LOCAL BENEFICIARY COMMUNITY PERCEPTION OF

CORPORATE SOCIAL RESPONSIBILITY PRACTICES OF

MULTINATIONAL CORPORATIONS IN KENYA.

D61/68164/2011

MARTHA WARUKIRA MUTURI

SUPERVISOR

PROF. BITANGE NDEMO

A PROJECT REPORT SUBMITTED TO THE DEPARTMENT OF

BUSINESS IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (MBA) OF THE
UNIVERSITY OF NAIROBI.

OCTOBER 2016
 DECLARATION

This research project is my original work and has not been submitted for the award of

a degree in any other university.

Signed __________________________________Date: 8th November 2016

MUTURI, MARTHA WARUKIRA

D61/68164/2011

This research project has been submitted for examination with my approval as the

University Supervisor.

Signed________________________________

Date________________________

PROF. BITANGE NDEMO

Department of Business Administration,

School of Business,

University of Nairobi

i
 ABSTRACT
The study examines the relationship existing between international business‟ CSR

practices in Kenya and the subsequent benefits and perception by the local

community. This is done through establishing the practices and types of CSR

activities employed by the MNCs, the extent to which the local community has

benefited from CSR practices and what the local community‟s perception on CSR

practices. This study adopts a qualitative approach with a sample size of 25

respondents from 5 MNCs operating in the food and beverage industry in Kenya, who

were interviewed using a structured questionnaire. The study finds that most of the

CSR activities done by the MNCs are in education and literacy enhancement,

improving sanitation and access to safe drinking water and tackling environmental

conservation and climate change. Moreover, respondents are of the view that CSR

activities create more awareness on enhancing community interaction as well as

improving the environment through campaigns and behaviour change communication.

The study concludes that even though the CSR activities of MNCs have to a given

extent benefited the local community, the actual practice of CSR has been incoherent

with the theories upon which this study was based on, mostly the stakeholder and

integrative theories.

ii
 ACKNOWLEDGEMENT

To God whose grace has been sufficient for me and His Providence in my life.

To the Mutindas, Muturis and Sitimas for their unwavering support, continuous

encouragement and prayers. Your passionate participation and input contributed to the

success of this study.

I would to thank my thesis supervisor Prof. Bitange Ndemo who consistently allowed

this steered me in the right the direction in my study. Special thanks to Lydiah

Kamau, School of Business at the University of Nairobi for her support and guidance

in coordinating trans-continental communication in spite of our time difference during

this period.

I would also like to acknowledge Dr. Yabs of University of Nairobi for his valuable

comments on this thesis.

SOLI DEO GLORIA

iii
 DEDICATION

I dedicate this work to my Family who have stood by me and supported me in this

journey.

iv
 TABLE OF CONTENTS

DECLARATION ............................................................................................................. i

ABSTRACT .................................................................................................................... ii

ACKNOWLEDGEMENT .............................................................................................iii

DEDICATION ............................................................................................................... iv

CHAPTER ONE: INTRODUCTION ............................................................................. 1

1.1: Background of the Study ..................................................................................... 1

1.2 International Business ........................................................................................... 2

1.2.1: Corporate Social Responsibility ....................................................................... 2

1.3: Multinational Corporations in Kenya .................................................................. 3

1.3.1 Perceptions of International Business in Kenya. ............................................... 4

1.4: Research Problem ................................................................................................ 4

1.5: Study Objectives ................................................................................................. 7

1.5.1: Broad Objective ............................................................................................ 7

1.5.2: Specific Objectives ....................................................................................... 7

1.6 Value of the Study ................................................................................................ 7

CHAPTER TWO : LITERATURE REVIEW ................................................................ 9

2.1 Introduction ........................................................................................................... 9

2.2 Theoretical Foundation ......................................................................................... 9

2.2.1. Stakeholder Theory ........................................................................................... 9

2.3 Significance of Corporate Social Responsibility ................................................ 12

2.4 Challenges of Implementing Corporate Social Responsibility ........................... 15

2.5 Empirical Review................................................................................................ 16

CHAPTER THREE: RESEARCH METHODOLOGY ............................................... 18

3.1 Introduction ......................................................................................................... 18

3.2 Research design .................................................................................................. 18

3.3 Target Respondents ............................................................................................. 19

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 3.4 Data Collection Instruments and Procedures ...................................................... 20

3.5. Data Management and Analysis ........................................................................ 21

CHAPTER FOUR: FINDINGS AND DISCUSSION .................................................. 23

4.1 Introduction .................................................................................................... 23

4.2 Respondents‟ Past Interaction in CSR Initiatives .......................................... 25

4.3 CSR Activities Offered/Received .................................................................. 27

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS .. 34

5.0 Introduction .................................................................................................... 34

5.1 Summary of Findings ..................................................................................... 34

5.2 Conclusions .................................................................................................... 35

5.3 Recommendations .......................................................................................... 38

5.3.1 Recommendations for Policy Implementation........................................ 38

5.3.2 Recommendations for Further Studies.................................................... 38

REFERENCES ............................................................................................................. 39

Appendix I: Study Questionnaire.................................................................................. 43

Appendix II: List of Multinational Corporations Headquartered in Nairobi ................ 48

vi
 CHAPTER ONE: INTRODUCTION

1.1: Background of the Study

The earliest reports of corporate social responsibility (CSR) are back in the ancient

times when early rulers emphasized that businesses should have a responsibility over

the society e.g. King Hammurabi in 1700BC introduced a rule that businesses such as

hotels (inn keepers) and builders were to be put to death if their negligence caused

major harm to the public. In 1929, Wallace Donham, dean of Harvard Business

School noted that although businesses had been in existence for centuries, they had

just become „new‟ with their social significance in that they has started learning how

to handle social issues and thereby becoming socially responsible.

While there are many agreed definitions of CSR, the continuing commitment by

businesses to sound and ethical practices, improving not only economic but also the

quality of life of its workforce including their families, local community and society

at large has become a widely accepted description. There is no universally acceptable

method of delivering corporate social responsibility (CSR); hence corporations have a

free hand in decision on forms of CSR they practice. While aiming to achieve

profitability, investment decisions are often made to improve the bottom line. These

decisions are often guided by business ethics, and these ethics not only define what is

right or wrong, good versus bad, acceptable or unacceptable, but as well the regard for

the business environment of operation. It is due to these considerations that CSR has

been regarded by many names such as corporate sustainability, corporate citizenship,

corporate social investment, the triple bottom line, socially responsible investment,

business sustainability and corporate governance. (Diller 1999)

1
1.2 International Business

The onset of globalisation heralded a new chapter, opening markets for businesses

that might have saturated their domestic markets. The era of international business, or

simply, trade across borders began with corporates venturing into markets where each

thought would find a suitable niche.

The success of these businesses is determined by multitude of factors including

geopolitical climate, cultural adaptation as well as human resource management

practices and local community perceptions. (Broda& Weinstein, 2005). Economic

realignment, strategic political alliances, cultural exchange programs, skills transfer

programs especially from the most developed to the less developed countries have

significantly impacted the expansion of cross border trade. (Broda 2005)

The expansion of information technology, intercontinental flights, expansion of

highly educated workforce worldwide has enhanced the rapid growth of international

business practice.

1.2.1: Corporate Social Responsibility

CSR remains highly relevant tool for businesses globally since it affects relationships

with people, customers and potential investors from other countries. Most

organizations especially MNCs have highly regarded societal values as a way

improving international businesses globally. While describing CSR, Aaronson &

Reeves, 2002 argued that businesses that could use it as a 'reputation capital' for

capturing and sustaining markets.

2
The European Works Council Bulletin (EWCB) highlighted that most multinational

corporations practiced CSR as a business strategy, to change consumer perspectives

and often included it in advertising and social marketing initiatives. This is thought to

achieve international business through increasing sales in order to grow and expand

the businesses into merger and acquisitions. According to Aaronson & Reeves, (2002)

and Crouch (2006), a code of conduct on CSR has been adopted as approaches by

corporates to voluntarily take steps to account for their actions and effects on the

environment in which they operate.

Edwards and Marginson (2006) state that these organizations will benefit from getting

a good brand image such as; recognition, credibility, trust and reliability. The creation

of better social environment benefits both society and organizations and thus

attracting foreign investors. However, there is lack of an institution that guides and

monitors such activities. One will find that it is mostly (but not exclusively)

organizations in the private sector that practice CSR. This is because some private

sector organizations are large commercial and sometimes are multinational entities

with financial ability to take up societal issues. An organization should evaluate itself

and determine whether or not they can integrate CSR into their structure and

successfully implement it fully in the form of a series of projects. They should do this

keeping in mind that the CSR projects are to benefit the society.

1.3: Multinational Corporations in Kenya

The need for growth and expansion has triggered stiff competition among MNC‟s

globally. In the quest to gain a competitive advantage against competitors most

MNC‟s have adopted competitive strategies and practices to achieve corporate

3
reputation. Corporate social responsibility has been perceived as the best practice to

boost international business, attract customers and increase market share.

In the recent past Kenya has seen a rapid expansion of both domestic and foreign

MNCs. The prevailing economic growth, highly skilled work force, strategic

geographic location as a point of entry to the Eastern Africa region, growing

information technology and general infrastructure have all favoured this growth. The

domestic MNCs have largely been in Information technology, production, banking

and hospitality industries, while foreign MNCs have either set new subsidiaries or

purchased existing industries or mergers.

1.3.1 Perceptions of International Business in Kenya.

Multinational Organizations that practice CSR may have a reduced tax burden since

the CSR activities are non-taxable. This could potentially increase their net profit after

tax. Reduced Risk will also benefit an organization that practices CSR, since they are

working together with the community to better the society and therefore avoid social

risks.

CSR is relevant today not only because of the growing social expectations of the

community in which an MNC is based in, but also further afield, globalization. When

a social issue arises, it does not only impact its immediate environment but also other

environments across its borders.

1.4: Research Problem

The main purpose of CSR in an organization is to ensure that there is a healthy

relationship between itself and its surrounding environment at the same time adhering

4
to ethical standards. Moreover, an organization is meant to take up social issues and

help solve them. On an International platform, consider a country whose industries

recklessly pollute the environment thereby destroying the atmosphere which is a

common global resource or utility. Such a country actually offends the others as

corporate social responsibility ensures international conformity in terms of

responsibility and accountability; it as well brings about stability effect that is an

important raw material for international peace.

Societal issues cannot be solved by governments only. Multinationals have a role to

play in domestic and international policy and can therefore assist in solving some of

these societal issues. An increasing number of companies are adopting CSR in their

framework after realizing that the notion of maximizing shareholder wealth without

regard to the business environment and society is outdated. Studies have shown that

many MNC‟s have been known to carry out their business with no regard for the

moral duty they have to society though they have the financial muscle and influence

in their respective industries to solve some of the existing societal problems e.g. oil,

food and beverage corporations.

These MNC‟s majorly focus on profit maximization and growth of the firm in terms

of shareholder wealth, increased production and sales etc. The impacts in some of

these MNC‟s operations have been known to cause drastic effects on the community

and environment around them. In the Food and beverages industry, McDonald‟s food

company outlet in Russia has been accused of selling „super calorific‟ foods

containing excess fat than what is allowed by their national food and beverage

5
regulator. The world‟s best-selling soda brand Coca- Cola has come under fire for its

high sugar and caffeine levels as well as production of carbonated mineral water.

In the oil industry, the Shell Corporation‟s oil extraction activities in the Niger Delta

brought about oil spills that polluted the environment which in turn led to domestic

protests from the Ogoni Community whose lands were affected and so were the fish

ponds in the area, a source of livelihood for them. Back at home in Wajir town North

Eastern province, oil exploration and mining/ drilling led to dumping of radioactive

wastes in the water which has in later years led to adverse effects to the locals health,

a number of whom have succumbed to cancer (mainly throat cancer). The locals in

the area also complained of deep trenches that had been dug and left uncovered which

posed a safety hazard to them and their livestock.

The failure of such MNC‟s mentioned above to take continued responsibility for their

actions is a cause of concern. They have the financial capability to solve the issues

they cause in the communities and environments in which they operate. It has been

observed over time that they take up the responsibility for a short period despite

continued business operations and long-term effects on the communities they operate

in. This could be viewed as a publicity stunt to „cover up‟ for their indiscretions given

that if it was a moral duty they are performing, CSR would be a long term practice in

the MNCs. As such, this study investigated the perception of the local beneficiary on

MNC CSR practices.

6
1.5: Study Objectives

1.5.1: Broad Objective

To establish the effects of international business‟ CSR practices and how they are

perceived by the society in which they operate.

1.5.2: Specific Objectives

Specifically, the study aimed to:

i. Establish the practice and types of CSR activities being employed by the

MNCs

ii. Find out the extent to which the community in which the MNCs operate has

benefited from their CSR practices.

iii. Establish the perceptions of the local beneficiary community about CSR

practiced by the MNCs.

1.6 Value of the Study

This study highlights the effects of international business‟ CSR practices and how

they are perceived by the local society. The findings obtained from this study are

instrumental in determining the effect CSR practice has on the local community of

MNCs practicing CSR, the benefits attributed to corporate social responsibility on

international business and how the locals perceive this practice by MNCs operating in

their surroundings.

Other organizations can use the findings of this study to determine the advantages of

practicing CSR and the continued practices to adapt in giving back to the society as a

way of boosting local and international business in building a corporate reputation to

gain competitive advantage against competitors in the market.

7
Academicians and researchers interested in this area can use the findings of this study

as a source of reference. Besides, researchers can use this study as a basis for further

research through filling in the gaps. A different methodology could also be used to

examine whether there is any difference in terms findings and analysis of data.

8
 CHAPTER TWO : LITERATURE REVIEW

2.1 Introduction

An evaluation of the available evidence from research on CSR and how it influences

international business in multinational companies is presented here. It includes a

review of the various studies that have been conducted by other researchers on

corporate social responsibility and international business. Among the areas reviewed

include: Theories and benefits of CSR as well as International business.

2.2 Theoretical Foundation

2.2.1. Stakeholder Theory

The organisational structure of corporations encompasses various interested parties

with different goals in the business. These players are the stake holders in any

business, and as defined by Crouch (1984), their connections, be they individuals or

groups of persons may affect or may be affected by the achievement of the

organizational goals. The stakeholders can be classified as primary of secondary.

Aaronson & Reeves (2005) defined a primary stakeholder as those that are required to

participate in the smooth running of organizations. The organization cannot do

without them, and this category includes groups such as investors, shareholders,

employees, suppliers and customers. In this category, government through legislation

provides an enabling environment and laws governing business, while at the same

time benefitting from the corporates by way of taxation and levies. Secondary

stakeholders on the other hand are those that may influence, are influenced or affected

by the business operations, but do not engage in the running of the business and thus

are not important for its survival.

9
The concept of CSR implementation by corporates thus raises questions as to whether

engaging in CSR can be viewed as a form of incentive for business to participate in

and who the beneficiaries would be (Frenkel, 2001). The decisions by management

and directors of corporations to deal with are usually varied, mostly venturing in to

solving urgent matters that pays attention to stakeholders with significant grievances

as to the strategic direction of the company, for example, companies in consumer

industry may opt to engage in CSR activities that significantly boost brand

recognition targeting customers as opposed to employee wellness programs. Another

example would be oil companies engaging in environmental protection activities to

correct errors of the past, as the case of Exxon Valdez oil spill (William, 2009).

As outlined above the stakeholder theory goes beyond the shareholders and investors,

and reaches out to important players in each corporates area of operation, enabling

directors and managers to focus on it not only in the strategic planning, but also in

systems theory and organizational theory. Using this theory, the corporations are able

to making decisions related to CSR and this study discusses the stakeholder status for

the multi-national corporations, and arguing that successful corporations should

consider corporate citizenship as part of their strategic planning tools.

2.2.2 Ethics Theory

Traditional view of business has been viewed as an enterprise that seeks profits, by

means of trade. Early practices of business focussed on self-interests, had little regard

for environment and had no self-reflection. However the early protagonists of CSR

described various detrimental effects of unregulated business practices, and began to

have more regard for improving the environment and society at large, to avoid

negative effects (Carroll & Kareem, 2010). Business Ethics is now part of most

10
educational training on business practices, as the understanding that moral compass

has to be right for the survival of this planet. The effects of human actions are thus

viewed as good or bad, wrong or right, evil versus bad. Thus by engaging in CSR

activities, corporates enhance the welfare of society, ensure protection of the

vulnerable and in the long term benefit from the investments in CSR.

According to the ethics theory, Windsor (2006) indicated that ethical practices define

and nurture the relationship between an organization and the society it operates in.

This theory is based on principles that there is a need to achieve a social good such as;

observance of human and labor rights; protection of the environment; achievement of

human development in a sustainable and secure manner; creation of employment.

This is achieved by an organization carrying out their operations in an ethical manner,

which is a key ingredient in international business dealings. Potential investors are

attracted and encouraged to invest in a country that practices CSR as a way of giving

back to the society.

2.2.3 Integrative Theories

The main goal for setting up companies per shareholders is to make profits. With this

is mind, it is often understandable when other factors are introduced in the conduct of

business, such as integration of CSR in to business operations. Notably, many

shareholders may not even understand at fist the goal of CSR and may consider it

competition for their dividends or earnings. While multiple scholars have documented

CSR as an extra responsibility of shareholders and management of corporations,

(Freeman, 1984; Clarkson, 1995; Donaldson and Preston, 1995; Mitchell, Agle and

11
Wood, 1997; Friedman and Miles, 2002; Norris and O‟Dwyer, 2004), the integration

of CSR in to the areas of operation, this concept still evokes significant concern.

The integration of CSR into a corporates strategy often introduces changes in the

business processes, (Donaldson and Preston, 1995), there is often lack of models or

frameworks that show the way CSR can be integrated in business and corporate

strategies. While this is considered, it is our view that an organization should

integrate social demands in their structure since an organization is dependent on

society for its continued growth and existence. That is, an organization operates in

accordance with social values. In a bid to achieve social acceptance and prestige, this

theory will focus on detection and response to social demands.

2.3 Significance of Corporate Social Responsibility

It is worth noting that most organizations benefit in various ways from undertaking in

CSR related activities; Organizations that practice CSR gain from reduced tax burden

since the CSR activities are non-taxable. This could potentially increase their net

profit after tax. Reduced Risk will also benefit an organization that practices CSR,

since they are working together with the community to better the society and therefore

avoid social risks (Kiniu, 2011).

Some scholars Preston (1995) and Dunfee (1998) coined that corporate social

responsibility machinery of any business or organization shows that that business or

organization is responsible, accountable and sensitive to the welfare of the public and

the environment altogether, an aspect that attracts more investors and clientele to that

particular business. While there might be various shortcomings of corporate social

responsibility as a practice, the benefits thereof supersede such shortcomings. This

12
study focuses on these benefits which include but not limited to: increased business

trust; environmental sustainability; taking care of the staff, consumer and community

welfare and indirectly promoting accountability to stakeholders across many

industries.

Organizations that practice corporate social responsibility virtually attract more

investors across borders. Needless to mention, international business relations require

mutual accountability as an important aspect of international business partners and

associates. An increase in the number of investors for a particular business means that

that business has greater capital potential for expansion and profiteering which are the

prime goals of many businesses. Such a business fits well in the region of operation

because it abides by the government policies at work.

At local, regional, national and international levels, one of the most current trends in

modern business environment is care for the environment. At a global level, there are

many debates aimed at ensuring that the environment is sustainably utilized. The aim

of international environmental laws and/or policy, for instance, is to ensure that the

environment must be safeguarded so that the future generation as well has something

to pride in as far as environmental resources and health is concerned. Currently,

environment is taken as one of business stakeholders. As so, corporate social

responsibility is the primary virtue that ensures environmental sustainability is

realized. Therefore, a business and/or an organization that practices corporate social

responsibility actually contribute to the much needed environmental sustainability

worldwide (Kiko, 2012).

13
Corporate social responsibility ensures that employees are equally treated and know

their rights well. From another rare perspective, we need to consider what would

happen if corporate social responsibility vanished. Highly likely to erupt is completely

ignorant and misinformed stakeholders (Aaronson, 2002). Internationally, more often

than not we hear of workplace activists who attempt to ensure human rights are

sustained whereof employees are not an exception. The credibility of international

businesses today highly depends on how well the business attends to human rights at

the workplaces. What this boils down to is that corporate social responsibility an

agreed upon as an important aspect of international businesses.

Social events that would otherwise damage the name of the organization are avoided.

Moreover, Stable earnings lead to organizational growth. Organizations that practice

CSR take up a responsibility for the society and thus benefit from less government

regulation. Employee and community perceptions that a company has a good CSR

commitment may create interest and attract and retain staff leading to reduced

recruitment and training costs (Diller, 1999). Consumers and the society are the most

important stakeholders at the core of any business or any intent to start a business or

an organization. The reason behind this is that the consumers are at the receiving end.

As so, the practice of corporate social responsibility ensures that such consumers and

the community at large receive only high quality products. In a sense, any corporation

knows that the consumers worldwide and/or the general public have the right to

consume harm-free products; therefore, every corporation is mandated to ensure that

the consumers and the general public get only the best quality products.

Corporate social responsibility mechanism of a particular company helps its

management to ensure this happens. In the meantime, corporate social responsibility

14
ensures international peace. The reason for this stand is that, at international level,

countries that do not promote corporate social responsibility are perceived as deviants

and potentially harm pots.

2.4 Challenges of Implementing Corporate Social Responsibility

Organizations have a basic business responsibility to create and maximize on

shareholder wealth. This makes it difficult to implement corporate social

responsibility because of the view that CSR will divert capital away from direct profit

making activities. Quite a number of employees in most organization lack knowledge

and skills in handling social issues. Most employers focus more on professional skills

and forget about social skills when recruiting their employees this however pose a

major challenge later when implementing CSR in the organizational structure this

consumes a lot of trying to cope with this practice and thus negatively impacting on

corporate social responsibility (Reeves, 2002).

In most cases, it is not easy for some organizations to account for their CSR since

these activities do not form part of the annual financial reports and thus making it

impossible to account on how an organization performed in regard to CSR. This

demotivates most institutions that invest heavily on CSR since their efforts may not

be noted by some stakeholders. On the other hand, it imposes additional costs which

may reduce the level of competitiveness in the industry it operates especially if

competitors rarely participate in CSR (Kiko, 2012).

It is a legal duty for company managers and directors to act in the interest of the

shareholders or owners of an organization more than towards its stakeholders, like the

society. Therefore, the directors will obviously tend to focus more on achieving their

15
goals towards the shareholders (organization) rather than the stakeholders (society

which has an interest in an organization).Most organizations face competing demands

for limited resources .There are some cases of misconception that CSR activities

involve donation of cash for short term use which is not the case. However, this

phenomenon may lead to lack of proper support by other stakeholders (Kiniu, 2011).

The other challenge that most organizations face is lack of a CSR body in Kenya that

provides a guiding framework for CSR. As a charitable activity, CSR seeks to assist

the poor and the less fortunate in the society as a way of giving back to the society.

CSR should be viewed as a way of donating or committing a certain amount of

organizational funds, time and other essential resources to help in solving societal

problems that require being addressed urgently (Aaronson and Reeves, 2002).

2.5 Empirical Review

A number of studies has been done on CSR and international business, a study by

Kiko (2012) on the practice of corporate social responsibility among Foreign

Multinational Corporations in Kenya revealed that in overall, the total impact of the

factors that influence foreign multinational corporations to engage in corporate social

responsibility is very high and the factors that influence them to engage in CSR to a

very great extent include genuine response to the needs of the underprivileged in the

society and changing business environment. Corporate image management,

organizations' public awareness, employee attraction and retention, and as a marketing

strategy have been indicated as influencing the organizations involvement in CSR

practice to a great extent.

16
A study done by Kiniu (2011) on CSR among multinational corporations listed in the

Nairobi stock exchange indicated that most had CSR activities and policies guiding

CSR practice. The findings also revealed that most of the companies concentrated on

the activities that benefited the employees. Results also showed that most of the

organizations have achieved their CSR objectives though some felt that there was still

room for improvement. Majority of the organizations were of the opinion that CSR

had benefits and it was a good practice. This study did not address what motivation is

behind the continued practice of corporate social responsibility in international

business. No studies so far on how the local community perceives the effect of an

International Business‟ CSR practices. Therefore, a gap of knowledge exists as there

is a compelling need to know the effect of International Business‟ CSR practices and

their local perceptions.

17
 CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction

This section covers the research design, target population and sample size, data

collection methods and data analysis and presentation.

3.2 Research design

The design of any study is essentially an accurate description of the methods,

procedures to be used or used in collecting data, analysing, interpreting and

disseminating the results (Myers 2008). The forms of study designs include

qualitative, quantitative and mixed methods. Qualitative study designs are applied in

studies with no measurable variables, as such are best suited for assessing knowledge,

opinions, perceptions, attitudes and practices among a study population (Rubin and

Babbie 2010). Categorical variables on the other hand are studied in quantitative

research methodologies, in which nominal and ordinal variables are obtained and

analysis of association‟s conducted. Statistical analysis often test a null hypothesis

and derive associations. (Ary, Jacobs and Razavieh 2002). Mixed method studies

involved both strategies, with qualitative often preceding the quantitative

methodology or vice versa.

This study will be a cross-sectional, qualitative research using an interviewer

administered questionnaire. The practice and types of CSR activities being employed

by the MNCs will be measured using various qualitative. Ways in which the

community has benefited from CSR practices of MNCs and the subsequent

perception, can be considered as qualitative in nature given that it arises from

18
individual‟s personal opinions, which may be objective or subjective. A structured

questionnaire will be employed to guide the interviews. This study adopted a

qualitative approach to understand the relationship existing between international

business‟ CSR practices and the subsequent benefits and perception by the local

community since these are based on knowledge, opinions and attitudes rather than in-

depth quantifiable responses. .

Prior to the main study, a pilot exploratory study was conducted to test the

understanding of the study tools and questionnaires and determine how long an

interview would take. From the initial analysis, a better understanding of the

relationship between CSR practices and benefits to the community as well as

perception was achieved. The study tools were revised according to the field findings

and the outcomes of that analysis are included in this study.

The choice of qualitative research methodology was appropriate for this study owing

to the social nature of data being studied, financial as well as time constraints as a

student. There some limitations to this methodology however, including bias from

both interviewer and interviewees, recall bias and the fact that an association cannot

be attributed to the intervention.

3.3 Target Respondents

The study targeted multinational companies within the food and beverages industry

that operate in Kenya and are socially responsible. The target respondents comprised

of beneficiaries of CSR activities as well as the management of the MNCs within the

Food and Beverages Industry in the study. This includes the local community as well

as management of the selected International Business Companies operating in Kenya

19
licensed under the registrar of companies. The Companies were selected using

convenient sampling from a pool of MNCs with reported and robust CSR activities

whose data is readily available for literature search. The companies were also selected

from the major economic drivers namely agriculture, industry and service sectors.

3.4 Data Collection Instruments and Procedures

Data was obtained from both primary and secondary sources. Primary data was

collected by interviewer administered questionnaire to respondents while Secondary

data was collected from published materials, newsletters, literature review on the

internet and libraries.

From among the interviewees, key informants consisting mainly of people engaged in

the practice of CSR and costing of CSR activities in the selected companies were a

great source of information for this study.

Upon seeking consent from management, the researcher met with the interviewees in

a quiet and private room provided by the corporates. Interviewer administered

questionnaire was used to guide the interview. The interviews lasted 50 minutes each

with enough time to answer all questions. The questionnaire (see interview schedule

in the appendix) covered topics including exploring the variety of CSR practices, the

benefits, and perception of the participants. The interview first began with

introductions before the basic guidelines of the interview were given. The interviewer

remained silent, so that the participant can respond subjectively without interference

or introduction of bias. The interviewees had opportunities to ask questions and seek

clarification for questions they did not understand hence give accurate answers. The

20
interviewer did clarify ambiguities and obtained the relevant information needed to

address the research objectives by probing.

The Interruptions were minimized by having mobile phones on silent mode. Three

Key informants from each selected corporate participated in individual interviewer

administered questionnaire session including a representative from management, CSR

manager or equivalent and recipient of CSR. Secondary data was obtained from

literature search of published data such as books, journals, manuscripts, company

internet sites, press releases and other texts.

3.5. Data Management and Analysis

Barbour (2008) described the methods of qualitative data analysis. In this regard,

owing to the variability of responses from all the interviewees, data was entered into a

password protected word document, cleaned and prepared for analysis. Data was

grouped in to common themes and coded into clustered. The coding clusters

comprised of the following major themes: Past Interaction in CSR Initiatives, CSR

Activities Offered/Received, Benefits of CSR Practices to the Local Community,

Local Communities‟ Perception of MNCs CSR Practices.

After obtaining the themes or categories using content analysis, the investigator

explored similarities in the responses and was able to create linkages between the

established categories on CSR practices and the local community‟s perception.

The resulting themes, which include CSR Activities Offered/Received, Benefits of

CSR Practices to the Local Community, Local Communities‟ Perception of MNCs

CSR Practices, were then presented as study findings in the form of summaries,

21
narratives, words and phrases. Some of the responses obtained were also quoted as

part of the results.

22
 CHAPTER FOUR: FINDINGS AND DISCUSSION

4.1Introduction

The establishment of CSR departments and programs is hoped to improved societies

welfare in a responsible way (Carroll & Shabana, 2010). This study aimed to examine

international business‟ CSR practices and how they are perceived by the society in

which they operate. In this chapter, we present the findings of the study, organized

according to the research objectives.

The following research objectives informed this study: To establish the practice and

types of CSR activities being employed by the MNCs; to find out the extent to which

the community in which the MNCs operate has benefited from their CSR practices; to

establish the perceptions of the local beneficiary community about CSR practiced by

the MNCs.

Of the 60 multinational corporations (MNCs) headquartered in Nairobi, 25 were

randomly selected and of these, twenty five respondents were interviewed. The

interviews took about 50 minutes and were guided by a structured questionnaire

(Appendix 1). Interviewees comprised of ten (10) managers and five (5) CSR decision

makers respective MNCs and ten (10) local community members who have benefited

from the various CSR practices. On average, participants had 7.5 years of experience

associating with various CSR practices of the MNCs. All the 25 participants described

themselves as having reasonable knowledge and exposure to CSR activities as

practiced by various corporations. All interviewee identifiable information is not

23
reported as such, initials and pseudo names are used to protect privacy. The basic

demographics of the participants were captured in the table 4.1.

In general, the interviews covered broad themes such as types of CSR activities

conducted by the companies, thoughts, perceptions and knowledge of the impact of

CSR in the community. The types of CSR activities and how the local community has

benefited from such initiatives were topics explored further. More information about

CSR in these MNCS was obtained from their annual reports, published literature and

newsletters. Both sources of information, primary and secondary data is presented in

this chapter.

Due to the heterogeneity of interviewees, the relative contributions to the interview

questions have been factored in, since the amounts of information to the three themes

that comprise the narrative differed. Most participants were able to discuss at length

on one or two themes; some participants made nearly equal contributions across all

three themes.

24
Table 4.1: Participants’ Demographics

Interviewees Gender Number of years Interviewees Gender Number

Associated with of years
CSR Practices Associated
with CSR
Practices
Interviewee Male 8 years Interviewee 14 Male 4 years
1
Interviewee Male 1 year Interviewee 15 Male 7 year
2
Interviewee Male 5 years 10 months Interviewee 16 Male 2 years
3
Interviewee Female 8 years Interviewee 17 Female 4 years
4
Interviewee Male 8 months Interviewee 18 Male 5 years
5
Interviewee Male 10 years Interviewee 19 Male 13 years
6
Interviewee Female 4 years Interviewee 20 Female 9 years
7
Interviewee Female 13 years Interviewee 21 Female 6 years
8
Interviewee Male 4 years Interviewee 22 Male 4 years
9
Interviewee Female 3 years 4 months Interviewee 23 Female 3 years 4
10 months
Interviewee Male 7 years Interviewee 24 Male 7 years
11
Interviewee Male 6 months Interviewee 25 Male 6 months
12
Interviewee Male 11 years Interviewee 26 Male 11 years
13

4.2Respondents’ Past Interaction in CSR Initiatives

The study captured the respondent‟s view on their past involvement in CSR

initiatives, that is, either as provider or recipient. The outcome was summarized in the

following narrative.

25
 All the interviewees had experienced CSR activities in their MNCs, or had

been beneficiaries of CSR initiatives. The MNCs selected in this study had

CSR policies and practices that ranged from Employee wellness programs,

community outreach programs such as clean water initiatives and support

programs for the poor in the communities of operations. Education programs

were also prominent CSR initiatives among the interviewed respondents.

While majority interviewees termed CSR as beneficial to the communities,

some believed the MNCs pursued CSR for the eventual benefit of their

organizations. Some of these activities and projects were viewed as coming

from the senior executives for their personal interests or individual’s in senior

positions. Some interviewees felt that some of the CSR activities, particularly

those presented with strong media presence with pomp and colour did not

have meaningful benefits to the society. Some interviewees felt that structural

philanthropy donations such as school buildings, hospital wards had the most

benefit to community. One interviewee (no.13) was categorical that “A lot of

the CSR activities were propaganda focused primarily on building a

company’s reputation with little real benefit to society”. The other view

among respondents was that CSR was a form of advertising and this could

hurt the corporation as this could be viewed as imposing by the community.

These views from the respondents are congruent with the stakeholder theory behind

the practice of CSR activities of most organizations: in this case, multinational

corporations with businesses in Kenya. This is in keeping with a view by Matten et

al., (2003), who argued that one of the major factors influencing the practice of CSR

was the stakeholder perspective. While stakeholders which to have maximum returns

26
on investments, minimizing risks, the cross road of engaging in CSR seems to catch

up with the organizational policies and strategic planning, often leading in a desire to

perform these CSR activities while at the same time maximizing the potential benefits

accruing from these activities to the benefit of the MNCs. Some of the potential gains

from CSR activities may include brand recognitions, potentially a form of advertising.

4.3 CSR Activities Offered/Received

The first objective of the study aimed at exploring the practice and types of CSR

activities being practiced by the MNCs. The data was processed to show the various

themes as outlined below.

i. Tackling environmental conservation and climate change

ii. Improving sanitation and access to safe drinking water

iii. Championing sustainable agriculture and smallholder farmers

iv. Skills development

v. Education and literacy enhancement

Most of the respondents mentioned that most of the MNCs focus more on provision of

educational and literacy enhancement, as well as improving sanitation and safe

drinking access programs as part of their corporate social responsibility. Also

highlighted as being provided by MNCs is tackling environmental conservation and

climate change. Out of the responses given, a few said championing sustainable

agriculture and smallholder farmers was practiced as a CSR activity-this however

may be a bit subjective given that the MNCs considered were those within the

beverages sector.

27
It can be argued that the reason for a greater focus on education and literacy

enhancement by MNCs, is because it has been a key millennium development goal

(MDG) and thus a priority at the global stage, especially for developing countries.

Rao (2010) in a paper: Social Business/ Enterprise & Poverty Certificate Project,

emphasized that education is a key driver on social progress and a great equalizer.

This paper also suggested further involvement of governments and business

corporations would further enhance the growth and attainment of this goal. It is an

ethical duty to invest in education for the betterment of society‟s future, which lies in

the children on the world. Therefore, with respect to the nature of CSR activities

MNCs engage in, it is sufficient to say that these findings are consistent with the

ethics theory, which according to Windsor (2006), ethical values strengthen the

relationships between organizations and the society. He asserts that ethics theory is

based on principles that there is a need to achieve a social good such as; observance of

human and labor rights; protection of the environment; achievement of human

development in a sustainable and secure manner and creation of employment.

4.4. The Benefits of CSR Practices to the Local Community

The second objective aimed at establishing whether the CSR practices by MNCs have

brought any benefit to the local community. The data was processed and the following

themes generated.

i. Local community‟s improved life quality

ii. Local community‟s improved industriousness

iii. Enhanced commerce and trade between the community & MNCs

iv. Local community‟s behaviour change towards environment

28
 v. Local community‟s enhanced literacy levels

vi. Value addition to government-led initiatives

vii. Improved environment through campaigns

viii. Production of goods and services at the local community and provision of

employment

Most respondents concurred that there is behaviour change by the local community in

matters environment. That is, there has been environmental improvement through

environmental campaigns. A few of the interviewees mentioned that the CSR

activities have enhanced commerce and trade between the community & MNCs and

added value to government-led initiatives. They also were of the opinion that there

has not been any significant benefit of the CSR activities by the MNCs, in as much as

real impact is obviously a function of other external factors beyond the CSR

practitioner.

Sustainable development has three dimensions, social, environmental and financial,

which are interdependent. The social part includes how to increase human welfare and

fairness around the world. The environmental part focuses on how to minimize global

warming and the emission of carbon dioxide in an attempt to slow down the

Greenhouse gas effect. The financial part focuses on maintaining a long-term

economic profitability while addressing social and environmental issues. Another

focus is on how to achieve a more equal economic growth than if not a sustainable

perspective is adopted (GEO4, 2007)

The researcher asked the respondents to rate the extent to which CSR activities of

MNCs have benefited the community. The responses were processed and captured in

the frequency table 4.3.

29
Table 4.3: General Rating of the Benefits of CSR Activities to the Community

Rating Frequency Percent

Not Applicable 1 5.3
Very Poor -
Poor 1 5.3
Fair 6 31.7
Good 8 42.1
Very Good 2 10.5
Excellent 1 5.3
Total 19 100

The results show that most of the respondents were of the view that the CSR activities

of MNCs have benefited the recipient community a good way (42.2%), while 31.7%

of the respondents rated the benefits as fair.

4.4 Local Communities’ Perception of MNCs CSR Practices

The third objective aimed at establishing the possible ways local communities view

the CSR practices of MNCs. The data was processed and the following themes were

identified.

i. CSR activities have enhanced clean environment & positive action

ii. Community unawareness of MNCs CSR activities

iii. CSR activities have enhanced community interaction

iv. CSR activities are for marketing & image projection

v. CSR for reputation and brand enhancing

vi. CSR for developing and testing products

vii. CSR for helping community

30
In trying to establish what could be the local community‟s perception of MNCs CSR

activities, the study explored a number of questions. Some of the key points that

emerged were that MNCs CSR activities are for marketing and image projection,

creating awareness in the community, developing, and testing products.

These findings corroborate Kiko‟s (2012) argument that it is not easy for some

organizations to properly position their CSR since these activities do not form part of

the annual financial reports and thus making it impossible to contextualize and

account on how an organization performed in regard to CSR. This demotivates most

institutions that invest heavily on CSR since their efforts may not be noted by some

stakeholders. On the other hand, it imposes additional costs which may reduce the

level of competitiveness in the industry it operates especially if competitors rarely

participate in CSR.

Generally, these finding reveal that in as much as MNCs set out initiatives to do CSR

to help the local community (as per their definition), the overriding drive could be

more of pure business interest as opposed to community impact. The antecedent to

that observation could be that there is a skewed understanding of the local community

in regard to the CSR activities. This observation is incoherent with the integrative

theory-one of the theories upon which this study was based. It is hypothesized that a

concrete understanding of the communities‟ needs and local market dynamics may be

hinder the integration of CSR in to the long term business strategy. (Donaldson and

Preston (1995). These authors, Donaldson and Preston, further argued that in spite of

the understanding that firms need to integrate CSR in to the firms‟ strategic activities,

there is paucity of models and frameworks to guide this process. This may be the

missing link between MNCs working on Kenya according to this study.

31
Further, William (2009) argued that while CSR is a key element of business strategy,

it provides a competitive advantage when implemented in ways that indicate a clear

understanding of the wider operating environment. When this understating is lacking,

the said competitive edge may be lost. The respondents were then asked to rate their

general perception of the CSR activities conducted by MNCs. The data was processed

and presented in the table 4.4.

Table 4.4: General Rating of the Local Community’s Perception of MNCs CSR

Activities

Rating Frequency Percent

Not Applicable 2 10.5
Very Poor - -
Poor - -
Fair 9 47.7
Good 5 26.3
Very Good 2 10.5
Excellent 1 5.3
Total 19 100

The results show that majority of the respondents had an above fair perception of the

CSR activities of MNCs (89.5%). The mixed perception respondents had on MNCs

CSR activities can be explained by Crouch‟ (2006) view that CSR is bound to have

protagonists and opponents. The main themes for these arguments are mainly due to

the fact that companies are owned by members of the same or similar society, and

often their goals intertwine, hence the need for mutually beneficial programs.

The arguments against CSR include descriptions of the roles of Corporates as merely

profit driven entities. One prominent supporter of this view was the Nobel Prize

winning economist Milton Friedman, who argued against CSR in the 1960s stating

32
that it distracted leaders from economic goals, arguing that businesses ought to

increase its profits. Trickle-down economics would later benefit the society after the

financial success of the corporates.

33
 CHAPTER FIVE: SUMMARY, CONCLUSIONS AND

RECOMMENDATIONS

5.0Introduction

This chapter covers the summary of findings, conclusions, recommendations and

limitations of this study.

5.1 Summary of Findings

This study aimed to establish the effects of international business‟ CSR practices and

how they are perceived by the society.

The study found that most of the CSR activities done by the MNCs were in education

and literacy enhancement, improving sanitation and access to safe drinking water and

tackling environmental conservation and climate change. The study also investigated

the extent to which the local community has benefited from MNCs CSR activities.

The findings showed that MNCs CSR activities have improved the environment

through campaigns and behaviour change communication.

Not much has been realized in regard to enhanced commerce and trade between the

local community and the MNCs as well as not much improvement in local

community‟s quality of life. That notwithstanding, the respondents rated the CSR

activities of MNCS as good. The study also captured the respondents‟ perception of

MNCs CSR activities. Most of the respondents were of the view that CSR is more of

awareness creation and enhancing community interaction. In addition, most

respondents had the view that CSR activities are for market and image projection and

not necessarily a genuine concern for the community. In fact, a sizable respondent

34
population had the view that CSR is used to develop and test new products. Generally,

the respondents had fair perception of MNCs CSR activities.

5.2Conclusions

The results of this study portrayed diverse views and opinions on the different aspects

of MNCs‟ CSR that the study tested. Indeed, the findings of this study clearly show

that a successful CSR implementation, based on both primary and secondary

stakeholder views is being implemented among the MNCs surveyed, and has targeted

both internal (primary) and external (secondary) stakeholder interests. There were

mixed feelings on the understanding of the role of Corporations in solving the

societies‟ long term goals, needs and wishes. While the society views CSR activities

as generally good for its (society‟s) goals, proper integration and communication

strategies would improve the community perception. There was a view that

corporations engage in CSR for brand recognition, advertising and with self-interest

to maximize profits. Majority of the CSR practices by MNCs were geared to achieve

some of the millennium development goals such has health and education.

The study further concludes that beyond the existing trends in CSR among the

multinational corporations, CSR practice is still work in progress. Mutually beneficial

programs ought to be clearly thought out, integrated in to strategic plans, for the

benefit of the shareholders as well as the communities. For purpose of relevance and

understanding between the MNCs CSR providers and the local community recipient,

there should be proper identification of key stakeholders and prioritization among

their competing interests.

35
Before involving in any form of CSR activity, the MNCs should ask the key question

of whether or not CSR does matter to the recipient stakeholders and whether recipient

stakeholders are willing to actively join in the CSR imitative for purposes of

collective accountability.

The study has revealed that there is more inclination of MNCs to engage in CSR

initiatives with a biased organizational interest as the priority. MNCs are more

focused in brand and reputation building at the expense of what impact ought to be

created by CSR activities. While corporate branding is important, it should be

balanced by genuinely being interested in the long term development welfare of the

recipient community.

While most organizations today put emphasis on CSR with its attendant costs, a great

challenge remains is how this could translate into increasing shareholder returns. Hart

and Milstein (2003) argued that the biggest challenge with CSR is the competing

interest in improving environmental, social and financial goals at the same time. In

the long-term, social and financial initiatives benefit each other, but in the short-run,

they may be viewed as conflicting with each other by competing for the same

resources. CSR related decision-making is therefore often seen as a trade-off the

company has to make to achieve a more sustainable growth or fulfil an obligation.

Thus managers may be less willing and enthusiastic to engage in social and

environmental goals at the risk of not meeting set financial goals. It is thus important

that managers are provided the opportunity to set and follow other goals than financial

(Epstein, Buhovac & Yuthas, 2010).

36
The study concludes that even though the various CSR activities of MNCs have

benefited the respective communities to a given extent, the practices themselves are

discordant with integrative theory upon which this study was partially based. The

proper application of integrative theory necessitates that CSR becomes a key element

of the company‟s long term business strategy.

In the process of approaching and implementing CSR issues into the business

strategies it is important that the main stakeholders are identified early in the process,

in order to make the implementation successful. It is important that the companies are

not only focusing on the needs of the shareholders, but also on other stakeholders.

Otherwise the company s right to operate can be questioned, as customers, suppliers

and societies feel neglected. Today also involving non-governmental organisations

(NGOs) are important to companies, as their ability to effect has increased

significantly.

For CSR to be profitable the company need not only to know, but also to meet, its

stakeholder needs. One challenge is to find a balance between what is the most

important to the company and what the stakeholders find most important. Difficulties

with CSR are not only limited to find out what the stakeholders are requesting, it is

also to transform those needs into strategies and policies and then implement it into

the organisation (Weber and Marley, 2010).

By involving stakeholders, both the company s and the stakeholder s needs can be

better met. (Durden, 2007) A relevant question that has to be answered is, who are the

organization‟s main stakeholders? This study concludes that while by definition there

are two categories of stakeholders, namely primary and secondary, the Multinational

37
corporations tend to approach CSR activities with a biased consideration that

advances the interests of the primary stakeholders.

5.3Recommendations

5.3.1 Recommendations for Policy Implementation

It seems that the traditional corporate approaches to engaging in CSR still permeate

the international businesses. This study recommends that the MNC‟s leadership to

establish an overarching long-term CSR strategy that can have real and notable impact

in the recipient community. The strategy implementation of such CSR strategy should

have balanced focus of both the stakeholders i.e. the CSR provider (the MNCs) and

CSR recipient (the local community).

The MNCs may need to consider community education in regard to the specific CSR

activities they intent to initiate. This will improve the local community‟s perception of

the respective MNCs and thus avoid instances where genuine CSR interventions are

viewed to be full of pure corporate business interests.

5.3.2 Recommendations for Further Studies

The study has only established the type of CSR activities, their benefits as well as the

community‟s perception of such CSR activities conducted by MNCs under the

beverages sector. Thus, the research recommends that there is need to conduct a

comparative study to establish the nature, benefits and community perception of CSR

activities carried out by MNCs in other sectors. The motivation for this is that it may

not be accurate to generalize these findings to the entire CSR practice among

international businesses.

38
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Appendix I: Study Questionnaire

Company name…………………………………………………………………………………
Date of Interview………………………………Interviewer ID/Code………………
Interviewee Circle 1 (Management, Community Member)

SECTION I: BACKGROUND INFORMATION

1. Indicate how you have interacted with CSR in the past…

Are you a: (Choose one)
i) CSR provider / Part of management that provides CSR
ii) CSR recipient /Part of a community that benefitted from CSR?

2. Indicate what CSR Activities the company offers/You have received from the
company

…………………………………………………………………………………………

........................................................................................................................................

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

43
SECTION II: The extent to which the local community has benefited from CSR
practices by the international businesses.

1. To what extent do you agree with the following statements on the possible
ways your local community has benefited from the CSR practices of the
international businesses.

Not Strongly Disagree Agree Strongly

applicable disagree agree
They have improved the
quality of life in the local
community
They have appropriately
arranged campaigns that have
improved the environment
They have added value to
government-led initiatives
They have enhanced the
literacy levels of the local
community
They have supported local
community‟s efforts and
behaviours aimed at
preserving the environment
like pollution prevention
programs
The CSR practices of
international businesses have
enhanced commerce and trade
in the local community, for
example sourcing from local
suppliers and selling to local
customers
International businesses‟ CSR

44
activities have improved the
industriousness of the local
community
The international business
CSR activities have provided
significant employment to the
local community. and
production of goods and
services

2. What can you rate the extent to which the CSR activities of international
businesses have benefited the local community?

Not Very Poor Fair Good Very Excellent

applicable poor good

45
SECTION III: Local community’s perception on International Business's
corporate social responsibility (CSR) Practices

3. The following are statements that suggest the possible ways a local
community can view the corporate social responsibility practices of
international business. Kindly give your opinion based on your understanding
of the international businesses practicing CSR in your community.

Not Strongly Disagree Agree Strongly

applicable disagree agree
The international businesses
have created very cordial
relationships with the local
community through CSR
The international businesses‟
CSR activities have enhanced
redistribution of wealth, clean
environment and positive
action
The local community is
sufficiently aware of CSR
activities of international
businesses
International businesses‟ CSR
activities have enhanced their
interaction with surrounding
communities in a
number of ways
Most international businesses
conduct CSR activities for
marketing and corporate
image projection.
International businesses‟ carry
out CSR activities because of

46
their genuine commitment to
and concern for the local
communities.
International companies are
motivated to do CSR activities
as a way of enhancing their
reputation and brand
Most international businesses
get involved in CSR activities
in the local community to
develop and test new products
or markets
CSR activities of international
businesses is a great help to
our community

4. In the spaces provided below, indicate what you consider your general
perception to be in regard to the CSR activities conducted by international
businesses in your community.

Not applicable Very poor Poor Fair Good Very good Excellent

47
Appendix II: List of Multinational Corporations Headquartered in Nairobi

No. Organization Region Covered

1 Asus East Africa

2 AVIC International Africa

3 BASF Sub-Saharan Africa

4 Bank of China East Africa

5 Bharti Airtel Africa

6 BlackBerry Ltd East Africa and Central Africa

7 Bosch East Africa

8 Cisco Systems East Africa

9 Chartis Africa

11 China-Africa Development East Africa

Fund

12 China Central Television Africa

13 Cardbury Kenya Limited Africa

14 China Radio International Africa

15 Citibank East Africa

16 Coca Cola Africa

17 Diageo Africa

18 Eltek Sub-Saharan Africa

19 FirstCarbon Solutions Africa

20 GEMS Education Africa

21 General Electric Africa

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22 Google Africa

23 GSM Association Africa

24 Heineken East Africa and the Indian Ocean

25 Hill International Sub Saharan Africa

26 Huawei East Africa

27 IBM Africa2

28 ICAO East Africa and Southern Africa

29 IMF Africa

30 Intel Corporation East Africa

31 ITF Africa

32 IUCN East Africa

33 Jotun East and Central Africa

34 East African Breweries East Africa

35 Kiva Africa

36 LG East Africa and Indian Ocean

37 Mastercard East Africa

38 Merck KGaA Africa

39 Mitsubishi Motors Africa

40 Motorola Solutions Sub-Saharan Africa

41 Nestlé East Africa, Central Africa and West

Africa

42 NIIT East Africa and Central Africa

43 Nokia East Africa

44 Nokia Research Hub Africa, India and the Middle East

49
45 Pfizer East Africa

46 Pricewaterhouse Coopers East Africa

47 Qualcomm Sub-Saharan Africa

48 Rockefeller Foundation Africa

49 RTI International Africa

50 Sage Group East Africa

51 Scania AB Africa

52 Sony East Africa and Central Africa

53 Standard Chartered Bank Africa

54 Stockholm Environment Africa

Institute

55 Stratlink Global Africa

56 TNT East Africa and Central Africa

57 Toyota Africa

58 Unilever East Africa. Sub Saharan Africa

59 World Bank Africa

60 Xinhua News Agency Africa

50