EFFECTS OF MULTINATIONAL COMPANIES ON COMMUNITY

DEVELOPMENT IN KENYA: CASE OF EASTERN PRODUCE KENYA LIMITED

(EPK), NANDI COUNTY

EDWIN BOR CHEROR

C153/CTY/PT/33520/2014

A RESEARCH PROJECT SUBMITTED TO THE SCHOOL OF HUMANITIES AND

SOCIAL SCIENCES IN PARTIAL FULFILMENT OF REQUIREMENTS FOR THE

AWARD OF THE DEGREE OF MASTERS OF PUBLIC POLICY AND

ADMINISTRATION, KENYATTA UNIVERSITY

MARCH 2018
DECLARATION

This research project is my original work and has not been submitted to any other University

for the award of a degree

Signature: …………………………………. Date: ………………………………

EDWIN BOR CHEROR

C153/CTY/PT/33520/2014

This research project has been submitted for consideration with my approval as University

Supervisor

DR. PATRICK MBATARU

Signature: …………………………………. Date: ………………………………

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Table of Contents

DECLARATION ....................................................................................................................... ii
ABSTRACT ...............................................................................................................................v
LIST OF ABBREVIATIONS AND ACRONYMS ................................................................... vi
DEFINITION OF OPERATIONAL TERMS ........................................................................... vii
CHAPTER 1: INTRODUCTION ................................................................................................8
1.1 Background of the Study....................................................................................................8
1.2 Statement of the Problem ................................................................................................. 10
1.3 Objectives of the Study .................................................................................................... 11
1.4 Research Questions .......................................................................................................... 11
1.5 Research Premises of the study ........................................................................................ 12
1.6 Justification and Significance ........................................................................................... 12
1.7 Scope and Limitations...................................................................................................... 13
CHAPTER 2: LITERATURE REVIEW ................................................................................... 14
2.1 Theoretical review of literature ........................................................................................ 14
2.1.1Theory of Legitimacy ................................................................................................. 14
2.1.2 Stakeholder Theory ................................................................................................... 15
2.2 Empirical review of Literature ......................................................................................... 15
2.2.1 MNCs contribution to social welfare initiatives ......................................................... 15
2.2.2 MNCs promotion to Education, Infrastructural development and poverty reduction... 17
2.2.3 Challenges faced by MNCs in their host environments .............................................. 19
2.3 Conceptual framework ..................................................................................................... 21
CHAPTER THREE: RESEARCH METHODOLOGY .............................................................. 23
3.1 Introduction ..................................................................................................................... 23
3.2 Research design ............................................................................................................... 23
3.3 Location of study ............................................................................................................. 23
3.4 Target Population ............................................................................................................ 23
3.5 Sampling and Sampling Design ....................................................................................... 24
3.6 Data collection Techniques .............................................................................................. 25
3.7 Validity and Reliability .................................................................................................... 25
3.8 Data analysis and presentation ......................................................................................... 26
3.9 Ethical Considerations ..................................................................................................... 27
CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION ............................................. 27
4.1 Introduction ..................................................................................................................... 28
4.2 Response Rate ................................................................................................................. 28
4.3 Demographic statistics ..................................................................................................... 29
4.3.1. Gender of the respondents ........................................................................................ 29
4.3.2 Age of the respondents .............................................................................................. 29
4.3.3 The level of education ............................................................................................... 30
4.3.4 Employment by the EPK ........................................................................................... 31

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 4.4 EPK and education .......................................................................................................... 32
4.5 EPK and social welfare initiatives .................................................................................... 34
4.6 EPK and contribution to infrastructural development ....................................................... 35
4.7 Challenges of EPK in community support ........................................................................ 37
4.8 Regression analysis………………………………………………………………………..39
4.8.1 Model summary…………………………………………….………………………….39
4.8.2 Analysis of Variance………………………...…………….…………………………..39
4.8.3 Beta Coefficients………………………………………….……………….…………..39
CHAPTER 5: DISCUSSION, CONCLUSION AND RECOMMENDATION .......................... 41
5.1 Introduction ..................................................................................................................... 41
5.2 EPK and the support to education in Chepkunyuk Ward .................................................. 41
5.3 EPK Support to social welfare initiatives ......................................................................... 42
5.4 EPK support to infrastructural development ..................................................................... 43
5.5 Conclusion....................................................................................................................... 44
5.6 Recommendations............................................................................................................ 46
REFERENCES ......................................................................................................................... 47
APPENDIX 1: QUESTIONNAIRE FOR THE RESIDENTS………………….……………..53
APPENDIX 2: QUESTIONNAIRE FOR SENIOR MANAGEMENT OF EPK ..................... 54
APPENDIX 3: PROJECT WORK PLAN 2017 ..................................................................... 55
APPENDIX 4: NANDI COUNTY......................................................................................... 56
APPENDIX 5: GRADUATE SCHOOL APPROVAL LETTER……………………………..57
APPENDIX 6: AUTHORIZATION LETTER TO NACOSTI………………….…………….58
APPENDIX 7: AUTHORIZATION LETTER FROM COUNTY EDUCATION OFFICE….59
APPENDIX 8: AUTHORIZATION LETTER FROM NACOSTI……………………………60
APPENDIX 9: PLAGIARISM REPORT ……………………………………………………61

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ABSTRACT

The role of multinationals in community development cannot be overemphasized. Corporate

Social Responsibility (CSR) is an important aspect of integrating the community and the
companies that are within a given community. It is fundamental that corporate take into
consideration the needs of the community beyond the growth of their organizations.
Governments in developing countries are faced with great challenge to provide fundamental
services to the people and this has left gaps in the community development. The government
efforts in development of infrastructure, social amenities, health care, education among others
has not been sufficient. It is these gaps that the multinationals are required to fill through
initiatives that support the development of communities. However their role in community
development is not always understood especially in Africa where they are involved in the
production and processing of valuable commodities in agriculture, oil and gas industries. In
Nandi County the presence of multinationals dealing with tea production has been very
prominent. These multinationals include Eastern Produce Kenya Limited (EPK), James Finlay
and Unilever Tea. Eastern Produce Kenya limited is the largest of these multinationals in Nandi
East Sub county Chepkunyuk ward with fifteen tea estates and seven tea factories. This study
was motivated by the increasing conflict between communities and the multinationals. There
have been continued conflicts between the two and the study aims at assessing what role the
MNCs play in community development and this assessed their contribution to community
development as the main objective of the study. The specific objectives were based on their role
in education, social welfare and infrastructural development. The study adopted two theories, the
stakeholders’ theory and the theory of legitimacy. The study adopted a descriptive research
design which was appropriate to bring out the reality on the role of EPK in community
development. The data collected was analyzed and presented in topical discussions, tables and
graphs as appropriate. From the study it was found that EPK has played a fundamental role in the
community development in Chepkunyuk ward. In education it was evident that EPK has offered
bursaries and sponsorship and also taken part in the infrastructure development of the schools.
Under the social amenities EPK has played a crucial role in the construction of health facilities,
taken part in the construction of churches and social halls. Finally, EPK has been involved in
various projects under infrastructural development which include provision of water, maintaining
roads and maintenance of playing grounds for various schools. EPK has therefore played an
important role in ensuring the development of the community in Chepkunyuk ward.

v
LIST OF ABBREVIATIONS AND ACRONYMS

BAT British American Tobacco

CSR Corporate Social Responsibility

EPK Eastern Produce Kenya Ltd

FDI Foreign Direct Investment

FMCGs Fast Moving Consumer Goods

GDP Gross Domestic Product

LDCs Less Developed Countries

MNCs Multinational Companies

MNEs Multinational Enterprises

TNCs Transnational Corporations

vi
DEFINITION OF OPERATIONAL TERMS

Community A group of people living within or around multinational companies. They may be

living there as residents or as workers of the companies.

Company This is an institution that has been created for specific and calculated objectives.

In this context refers to the multinational companies.

Development Systematic change and transformation of a region depending on the needs and the

priority needs of the region. Change that has been deliberately planned and worked for.

Economy An household or an area of production that has a specific goal or strategy to develop.

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CHAPTER 1: INTRODUCTION

1.1 Background of the Study

Corporate Social Responsibility (CSR) has played a key role in the development of communities

through promotion of individual wellbeing, group and community growth and development that

are promoted through initiatives of corporations within communities. In the recent past there has

been a widespread demand by communities for relevant direct and sustained benefit from

Multinational Corporations (MNCs). The government has failed in many developing countries to

respond to the needs of communities and this gap has been passed to various Multinational

Corporations that have been set up within communities in developing countries. Due to the

limited capacity of developing countries to utilize their resources especially in the mining

industries and other industries such as coffee and tea industries MNCs have become wide spread

in developing countries as they seek to fill the gap in the utilization of the resources in the

developing countries (Culverwell, Lee, &Koziell, 2003).

In Africa there are various MNCs that exist within the communities. In Nigeria due to the

existence of the oil and gas mining the presence of MNCs has been increasing by the decade. In

Cameroon there are several MNCS in the Fast Moving Consumer Goods (FMCGs) that have

been set up including MTN, British American Tobacco (BAT) among other MNCs. East Africa

has an increasing number of MNCs that run across various industries in the economy. In Kenya

MNCs can be traced back to the colonial period and this have continued to set base in Kenya in a

bid to take advantage of the rich resource base in the country. The tea and coffee industry are

among the industries that have attracted MNCs in various parts of the country and their presence

has been felt in all tea growing regions,(Buchholz and Rosenthal,2004).

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The World Bank in its annual report in 1995 recognized that beyond capital investment it is

important for MNCs to get involved in human capital investment. The World Bank holds that

human capital investment is important for the overall economic as well as social development. It

is therefore important to note that MNCs are not only important for capital investment but they

hold a key role in global development through investing in human capital and providing the local

people with tools to drive their own economic development (Nelson, 2006).

It has therefore been argued that corporations have a responsibility and obligation to help in

solving problems of public concern (Monsen, 1974; Quinn & Jones, 1995). This therefore is a

matter of the corporations going beyond self-interest of profit maximization and looking into the

needs of the local people who are critical stakeholders of the corporations, (Velasque, 1996).

According to Ojala (2004), social responsibility has three major facets: operating within the

given law (legal), having and abiding by the common ethical and moral standards, and giving

philanthropically. He defines social responsibility as the obligation of both business and society

to operate legally, uphold the moral-ethical standards, and philanthropic actions that takes care of

interests of both parties their welfare as a whole, all of which has to be attained within their

economic structures and capabilities of the society and the business.

Having good corporate practices by any corporations not only MNCs goes beyond the legal

requirement. This has to be voluntary from corporations and generally acceptable as well as

beneficial to the social communities surrounding the corporation. MNCs can therefore have

direct participation in societal governance that is not limited to within the surrounding of the

business but as far as the entire society in general. MNCs may from time to time be asked to take

up extra responsibilities especially in circumstances where mechanisms regulating free market

are not effective or not yet fully developed. Thus the MNCs have the extra challenge oin trying

9
to address social responsibility matters especially where legal framework is not in place, lack of

societal infrastructure or prior existing traditions and inexperience in the market economy from

the host country (Moon, Crane, and Matten, 2005).

Eastern Produce Kenya Ltd

Eastern Produce Kenya Ltd (EPK) has been rated as one of the biggest multinational tea

producers in Kenya. Reports from the county government of Nandi shows that EPK has 15 tea

estates covering a total area of approximately 20,000 acres within Nandi East Sub county. The

report also shows that EPK have established 7 tea factories within Nandi East Sub County. These

tea estates are; Kapsumbeiywo, Kibabet, Chemomi, Kipkoimet, Savani, Kepchomo, Sitoi,

Kipkeibon, Kaprochoge, Siret and Kibwari. From the list, EPK manages Siret, Kipkeibon,

Kaprochoge and Kibwari on behalf of various private investors. EPK also owns 40% of NSE-

listed Kakuzi Ltd that owns the entire 1500-acre Kaboswa tea estate. EPK is 70% owned by

Camellia PLC which is an international group operating across 12 countries and the second

largest private produce of tea globally.

1.2 Statement of the Problem

The impact of multinational companies on community development is not always clear. There

has been continued pressure for corporations to be more open and accountable and to report

publicly on their undertakings economically, socially and environmentally. A worldwide debate

fueled by perceived double standards, corporate scandals and significant decline in social,

economic and environmental developments in host communities by MNCs, has raised questions

on commitment of the MNCs in supporting community development beyond pushing for their

main agenda of profit generation for themselves.

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This has led to continued pressure globally for MNCs to demonstrate their social accountability

especially MNCs that are established in regions that have political sensitive environment

worldwide. The continued involvement of multinationals companies in community and

development initiatives has lead to the World Business Council for Sustainable Development

(1998) definition of social/community involvement (issues) as: varied range of activities that

includes community assistance programs; supporting education matters; nurturing a shared

vision of a corporation’s role in the community; involvement in community health and safety;

inculcating the culture of voluntary community work in employees; philanthropic giving;

sponsorship;

1.3 Objectives of the Study

This study was guided by the following objectives:

1. To determine how EPK has contributed to promotion of Education in Chepkunyuk Ward.

2. To ascertain the contribution of EPK to Social welfare initiatives in Chepkunyuk Ward.

3. To examine how EPK has taken part in infrastructural development in Chepkunyuk

Ward.

4. To establish the challenges faced by EPK in promoting community development in

Chepkunyuk Ward.

1.4 Research Questions

The study was guided by the following questions:

1. What has the existence of EPK in Chepkunyuk Ward played in the promotion of

Education?

2. How does EPK contribute to Social welfare initiatives in Chepkunyuk Ward?

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 3. What has been the contribution of EPK to infrastructural development in Chepkunyuk

Ward?

4. What challenges is faced by EPK in Chepkunyuk Ward in promoting community

development?

1.5 Research Premises of the study

The study was undertaken under the premise that:

1. The EPK has promoted Education by contributing to construction of schools in

Chepkunyuk Ward.

2. The EPK has contributed to the Social welfare development through construction of

social halls in Chepkunyuk Ward.

3. The EPK has contributed to infrastructural development through the building of stadia in

Chepkunyuk Ward.

4. The EPK has faced challenges in the promotion of community development in

Chepkunyuk Ward.

1.6 Justification and Significance

This study was based on the background that MNCs have a responsibility to support community

development in one way or the other. The findings of this study were instrumental in bringing

out the effects that the MNCs bring on community development and thus this will be

fundamental for the government to understand these effects and keep the MNCs accountable

where necessary. The study will also be important to the MNCs as this will bring out the

expectations of the community to the MNCs and thus creating room for the MNCs to plan their

CSR activities to respond to the expectations of the communities. The study will also be helpful

12
to the local community in Chepkunyuk Ward as this will be a communication tool for them on

what the EPK have contributed in the development of their community and how they would want

EPK to farther support them in development.

1.7 Scope and Limitations

The study was conducted in Chepkunyuk Ward, Nandi East Sub County in Nandi County. The

Sub County was purposively selected due to the heavy presence of MNCs that have invested on

thousands of acres of tea in the region. The study was also limited to the tea industry and in

particular EPK company in Chepkunyuk Ward. This study was limited by the minimal research

that has been done locally on MNCs. Very few scholars have conducted studies on MNCs and

this thus poses a challenge to the researcher due to lack of a grounded reference point for the

study. The researcher however overcame this by relying on studies from other regions especially

developing countries and this were used as reference points to develop a Kenyan context.

13
CHAPTER 2: LITERATURE REVIEW

2.1 Theoretical review of literature

In Less Developed Countries (LDCs), Multinational companies (MNCs) as part of their

corporate social responsibility, the host community expects them to take part in provision of

social services and welfare programs far from their core mandate of economic activities. Eweje

2006, says that these services and programs that are expected from MNCs includes; provision

education through scholarships and learning facilities, building clinics, provision drugs for

AIDS/HIV patients, and offer medication and vaccination for malaria and other diseases in

developing countries. In economic terms, the stated activities are not what the MNCs are

established for but in LDCs they are expected to take part in. (Eweje, 2006).

This study applies two main theories to help in explaining the role of MNCs in aiding

communities: legitimacy theory, and stakeholder theory.

2.1.1Theory of Legitimacy

Companies, as one kind of social arrangement, require legitimacy to exist harmoniously with

long-term relationships with various host communities. The theory of Legitimacy was advocated

by Davis’s (1973) iron law of responsibility. It postulates that business is a social institution that

must use its’ power responsibly, failure to which the society may revoke it. He stated that the

society grants legitimacy and power to business and in the long run, those who seem to have

failed to use it in a manner considered by the society to be responsible they will tend to lose it.

Further, according to Dowling and Pfeffer (1975), a business is said to be legitimate when it is

judged to be “just and worthy of support”. Businesses that lose legitimacy face a variety of

challenges, ranging from punitive legislation to challenges in hiring qualified personnel. The

advantages associated with legitimacy, coupled with social pressures toward conformity,

14
generally compelled managers of illegitimate businesses to work towards improving the

legitimacy of their companies (Nasi, Phillips &Zyglidopoulos1997). Sethi (1979) postulated that

in an event where corporations turns a blind eye to social expectations, they are liable to lose

control over their internal decision making and external dealings. He postulates that legitimacy

problems occur when the expectations of the society for a corporate behavior differ from

societies’ perceptions of a corporation’s behavior. This disposition could be applied to the cases

developed in this study.

2.1.2 Stakeholder Theory

The stakeholder theory states that for effective management, legitimate interests of all the

stakeholders are required to be put into account and well considered.(Freeman, 1984). Hasnas

(1998) defines stakeholder as anyone who has a stake in or a claim on the firm. He interpreted

this to include any group or individual who is affected by or can affect the corporation. The

narrow and familiar definition of stakeholder groups is limited to shareholders, employees,

customers, management, suppliers as well as the local community. Therefore, stakeholder theory

asseverates that a corporate’s financial success is best be achieved by putting forth the interests

of the corporate’s shareholders, employees, customers, management, suppliers as well as the

local community proper consideration and coming up with policies that will achieve an optimal

balance among all the interested parties (Hasnas, 1998).

2.2 Empirical review of Literature

2.2.1 MNCs contribution to social welfare initiatives

Social Issue Life Cycle; This theory states that social issues follow a predictable evolutionary

path (Mahon and Waddock, 1992). The number of periods or stages through which an issue

follows while evolving varies. Mahon and Waddock (1992) established four stages. Most of the

15
social issue theorists concur that social issues gradually advance from a period in which the issue

was unthought-of to a period of a more increasing awareness and expectations for action all

through to a period where new standards or ways of dealing with the issue become radicated in

the day to day functioning of the company (Nasi,Phillips&Zyglidopoulos., 1997).The most

influential versions of the life cycle theory were propagated by Ackerman (1975). He explored a

number of instances of the gradual evolvement of the responses of business organizations to

social issues. He discovered that, generally, the responsiveness of business organizations to

social issues develops or advances through a three-phase path: policy, learning, and commitment.

As mentioned above, the trends that can be identified are four, according to Nasi, Phillips&

Zyglidopoulos (1997): There is Increased organizational commitment geared towards social

action, increased transition of organizational behavior from mere state of inaction to concrete

action, Increased organizational habitual acquaintance with the social issue and with ways to deal

with it and Increased standardization of the responses towards environmental and social issues at

the operational level.

Eweje (2006) examined critically the Role of Multinomial Enterprises (MNEs) in Community

Development Initiatives in the developing countries. His study used the Nigeria oil industry and

the South African mining industry as case study. Specifically, the study assessed the usefulness

of MNE-supported community development projects as a means of demonstrating corporate

social responsibility. From the study, he found that expectations for most of the community

development based projects are much greater in developing countries. The study established that

the community development initiatives and investments are important for the establishment of a

amiable relationship between Multinomial Enterprises and their local communities in LDCs. Top

of the issues raised was that of expectations from the host community. Above all, the

16
communities want social development projects that are aimed at providing hope of a prosperous

and a stable. On the other hand, the companies have embraced development initiatives primarily

in an effort to justify that they are socially responsible. They have done this through provision of

services such as scholarships, learning facilities, and hiring of teachers for local school. The

study also interrogated critically the fundamental reason for social welfare provision. At the end,

it was found that through provision of social welfare initiatives for host communities, the MNEs

act as a surrogate for governments in LDCs that often ignore the social and economic welfare

programs that contributes to both economic and social development of the host communities.

Furthermore, the argument in favor of infrastructure and small business development to enhance

the business knowledge and skills of local people also came up. In the past, the host governments

had never provided such services that the host communities were currently enjoying yet the

companies had to still convince the host communities that their social programs were not merely

aimed at satisfying a public relations agenda but rather were carefully planned to reduce

underdevelopment, poverty and unemployment.

2.2.2 MNCs promotion to Education, Infrastructural development and poverty reduction

Kaaya, Ng’eni.,Bukwimba and Kwesigabo (2015) carried out a study on The Role of Corporate

Social Responsibility (CSR) in Community Development in Tanzania. The study used desktop

and library methodology to investigate and present the Tanzanian context of existing literature

and actual facts on the role of Corporate Social Responsibility (CSR) in community

development. It revealed that between 2001 and 2005 the mining Transnational Corporations

(TNCs) alone spent close to US$ 20.94 million towards various community development

projects through CSR. Further, it revealed that in the year 2008 and the year 2009 different

companies across industries spent approximately US$ 23.8 million towards CSR initiatives of

17
which 48.4% towards health, welfare and education and in addition a cumulative amount close to

US$ 6.7 million was used by five selected companies for five years. Moreover, it disclosed that

the most activities that took a significant amount of Corporate Social responsibility expenditure

was in education, healthcare and infrastructure and relatively on the lower side of expenditure

was on microfinance, electricity, Youth and HIV AIDS programs. The findings suggested that

government actions alone will not be able to achieve poverty reduction and sustainable

development. It calls for helpful hands from all stakeholders including the business entities

through the CSR initiatives and the like. With this reality, particularly in developing countries,

they should work closely and institute policies that are environmental friendly, all inclusive and

those that encourage CSR activities among corporation.

Makinde (2013) carried out a study that dwelt on the inevitability of multinational corporations

in the sustainable development of developing economies, using Nigeria as a case study. The

study used secondary data from the National Bureau of Statistics and Central Bank of Nigeria

statistical bulletin between 1970 and 2011. The study had Gross Domestic Product (GDP) as its

dependent variable and Foreign Direct Investment (FDI) as its explanatory variables. Using the

Ordinary Least Square (OLS) multiple regression techniques; the study findings was that there

was a strong positive relationship between Foreign Direct Investment (FDI) and Nigerian Gross

Domestic Product (GDP).That is, FDIs presence have greatly impacted positively and

significantly on the Nigerian economy given the period of study. This was true to apriori and

theoretical propositions.

Tirimba and Macharia (2014) carried out a study on Economic Impact of MNCs on development

of Developing countries. The research adopted descriptive research design. The findings keenly

looked unto the three objectives of the study, which are creation of employment, poverty and

18
dependence reduction and lastly transfer pricing. The study established that the MNCs create

employment opportunities in the country that lead to poverty and dependency reduction though

much of the benefits are again lost through transfer pricing to the main branches of this MNCs in

the developed countries. The study also established that many of these MNCs do have a

multiplier effect towards reduction of poverty through their contribution to non-profit based

organizations like the Red Cross scheme and other social corporate responsibilities. For instance,

most of the mangers in the General Motors Corporation are satisfied with their employment

benefits in the sales, procurement and publicity department. The employment criteria is basically

based on both academic qualification where majority of the managers are employed with a post

graduate qualifications and putting in place work experience as also a benchmarking

qualification to secure employment. The corporation have significantly lowered the poverty

levels through creating employment opportunities to the locals and also substantially by their

active schemes of contributions to the poor that they reveal. Based on the facts presented by the

study, the MNC has outlived the usefulness as a development agent. The role of MNCs should be

redefined in the context of the less developed countries in which they operate in lastly LDCs

should work towards systems that are stable politically to ensure sound economic policies. On

conclusion the study suggested that the government should take a fundamental role in supporting

MNCs activities since they have proved their importance in economic development of the

developing countries with a drive towards full employment. However, the government should

avoid at all cost the over-dependence on these MNCs.

2.2.3 Challenges faced by MNCs in their host environments

MNCs do face a lot of challenges in the countries they establish in. These countries and their

markets are highly unstable, unpredictable and sometimes less profitable. It is therefore

19
mandatory for such MNCs to try and understand their contemporary challenges to make them

more profitable and stable in these markets. This section of literature review explains some of the

challenges.

Kell & Ruggie (1999) says that globalization may be a fact of life, but it remains highly fragile.

They allude that embedding global market forces in shared values and institutionalized practices,

and bridging the gaps in global governance structures are among the fundamental challenges

facing corporate leaders and policy makers alike.

MNCs also face the challenge of their ability to adapt to cultural differences of the host

community, their living standards and other practices from them. (Sauvant, Maschek, &

McAllister 2009).

MNCs based on less developed or emerging countries face the challenge of political instability

which is traditionally associated with them LDCs. On the other hand MNCs based on developed

nations or countries consider economic risk such as exchange rate risk as a greater challenge.

Appropriate market segmentation, relating to the low spending power of the majority part of the

market and developing effective marketing strategies to apply in different sections of the

transforming society are key issues facing MNCs in emerging markets. This can be attained

through careful balancing of price and quality; understanding the influence of key institutions

such as judicial system, education system, political system and mixes of traditional or

local/modern culture (Zainulbhai, 2005).

Characteristics of emerging markets are limited purchasing power, high price sensitivity and

local needs (Prahalad and Lieberthal, 1998). Khanna (2005) says that absence of specialized

20
intermediaries, contract-enforcing mechanisms and regulatory systems are other critical issues in

emerging markets.

Corporate social responsibility has been put forth as one of the emerging challenge for the MNCs

operating in emerging countries. MNCs are expected to strike a balance between their role in

economic development and that of social responsibilities toward the country in which they

operate (Sauvant, Maschek, & McAllister 2009).

2.3 Conceptual framework

The conceptual framework below indicates the interaction between the dependent, independent

and the intervening variables. The diagram indicates that the independent variables which are

educational initiatives, social welfare initiatives and Infrastructural development have an effect

on community development. Community development here is the dependent variable as its

dependent on the other variables which are the independent and the intervening variables. The

interaction between the dependent and the independent variable have an effect on the community

development. The intervening variables as indicated in the diagram below are those factors that

affect the outcome which is the dependent variable but are beyond the control of the players.

These include the policies by the government, cultural practices of the people and the attitudes of

the people which the players have no direct control on.

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 Conceptual Framework

Educational Initiatives
- Bursaries and
sponsorships to students
- Building schools

COMMUNITY
Social Welfare initiatives DEVELOPMENT
- Construction of markets
-Building of social halls
- Hospitals and churches
support
Dependent Variable

Infrastructure
- Road construction and
maintenance
-Piped water
-Building Stadia

Challenges
Intervening Variables
- Government policies
Independent Variables - Cultural practices
- People’s attitudes

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CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction

This chapter discusses how the study was conducted, this are the methods that were used to

undertake the study. It discusses the design that the research took, the target population for the

study, how the sample to take part in the study was selected, the data collection techniques, the

instrument for data collection and how the data was analyzed and presented.

3.2 Research design

Based on the nature of the study the researcher chose to use a descriptive study design. This

design was selected since it is appropriate for indicting the real situation on the ground and

giving inferences on the subject of study. The descriptive survey design was also appropriate

because it was able to yield a large and diverse array of information from the area of study.

3.3 Location of study

The study was carried out in Nandi East Sub County, Chepkunyuk ward within the Eastern

Produce Limited companies. The location was purposively selected due the high presence of

multinational companies especially in the tea industry. The Eastern Produce Limited was also

purposively selected due to its heavy presence in the region. There are 14 estates each with about

1500 employees. Chepkunyuk Ward has 7 tea estates with two factories.

3.4 Target Population

The residents of Chepkunyuk Ward were the target population of this study. These residents

doubled up as the employees and also as residents of the ward. According to the statistics from

23
the County Government of Nandi the population of Chepkunyuk Ward is approximately 36,775,

and of this about 15,000 are the ones who are above the age of 18 years who are the group of

interest to the study. From the report, employees of EPK are approximately 7000 comprising half

of the total adult population. It is therefore difficult to separate the employees from the residents

as this are the same people who are employed by the company.

3.5 Sampling and Sampling Design

The researcher selected a sample that took part in the study from the population of adults which

is 15000. A census was not tenable for the study due to the high number of the residents in the

ward. Selection of Eastern Produce Kenya (EPK) employees were selected using a multi stage

sampling technique. The residents were clustered into the various estates and factories of EPK in

Chepkunyuk Ward. The researcher selected the estates that took part in the study purposively

based on their relevance to this study. EPK owns 7 tea estates with 2 tea factories in the ward.

From this the regions within were clustered in the 7 estates and a proportional sample selected to

take part in the study. From the selected estates 10% of the employees from each cluster were

selected to take part in the study. Clustering was based on their line of duty starting from tea

pickers and their leadership to the top management officers of the company.

The sample size of the residents of Chepkunyuk Ward was selected using the Morgan and

Krejcie formula of sample size calculation for a finite population.

n=X²NP(1-P)/d²(N-1)+X²P(1-P))

Where;

n- is the sample size

N- Population Size (15,000)

24
X² - the table value of chi-square for 1 degree of freedom at the desired confidence level (3.841).

P-population proportion (assumed to be .50 since this would provide the maximum sample size).

d = the degree of accuracy expressed as a proportion (.05).

n= 251

Therefore, the sample will be approximately 251respondents.

3.6 Data collection Techniques

Data was collected from both secondary and primary sources. Questionnaires were administered

to collect primary data which was carefully structured to respond to the objectives of the study.

The questionnaire had both closed and open-ended questions. Closed questions have

predetermined responses that are crucial largely for the collection of quantitative data. Closed

ended questions gave the respondents an opportunity to give their views without getting any

leads on the issues that the researcher is queering on this yield qualitative data. The use of

questionnaire by the researcher ensured collection of data from several respondents within a

short period of time and respondents were free to give relevant information because they were

assured of their anonymity (Mugenda & Mugenda, 2003). Secondary data was collected from

already existing material which included reports from the estates and factories, government

reports, internet sources, scholarly articles, books and journals among other relevant material that

the researcher came across.

3.7 Validity and Reliability

To test the validity and reliability of the research instrument, the researcher undertook broad

literature review on related study. This review enabled the researcher to understand the type of

25
questions that he needs to ask to yield the desired results. The researcher also undertook to get

expert advice from the supervisor and professionals from the field.

3.8 Data analysis and presentation

Data from the field was collected through research assistants. These research assistants

underwent briefing and training to explain to them the details of the project and also to train

them on data collection for the project. The research assistants recorded responses directly to

the questionnaires and the data were entered into Microsoft excel.

The main objective of this study was to find out the effects of MNCs on community

development. The study having adopted a descriptive design focused on assessing the real

situation on the ground. The analysis was based on the critical realism approach which was

looking at the natural situation as related to the social world. The analysis of the data was

based on the premises of the research in chapter 1 and focused on responding to the

premises. The analysis was based on the four objectives of the study and the situation of each

of the variables analyzed in relation to the effects of MNCs on community development in

the region.

The qualitative data that was collected from the study was used to obtain the measures of

central tendency and measures of dispersion. Qualitative data was used for the discussion of

results and drawing of conclusions for the study. Data presentation was done using

frequency tables, pie charts, percentages bar graphs, topical discussions of issues arising

from the qualitative data.

The study will adopt the following model:

Y = Bo + β1X1+β2X2 +β3X3 + ε

26
Where;

Y = Community development

X1 = Educational Initiatives

X2 = Social Welfare initiatives

X3 = Infrastructure

Bo = constant

β1- β3 is the regression coefficient of the independent variables.

3.9 Ethical Considerations

Informed consent was sort from all respondents. The objectives of the study were clarified to

all respondents to ensure they are aware of the purpose of the findings. The researcher also

sort an official permit to undertake the research from County Director of Education and also

acquire an introductory letter from the University research department.

27
CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION

4.1 Introduction

This chapter presents the analysis and the results of the study. The study had four objectives:

i. To determine how EPK has contributed to promotion of Education in Chepkunyuk Ward.

ii. To ascertain the contribution of EPK to Social welfare initiatives in Chepkunyuk Ward.

iii. To examine how EPK has taken part in infrastructural development in Chepkunyuk

Ward.

iv. To establish the challenges faced by EPK in promoting community development in

Chepkunyuk Ward.

The analysis and the interpretation of the data have been done based on the understanding of the

theory of legitimacy and the stakeholders’ theory. The assessment views EPK as a company that

has a responsibility to the community to ensure they contribute to the development of the

community that they operate within.

4.2 Response Rate

The analysis was based on the data collected through administration of questionnaires to the

residents of Chepkunyuk Ward and interviews with the management of EPK. The study targeted

to collect data from a total of 251 members of the public of which 180 responded making it about

72% response rate. Finchman (2008), indicates that a response rate of 70% and above is a very

good response rate for a study and thus can be used for generalization.

28
Table 1: Response Rate
Target Population Actual Responses Actual response percentage

251 180 72%

Source: Researcher 2018

4.3 Demographic statistics

4.3.1. Gender of the respondents

The respondents were asked to indicate their gender and 43.6% were female while 56.4% were

male.

60.00% Male
56%

50.00% Female
43.60%

40.00%

30.00%

20.00%

10.00%

0.00%
Male Female

Figure 1: Gender of the respondents

Source: Researcher 2018

4.3.2 Age of the respondents

Out of the 180 respondents that responded to the questionnaires, their age groups are

summarized as indicated in the figure below. The responses revealed that 9.26% were below

29
20years, 16.67% were between 20-25 years, 25% were 26-30years, 23.15% were 31-35years,

13.89% were 35-40years while 12.03% were over 40years.

Chart Title
30.00%
25%
25.00% 23.15%

20.00%
16.67%
15.00% 13.80%
12.03%
9.26%
10.00%

5.00%

0.00%
Below 20yrs 20-25yrs 26-30yrs 31-35yrs 36-40yrs Over 40yrs

Figure 2: Age of respondents

Source: Researcher 2018

4.3.3 The level of education

The respondents were asked to indicate their level of education, the highest level of qualification.

34% of the residents indicated they had secondary education as the highest level of

education,23% primary certificate, 18% college certificate, 15% college diploma, 7% first degree

while 3% of the respondents indicated they had a masters’ degree.

30
 40%
34%
35%
30%
25% 23%

20% 18%
15%
15%
10% 7%
5% 3%

0%
Primary Secondary College College First Degree Masters
Certificate Certificate Certificate Diploma
Primary Certificate Secondary Certificate College Certificate
College Diploma First Degree Masters

4.3.4 Employment by the EPK

The residents were also asked to indicate whether they are currently employed by any EPK.

65% indicated they are employed while 35% indicated they are not employed by any EPK.

70% 65%

60%

50%

40% 35%

30%

20%

10%

0%
YES NO

31
4.4 EPK and education

The first objective of the study was to assess whether EPK has contributed to the promotion and

development of education in the ward.

The residents were asked a general question on whether in their assessment EPK has contributed

to development of education in Chepkunyuk ward. 67% of the respondents indicated EPK has

contributed to education development in the ward while 33% indicated EPK had not contributed

to education in the region.

80%
70% 67%

60%
50%
40% 33%
30%
20%
10%
0%
YES NO

YES NO

The residents were farther asked to rate various statements relating to EPK support to education

on a scale of 1 to 5 with 1 being strongly disagree and 5 being strongly agree. The responses are

as summarized in the table below.

32
 Statement Mean Standard

Deviation

EPK in the region has been involved in the construction of schools. 3.89 0.64

There has been involvement of the EPK in the development of 4.2 0.27

education infrastructure in the ward.

EPK has provided bursaries for education in the region and have 3.99 0.56

been actively involved in access to education.

EPK is involved in education days in the region and they offer 2.23 0.43

career guidance.

Learners are offered internships and professional employment in the 2.61 0.45

EPK

Based on the statements above the involvement of EPK in the construction of schools was rated

at a mean of 3.89 and a standard deviation of 0.64. Involvement of EPK in the development of

education infrastructure was rated at a mean of 4.2 and a standard deviation of 0.27. EPK

provision of bursaries for education in the region was rated at a mean of 3.99 and standard

deviation 0.56. EPK involvement in education days in the region and career guidance was rated

at a mean of 2.23 and a standard deviation of 0.43. The offering of internships and employment

opportunities to the learners in the region was rated at a mean of 2.61 and a standard deviation of

0.45.

33
4.5 EPK and social welfare initiatives

The second objective of the study was to assess the contribution of EPK to social welfare in

different aspects.

Asked generally if they feel EPK has contributed to the social welfare of the residents, 71% of

the respondents indicated they had contributed while 29% indicated there was no contribution to

social welfare by EPK.

80%
71%
70%

60%

50%

40%
29%
30%

20%

10%

0%
YES NO

YES NO

Statement Mean Standard

Deviation

The EPK in the region has been involved in improvement and 1 0.1

development of market areas in the region.

34
 EPK is involved in the development of health centers and is 4.13 0.34

involved in initiatives to promote access to health for the

community.

There are social halls in the ward that have been supported and 3.89 0.45

developed by the EPK.

EPK support sports development and sponsor sports activities in 3.75 0.34

the region.

EPK involvement in improvement of markets in the region was rated at 1 with a standard

deviation of 0.1. EPK involvement in the development of health centers and initiatives was rated

at 4.13 and a standard deviation of 0.34. Development of social halls supported by EPK was

rated at a mean of 3.89 and a standard deviation of 0.45. The support to the development of

sports and sponsoring sports events was rated at a mean of 3.75 and a standard deviation of 0.34.

4.6 EPK and contribution to infrastructural development

The third objective of the study was assessing the contribution that EPK has made to

infrastructural development.

Asked in general their opinion on the contribution of EPK to infrastructure, 69% indicated EPK

had contributed to infrastructure while 31% indicated EPK had not contributed to infrastructure

development in Chepkunyuk Ward.

35
80%
69%
70%

60%

50%

40%
31%
30%

20%

10%

0%
YES NO

YES NO

Statement Mean Standard

Deviation

EPK has contributed to the development of infrastructure such as 4.01 0.34

piped water in the ward.

EPK has been a major stakeholder in influencing government to 3.50 0.43

develop road infrastructure in the region.

Infrastructural development has been key on the growth of the EPK 4.1 0.52

in the region.

Infrastructural development in the ward has been a collaboration of 3.1 0.31

the companies and the community.

36
The contribution of EPK to infrastructure development was rated at mean of 4.01 and a standard

deviation of 0.34. EPK being a major stakeholder in the development of roads infrastructure in

the region was rated at a mean of 3.5 and a standard deviation of 0.43. Infrastructural

development has been key on the growth of EPK in the region was rated at a mean of 4.1 and a

standard deviation of 0.52. Infrastructural development in the ward in collaboration with

companies and the community was rated at a mean of 3.1 and a standard deviation of 0.31.

4.7 Challenges of EPK in community support and implementation of community support

It’s not an easy road for EPK as they engage in community support. They have various

challenges including:

Government interference; EPK projects have faced interference from the government especially

where politicians have wanted to be identified with EPK projects which they have not made

contribution to. EPK has also faced challenges when there is need for approvals to support health

facilities and also road networks that are looked at as the preserve of the government.

Expectations of the society; the community has very high expectation of EPK and keeps on

asking for support from EPK something that is not sustainable for the company. Managing the

expectation of the community has thus been a great challenge.

Heavy financial investment needed for some of the projects. EPK has a limited budget for their

Corporate Social Responsibility projects thus it becomes challenging to finalize some of the

projects they begin without support from other partners like the government. EPK has

experienced this in completion of a multi-million science Laboratory at KTGA secondary school.

EPK has supported healthcare programs in the ward but has not managed to have a structured

medical scheme for their staff apart from paying for their NHIF.

37
There have been challenges in advancing financial services to their staff directly due to financial

constraints and also lack of mandate to give loans to employees directly. They have however

supported their employees through guarantorship of loans from financial institutions through

their salaries.

4.8 Regression analysis

4.8.1 Model Summary

From the findings the value of R squared was 0.626, an indication that there was variation of

62.6% on community development in Chepkunyuk Ward due to changes in educational

initiatives, social welfare initiatives and infrastructure at 95 percent confidence interval. This

shows that 62.6% changes could be accounted to changes in educational initiatives, social

welfare initiatives and infrastructure. R is the correlation coefficient which shows the

relationship between the study variables, from the findings shown in the table above is notable

that there exists a strong positive relationship between the study variables as shown by 0.791.

Table 4.2: Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

.791 .626 .594 .867

4.8.2 Analysis of Variance

The study established the regression model had a significance level of 0.01% an indication that

the data was ideal for making a conclusion on the population parameters as the value of

significance (p-value) was less than 5%. The F calculated value was greater than the F critical

38
value (16.543>2.65) an indication that educational initiatives, social welfare initiatives and

infrastructure all affect community development in Chepkunyuk Ward. The P- value was 0.001

which was less than the significance level of 0.05 thus the model fitted the data.

Table 4.3: Analysis of Variance

Model Sum of df Mean F Sig.

Squares Square

1 Regression 13.423 3 4.474333 16.54306 .001b

Residual 47.602 176 0.270466

Total 61.025 179

Critical value =2.65

4.8.3 Beta Coefficients

The beta coefficients compare the strength of the effect of each independent variable to the

dependent variable. It was revealed that holding educational initiatives, social welfare initiatives

and infrastructure to a constant zero, the community development in Chepkunyuk Ward would

be at 0.764. A unit increase in educational initiatives would enhance the community

development in Chepkunyuk Ward by a factor of 0.823. A unit increase in social welfare

initiatives would enhance the community development in Chepkunyuk Ward by factors of 0.429

and a unit increase in infrastructure would increase the community development in Chepkunyuk

Ward by a factor of 0.514. All the variables were significant as their significant value was less

than (p<0.05).

39
Table 4.4: Coefficientsa
Unstandardized Standardized t Sig.
Coefficients Coefficients

B Std. Beta
Error

(Constant) -.764 .191 -4.0000 .001

Educational initiatives .823 .142 .743 5.7958 .000

Social welfare .429 .097 .411 4.4227 .001

initiatives

Infrastructure .514 .135 .496 3.8074 .002

From the data in the above table the established regression equation was:

Y = -0.764 + 0.823X1 + 0.429X2 + 0.514X3

40
CHAPTER 5: DISCUSSION, CONCLUSION AND RECOMMENDATION

5.1 Introduction

This chapter looks at the analysis of the results, discusses the results of the study, the conclusion

and the recommendation.

5.2 EPK and the support to education in Chepkunyuk Ward

The first objective of the study was an assessment of the level of support to education from EPK.

From the previous chapter it is evident that EPK has been involved in various projects that relate

to education in the ward. A look at the reports of EPK one can identify various projects that EPK

has been involved in within the education sector. There are various bursaries and sponsorship

programs that EPK has been involved in and specifically for the children of their employees.

EPK runs a program that offers scholarships and bursaries for the children of their very needy

employees. A study on the motivation of employees showed that organization that showed

concern on the education of their employee’s children enjoyed high levels of employee

motivation. The employees were motivated to work and were loyal to the organization as beyond

their direct employment benefit there was something extra they were getting from the

organization (Hughes, 2012). Besides the bursaries EPK has been involved in infrastructural

development in schools around the ward. Among the projects they have been involved in are

building laboratories in St John Secondary, Kaptien Secondary, Siwo Secondary and KTGA

secondary. In addition to the labs they have also offered support in the construction of two

classrooms in KTGA Secondary and a power generator word Kshs 2 million. EPK also on an

annual basis does an assessment of the desk needs for the local schools and provides desk based

41
on the needs of the schools. Annual reports from EPK shows that since the inception of the desks

program in 2010 they have donated over 1000 desks to various schools within Nandi County in

which schools within Chepkunyuk ward have benefitted.

The findings of this study are consistent with the findings of a report published on the role of

business in creating shared value. The study assessed the role that private businesses had played

in the promotion of education in different regions and the outcome was that the companies that

were involved in community education programs enjoyed a positive response in their work from

the community (Porter, 2011).

5.3 EPK Support to social welfare initiatives

The second objective of the study was an assessment of the support that EPK gives to social

welfare programs in the ward. From the findings it was evident that EPK has offered support to

the various social welfare initiatives whose details the researcher got from the annual report of

EPK. EPK has built two social halls in the ward that is the Kapchorua Social hall and the

Khartoum social hall. There has also been involvement in the construction of hospitals and

churches. EPK offered a donation of KES 2Million towards the construction of Kaptien

dispensary, there was also a contribution towards construction of Nandi Hills Doctors scheme

hospital and construction of the Nandi Hills district hospital maternity wing. The researcher

found that EPK support to churches is on a need basis and when they are called upon to support

churches they offer building materials such as timber. What EPK does is undertake an

assessment of the needs of the various churches and offer the necessary support to the churches.

When one assesses programs that are referred to as social welfare programs then one thing you

note is that this are what bring communities together and are the main points of interaction in
42
communities. People leaving in a community will either meet in a social hall, hospitals, markets

or churches. What this then means is that when one wants to have an impact on the wellbeing of

a community social welfare programs cannot be ignored.

The findings of this study are consistent with a study conducted in Kenya that assessed the

corporate social responsibility as it relates to Safaricom and Delmonte in various aspects looking

into the reflection and implication of CSR. Safaricom and Delmonte were both found to have

greater impact on the communities through their involvement in social welfare related programs

in communities (Cheruiyot & Kipkirong, 2016).

5.4 EPK support to infrastructural development

The third objective of the study was to assess the involvement and the support that EPK has

offered to the development of infrastructure in the ward. From the findings in the previous

chapter it is evident the residents were satisfied and cognizant of the support EPK has given to

infrastructure. Some of the projects in the ward supported by EPK include

Construction of water reservoirs at St Elizabeth secondary and Kepchomo estate that the local

community has tapped water from. EPK also have constructed a 20,000L water tank at Nandi

Hills District hospital to serve the hospital.

Playing fields within EPK estates such as Khartoum, Kepchamo, Kipkoimet and Kapchorua

primary schools are maintained courtesy of EPK. They have also engaged themselves in

maintenance of small feeder roads within EPK estates and local community which include the

43
Taito- Siret- Cheptabach road, Kaputi – Sile road, Mokong, Kaptien road and Kapsumbeiywo –

Sarah Boit road

Just as the social welfare programs infrastructural development projects also touch directly on

the communities and are major points of interaction for the communities and thus are

fundamental projects for the private companies to be involved in. EPK has supported

infrastructure development in the region has been indicated above. The report earlier referred to

on Safaricom and Delmonte also assessed involvement in infrastructural development and this

was identified as one of the ways that a brand became more respected and known within

communities. The findings of this study are thus consistent with the Safaricom and Delmonte

assessment as one of the contributions to brand recognition for EPK has been their involvement

in infrastructure development.

5.5 Conclusion

The study was conducted under the following premises;

i. The EPK has promoted Education by contributing to construction of schools in

Chepkunyuk Ward.

ii. The EPK has contributed to the Social welfare development through construction of

social halls in Chepkunyuk Ward.

iii. The EPK has contributed to infrastructural development through the building of stadia in

Chepkunyuk Ward.

iv. The EPK has faced challenges in the promotion of community development in

Chepkunyuk Ward.

44
Based on the findings of the study the following conclusion can be drawn as per the various

objectives of the study:

EPK has contributed to education in Chepkunyuk ward in more ways than contributing to the

construction of schools. EPK has provided bursaries and scholarships to the children of their

employees from very needy families. There has also been involvement in the construction of

school laboratories and classrooms. This thus leads to the conclusion that EPK has contributed to

the development of education in the ward.

The contribution of EPK to social welfare has also been evident in this study with it being

beyond the social halls to contribution to the hospitals and churches. This thus leads to the

conclusion that EPK has been substantially involved in social welfare development in

Chepkunyuk ward.

The contribution of EPK in infrastructural development has also been evident in the findings of

the study. Beyond stadia or playing grounds EPK has been involved in provision of water

services and maintenance of roads in various sections of the ward. It is therefore correct to

conclude that EPK has a positive effect in infrastructural development in Chepkunyuk ward.

45
5.6 Recommendations

From the study the researcher would wish to make various recommendations:

It is important for the government both the national and the county government to collaborate

with private institutions or multinational companies willing to support community projects so as

to compliment each others’ efforts.

Community responsibility is fundamental for the growth and thriving of any business.

Businesses need to factor in the role of their stakeholders beyond their core business of profit

making.

Organizations need to do needs assessment for the communities they operate in to identify what

are the immediate needs of the communities that they could make meaningful impact on rather

than take up many projects that create small impact in each sector.

46
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49
APPENDICES

APPENDIX 1: QUESTIONNAIRE FOR RESIDENTS

Part 1: Demographic Profile

1. What is your gender?

Male  Female 

2. Age in years (tick appropriately)

Below 20 years  20- 25  26-30  31-35  36-40 

Over 40years 

3. What is your highest level of education?

Primary certificate 

Secondary certificate 

College certificate 

College diploma 

First degree 

Masters degree 

Other (please specify) ________________________________________

Part 2: Multinationals and education

4. In your opinion have EPK contributed to the development of education in Chepkunyuk

Ward?

Yes No

Explain what their contributions______________________________________

50
EPK and their relation to education are concerned with the following statement, Tick as
appropriate and on a scale: 1-strongly disagree, 2 disagree, 3 Neutral, 4 Agree, 5 strongly agree

Statement 1 2 3 4 5

EPK in the region has been involved in the

construction of schools.

There has been involvement of the EPK in the

development of education infrastructure in the

ward.

EPK has provided bursaries for education in the

region and have been actively involved in access

to education.

EPK is involved in education days in the region

and they offer career guidance.

Learners are offered internships and professional

employment in the EPK

Part II: Multinationals and social welfare initiatives

5. In your opinion have EPK contributed to the development of social welfare in

Chepkunyuk Ward?

Yes  No 

51
Explain what their contributions______________________________________

MNCs and their relation to social welfare are concerned with the following statement, Tick as
appropriate and on a scale: 1-strongly disagree, 2 disagree, 3 Neutral, 4 Agree, 5 strongly agree

Statement 1 2 3 4 5

The EPK in the region has been involved in improvement

and development of market areas in the region.

EPK is involved in the development of health centers and

is involved in initiatives to promote access to health for

the community.

There are social halls in the ward that have been

supported and developed by the EPK.

EPK support sports development and sponsor sports

activities in the region.

Part 3: Multinationals and infrastructural development

6. In your opinion has EPK contributed to the development of infrastructure in

Chepkunyuk Ward?

Yes  No 

Explain what their contributions______________________________________

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MNCs and their relation to infrastructure are concerned with the following statement, Tick as
appropriate and on a scale: 1-strongly disagree, 2 disagree, 3 Neutral, 4 Agree, 5 strongly agree

Statement 1 2 3 4 5

EPK has contributed to the development of infrastructure

such as piped water in the ward.

EPK has been a major stakeholder in influencing

government to develop road infrastructure in the region.

Infrastructural development has been key on the growth

of the EPK in the region.

Infrastructural development in the ward has been a

collaboration of the companies and the community.

7. Do you think that Corporate Social Responsibility (CSR) enhances the relationship of

the communities that corporation are located within and the corporation? What role

does CSR play? ………………………………………………………………………...

………………………………………………..…………………………………………

…………………………………………………………………………………………..

8. What are the challenges that the EPK are going through especially in supporting

community development? …………………………………………………………….

…………………………………………………………………………………………

…………………………………………………………………………………………

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APPENDIX 2: QUESTIONNAIRE FOR SENIOR MANAGEMENT OF EPK

GENERAL INFORMATION

Part 1: Demographic Profile

1. What is your gender?

Male  Female 

2. Age in years (tick appropriately)

Below 20 years  20- 25  26-30  31-35  Over 35 

3. What is your highest level of education?

Primary certificate 

Secondary certificate 

College certificate 

College diploma 

First degree 

Masters degree 

Other (please specify) ________________________________________

4. Are there any health care schemes for the employees of EPK?
5. Does EPK provide loans and financial facilities to its employees?
6. Are the employees of EPK paid according to the accepted labor rates and laws?
7. Do the EPK employees have a union that voices their concerns?
8. What would you want EPK to do for its employees to improve the lives of the

employees that work for them?

9. What are some of the weaknesses of the employee and organization relationship

where EPK are involved?

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APPENDIX 3: PROJECT WORK PLAN 2017

Activity Description/Time in May June July Aug Sep Oct Nov

Months

Research topic formulation and

research gaps identification

Literature review and formulation of

research methodology

Proposal development and defense

Correction of proposal and submission

to graduate school for research

approval.

Data collection

Data analysis

Report writing and consultation with

supervisor.

Thesis submission to Dept/School

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APPENDIX 4: NANDI COUNTY

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APPENDIX 5: GRADUATE SCHOOL APPROVAL LETTER

57
APPENDIX 6: AUTHORIZATION LETTER TO NACOSTI

58
APPENDIX 7: AUTHORIZATION LETTER FROM COUNTY EDUCATION OFFICE

59
APPENDIX 8: AUTHORIZATION LETTER FROM NACOSTI

60
APPENDIX 9: PLAGIARISM REPORT

61