School of Business and Economics, Jaramogi Oginga Odinga University of Science and Technology, P. O. Box 210–40601, Bondo-Kenya
Online published on 30 December, 2015.
New KCC Ltd, being an offspring of the restructured old KCC, is presumably using Corporate Social Responsibility (CSR) to maintain a good market share. In total there are 29 licensed processors in Kenya (Dairy Mail Africa, December 2005); besides the imported milk products like Butter, and powdered milk. Some corporations are using CSR to strengthen its relationship with different stakeholders like employees, suppliers, government, investors and customers (Imran and Zia, 2010) thereby enhancing organizations competitive position in the market place. Some of these Dairy companies at times resort to price reduction of their products as a strategy (Price, 2012). Brookside and Tuzo dairy companies use CSR as a strategy to make them competitive because the company and its products get positioned with the right publics at a lower cost. To supplement the other strategies New KCC use, the company management considered some aspects of CSR to invest in order to satisfy various stakeholders so as to be competitive. In this regard, the researcher sought to find out the relationship between CRS and performance of KCC in Kenya. This would help to explain the company`s lukewarm performance as compared to other competitors despite also using CSR as a strategy. The researcher also wanted to identify the aspect(s) of CSR which New KCC, Sotik, engage in to improve its performance given that there is a diminishing popularity of its products yet they also sponsor some CSR activities. The researcher picked on New KCC, Sotik as a representative of other New KCC Companies given that it is also guided by policies governing the other New KCC outlets.
