AN ASSESSMENT OF THE PRACTICE OF SOCIAL RESPONSIBILITY ACCOUNTING BY FIRMS IN KENYA: A CASE STUDY OF SAFARICOM KENYA

Purpose: This study was an assessment of the practice of corporate social responsibility accounting by firms in Kenya in the case of Safaricom Kenya. Methodology: A case study design was appropriate for this study. The population used in this study entailed all the 1850 employees of safaricom. Judgmental sampling was used to select the respondents i.e. 24 in number, 8 respondents from the finance department, 8 respondents from the public relations department, 4 respondents from the sales department and 4 committee members of the Safaricom foundation. Primary data was collected by the use of a questionnaire and was the main data used in the research. The data collected was analyzed by use of inferential statistics. In particular, frequency tables, averages and percentages were used. The data was then presented using tables, graphs and charts. Results: The study findings showed that to a large extent, environmental management of the production process and environmental policy were issues reported in the safaricom CSR report. In addition, climate protection and energy eco-efficiency were reported in the safaricom CSR reports to a low extent respectively. Furthermore, its practice of CSR was driven by a genuine concern for creating shareholders wealth (business case) as well as engagement and accountability. It was also observed that another motive for practicing CSR was PR based (striving to better than competitors). However, some of the challenges facing accounting for social responsibility (social accounting) were related to verifiability requirements, comparability requirements, training requirements, standardization requirements, and quantification requirements. Unique contribution to theory, practice and policy: The study recommended that Safaricom should maintain its trend for addressing corporate social responsibility issues and come up with measures that can be used to make social accounting in the firm to be less costly. The researcher recommended an investigative study to establish the level of usefulness of the CSR reports to various users. In addition, a correlation and a regression study explaining the relationship between CSR and firms financial performance would be in order.