Effect of Environmental Social Responsibility on the Performance of Geothermal Development Company Limited in Kenya
- March 29, 2020
- Posted by: RSIS
- Categories: Business Administration, IJRISS
International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue III, March 2020 | ISSN 2454–6186
Rose Waithera Njau1, Dr. Linda Kimencu2
1,2Department of Business Administration, School of Business, Kenyatta University, Kenya
Abstract: Corporate Social Responsibility simply refers to how business organizations impact stakeholders’ interest. Corporate Social Responsibility plays a vital role in organizational performance. The study investigated the effect of environmental social responsibility on the performance of geothermal development company limited in Kenya. Regarding statistical methods, the study adopted a descriptive research design. The target population was 1081 employees of Geothermal Development Company as per Geothermal and 100 community representatives. The sample size constituted 100 participants whose selection was through stratified random sampling. Primary data was obtained by administering questionnaires to the participants. A pilot study was responsible for establishing the validity and reliability of the research instruments. The Cronbach’s reliability coefficient of 0.07 and above was acceptable as appropriate for this study. The statistical package for social sciences version 20.0 was used in the analysis. Presentation of the findings was made use of tables, charts, curves and graphs. The study established that environmental social responsibility had a positive and significant influence on organizational performance. The study concluded that the adoption of corporate social responsibility practices improves the transparency of the operations of the company, ensures accountability and improves the profitability of the firm. The study recommended that the organizations must draw in everybody’s consideration and guarantee they comprehend why the organizations are doing this, what their jobs will be, and what the organizations need to accomplish.
Keywords: Environmental Social Responsibility, Organizational Performance
I. INTRODUCTION
The primary goal in the geothermal sector across the globe has been to fill the energy deficit in several countries. This drive has led to geothermal-energy-exploration mindset that is focused on achieving short term results, while limiting the attention on welfare of stakeholders (Altman, 2017). Furthermore, many organizations in this industry have overly emphatic on profit-making, but with little focus on Corporate Social Responsibility (CSR). This has defined the way in which businesses are conducted in most geothermal energy sectors globally (Birmingham, 2015).
