impacts of policy reforms on the livestock industry in Kenya noted the increased
competition which is adversely affecting performance. This study does proceed to

17
outline how various strategies influence performance and the study noted that
informal milk trade resulted from problems in the formal milk trade. The poor
performance in the formal milk industry has been attributed to lack of appropriate
strategies. These strategies cannot be formulated with the scarce information existing.

2.2.3 Human Resource Planning on Implementation of CSR projects

Recognizing the importance and benefits of social responsibility in the context of

globalization and international integration, in addition to the tax liability to the state,
some large enterprises have registered to carry out social responsibility in the form of
social commitments to protect workers, to create a sense of belonging and satisfaction
of the employees. As stated in the concept, HR planning activities aim to help
businesses mitigate negative impacts and promote positive effects on business and
society. Hence, the HR manager plays a very important role in determining employee
interests, economic benefits and social benefits and then harmonizing the interests of
the groups. Related to create a better business image in everyone's eyes (Matten and
Moon, 2019).

Dowling (2016) argued that corporate reputation is a perception of an organization by

stakeholders including employees and it can be positive or negative. He adds that
organizations concentrate on developing positive reputations by focusing on areas that
are of interest to the stake holders: this in turn influences perception hence building of
confidence and trust by the stake holders. Brammer et al. (2017) identified a positive
link between employee perceptions of external CSR activities and organizational
commitment. They defined external CSR activities as the philanthropy, community
contributions, and how the firm interacts with the external world, environment and
stakeholders. Brammer et al. went ahead to describe this link between CSR and
organizational commitment as a positive link since commitment arises as a result of
enhanced personal identity as described in the social identity theory. Turker (2019)
argues that there is a link between CSR and employee commitment which arises as a
result of socially responsible activities by an organization.

18
Global studies have presented arguments and evidence showing positive negative or
neutral relations between CSR and Human Resource Planning. Using CSR as a
collection of independent variables, global studies seek to identify if it has an effect
on Human Resource Planning. If the study identifies a linkage, then it seeks to
establish the nature of the relationship. According to Kotler (2008) 53% of the global
empirical studies indicate a positive CSR-Human Resource Planning relationship.
Orlitzky et al. (2015) supports the views of Kotler‟s study in his research which
shows a strong and positive relationship between environmental awareness, and
Human Resource Planning. However, Arya (2009) conducted a research which
factored in social pressure as an independent variable.

An empirical study of Boesso and Michelon (2018) sought to investigate the effect of
stakeholder prioritization on corporate financial growth. The authors hypothesize that
only through strategic prioritization on specific social issues, like human resource
planning on employee relations, can firms create competitive performance
advantages. Using firm-level performance data and the KLD as a measure for CSR,
the findings show that “employee relationships and the highly correlated issues of
diversity seem to have a „per se‟ positive impact on some measures of financial
success” (Boesso and Michelon, 2018). The study shows that regarding CSR not only
as a monolithic construct but also as comprising multiple dimensions (specifically
focusing on the employee relations dimension) can contribute to more parsimonious
explanations regarding its contribution to firm performance. However, the study also
highlights some of the limitations of the macro-level instrumental CSR-HRM research
with regard to the empirical methods that are used, i.e., this research is predominantly
based on a cross-sectional data, which limits the casual interpretation of its findings.

2.3 Research Gaps

According to Matten and Moon, (2019) integrating HR planning with CSR Competent
labor force is critical to productivity and product quality. In developing countries, the
number of employees is high, but the workforce is of high quality. Hence, recruiting,
attracting and retaining highly qualified and committed employees is a challenge for
businesses. Successful implementation of CSR programs involves paying fair and
equitable salaries, giving employees the opportunity to receive training, health

19
insurance and a clean working environment capable of attracting and recruiting. And
keep the staff good. Therefore, the human resources department needs to integrate the
results of the implementation of CSR in the recruiting program, encouraging and
promoting the benefits of a socially responsible work environment.

In the eyes of Lydenberg et al. (2016), companies have no choice but to act in a
socially responsible manner as soon as company managers have the impression that
CSR has a positive effect in market force. As these managers are the ones to decide,
Owen and Scherer (2013) conducted research, which investigated the top
managements‟ perception of the relationship between CSR and market forces. As a
result, they found that managers believe in a positive effect of CSR, especially of
actions regarding competition, corporate philanthropy and disclosure of social
information. Since they also included managements‟ demographics, Owen and
Scherer (2013) realized that while age, industry, managerial level or the company-size
did not influence the managers‟ perception regarding the relative importance of CSR
significantly, there was a difference in the strength of the impact of the investigated
CSR actions.

Olarewaju (2018) portrayed the urgent need for legislative framework with regard to
corporate social responsibility in organizations. CSR is generally understood as being
the way through which a company achieves a balance of economic, environmental
and social imperatives while at the same time addressing the expectations of
shareholders and stakeholders. Human beings being what they are, they can easily be
influenced by its whims and caprices resulting in infringement of the people’s human
rights. Promoting and respecting fundamental rights of the citizen is viewed so
seriously that framers of the constitution sought to ensure that no fetters are placed in
the part of a citizen seeking to enforce his rights.

20
 2.4 Conceptual Framework
This section shows the relationship between the variables examined. The independent
variables are the legal system, market forces, and human planning. The difference is
in the implementation of dairy companies' social responsibility.

Independent Variable

Legal Framework
 Consumer rights
 Transparency Dependent Variable
 Social impact management

Implementation of CSR in
Milk Processing Firms
Market Forces
 Supply and demand  Regulatory environment
 Competition  Resource allocation
 Consumer preference  Corporate culture values

Human Resource Planning

 Skills
 Positions
 Structure

Figure 2.1 Conceptual Framework

Source: Researcher (2024)

21
 CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction
This chapter describes the research design, the population, the type of data to be
collected, sampling frame, sample and sampling technique, data collection instrument,
data collection procedure, pilot test, validity and reliability of the instrument, data
analysis and presentation, and hypotheses testing techniques. Research methodology
explains the research approach, design and associated methods of data collection and
analysis.

3.2 Research Design

According to Ibrahim, 2014; Kothari and Gaurav, 2014; Saunders et al., 2012)
research design is the plan and the procedures for research that entails the broad
assumptions and detailed methods of data collection and analysis. It is the blueprint
for collection, measurement and analysis of data. It entails the methods of data
collection, analysis and interpretations that translate the approach into practice. This
study will adopt a descriptive survey research design, which is a fact-finding enquiry
that explains phenomena as they exist at that moment in time. Survey involves asking
structured questions to a representative cross section of the population at a single
point in time. The survey may be mailed to respondents, conducted over the phone,
electronically or involve a face-to-face meeting with the respondent (Sweeney, 2009).
In this study, descriptive survey methodology will be used as it is an inexpensive yet a
quick, efficient and accurate method of accessing information about the target
population.

22
3.3 Target Population
The population is the universe of all items with common observable characteristics
(Kothari & Gaurav, 2014). It is the complete set of individual events or things of
interest that the researcher wishes to investigate. The population of a study will
consist of all the possible persons, events, objects etc. that can be involved in the
study. The study population will made up of three main KCC Processing firms in
Kenya. The processing units are located in Limuru processing factory in Kiambu
County, Processing factory located in Baba dogo in Nairobi County and Sotik milk
processing firm located in Bomet County. The targeted respondents (units of
observation) will mainly consist of 40 members from each station totaling to120
respondents comprising of managers and departmental teams in charge of CSR at the
New KCC.

3.4 Sampling Method

Mugenda and Mugenda (2013) say that sampling is the process of choosing and
studying a small number of people, things, or events to learn about the whole group
from which the sample was taken. A sample is a small group of people from the target
population that has been chosen in a methodical way. The researcher will use a
method called "stratified random sampling." This method will make it possible to
generalize about a large group of people while still leaving room for error. It will also
give all employees an equal chance to take part in the study. The researcher will use
Yamane (1967) sampling formula as shown below and indicated in Table 3.1.

n=N K+
N (ɛ) 2
Where
N = Population K=
Constant ɛ = degree of error
expected n = Sample size

n = 120
1 +120(0.05)2 = 92

23
Table 3.1 Sample Size
Category Target Population Sample Size Percentage
Senior Management 12 9 10
Middle Management 50 38 41

Supervisors 58 44 48
Total 120 92 100
Source: Researcher (2024)
3.5 Data Collection
This study will collect Primary data using a questionnaire that will contain questions
both open and closed-ended. The questionnaires will be broken down into two
sections. Part one of the questionnaire will be used to collect the respondents' bio-data
while section two will be used to gather information on the views and attitudes of the
workers on the report. The questionnaires will be administered by the researcher by
direct consultation with the respondents to explain the study's purpose and to produce
a report to encourage interviews with the respondents.

Secondary data will contain data obtained from other historical data gathered and
tabulated by tables, diagrams, and studies. This type of data will be obtained from
research sources that have essential details that ware of assistance to this analysis.
Secondary data collection will be collected from desk analysis, which will either be
from internal or external sources. The primary link will include the public, journals,
archives, and other organizations linked to the study. Primary predictive evidence will
contained results from the company's annual accounts.

3.6 Data Collection Methods and Instruments

Saunders (2013) asserts that the correctness of the data to be collected is based on how
valid and reliable the methods for collecting the data are. The researcher suggests
using questionnaires to get information because they are cheap in terms of both
money and time and because the answers can be checked to make sure they are
correct and complete. Kothari (2011) says, however, that a survey of a large group
shows a pattern.

24
3. 6.1. Validity and Reliability of Research Instruments
A pilot study will be conducted to establish the validity and reliability of data
collection instruments. The questionnaires will be pre-tested on a pilot set of 20
respondents which includes 10% of the target population for comprehension, logic,
and relevance. This target will be obtained from some of the management staff of
New KCC limited in Kiganjo, Dandora and Sotik plants,

According to Mugenda and Mugenda (2013), the standard method for determining all
these aspects of a measure's validity is to use a consultant or specialist in a specific
area to help uncover query material, terminology adjustments, and spacing concerns
before the actual research, as well as to discuss avenues to enhance the overall
consistency of a report. The researchers will seek the opinions of experts in the field
of studies, especially the lecturers in the business department, for the sake of this
analysis to improve the validity of the research instrument. This will promote the
requisite revision and modification and the validation of the research instrument.

In definition, the reliability of the data collection tool is calculation accuracy and is
mostly tested using a test-retest reliability approach (Mugenda and Mugenda, 2013).
Reliability has allowed the researcher to recognize the ambiguities and insufficient
things in the Testing Instrument; where the efficiency of the instrument is a test's
efficiency, accuracy, or faith. The researcher will use the most common indicator of
internal accuracy, called the alpha (α) of Cronbach. This will show to what degree a
collection of test objects may be viewed as calculating a single variable in latent type.
The suggested value of 0.7 will act as a reliability cut-off. The power of our
conclusions, inferences, or assumptions is true. The variable may be defined as the
best possible approximation of a given assumption, proposition, or conclusion to the
truth or false (MacKenzie and Podsakoff, 2012).

3.7 Pilot Testing

The researcher will carry out a pilot study at New KCC processing firms. This facility
will ensure the sample size required and similar characteristics to those to be sampled
for the actual data collection. The questionnaire will be administered to 10% of the
sample as recommended by Cooper & Schindler (2011) and Mugenda & Mugenda

25
(2013). Demographic variables on the levels of education and the length of
incarceration will be considered when choosing the respondents of the pilot study. A
focus group discussion compromising six (6) respondents will be used to pilot the
study guide. The Interview will be administered to the officer in-charge for validation
purposes.

The pilot study will assist the researcher in identifying and modifying the items in the
research instruments that will prove difficult, ambiguous and unclear ensuring the
generation of relevant and consistent data. It will also give room for a pre-run of the
descriptive and qualitative analytical procedures that will help the researcher to
determine whether the tools will generate the expected data from the actual study. The
researcher will then use the findings of the pilot study to make the necessary
adjustments that will enhance the validity and reliability of the instruments. The pilot
study will further help the researcher to determine the average amount of time that
will be required in the administration of the items during the actual data collection.

3.8 Data Analysis

Data collected will be edited, coded and classified into different components to
facilitate a better and efficient analysis. CSR implementation challenges have
different components and for the purpose of this study, legal Framework, Market
Forces and Human Resource Planning will be used to analyze Implementation of CSR
in Milk Processing Firms. Others constitute all those other activities of CSR which
cannot be attributed to any of the identified categories. The method of CSR
measurement to be used is known as Regression analysis. A similar measure was used
by Fauzi (2009). Regression analysis using SPSS will be used to test the relationship
between legal Framework, Market Forces and Human Resource Planning
(independent variable) and Implementation of CSR in Milk Processing Firms
(dependent variable). The relationship was explained by the following regression
model;

Y = β0+ β1X1 + β2X2+ β3X3 + Ԑ………………………………………..Equation 3.1

Where:

26
Y =Implementation of CSR in Milk Processing Firms
X1 = Legal Framework
X2 = Market Forces
X3 = Human Resource Planning
Ԑ = Error term

3.9 Ethical Consideration

Considering ethical issues in research is very critical. Ethics are the behavioral norms
or standards which distinguish between right and wrong. It helps to discriminate
between reasonable and inappropriate behaviour (Resnik, 2018). The researcher
discussed basic ethical standards, including mutual study engagement, informed
consent, secrecy, or anonymity, if necessary, in his relationships with individual
subjects. For whatever reason, no participants will be excluded. All participants will
be allowed voluntarily and the same received informed consent, following ethical
standards of the APA. Also, the researcher will ensure that only those components
that are relevant to the study will be assessed and that participants are either physical
and/or psychological harm protected from any harm.

27
 Table 4.1: Work plan
Activities January February March April May June July
2024 2024 2024 2024 2024 2024 2024

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Concept
development

Proposal
writing

Proposal
presentation

Pilot study
Data collection
Data analysis
Report writing
Final draft
Final project

Source: Researcher (2024)

28
Table 4.2: Research Budget
Activity Item Cost in Shillings
Proposal writing Typing and printing 10,000
Pilot study Transport (Bus fare) 10,500
Data collection Data collecting 23,000
Data analysis Data analysis 10,000
Report writing Report writing 10,000
Final draft Printing of final draft 8,000
Final project Printing of final project 15,000
Contingency 10 % 8,650
Total 95,150

Source: Researcher (2024)

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technological innovation on SME‟s profitability in Nigeria. International
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Amran, A., & Susela Devi, S. (2018). The impact of government and foreign affiliate
influence on corporate social reporting: The case of Malaysia. Managerial
Auditing Journal, 23(4), 386-404.

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Becker-Olsen, K. L., Cudmore, B. A., & Hill, R. P. (2018). The impact of perceived
corporate social responsibility on consumer behavior. Journal of Business
Research, 59(1), 46-53
Beghin, J. C. (2016). Evolving dairy markets in Asia: Recent findings and
implications. Food Policy, 31(3), 195-200
Bulla, D. N. and Scott, P. M. (2004). Manpower requirements forecasting: a case
example, in (eds) D. Ward.
Edelman, R. (2017). Managing corporate risk and reputation, Global Agenda, 2:127
– 8.
Jonker, J. & Witte, M.D. (2018). The challenge of organizing and implementing
corporate social responsibility. Journal of Business Research, 55(7):553-560.
KPMG. (2017). Manufacturing in Africa. The development of a new scale for
measurement of the level of CSR, Nairobi
Pirsch, Gupta and Grau (2017). Motives for food choice: a comparison of consumers
from Japan, Taiwan, Malaysia and New Zealand. Food quality and
preference, 13(7), 489-495
Sanfelice A. (2018). Corporate social responsibility: Rewriting the relationship
between business and society. International Journal of Social Sciences, 4(1),
85-97.
Werber & Chandler (2018). Recent trends in social and behavior sciences. In the
proceeding of the 2nd International Congress on Interdisciplinary Behaviour
and Social Sciences (2013), Jakarta, Indonesia.
Matten, D. and J. Moon (2018). "Implicit and explicit CSR: a conceptual framework
for a comparative understanding of corporate social responsibility". Academy
of Management Review 33(2), pp. 404-424.
Klarsfeld, A., Delpuech, C. (2018). “Hard law, soft law, weak law: the implications
of the neo-institutional and social regulation theories on CSR and the
distinction between hard and soft law”. Working Paper, Toulouse Business
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Dregan, (2017). The Legitimizing Effect of Social and Environmental Discourses; A
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 Kothari, C.R. (2004). Research Methodology: Methods and Techniques. Second
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Suchman M.C, (2018) Managing Legitimacy; Strategic and Institutional
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framework for understanding CSR in Europe,” International Centre for
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Matten, D. and Moon, J. (2019). "Implicit” and “Explicit” CSR: A conceptual
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APPENDICES

Appendix I: Letter of Introduction

Ogutu Julius Akeyo Mount Kenya University P.O. Box 342 - 00100 Thika

31
Dear Respondents,

Ref: Request for Participation in a Research Study

I am a student at Mount Kenya University, pursuing a Master’s Degree in Business

Administration. I have chosen your organization as my preferred area of study basing
on the topic entitled “Challenges Facing Implementation of Corporate Social
Responsibility Projects in Milk Processing Firms” The information to be provided
will be used for academic purpose only and will be treated with utmost
confidentiality. Please DO NOT write your names in the questionnaire.

Thank you in advance as I look forward to your cooperation in this study.

Yours faithfully,

OGUTU JULIUS AKEYO

Appendix II: Questionnaire

Kindly tick the box that matches your answer to the questions and list the
answers in the spaces provided appropriately.

SECTION A: BACKGROUND INFORMATION

1. Gender
Male Female
2. Age
Below 25 25-35years
35-45 years 45 years and above

3. Level of Education
Certificate Post Graduate Diploma Bachelors
Masters PhD

32
4. Years in service in the firm/company
0- 1 years 1-3 years above 9 years
4-5 years 6-8 years
5. What’s your current position?
Senior level management Middle level management
Supervisory level

SECTION B: Legal framework on implementation of corporate social

responsibility

The table below represents statements regarding the components of Legal framework
on implementation of corporate social responsibility. Please indicate the extent to
which you agree or disagree with each statement by ticking on the appropriate column
using the guidelines below.

Key: 5-very great extent 4-great extent 3-modorate extent 2- low extent 1-very
low extent
Statements 5 4 3 2 1
The management ensures there is transparency on CSR
activities by KCC organization

KCC as an organization has formalized policy on corporate

social responsibility (CSR) or a written code of ethics

Enables the company to be responsibility to follow all the laws

and regulations that apply to the business operations

The organization encourages public reporting on economic,

social and environmental performance regarding CSR
activities by organizations

Create a positive impact on society and deliver value whether

social, environmental, or economic

The organization sets CSR legal aspects targeting financial

objectives of the firm

33
SECTION C: Market forces on implementation of corporate social responsibility
The table below represents statements regarding the evaluation on the effects of
Market forces on implementation of corporate social responsibility. Please indicate
the extent to which you agree or disagree with each statement by ticking on the
appropriate column using the guidelines below.

Key: 5-very great extent 4-great extent 3-modorate extent 2- low extent 1-very
low extent
Statements 5 4 3 2 1
CSR has caused great market share and more profits to the
organization

The company adopts CSR is for commercial advantages to the

market

Corporate Social responsibility (CSR) concept is applied as a

marketing strategy to enhance performance

The company engages in CSR marketing activities as strategy

to improves the company’s reputation
There is a review of the CSR activities and market share
strategies by the organization

There is specific department that handles CSR marketing

operations and business strategies

SECTION D: Human resource planning on implementation of corporate social

responsibility
The table below represents statements regarding the analysis of the effects of Human
resource planning on implementation of corporate social responsibility Please indicate
the extent to which you agree or disagree with each statement by ticking on the
appropriate column using the guidelines below.
Key: 5-very great extent 4-great extent 3-modorate extent 2- low extent 1-very
low extent
Statements 5 4 3 2 1

34
Planning helps organizations become more synchronized with
its social and economic objectives to achieve organizational
performance

Encourages and makes employees feel that they are part of the
decision-making process.

Helps organization recruit the candidates that best fit their

needs

Ensure that the right training needs are provided for to the
employees

HR acts as a change agent in CSR implementation and plays a

significant role in developing competencies

HRM–CSR relationship supports developing and managing

CSR initiatives through human resource planning
HR important in managing the CSR plan implementation and
monitor its adoption proactively

SECTION E: IMPLEMENTATION OF CSR PROJECTS Key: 5-very great

extent 4-great extent 3-modorate extent 2- low extent 1-very low extent

Statements 5 4 3 2 1
Most corporate social responsibility projects depends on the
allocated resources.

The corporate culture values of KCC supports implementation

of CSR projects

Stakeholders are engaged before implementation of any CSR

project

Environmental regulations greatly influences implementation

of CSR projects

Implementation of CSR depends on past successes.

35
THANK YOU FOR YOUR PARTICIPATION

36