Role of Corporate Social Responsibility Activities on Employees’ Commitment to Firms Listed at Nairobi Stock Exchange in Kenya

Abstract

Corporate Social Responsibility is the commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce as well as of the community and society at large. The general objective of the study was to establish the role of Corporate Social responsibility activities on employee commitment to firms listed at Nairobi stock exchange. The study looked at the Corporate Social responsibility activities, the mediating effect of organizational identification and moderating effect of organizational justice on the relationship between Corporate Social responsibility activities and employee commitment. Descriptive survey and correlation designs were used in determination of the role of corporate social responsibility activities and Employee commitment. The researcher used both open and closed questions, document analysis and interviews to collect data. The target population was 53,203 employees and simple random, stratified and purposive sampling was used to sample 381employees. Data was analyzed using descriptive statistics. The Statistical package for Social Sciences was used. Multiple linear regression models were used to determine whether independent variables, moderating and mediating variables significantly influenced Employee Commitment. The findings indicated that organizational identification partially mediated the relationship between internal corporate social responsibility and employee commitment, organizational identification completely mediated the relationship between external corporate social responsibility and employee commitment, Organizational justice had significant and enhanced moderating effect on the relationship between employee commitment and corporate social responsibility activities . The study recommends that managers should create programmes that will embed CSR culture into their firms in order to improve employee commitment. The study concludes that employees in companies listed in Nairobi Stock Exchange should participate in CSR activities in order to enhance their commitment.