Corporate Social Responsibility and Performance of Delmonte Kenya, Kiambu County

Abstract

Corporate Social Responsibility (CSR) has been touted as fostering sustainable practices which can in turn reduce companies’ operational costs and directly enhance profitability. The linkage was however scantily explored in the Kenyan body of knowledge, warranting the current study. In this study, the relationship between corporate social responsibility (CSR) and Delmonte's performance was explored. The objectives included examining the effects of economic, ethical, legal, and philanthropic responsibilities on Del-Monte Ltd.'s organizational performance. The study was anchored in stakeholder theory and supported by resource-based theory, using Carroll's CSR Pyramid as a model. A descriptive research design was utilized, targeting a broad range of data from respondents. Stratified random sampling was employed to reach 323 out of 1700 employees at Del Monte Kenya Ltd. The primary data collection tool was a questionnaire. A pilot study was conducted to test the reliability and validity of the research instruments. Data were analyzed using descriptive and inferential statistics, with SPSS version 26 used for regression and correlation analysis. Quantitative data were presented in tables and figures, and Pearson correlation coefficients were used to show relationships between variables. Multiple regression analysis was performed to determine the relationship between independent and dependent variables. The study found that economic, legal, ethical, and philanthropic responsibilities positively and significantly affected Del-Monte Ltd.'s organizational performance. It concluded that economic responsibility helps Del-Monte identify areas to reduce costs or improve efficiency, leading to cost savings and enhanced productivity, ultimately boosting operational efficiency. Compliance with regulations also fosters a positive relationship with regulatory authorities, reducing the risk of disruptions to operations. Del-Monte Ltd. builds a strong reputation as a socially responsible company by consistently adhering to ethical responsibilities enhancing the company's brand image and differentiates it from competitors. Incorporating philanthropic responsibility into corporate social responsibility initiatives benefits in addition to enhancing its reputation and brand image, improved employee morale and built stronger relationships with stakeholders. The study recommends that Del-Monte Ltd should implement cost-saving measures that not only benefit the company financially but also have a positive impact on the environment and society. Del-Monte Ltd should ensure that it complies with all relevant laws and regulations in the jurisdictions where it operates. Del-Monte Ltd should establish a code of conduct that outlines the company's commitment to ethical behavior. Using Del-Monte's rich experience and resources, Del-Monte can establish strategic partnerships with non-profit organizations and community groups that are aligned with their philanthropic objectives.