Effect of corporate social responsibility on employer branding: a survey of stakeholders in selected tea factories in Kericho county, Kenya

Abstract

Corporate Social Responsibility (CSR) basically refers to what is done by organizations to positively influence the society in which it exists. This could include, healthcare initiatives, preservation of cultural heritage and beautification of cities /towns, community relations, special education/ training programs and scholarships and volunteer assistance programs. This study examined the effects of Corporate Social Responsibility on employer branding; a survey of stakeholders in selected tea factories in Kericho County. The specific objectives examined the effect of tea factories’ CSR sensitivity to multiple stakeholders comprising shareholders, employees, community and customers on employer branding. This research will therefore be of significant contribution to the knowledge body in invoking managers to compile and publish data on CSR to test and enrich existing literature. Findings of the study will add into the body of knowledge and may contribute to development or confirmation of the existing theory. Future researchers and students will benefit a great deal since the study will be a learning base and help them understand the effects and benefits of CSR on employer branding. The study will also be a source of reference on issues related to CSR. The study was anchored on social contracts and stakeholder theories. The study adopted cross-sectional research design sine it involved different groups of respondents. The target population of 5002 stakeholders of the tea factories was selected to cater for those populations that had experienced the effects of CSR. A sample of 370 respondents was randomly selected using Yamani Taro formula. Data was obtained from self-structured questionnaires. A pilot study was done and a reliability of 0.936 was actualized. Analysis of data was done using descriptive and inferential statistics and presentation done using tables. The findings showed that there exist a positive and significant relationship between CSR towards employees and employer branding with r value of 0.349; customer and employer branding with r value of 0.329; community and employer branding with r value of 0.364; shareholders and employer branding with r value of 0.402 and the overall R2 value of 0.636 was obtained which showed the variation in the dependent variable are explained by the independent variables. The study concluded that CSR towards the selected stakeholders had positive and significant effects on employer branding. The study made several recommendations. First, the enhancement of staff welfare, training and development, health and safety and promotions based on qualification and experience to maximize the productivity of employees. Secondly, the engagement of CSR towards community through welfare initiatives, education and health and by establishing CSR projects and charity to promote harmony with the community. Thirdly, CSR though quality assurance, product information and customer feedback to ensure customer satisfaction and loyalty. Lastly, promotion of shareholders’ satisfaction by involving them in the routine running of factory activities, declaration of dividends, provision of financial records during audits and sponsorship of trips annually. The study suggested that similar research on other sectors of the economy could be considered, especially the service sector including health, insurance and hospitality sectors. The study also suggested that further research of a similar study could be carried out with a focus on other stakeholders including suppliers, Investors and government.