From Profit To Purpose: How Corporate Social Responsibility Transforms Rural Communities In Kenya
Abstract
Corporate Social Responsibility (CSR) has evolved globally from philanthropic acts to strategic initiatives with social, environmental, and economic implications. In Kenya, CSR is often applied philanthropically, with limited integration into long-term development strategies, especially in rural areas. This study investigates the social impacts of Rabai Power Company’s (RPL) CSR initiatives on sustainable rural development and corporate reputation in Kilifi County, Kenya. It aims to assess how CSR activities influence community beneficiaries and shape the company's legitimacy and stakeholder perceptions. A qualitative case study approach was used. Data were collected through four key informant interviews and one focus group discussion. The study was guided by Stakeholder Theory, Legitimacy Theory, and the Triple Bottom Line (TBL) framework. The data were thematically analyzed to identify recurring patterns related to CSR impacts. The CSR initiatives by RPL significantly contributed to education, healthcare, water provision, socio-cultural development, and youth empowerment. Beneficiaries reported enhanced well-being and greater trust in the company. However, challenges such as the sustainability of services, equitable resource distribution, and governance issues were identified. Strategic CSR, when aligned with local needs and supported by participatory governance, enhances both community development and corporate legitimacy. Communities perceive RPL not merely as a business entity but as a development partner. The study recommends institutionalizing CSR through cross-sectoral partnerships, capacity building, and sustainable funding. The research contributes to CSR theory by contextualizing its application in a rural African setting and reinforces its relevance to the Sustainable Development Goals (SDGs).
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