Education Corporate Social Responsibility and Financial Performance of Telecommunication Companies in Kenya

Abstract

The financial performance of telecommunication companies has witnessed a decline in recent years. This study aimed to investigate the potential influence of education CSR on the financial performance of telecommunication companies in Kenya. The total population was 6,597 employees from the three major telecommunication companies: Safaricom, Airtel Kenya, and Telkom Kenya, with 3,859, 1,694, and 1,044 employees respectively. The unit of observation was employees in top and middle-level management positions. The sample size was determined using Yamane's formula, resulting in 353 employees. Data collection employed semi-structured questionnaires. Analysis was done using SPSS version 29 software. The correlation analysis found a positive significant association between education CSR programs and financial performance (r=0.772, p=0.000). The regression analysis also found a positive significant relationship between education CSR programs and financial performance (β = 0.748, t (324) = 21.794, p<.05). The study concludes that education CSR programs can include; scholarship initiatives, educational infrastructure, and skills development. The study recommends that companies should allocate resources to provide scholarships and financial assistance to students who are in financial need, and contribute to the development of educational infrastructure through providing support to existing schools and construction of new educational institutions.