Effect Of Corporate Sustainability Strategies On Financial Performance Of Deposit Taking Saccos In Nairobi, Kenya

Abstract

Corporate sustainability is one of the practices that SACCOs can adopt to remain competitive. However very few SACCOs are actively involved in corporate sustainability practices. This study sought to ascertain the effect of corporate sustainability strategies on performance of deposit taking SACCOs. The study specifically sought to establish the effect of environmental, social and economic sustainability strategies on performance of deposit taking SACCO’s in Nairobi. This study was anchored on legitimacy, stakeholder and agency theories. The study adopted descriptive research design. The study targeted 41 Deposit Taking SACCOs registered by SASRA located in Nairobi County. All 41 SACCOs were included hence a census. Primary data was collected through a questionnaire. Descriptive and inferential statistics were used in analysis. Presentation of findings is done using figures and tables. The findings showed that economic sustainability strategies (p=0.000<0.05), social sustainability strategies (p=0.000<0.05) and environmental sustainability strategies (p=0.015<0.05) all have significant effect on financial performance. The study concludes that corporate sustainability has significant effect on financial performance. The study recommends that SACCOs should communicate with their customers about their activities to achieve sustainability and, in so doing, attract more customers. Even though the main motive of business is to earn profit, organizations should take initiative for welfare of the society and should perform its activities within the framework of environmental norms strategically.