INFLUENCE OF EQUITY GROUP FOUNDATION ON PERFORMANCE OF EDUCATION

AND LEADERSHIP ON CORPORATE SOCIAL RESPONSIBILITY - NAIROBI COUNTY,

KENYA.

ABSTRACT

The long-term influence on EGF performance on community development stems from the social arm that
continues to serve as the corporate philanthropy vehicle company and operates in seven African countries -
Kenya, Uganda, Tanzania, Rwanda, Burundi, DRC and representatives of Ethiopia. The Foundation champions
the resolute efforts of low-income Africans to transform their lives and livelihoods. It connects women, farmers,
small business owners and youth to educational, health and economic opportunities, tools and technologies that
enable personal progress and wealth creation in the face of poverty. Improving the lives of Africans, especially
those in impoverished areas is at the heart of this foundation. Through advocacy, EGF’s efforts are recognized,
making it that much easier to undertake collaborative projects with the people and organizations that share our
vision. The Foundation’s initiatives as they are known as pillars, focus greatly on Education and leadership
Development, social protection, Enterprise Development and financial inclusion, food and agriculture, Energy
and Environment and the most recent Health. The study limited itself to the community level impact of a decade
of the programme’s initiatives among the poorest and vulnerable groups on Nairobi semi-urban settlements. The
study adopted a multiple methods design, which included both quantitative and qualitative methods. The use of
multiple methods was necessary so that one method could address the weaknesses associated with the others. A
questionnaire survey was conducted to collect the importance of each factor from the mentors, usually regional
staff at 5 of the mentorship sessions to capture a good sample of the population in Nairobi. A total of 200
respondents were targeted to participate in the survey. Pilot of 20 respondents was first conducted from one of
the mentorship sessions conducted at Makadara sub-county before distributing the questionnaire to the targeted
respondents, who in this case are the Scholars or mentees. This was looked at by taking into account four
objectives that included: To assess the impact of Education and Leadership project on needy and vulnerable
students through the Wings to Fly and Elimu programmes; to assess the impact of Food and Agriculture and its
development at a community level; to assess the impact of financial and entrepreneurship inclusion in
community development; to determine the impact of accessible health services for poor communities; to assess
the impact of Energy and environment and its development at a community level; to assess the impact of social
protection policies for the marginalized groups. The data collected was analyzed using descriptive data including
frequency distributions, percentages, mean and standard deviation. The data collected was analyzed presented
using tables. The study showed that scholars through EGF sponsorship are better able to concentrate at school
and their performance is better than they were in their struggling years of primary school.
 CHAPTER ONE

INTRODUCTION

1:1 Background to the study

Equity Group Foundation’s corporate social responsibility (CSR) stems from the year 2008 during its
inception. Its main purpose has been to support the government and other stakeholders on community
development issues and concerns. Aside from Community support, its CSR function also supports its
employees and other stakeholders to position themselves in business and holistic development for the
people of Africa.

Organizations like Equity Group today are aware that CSR can help attract and retain employees. A
business that is committed to improving the world is likely to attract more talent. This shows how
important employees take social responsibility as well as foster a more productive and positive work
environment for employees, improve customer’s brand perception. CSR also shows a sign of
accountability to investors and other stakeholders in the course. Indeed, a strong and well-
communicated CSR programme aims to solve real-world problems and reports genuine result.

In the United Kingdom companies, have embraced CSR to create positive public image. It Creates a
Positive Public Image. A strong and well-communicated CSR programme aims to solve real-world
problems and reports genuine result and does not participate in for-show-only activities, is a powerful
influencer of public perception.

In Australia, CSR helps to build customer loyalty. A Strong CSR can also strengthen customer relation-
ships, as a new generation of consumers increasingly seek to buy from businesses that share their ethics
and values. As awareness of climate and social issues rises, companies are judged on far more than just
the price and performance of their products and services. In fact, research suggests that 59% of con-
sumers are willing to pay more for environmentally responsible products, with a separate study finding
that 71% prefer to buy from companies that align with their personal values.

In Germany, CSR promotes employee engagement and satisfaction and is therefore more stakeholder
oriented “doing good feels good,” and a key benefit of CSR for employees is an increase in their en-
gagement and job satisfaction. Strong principles and business ethics are increasingly crucial to employ-
ment candidates, and increasingly individuals may not take on a job or assignment or partnership for
that matter, if the company does not have a strong CSR programme.

In France, CSR Promotes Creativity and Business Agility. There is no one-size-fits-all CSR approach,
which means businesses can be creative about the initiatives they choose to undertake. At its most ef-
fective, CSR should align with the business’s core values, but these can be interpreted broadly to show
innovation and encourage employees to think outside the box.

CSR contributes to solving global problems and local challenges. It is essential to remember that com-
mercial benefits notwithstanding, acting responsibly is simply the right thing for businesses to do. CSR
programmes that align with initiatives such as the UN’s sustainable and even Millennium Development
goals can work to solve problems on a global scale. Additionally, corporate commitment to CSR builds
expectations among consumers and leads to a “rising tide” effect, where the success of businesses with
strong CSR prompts competitors to adopt similar tactics.

CSR connects corporations with communities. Besides contributing to solving global issues, CSR bene-
fits society by offering businesses a route to connect more closely with local communities. Direct bene-
fits accrue in the form of initiatives such as charity fundraising and corporate volunteering.

Bottom line, CSR improves and attracts investors where customer loyalty, values-driven purchasing,
innovation and engaged employees all contribute to a more efficient, stable business with a more de-
voted customer base. This translates to more sales revenue and more sustainable value creation for in-
vestors, many of whom are now prioritizing non-financial performance measures as part of their portfo-
lio management decisions.

Businesses typically draw their employees from the communities immediately around them, meaning
local activities can create employee satisfaction while building trust between the business and the local
community. This is exactly what the Equity Group Foundation’s Corporate Social responsibility’s in-
tention in support of the millennium development goals. As a result, a major benefit of CSR for stake-
holders is stronger business performance and broader opportunities to invest. 

Equity Group Foundation International (EGFI) was founded in the United States in 2014 to build
international support for the life changing work of Equity Group Foundation (EGF). EGFI’s mission is
to Champion the social and economic transformation of the people of Africa and its vision is an African
continent where every person has a chance to attain a healthy, secure and productive future. EGFI
partners with EGF to help individuals and families move out of poverty through targeted investments
NTRESOURCESBLOGCOMPANYSUPPORTCONTACT USMODERN SLAVE
EGF currently delivers innovative programmes throughout Kenya and has begun to expand its work to
the rest of East Africa. Between years 2008 to 2015, EGF had impacted 5million people and plans to
deploy new tools and platforms to reach 100million people by 2024. The Foundation’s initiatives’ well
known as pillars, focus greatly on Education and leadership Development, social protection, Enterprise
Development and financial inclusion, food and agriculture, Energy and Environment and the most
recent is Health. EGF forges strategic partnerships with development partners, governments, the private
sector and local and international organizations to strengthen its work. EGF is committed to impacting
the lives of 100 million Africans by 2024.

Equity Group Foundation is an East African foundation based in Nairobi, Kenya. It was founded in
2008 to bolster corporate social responsibility for the Equity Group.  The East African Countries are
Uganda, Tanzania and of course Kenya, where the headquarter sits. The main aim of Equity Group
Foundation is to enhance the social and economic prosperity of people in the African region. This is
through creating opportunities for people living at the bottom of the pyramid thus incorporating them
into the modern economy. 

It works alongside a range of well-placed partners to create shared value for our communities,
delivering on its promise as a committed corporate citizen while ensuring the long-term success of the
Group. The funding and development organizations include the Mastercard Foundation, the
UK Department for International Development (DFID), the United States Agency for International
Development (USAID), KfW Development Bank, Financial Sector Deepening (FSD Kenya), Kenyatta
University, Africa Nazarene University, World Bank Group, Norad, Equity Bank, Swiss Agency for
Development and cooperation, European Union, Republic of Kenya, Kingdom of the
Netherlands, IFAD(Investing in Rural people), IFC, Norfund, FAO, Australian AID, LUNDIN
Foundation, AGRA, The Rockefeller Foundation, Mozilla Foundation, Agrocares and Marvel Five
Investments Ltd.

Regionally, Equity Group has presence in Kigali Rwanda, Juba South Sudan, Dar Es Salaam Tanzania,
Kampala Uganda, Kinshasa Democratic Republic of Congo, where it also intends to spread its CSR as
part of the social and economic prosperity of people in the African region.
The Wings to Fly scholarship program under the Education a Leadership project is an initiative of the
Equity Group and Master Card Foundation (MCF), was established in Kenya to support secondary
education for top performing children from financially challenged backgrounds. With support from
other partners, the program has offered comprehensive secondary school access to academically
promising financially disadvantaged youth leadership training to previously marginalized children in
all counties since 2010. Since then, 26,304 scholarships have been offered to scholars selected from
across the country through community scholarship selection boards. The scholarship covers school
fees, transport, books, pocket money and mentoring, psycho-social support and leadership development
for the entire four-year academic period. Master Card Foundation (MCF) has so far committed to
support 10,000 scholars through two phases of funding with the last intake joining the program in 2021.
The Equity scholarship program was formed to aid high performing children hailing from less fortunate
backgrounds. The program beneficiaries are selected from across Kenya’s 47 counties, Nairobi being
one of them, based on their performance in the Kenya Certificate of Primary Education (KCPE)
examination. Awareness of the program is conveyed through public forums i.e., administrative chief’s
forums, places of worship, through radio announcements and social media channels. Application is
made at all Equity Bank branches, Equity Agents and on the Equity Group Foundation’s Website.
Beneficiaries of the scholarship are selected by the Community Scholarship Selection Board (CSSB),
which is made up of key leaders in the community and is chaired by the County or sub-County Director
of Education. The Wings to Fly mentorship program supports a scholar’s holistic development through
four facets; encouraging academic excellence, developing a value-centered life, nurturing
transformative leadership and embracing a culture of giving back.

1.1.1 Performance of Education and Leadership CSR Project.

According to the Equity Bank impact assessment report 2020, 16,168 scholars had been set to benefit
from the Education and leadership programme by 2019 and by the end of 2020 26,304 scholars
benefited in total from year 2010. In 2020, 96% of the scholars completed secondary school and 82%
attained university entry grades. For the Leadership programme, 13,775 were university scholars, 633
attending or were alumni of Global universities while 6,713 were in paid internships. By providing
access to secondary and tertiary education, EGF to date has supported over 37,000 students at
over 700 public secondary schools via its groundbreaking Wings to Fly program.
Apart from the Education and leadership project, EGF is also involved in other social activities such as
Financial Inclusion, social protection, technology and innovation, health, Agriculture and Financial
literacy as part of its social activities. The foundation ensures that there is an array of communication
platforms to ensure the above activities reach the communities at large in order to benefit from them
through various media platforms, bank branches as well as their clinics to relay this information. For
instance, Wing to fly application forms can be accessed online, physically from the Equity Afya clinics
and from the Equity bank branches countrywide.

Through financial and technological innovations, Kenyans have been supported by providing the
finest education and career opportunities. EGF offers those looking for growth opportunities,
such as the youth, women and entrepreneurs, a powerful methodology that sources the finest
talent and intellectual capital and leverages Equity Group’s vast infrastructure and network. 47
Equity Afya clinics have so far been opened by the end of 2021 to supplement the health need of
the country. EGF addresses the challenges faced in developing nations by increasing awareness
of the benefits of clean energy for cooking and lighting. EGF has distributed 303,000 energy
products benefitting an estimated 1.3 million individuals.

To date, EGF’s agriculture program has supported 2.24M farmers to access agricultural finance.
Small-scale peasant farmers have been transformed into agribusiness entrepreneurs, increasing
their production, business and technology capabilities. EGF, utilizing the Equity Group payment
system, continues to provide cash transfer programs while at the same time leveraging on innova -
tive delivery models that co-create enrolment and payment solutions for elderly persons, orphans,
persons with severe disabilities, persons living in arid and semi-arid lands (ASALs), internally
displaced persons(IDPs), refugees and other vulnerable persons, reaching approximately 3.4M
beneficiaries in the social protection programme all which play a major part in the social contri -
bution of both Kenya and the continent at large.

1.1.2 Equity Group Foundation

EGF seeks to break the cycle of poverty and develop the next generation of leaders through increased
access to secondary and tertiary education though the Education and Leadership Development. The
foundation promotes the conservation and smart use of natural resources by expanding forest cover,
improving water security and promoting the use of renewable energy and energy-efficient technologies
through Energy and Environment.

EGF stimulates job creation and economic growth by providing Micro, Small and Medium Enterprises
[MSMEs] with advice, mentorship and entrepreneurship training. Additionally, EGF improves financial
capability and individual and household financial security by connecting people at the Bottom of
Pyramid to expert financial education training as well as expanding access to financial services and
products through Financial inclusion and Entrepreneurship Development. The foundation helps create
jobs, improve market access, and expand agricultural production by working in partnership with small
and medium-sized farmers to increase their production capabilities, business acumen, and access to
technology and financial services through food and Agriculture. It champions the socio-economic
prosperity of low-income people through economic opportunities and skill and capacity building tools
with a range of financial and technological innovations to equip and prepare Africans for the future.
The foundation implements high-impact development programs as a unique, innovative model by
leveraging the group’s infrastructure and resources in order to capitalize on the Group’s local presence,
mobile tech expertise and significant trust, and therefore is able to scale successfully and efficiently.
The foundation increases access to comprehensive health financing and private sector-led, affordable,
high-quality and standardized health services. In a bid to promote access to reliable healthcare services
across the country, EGF seeks out and partner with like-minded healthcare providers, enabling them to
provide quality services without the limitation of infrastructure and facilities. The foundation works to
bridge the gap in areas that lack quality healthcare resources while trying to meet the WHO
recommended doctor-patient ratio of 1:1000 against the country’s current ratio of 1:6000. There’s a
clear opportunity to enrich the medical sector in the country. For client Reforms, Social marketing
campaigns, technology and mobile phone applications are deployed to increase healthcare and health
insurance literacy across Kenya whereas, for Insurance Reforms, Service provider and patient-informed
comprehensive health insurance schemes are being developed using capitation payment models for
outpatient services and bundled care payment models for inpatient services, to counter the prevailing,
unsustainable fee-for-service model.

EGF is committed to reduce social and economic risk and vulnerability, and to alleviate extreme
poverty and deprivation through cash transfer programs through social protection. It transforms lives
and livelihoods by providing inclusive financial services to thousands of marginalized and vulnerable
households living in Kenya, Uganda, Rwanda and South Sudan through these strategic initiatives,
where 341,000 Beneficiaries Reached with Social Protection Programs through 52,742 Equity agents
and a total of KES 87B disbursed via cash transfers by 2019. It provides inclusive financial services to
thousands of marginalized and vulnerable households living in Kenya, Uganda, Rwanda, and South
Sudan through Cash Transfer Programs. Social payments have demonstrated a cost-effective way of
transferring cash to the most vulnerable and exposed demographics, promoted socio-economic
integration and increased self-reliance.

Equity avails its payment infrastructure (Branches, agent network, merchant locations, mobile banking)
and digital tools (fully-fledged bank accounts & smart cards to enable ubiquitous access to payments,
credit, savings, investments, and insurance products. Financial inclusion enables beneficiaries to be in
charge of their own spending and savings through fully-fledged Bank Accounts. The use of Biometric
Smart Cards guarantees convenience, security, accessibility and efficiency as well as accountability.
With this model, beneficiaries are able to access their cash allocations, purchase goods and pay for
services, covering technology and innovation.

1.1.3 Equity Group Foundation in Kenya- Nairobi County

Equity Group Foundation (EGF) is a Kenya based not-for-profit foundation established in 2008 as the
social arm of Equity Group Holdings. Equity Group Foundation is the social arm of Equity Group
Holdings, with the aim of transforming the lives and livelihoods of the Kenyan people, socially and
economically by availing modern, inclusive financial services that maximize their opportunities.
Through financial and technological innovations, EGF supports Kenyans by providing the finest
education and career opportunities. It offers those looking for growth opportunities, such as the youth,
women and entrepreneurs, a powerful methodology that sources the finest talent and intellectual capital
and leverages Equity Group’s vast infrastructure and network. Following the success of the Wings to
Fly program, the Government of Kenya appointed Equity to implement the flagship Elimu Scholarship
programme co-designs with the world bank and in partnership with the government of Kenya, it
recruited the first cohort of 9,000 scholars in December, 2019 to begin secondary school in 2020.The
program will run until 2024, targeting a total of 18,000 full four-year secondary school students in the
coming years, 110 sub-counties in Kenya and 15 urban centers with informal settlements, Nairobi city
being one of the urban centers, to which this study lies.
1.2 Statement of the Problem

The non-Profit Equity Group Foundation established in 2008 as the Group’s social engine, delivers
economic opportunities, capacity, tools and technologies that enable individuals and businesses to
increase productivity, resilience and share in socio-economic growth. EGF responds to the continuum
of issues that challenge the socio-economic advancement of the people of Africa, especially low-
income individuals and families. EGF’s Creating Shared Value [CSV] strategy provides social
development initiatives in Education and Leadership Development, Food and Agriculture, Health,
Financial Inclusion and Entrepreneurship Development, Energy and Environment and Social
Protections for the most vulnerable citizens. The Projects are underpinned by technology, innovation
and synergy as a central means to launch, nurture, and scale up Africa’s next generation of successful
leaders and entrepreneurs delivered to all communities in which Equity has operations.

Among Kenya’s population of 43.2 million people, nearly half are children below the age of 18. The
Government of Kenya introduced free, universal primary education in 2003 and since 2008, the
government has supported secondary school tuition costs. Kenya’s net enrollment rate is approximately
86% (UNICEF) and nearly 3 million more children are enrolled in primary school now than in 2003,
and secondary school enrollment more than doubled between 2003 and 2009 (USAID, 2014). Equity
Group Foundation Education and leadership Development pillar comes in strongly of all the pillars to
identify areas that need support in the community especially in vulnerable communities such us in
education to support with these rising numbers. UNESCO in its report (Education for All Global
Monitoring Report,2012), states that secondary school education is out of reach for many poor
households, irrespective of the academic promise and potential displayed by individual students.
Therefore, many challenges remain in delivering quality, comprehensive education beyond primary
school level to all children, especially to those from poor and vulnerable households. Approximately1.2
million school-aged children still do not attend primary school and only one in four eligible young
people are enrolled in secondary school. Vision 2030 aims at “transforming Kenya into a newly
industrialized, middle-income country providing a high quality of life to all its citizens in a clean and
secure environment” (Republic of Kenya, Vision 2030, MoP, 2007). In line with this vision, EGF
increases access to and transition through secondary and tertiary education and provides leadership and
career development in order to break the cycle of poverty and develop the next generation of leaders.
EGF’s Wings to Fly and the Equity Leaders Programme (ELP) focus on secondary and tertiary
education to fulfill a large and constantly growing unmet need for increased and more equitable access
to education.

In Equity’s Group Foundation Financial Pillar, four main areas are usually addressed; EGF connects
low income populations to bank accounts and expert financial literacy trainings, business skills training
based on the International labour organizations for Start and Improve your Business Curriculum.
(SIYB), digital Literacy trainings conducted to SME’s and financial self-sufficiency through
mentorship and coaching. While it works to create change through its pillars the group has made great
strides to expand, financial inclusion in Africa, people living in poverty often require other nonfinancial
services to reduce the social barriers that often impede social and economic transformation, hence EGF
had been established to provide these critical Services and fill the financial inclusion gap. With the Life
expectancy remaining 60 years for men and 65 for women, good heath remains elusive for many. With
almost 48Million people, Kenya only has 9,048 licensed medical doctors and 537 Intensive care unit
beds. Public expenditure of Health is well below that which is needed to ensure access to quality health
care, while only 20% of Kenyans have some form of insurance cover. Equity Groups foundation Equity
Afia is a form of medical entrepreneurship that helps to generate both health and wealth as well as
affordable health care for patience and health care providers respectively. Equity Afia also enables
healthy communities to avoid disease and overcome poverty through its affordable health care plan.
The clinics have presence is some of the areas where vulnerable groups are in order to access their
services affordable; part of the MDG for accessible health.

On the Food and Agriculture Pillar, EGF helps create jobs, improve market access and expand
agricultural production by working in partnership with small and medium sized farmers in order to
increase their production capabilities, filling the county’s production gap deficit and access technology
and financial services.

The lack of or adequate social protection policies have for long time been an issue in Kenya and
neighboring countries where EGF operates. Having identified the gap, Equity Group Foundation
(EGF) among its pillars, took up the challenge to include inclusive financial services to
thousands of marginalized and vulnerable households living in Kenya, Uganda, Rwanda, and
South Sudan through Cash Transfer Programs. Social payments have demonstrated a cost-
effective way of transferring cash to the most vulnerable and exposed demographics, promoted
socio-economic integration and increased self-reliance. Through this initiative, the technology
and innovation pillar also came into play to provide the cash transfer while also leveraging on
innovative delivery models that co-create enrolment and payment solutions for Elderly Persons,
Orphans, Persons with Severe Disabilities, Persons living in Arid and Semi-Arid Lands (ASALs),
Internally Displaced Persons, Refugees and other Vulnerable Persons. In partnership with
governments, humanitarian and development agencies, the Foundation transforms lives and
livelihoods by providing inclusive financial services to thousands of marginalized and vulnerable
households living in Kenya, Uganda, Rwanda and South Sudan through these strategic initiatives.
The foundation also focuses on promoting the conservation of natural resources through
improving water security, providing renewable energy and energy efficient technologies as smart
alternatives with no negative effects on the environment. EGF also focuses on expanding forest
cover, where the foundation has taken initiative in planting 35 million trees from the year 2019.
Because energy is a key resource in household, institutional and industrial operations, access to
affordable and suitable clean energy for all is what drives us. Preventing the exploitation of these
safer energy resources is lack of knowledge, lack of access and misinformation, thus creating a
gap that requires intervention. Equity Group Holdings, through Equity Group Foundation (EGF)
seeks to increase awareness of the benefits of clean energy for cooking, lighting & heating for
both domestic industrial uses. By tapping into solar, water, wind and bio-fuels as energy sources
to provide heat, lighting and electric current to run households and industrial machines, the
environment is preserved, in addition to the reduced cost of energy incurred.

1.3 Purpose of the Study

To establish the influence of Equity Group Foundation and performance of Education and Leadership
corporate social responsibility projects in Nairobi County.

1.4 Objectives of the Study

The Specific objectives of the study were:

(i) To assess the impact of Education and Leadership project on needy and vulnerable students
through the Wings to Fly and Elimu programmes.

(ii) To assess the impact of Food and Agriculture and its development at a community level.
 (iii) To assess the impact of financial and entrepreneurship inclusion in community
development.

(iv) To determine the impact of accessible health services for poor communities.

(v) To assess the impact of Energy and environment and its development at a community level.

(vi) To assess the impact of social protection policies for the marginalized groups.

(vii) To assess the impact of Technology and Innovation and the community development.

1.5 Research Questions

(1) To what extent does Education and Leadership influence the performance of corporate
social responsibilities in Nairobi County?

(2) To what extent does Food and Agriculture influence the performance of corporate social
responsibilities in Nairobi County, Kenya?

(3) How does Health influence the performance of corporate social responsibilities in Nairobi
County, Kenya?

(4) To what extent does Financial Inclusion influence the performance of corporate social
responsibilities in Nairobi County, Kenya?

(5) To what extent does Energy and Environment influence the performance of corporate
social responsibilities in Nairobi County, Kenya?

(6) To what extent does Social Protection influence the performance of corporate social
responsibilities in Nairobi County, Kenya?

(7) How does technology and Innovation influence the performance of corporate social
responsibilities in Nairobi County, Kenya?

(8) How does the combined Equity group foundation Programme influence the performance
of corporate social responsibilities in Nairobi County, Kenya?

1.6 Study Hypothesis

The study aims to test the following null hypotheses:

(1) H0: There is no significant relationship between Education and leadership and
performance of Corporate Social Responsibility projects in Nairobi County, Kenya.

(2) H0: There is no significant relationship between Food and Agriculture and performance of
Corporate Social Responsibility projects in Nairobi County, Kenya.

(3) H0: There is no significant relationship between Health and performance of Corporate
Social Responsibility projects in Nairobi County, Kenya.

(4) H0: There is no significant relationship between financial inclusion and performance of
Corporate Social Responsibility projects in Nairobi County, Kenya.

(5) H0: There is no significant relationship between Energy and environment and performance
of Corporate Social Responsibility projects in Nairobi County, Kenya.

(6) H0: There is no significant relationship between Technology and Innovation and
performance of Corporate Social Responsibility projects in Nairobi County, Kenya.

(7) H0: There is no significant relationship between Social Protection and performance of
Corporate Social Responsibility projects in Nairobi County, Kenya.

1.7 Significance of the Study

The study will give an overview of some of the tested methods used to reach the 100million
people. The study will be coupled with earlier approaches with innovative and cost effective
methods to deliver impact on a large scale. The study will give an overview of EGF’s access
through wings to fly, Education and leadership programme for secondary and tertiary
education in providing leadership and career development in a bid to break the cycle of
poverty and develop the next generation of leaders . The study may provide useful
information to the different stakeholders and like-minded non-governmental institutions or
organizations with the same structure as that of EGF’s, who may find it useful during
decision making processes giving more attention during the planning stages of such
foundations. The outcome may not only be local but also internationally and investors who
may be interested in such programmes but with no prior practical knowledge of such
undertakings can gain knowledge from such a study. This study may also prove to be
important to the Government of Kenya in the formulation of some basic foundation policies
especially in the education sectors. Policies governing sponsorship or any donor funding
provide guidance, which in return reduce project failures, minimizes or mitigates risks and
enables order in non-governmental organizations. The findings of this study may also be
relevant to future scholars and researchers in that it intends to recommend further research
questions that can become useful study basis for future researchers and will further act as a
source of empirical literature since it shall provide insight to the study.

1.8 Delimitation of the study

The study was delimited only to the students under the wings to fly programme. The
researcher foresees various limitations that may hinder the achievement of the study objective.
For instance, due to logistical problems or apathy of the participants, some of the stakeholders
with the necessary information about project delay may misplace or not return their
questionnaires hence necessitating extra expense and time in reproducing more. This problem
may be mitigated by producing extra questionnaires for such instances. The time for data
collection may not be sufficient to reach all respondents intended and a possibility of some
respondents not having ample time to have the questionnaires filled in the stipulated
assignment period. In this regard, the use of email to send out some of the questionnaires is
intended to curb the issue of time spent on distributing the questionnaires.

The participants may either be mentorship field coordinators as representatives of the EGF or
the students covered by the programme. The EGF has Child protection policies that may bar
dissemination of information to outsiders thus some vital information is likely to be withheld.
The problem can be addressed by having a letter from the University introducing the
researcher. An attempt is also made by the researcher to have a letter addressed to the
respondents confirming that no names will be disclosed and that the information are for the
sole purpose of the research.

1.9 Limitations of the Study

The researcher foresees various limitations that may hinder the achievement of the study
objective. For instance, due to logistical problems or apathy of the participants, some
stakeholders with the necessary information about project delay may misplace or not return
their questionnaires hence necessitating extra expense and time in reproducing more. This
problem may be mitigated by producing extra questionnaires for such instances. The time for
data collection may not be sufficient to reach all respondents intended and a possibility of
some respondents not having ample time to have the questionnaires filled in the stipulated
assignment period. In this regard, the use of email to send out some of the questionnaires is
intended to curb the issue of time spent on distributing the questionnaires.

1.10 Assumptions of the Study

The study took up the amount of time allocated since the respondents made themselves
available without any prejudice and biases. The study also assumed that the researcher will
receive all necessary support for her study from the target group involved and that I also
assumed that the respondents were truthful and willing to provide accurate information
freely.

1.11 Definition of significant terms as used in the study.

Corporate Social responsibility: Social responsibility in simple terms, means a business’s

(Corporate’s) obligation to pursue achievable and good long-term goals for its people and the world at
large.

Group Foundation: (also a charitable foundation) is a category of nonprofit organization or

charitable trust that typically provides funding and support for other charitable organizations
through sponsorship /scholarships or grants, but may also engage directly in charitable
activities.

Community development: Community development is a process where community

members are supported by agencies to identify and take collective action on issues which are
important to them. Community development empowers community members and creates
stronger and more connected communities.
Social protection: Social protection is defined as the set of policies and programs designed to
reduce poverty and vulnerability by promoting efficient labor markets, diminishing people's
exposure to risks, and enhancing their capacity to protect themselves against hazards and
interruption/loss of income.

Pillars: That which is universally respected- reliable-decent and hardworking that is more of
a giver than taker; often engaging in voluntary work and taking up worthy causes who
neighbors and the community have high regards and esteem for.

Financial inclusion: Financial inclusion means that individuals and businesses have access to
useful and affordable financial products and services that meet their needs – transactions,
payments, savings, credit and insurance – delivered in a responsible and sustainable way.

1.12 Organization of the study

Chapter one covers the background to the research, the statement of the problem, Purpose of
the study, Objectives of the study, Research questions, Significance of the study, research
questions, Significance of the study, scope, limitations and delimitations of the study,
Assumptions of the study and the definition of terms. Chapter two is on Literature Review,
where past studies relevant to the objectives are discussed. Chapter tree represents research
methodology used in this study, which details the methods that will be adopted to ensure
that valid and reliable data is collected. Chapter four represents data analysis, presentation
and interpretation whereas chapter five covers summary, conclusions and recommendations.

CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction
This chapter looks at the past studies on Equity Group Foundation on performance of corporate Social
responsibility, influence of and the link between the two. The chapter also presents literature and previous
or similar studies that have been conducted on the link between Equity group foundation and CSR
performance of the programme. It will cover the conceptual and theoretical frameworks and the knowledge
gap.

2.2 Performance of CSR Projects

As more organizations place corporate social responsibility (CSR) at the center of their overall business
strategy, and with more research showing that CSR is tightly tied to corporate success, knowing how to
showcase and measure corporate social responsibility performance is imperative. However, many
companies have difficulties measuring the effect of their CSR initiatives and activities more especially
since things like customer loyalty and improved reputation are hard to quantify and make it hard to
assess the value of CSR initiatives and activities. In his 2021 letter to CEOs, CEO of Black Rock Larry
Finks said, “The more your company can show its purpose in delivering value to its customers, its
employees, and its communities, the better able you will be to compete and deliver long-term, durable
profits for shareholders.” While there is no standardized system of methods or criteria for CSR
assessment, there are a few key pointers for measuring corporate social responsibility performance
right such as benchmarking against top performers in the country with which a philanthropic institution
may be operating in. Benchmarks give a quick guide on how to measure ones organization’s corporate
social responsibility performance. They are the roadmap to who may be doing well in their CSR.
Corporate social responsibility efforts are prevalent across many industries and It is important to look
up to companies that go above and beyond with their CSR initiatives, the organizations that are always
used as the “golden example” for best corporate social responsibility practices and so on. Organizations
should also make short-term as well as long-term goals to generate benchmarks for success and key
performance indicators (KPIs). The KPIs an organization sets should be considered as stepping stones
that will eventually lead to achieving the overall desired goal. Each organization is different and each
desired outcome will be different, so measurement will be unique to each situation. However, keep in
mind that understanding the indicators or variables for measuring corporate social responsibility is vital
no matter the organization or goal, as measuring progress towards desired outcomes will sustain the
company’s entire CSR campaign. To be able to get it right form the onset, a company must be able to
attached itself with a few indicators and variables that should ideally be included in the CSR
performance reporting to interested stakeholders, which may include but not limited to their employee
perspectives, health and security, diversity supportive ratio, satisfaction ratio, social policies followed,
social contribution, strategic partners, Responsibility Percentage, Time Spent in Volunteering,
Management Initiatives, recognition Initiatives, recognition Achieved, effectiveness in communication,
number of Social Activities, number of Community Members Reached and Total Impact in the
community at large. Organization should also employ recognized industry-standard measurements
since there is no one known standard measure for measuring CSR perfomance. This means based on
the CSR an organization has, a guide for its specific needs cut out for its operational functions and
initiatives is formed. A few of those measuring tools making a community mark, which publicly
recognizes its excellence and also internationally recognized standards that holistically measure
sustainability.

2.3 Education and Leadership on performance of CSR projects

Education is the bedrock of social and economic development. For many vulnerable communities, edu-
cation for their children who are in most cases academically gifted, offers the one hope for breaking the
cycle of poverty. In its 2012 Education for All Global Monitoring Report, UNESCO estimated that ev-
ery one dollar spent on a person’s education yields ten to fifteen dollars in economic growth over that
person’s working lifetime. The report also cites that in Kenya, even with the reduction of secondary
school fees, the costs of educating a child are still twelve to twenty times as much as the monthly in-
come of parents in rural areas, leaving secondary school out of reach (Global Education Monitor report,
2012). EGF’s Wings to Fly Secondary School Scholarship Programme enables high-achieving students
from needy families to continue their schooling beyond primary school. Since 2010, EGF and The
MasterCard Foundation, in partnership with other international agencies and Equity Group have spon-
sored more than 8,000 vulnerable children to study in Kenya’s top public boarding schools. University
sponsorship programme awards top boy and girl scholar’s in the Kenya certificate of secondary educa-
tion examination university education in Kenya and outside Kenya universities and colleges. The wings
to fly and university scholars benefit from on-going mentorship and leadership training, in order to sup-
port them as learners and leaders. By providing this opportunity to Kenyan children, the bank supports
Kenya’s Vision 2030 to transform Kenya into a middle-income economy led by well-educated citizens
(EGF annual report, 2014). For EGF, it’s charitable contribution to the society aims at generating its or-
ganizational goodwill, its good public standing as well as boosting employee morale. The bank over the
years has concentrated on this cause overtime, which has improved the reputation of the organization as
it links itself with the qualities of an admired corporate partner (Porter and Kramer, 2002). Brand repu-
tation transfer, seems to be one of the strongest benefits of sponsorship, and may occur at the individual
or at the corporate brand level. Customers may assign positive image to a company due to its corporate
social responsibility activities, which may then be perceived as good corporate citizen (Brown and
Dacin, 1997). Study by Amaoko et al. (2015) on effect of sponsorship on marketing communication
shows sponsorship impacts positively on the brand reputation of the sponsored companies; it generates
good will and brand awareness and recall for sponsored companies. Sponsorship can change consumer
perception of a specific sponsor and it also projects a positive image of the company and enhances per-
suasion of consumer. Sponsorship communicates companies’ product and its benefits hence a positive
link between sponsorship and marketing communication performance and in general perception serves
as a promotional tool. Palmer (2012) argues that providing education to bright needy students or
children from humble backgrounds increases the future potential of the children not only to be-
come loyal customers of the firm but to empower their families who in turn remain loyal to the
firm. Both the beneficiaries and their relations attribute their economic status and prosperity to
the firm. This further leads to increase in market share, sales and profitability for the firm (Web-
ber, 2008). The education and leadership development has led to promotion of Equity bank
brand which leads to customer attraction due to the perception that the bank is sensitive to the
needs of the community which leads to competitive advantage over its rivals.

2.4 Social protection and performance of CSR projects

EGF is committed to reduce social and economic risk and vulnerability and alleviate extreme poverty
and deprivation through cash transfer programs. In Kenya, there are close to 500,000 registered
refugees and asylum-seekers in places like Dadaab (once the world’s largest refugee camp) and
Kakuma refugee camp. There are also an estimated 2.6 million orphaned and vulnerable children.
Households caring for one or more of these children make up 12% of all households in Kenya and
usually fall within the lowest two wealth quintiles. With COVID-19, the conditions facing Kenya’s
most vulnerable populations are further deteriorating, children are particularly at risk. Research has
such as illness, disability or a parent’s loss of employment and child labor are highly associated (Equity
Group foundation Transformational Impact: 2020 report) One way to mitigate or avoid such shocks are
social payments. Cash transfers have proven to be a cost effective way to advance the socio-economic
status and self-reliance of the most vulnerable populations. Adoption of cash transfers have proven to
be a cot effective way to advance the socio-economic status and self-reliance of the most vulnerable
population. Adoption of cash transfers for delivery of humanitarian aid fosters financial inclusion and
affirms the dignity of recipients as they gain financial independence. The goal of the social protection
and performance on CSR projects has been to reduce social and economic hardship and alleviate
extreme poverty and deprivation through direct Cash transfer programs for East Africa’s most
vulnerable populations. Kubai and Waiganjo (2010) studied the relationship between strategic
corporate social responsibility and competitive advantage of commercial banks in Kenya focusing on
Equity banks’ wings to fly program. The study revealed that corporate social responsibility had played
a key role in influencing good customer perceptions especially among the beneficiaries and they
display a great capacity to relate with the bank both now and in the future.

2.5 Financial Inclusion and Entrepreneurship Development and performance of CSR

projects

Financial inclusion for the community enables beneficiaries to oversee their spending and savings
through fully-fledged bank accounts and biometrics smart cards, a model that enhances convenience,
security, accessibility and efficiency as well as accountability. With the cards, beneficiaries can access
their cash allocations and use the card to purchase goods and access services. The study indicates that
by offering financial services to displaced populations and refugees, individuals can actually continue
to maintain an official identity and banking history even while in their most vulnerable state. Clients
are taken through financial literacy training to equip them with the knowledge, skills and attitudes
required for effective financial management: Earnings, spending, saving, borrowing and investing.
Participants are empowered to make informed financial decisions and choices and to confidently use
financial services that previously seemed beyond their grasp. These applications help clients work
towards their financial goals, become more bankable and ultimately transform their lives. EGF has also
stimulated job creation and economic growth by providing Micro, Small and Medium Enterprises
[MSMEs] with advice, mentorship and entrepreneurship training. Additionally, EGF improves
financial capability and individual and household financial security by connecting people at the Bottom
of Pyramid to expert financial education training as well as expanding access to financial services and
products.

2.6 Energy and Environment and performance of CSR projects

The mounting impacts of climate change across the continent combined with a persistent lack of access
to electricity and the unsustainable use of natural resources including forests and water are a burden on
African development. Today in Africa, some 600 million people do not have access to electricity while
over 800 million in Africa lack access to clean cooking technologies and fuels (International Energy
Agency, 2020). The effects of climate change continue to fuel poverty and a deliberate focus on clean
energy can create jobs and can conserve vital natural resources, helping the continent to leapfrog its
energy and environmental advancement with a focus of renewable energy, energy efficiency, water
efficiency, climate smart agriculture and green buildings. This also accelerates access to clean energy in
a commercially viable way to improve the social and economic wellbeing of Equity bank’s customers
and the community, while also creating positive environmental outcomes in Africa. EGF’s clean energy
programs aim to reduce greenhouse gas emissions by 5 million metric tons by 2023. The foundation
promotes the conservation and smart use of natural resources, improving water security and promoting
the use of renewable energy and energy-efficient technologies and by expanding forest cover, which is
part of Equity banks target of planting 35 million trees by 2023.

2.7 Technology and Innovation and performance of CSR projects

The year 2015 had been marked with the commencement of technology and innovation on a number of
items that EGF strongly supports. EGF has a strong commitment to innovation in all of its program ar-
eas in order to promote new ideas, experimentation and solutions that promise to increase our impact
and scale. In a world in which the rapid pace of change and technology makes solving problems all the
more challenging, innovation is often seen as the solution that means many things to many people.
Having been voted as the most innovative bank for introducing agency banking and its own mobile net-
work operator to drive core customer mobile banking, the foundation has since invested in work that
has helped programs both current and new to deliver increasing benefit to its audiences, especially as
they grow in size and regional scope. Priority areas of focus was done in 2015 and included
education ,innovation and the use of Equity’s own mobile channel to extend EGF programs to more
users at scale. In the same year, Wings to Fly Learning, an ongoing project to giving EGF scholars as
well as any Equitel user in the country, a rich set of digital learning resources aligned to the Kenyan
then 8-4-4 curriculum. Using a range of affordable and accessible technologies, the educational content
offers supplementary learning experiences that are engaging, high-quality and relevant and that can be
used in school, out-of-school and during holiday periods. The content comprises USSD content avail-
able through the phone as USB content that is provided to both the students and their schools. The
project is intended to improve academic performance, build 21st century skills and act as a catalyst for
wider change among teachers and the system.
The launch of Equity’s mobile virtual network operator (MVNO), Equitel, gave EGF an unparalleled
opportunity to provide users with inspiring and relevant content and tools that can help to improve their
lives, their families and their businesses. This unique mobile offering is an opportunity to re-invent
what “value added services” can mean to low-income people by offering a combination of original and
third-party content that is geared towards the needs of its users, as well as a platform through which
people can interact and learn from our users too. Offered for both feature and smartphone environ-
ments, the “My Life” content will constantly change to meet the needs of users and also innovative
partnerships. The rapid adoption of mobile phones in Africa -including low-cost smartphones - has the
potential to put a computer in everyone’s pocket, but realizing the full potential of this resource to edu-
cate and empower low-income users will not happen if data charges continue to make accessing rich
content cost-prohibitive. Together with the extensive infrastructure of Equity Bank -- including its cur-
rent 42,000 agents – the new reach of Equitel, and a wide range of exciting technology partners, EGF
has successfully delivered affordable access hot sports at our agent kiosks across Kenya in an attempt
to innovate new models and solutions of affordable data access for our users, many of whom are rurally
based

EGF understands the critical role digital literacy plays in empowering individuals and SMEs to be part
of its increasingly digital economy and society. Without digital literacy, young and old alike risk expe-
riencing a new kind of digital divide in which they will fail to enjoy the benefits to their businesses,
employment and livelihoods that the digital world delivers today and promises to do tomorrow. To ad-
dress this challenge, EGF is currently experimenting with a range of creative approaches that capitalize
on the size, track record and depth of its programs, as well as the Bank and Equitel infrastructure to
launch and test solutions. These experiments are intended to lay the groundwork for innovative pro-
grams with national and regional reach and to help catalyze a wider understanding and commitment to
digital literacy among others. 2015 to 2019 saw early work in supplementing and grounding the Wings
to Fly Scholars program works with exposure to digital careers and pathways, field testing to inform a
Digital Literacy Corps concept and development of a multi-faceted approach to helping its extensive
MSME constituency understand and employ digital tools to grow their businesses. In collaboration
with Bank IT EGF started the development of a database management information system (DMIS) as
part of a larger strategy to digitize monitoring and evaluation processes for all programs.
The social return on Investment (SROI) ratio of the Wings to Fly programme is 2.04. This means that
for every Kenyan shilling (US Dollar) invested into the programme, KES 2.04 (USD 2.04) worth of
value are being created and spread amongst the stakeholders in question, showing that value is not just
being maintained, but amplified by the programme.

2.8 Health Services and Performance of CSR projects

Globally, Kenya ranks 145 out of 186 countries on the UN’s Human Development Indicators’ Health
Index, placing it in the lowest category of human development (2012). The low levels of public expen-
diture on health cannot address its disease burden as these levels are unable to link the general popula-
tion to quality preventive and curative care. Private health care facilities fill some of the access gap, but
large facilities are expensive while small facilities provide fragmented care, are often poorly managed
and have limited access to finance needed to scale. With a life expectancy of only 60 years for men and
65 years for women in Kenya, good health remains elusive for many. With almost 48 million people,
Kenya only has 9,068 licensed medical doctors and 537 intensive care unit beds. Public expenditures
on health is well below that needed to assure access to quality care for all Kenyans, and only about
20% of Kenyans have some form of health insurance yet, good health is a basic building block for
wealth creation. In today’s Kenya, medical entrepreneurship can help to generate both health and
wealth, for patients and health providers. The lack of comprehensive and affordable health insurance
schemes limits the uptake of health insurance. Without health insurance, Kenyans are unprepared for
when illness and disease strike and negative economic consequences could follow.
EGF established Equity Afya in 2016, with funding support from the US Agency for International De-
velopment (USAID) in a bid to promote affordable health care for citizens especially in areas where
good and affordable health care was a major concern. EGF increases access to comprehensive health fi-
nancing and private sector-led, affordable, high quality and standardized health services for the vulner-
able groups and middle-income families. It also trains and monitors an ever-growing network of medi-
cal entrepreneurs in most parts of Kenya. Training in business skills and entrepreneurship enables doc-
tors to set up medical facilities in locations with severe shortages of health providers. Equity Group
Foundation developed Equity Afya as a sustainable, integrated health model that trains and monitors a
network of clinician entrepreneurs to increase access to standardized, high-quality and affordable
health care throughout the country. Different from other clinical franchises and other social enterprises,
The clinics already co-designs and offer innovative health insurance schemes that are tailored by pro-
vides to suite the media behaviors of consumer, their health demands and their purchasing power as a
key means to achieve the health care system’s long-term financial sustainability and solvency. The
overall goal of this project is to increase the health status of Kenyans by increasing access to and uti-
lization of quality health care and affordable, private health insurance. Central to the initiative’s objec-
tive is to also increase health literacy and health insurance literacy.

2.9 Food and Agriculture and performance of CSR projects.

Over 80% of the Kenyans live in the rural areas and derive their livelihoods directly or indirectly from
agriculture. Despite its importance to Kenya’s economy, the agriculture sector is continually plagued
with systemic challenges that affect farmers and value chain actors, including low productivity, limited
access to markets & post-harvest management technologies, weak business management systems, use
of outdated technology & skills and limited use of irrigation and rain water harvesting technology. To
remedy challenges in the sector and to improve agriculture incomes and livelihoods, EGF partnered
with the Embassy of the Kingdom of the Netherlands in Nairobi and Equity Bank to launch an Agricul-
ture Growth Accelerator in 2014. The Growth Accelerator works to commercialize agribusinesses by
providing capacity building, linkages and innovations in collaboration with the Ministry of Agriculture,
research institutions, input and technology companies, market buyers and other agriculture develop-
ment projects. Growth in the agriculture sector in Kenya has the potential to ensure food security for its
fast-growing population, reduce the cost and reliance on food imports, lower food prices and create em-
ployment. Medium sized farms are essential for Kenya’s rapidly urbanizing population to achieve food
security and can have an unlocking effect on the sector.

EGF also helps create jobs, improve market access and expand agricultural production by working in
partnership with small and medium-sized farmers to increase their production capabilities, business
acumen, and access to technology and financial services. While medium-size farms are limited in num-
ber, they cover a large proportion of underutilized farmland and possess the potential to rapidly in-
crease food production by increasing on-farm production and engaging smallholder farmers. This
group of untapped medium-size farms are referred to as the ‘missing middle’, because they are ignored
by development programs due to their large land holdings and lack the resources to engage private sec-
tor extension and service providers. The goal of the Growth Accelerator is to is commercialize over
2,000 medium-size farms that will eventually support neighboring smallholder farmers in 10 counties
in the Rift Valley, Central and Eastern regions of Kenya. The Growth Accelerator is delivered through
a robust extension platform that provides demand-driven support through Extension Officers, Business
Groups, Agro dealers, Mobile Tools and Equity Bank Branches & Agents. As at 2019, EGF managed
27 Agriculture Extension Officers and Managers knowledgeable in grains, horticulture, dairy and poul-
try. Business Groups organize farmers and provide trainings, mentorship, linkages to input suppliers
and market buyers, field days and a bulk buying program. Mobile Tools provide and business training
tips, weather information and management systems for farm operations and financial records. Lastly,
Equity Bank branches and Agents provide credit, savings and loan products to agribusinesses.

2.10 EGF programme and performance of CSR projects

Corporate Social Responsibility refers to operating a business in a manner that accounts for the social
and environmental impact created by the business. Kotler (2005) posits that CSR strategies or corporate
social initiatives are major activities undertaken by a firm to support social causes and to fulfill com-
mitments to Corporate Social Responsibility. Causes most often supported through these initiatives are
those that contribute to community health, safety, education, employment, the environment, community
and economic development and other basic human needs and desires. Findings show that CSR is an im-
portant component to different stakeholders of the bank with local community scoring the highest. The
study established that Education sponsorship program improve the Bank’s brand reputation while fi-
nancial literacy training and entrepreneurship education program promotes the Bank’s customer reten-
tion. Agriculture programs and environment conservation activities enhance the Banks stakeholder re-
lationships. The results indicate that the bank has adopted CSR as a strategic pillar to grow and sustain
its business growth thus sustainable competitive advantage, to the bank CSR is not only an avenue for
showing its softer side of the business but it also offers an opportunity to build a strong brand reputa -
tion, improve customer retention, customer loyalty and promote a strong stakeholder bond which drive
the business growth. The study recommends that adoption of the CSR initiatives be encouraged in or-
der to drive competitive advantage and present the bank as an important and beneficial entity to the so-
ciety at large and for policy makers to consider incorporating more stakeholders in driving the corpo-
rate social responsibility agenda to build belief in the brand reputation and promote the banks suste-
nance. Equity forges strategic partnerships with development partners, governments, the private
sector, and local communities to make the program sustainable in all the above pillars.

2.11 Theoretical framework

A theory is a set of assumptions, propositions or accepted facts that attempt to provide a plausi -
ble or rational explanation of cause-and –effect (causal) relationship among a group of observed
phenomenon A theoretical framework is a group of related ideas that provide guidance to a re-
search project or business endeavor. The Triple Line Theory, The Stakeholder Theory and The
Social Contract Theory are adopted in this study.

Triple bottom line theory

Elkington, J. devised the 3-P formulation, a formulation made up of social factors that can
assess whether a company's performance is environmental, social, or economic, and he
coined the phrase "Triple Bottom Line" in 1994. Profit can be perceived as a requirement
for social responsibility when preserving a balance between profit, people, and the environ-
ment. This is due to the fact that the human element focuses on taking into consideration so-
cial components and natural factors through environmental difficulties when a company's
action does not aim to create corporate value and is not a strategic action in establishing
competitive advantage.

Profit

The most significant factor and primary objective of every commercial activity is profit.
Profit is essentially an extra source of income that may be utilised to guarantee the long-
term viability of the business. While there are steps that may be taken to increase profit,
among them are productivity and cost-cutting measures, to give the business a competitive
advantage and the ability to create value as much as feasible..

People (community stakeholders):

The community is a significant stakeholder for the company because its existence, survival,
and growth depend on the support of the community, particularly the surrounding commu-
nity. As such, the company must make a commitment to working to maximize its benefits
for the community as a whole. It should be understood that a company's operations could
have an effect on society; as a result, the corporation should engage in a variety of activities
that address local needs.
Planet (environment):

Every aspect of our existence is impacted by the environment. We have a tight relationship
with the environment, and if we take care of it, we will profit from it; yet, if we harm it, we
will pay a price. Unfortunately, the majority of us continue to show little concern for the en-
vironment. This is so because it offers no clear benefits. As a result, we observe that many
business leaders are primarily interested in increasing their bottom line and are not con -
cerned with protecting the environment. In fact, people will actually profit more from main-
taining the environment, particularly in terms of health, comfort, and availability of re-
sources that are more assured of continuity.

In contrast, the economic CSR dimension is more concerned with earning a profit because it
calls for a company to behave in ways that are committed, just, and responsible in its deal-
ings with the public and other stakeholders (Uddin et al., 2008). Last but not least, the phil-
anthropic CSR dimension entails charitable projects undertaken to raise the standard of liv-
ing of individuals directly or indirectly connected to the company with the intention of pre-
serving and improving a positive relationship between the company and society (Fischbach
& Ksiezak, 2017).According to the Triple Bottom Line theory (Byus, Deis, and Ouyang,
2010; Jin and Chen, 2014), a company's brand equity is momentarily boosted by its eco-
nomic, philanthropic, and economic CSR components.

Maldonado-Guzman and Pinzon's (2017) findings indicated small enterprises in Mexico's

three CSR dimensions significantly increase brand equity and company reputation sup-
ported the theory's central premise. The conclusions of the study by Maldonado-Guzman,
Pinzon-Castro, and Leana-Morales (2017) were in line with those of Dawood (2019), who
carried out a related investigation in the setting of Pakistan's garment sector. However, Da-
wood (2019) only paid attention to the two components of the TBL theory—the environ-
mental and philanthropic CSR dimensions. Additionally, Chan and Saad's (2019) research
investigation into the Malaysian coffee retailing industry to determine the impact of the
TBL's components on consumers' purchase intentions revealed that only the philanthropic
CSR dimension has a favorable moderate association with consumers' purchase intentions.

Stakeholder Theory

Mitroff created this hypothesis in 1983, and Freeman improved it in 1984. This approach
focused on the connection between stakeholders and the company's rippling effects. It pri-
marily strengthens the project management process' morals and ideals. According to Cooper
(2017), this approach highlights important people who are concerned about how the organi -
zation functions. Partner research has also been used to identify critical areas of concern in
relation to business ethics and corporate social responsibility. Associations in the open sec -
tor may be able to take use of their status as high-saliency partners to influence company di-
rectors and venture stores by using a variety of influencing tools. They are able to engender
strength, sincerity, and authenticity.

According to the stakeholder hypothesis, CEOs will conduct businesses for the benefit of
all stakeholders by taking into account financial and moral considerations that influence en-
terprises' adherence to social obligations and appearance of decency to customers and other
stakeholders. As a result, the idea can be seen as a good compromise between ethics and
economy that enables partnerships to grow and enhance administration. Both hypothetical
and experimental arguments have been made against stakeholder hypothesis. The father of
exchange cost financial elements, Jo, Song, and Tsang (2016), have argued that the addition
of new partners mutilates the direct central operator relationship between owners and direc-
tors. Yu and Choi (2016) make the argument that the stakeholder hypothesis is fundamen-
tally at odds with all legitimate business goals and compromises fundamental property
rights and corporate responsiveness. Stakeholder hypothesis provides crucial information
about how businesses and their directors interact with governments and various fictional
characters. This idea aims to clarify the function of stakeholders in making sure that a firm
runs well. Because it identifies and explains the significance of stakeholders in ensuring that
business effectively, this theory is pertinent to the research.
According to Van Limburg, Wentzel, Sanderman, and van Gemert-Pijnen (2015), organiza-
tional management and corporate ethics, which were a hot topic for academics and business
executives in the 1970s, are to blame for studies on stakeholders receiving broad attention
first. The main proponent of the idea, Freeman (1984), emphasized the significance of ac-
knowledging businesses as organizations that function to create value for stakeholders in his
defense of the theory. According to Freeman (1984), stakeholders are people or groups of
people whose way of life is directly impacted by an organization's decisions. This list of
people includes, but is not limited to, clients, staff members, creditors, suppliers, investors,
public interest organizations, and governmental organizations.

According to Wang et al. 14 (2016), businesses should expand CSR programs to assure so-
cial wellness rather than using them solely as a tool for managing public relations. Io-annou
and Serafeim (2015) attested to the necessity of strong and moral leadership principles to
change businesses into organizations that value social responsibility. In their 2005 report on
the internal and external factors that influence the adoption and implementation of CSR in-
side firms, Szekely and Knirsch said that internal elements include managerial and organi-
zational factors while external aspects include stakeholder demands. The social responsibil-
ity component of this study will be supported by the application of this idea.

Social Contract Theory

Developed in 1999, the model was created by Donaldson and Dunfee. The goal of the the-
ory's formulation was to help managers make better decisions in situations where business
ethics are required. According to the principle, a company must act responsibly in order to
advance its commercial objectives. The assumption of society is that all businesses will act
morally. In every civilization, there are numerous and distinct sorts of contracts. According
to society's citizens and the entire community, these contracts are social in nature (Cooper
2017). This implies that corporate managers always need to make moral choices.
The ethical and political stances of this system are its two pillars. In management science,
both of them are widely employed (Nyongesa 2017). When people realized they needed to
protect their lives and security, theory typically evolved over time. According to Nyongesa
(2017), this approach was built on an ethical attempt to reorganize society by building busi -
nesses to society using ethical values. Adopting CSR as corporate policy and developing
social initiatives through corporate ethical requirements are how this theory is put into prac-
tice. When corporations conform to social norms, basic human rights may be violated. The
United Nations has focused its attention on the necessity to uphold the social compact
(Cooper 2017).

This theory offers the fundamentals of how corporate policy and social programs influence
the establishment of enterprises; as a result, it is pertinent to the study since it offers details
on the ethical and regulatory requirements for business. According to the argument, busi-
nesses have an agreement with the society they operate in. As a result, they are morally
obliged to act morally and advance the internal and external well-being of society.

2.12 Conceptual Framework**

The Conceptual framework helps to illustrate the causal relationships between the independent
and the dependent variables

2.13 Summary of literature

This chapter reviews the relevant literature in relation to the objective of the study. The chapter
highlighted the literature that is existing in relation to Equity group foundation and its corporate
social responsibilities. The chapter has reviewed the literature in relation to the seven objectives
and the factors have been looked at from a global perspective. Among the highlighted factors in-
clude; performance of CSR project on Education and leadership, on Health, Food and agricul-
ture, Energy and Environment, Enterprise Development, Financial inclusion, Social protection
and Technology and Innovation that are also considered to be independent factors while the Eq-
uity group foundation is taken to be the dependent variable. Finally, the research gaps are also
identified in this chapter.
 2.14 Knowledge Gaps.

For many organizations, CSR is once a purely a philanthropic activity to arouse public
goodwill with no consequence on profitability. However, management perception has since
changed. Knowledge gaps are identified and the remedy given in the table below.

Name(s) of Title of the study Observation(s) noted Research gaps Focus of the cur-
the author rent study

Iwannanda Philanthropic corpo- A number of busi- A cross sectional re- Participants were
and Adipu- rate social responsi- nesses employed search design was investigated for
tra (2017) bility on organiza- CSR based on cul- employed that can- the thesis using a
tional performance tural and religious be- not be used to estab- clear study design
liefs, supported by lish relationships be- in a completely
charitable strategies, tween cause and ef- natural environ-
to address diverse so- fect ment that had not
cio-economic con- been altered.
cerns.

Kubai and Strategic corporate The study made a The study used ex- This study uses
Waiganjo social responsibility’s conclusion that most planatory and de- qualitative and
(2014) influence on the com- of the people in- scriptive research quantitative re-
petitive advantage of volved in the WINGS methods search methods
Kenya Commercial TO FLY PROGRAM
bank with a focus on WILL MOST
the Wings tp Fly Pro- LIKELY want to re-
gram by Equity bank late to equity bank in
future.
Welbeck, The influence of in- Spending on environ- This study was per- It covers the real
(2017) stitutional environ- mental social respon- formed in Ghana set up thus having
ment on corporate re- sibility has a positive which is different a more credible re-
sponsibility disclo- impact on how well different set up sults
sures in Ghana Envi- commercial bank’s
ronmental social re- function. It is crucial
sponsibility expendi- for determining how
ture has positive sig- much money the
nificance on perfor- business's activities
mance of commercial cost.
banks. It i

Hawrysz Environmental as- The level of an orga- Sampling method Stratified sam-
and Foltys pects of social re- nization's environ- was used which is pling method was
(2015) sponsibility of public mental responsibility more convenient used
sector organizations varies significantly.

Muchiri et Educational corporate Social responsibility Quantitative data Qualitative and

al. (2019) social responsibility in curriculum has a methods were used Quantitative data
on organizational per- substantive and sig- methods were
formance nificant impact on or- used
ganization’s success
INDIPENDENT DEPENDENT INDIPENDENT

VARIABLES VARIABLE VARIABLES

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