The Contribution of Corporate Social Responsibility to Organisational Reputation: Case Study of Kgalagadi Breweries in Botswana

Type Thesis or Dissertation - Master of Technology: Public Relations Management
Title The Contribution of Corporate Social Responsibility to Organisational Reputation: Case Study of Kgalagadi Breweries in Botswana
Author(s)
Publication (Day/Month/Year) 2013
URL http://etd.cput.ac.za/bitstream/handle/20.500.11838/1423/Ramokate_lg_MTech_pub_rel_man_2013?sequence​=1
Abstract
This study investigated how the KickStart project, a flagship project of Kgalagadi
Breweries Limited (KBL), has contributed to KBL’s reputation. The research sought to
understand the aims of the project and to examine whether KickStart’s objectives are
aligned to KBL goals. It also discusses stakeholder engagement and youth
perceptions about the project, paying attention to the ways these factors seamlessly
contribute to KBL’s reputation. The study was framed around the epistemological
assumption that the corporate social responsibility (CSR) of major companies is
essential for addressing social problems within local communities and for building
mutual beneficial relationships. However, these companies often exclude
communities in their CSR programmes, or the programmes fail to meet the needs
and expectations of the communities. These factors often impact negatively on the
image and reputation of the companies involved.
This is a case-study of the KBL project-KickStart and uses a qualitative methodology
to glean empirical data. The research methods include a questionnaire and
interviews administered to 16 participants selected from KBL, Botswana National
Youth Council, the Department of Youth, and youth who have received financial
assistance from KickStart. A questionnaire were also administered to another youth
group that received financial support under the Youth Development Fund, managed
by the Department of Youth. An analysis of documents such as media reports and
the Sechaba Breweries Holdings Limited past annual reports were made.
Observations were also made during visits to youth businesses while the
questionnaires.
The literature on theories of CSR and the responsibilities of business provided the
conceptual and theoretical framework for this research. This body of knowledge
attempted to tease out the main responsibilities of business, namely economic, legal,
ethical, and philanthropic responsibilities and bring them to bear on the main focus of
the project. Stakeholder theory provided the main theoretical thrust for this study
because it highlights the multiple relationships that a company has with business
partners, employees, government, suppliers, consumers, and communities, and that
they all have expectations in terms of how a company should behave, and dictate
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what acceptable behaviour is. The value of involving stakeholders in CSR
programmes will enhance a company’s reputation if communities are happy with the
programmes; they will buy the goods and services procured by the company and
recommend the company to others, employees will be motivated, and the company’s
productivity levels will increase thus increasing profit margins. Suppliers will be happy
to do business with the company. Businesses, to fulfil their mandates, enter into
several relationships with key stakeholders who are prioritised according to their
power, legitimacy, and the urgency of the issues at hand.
Key findings from the study are that the aim of the KickStart is to empower youth to
manage sustainable projects and create employment to improve the well-being of
communities. KickStart is a flagship CSR programme of KBL, opening opportunities
for the youth through development of their entrepreneurship skills. Its objectives are
to support the government to address unemployment among the youth and facilitate
sustainable economic development. The youth perceive KickStart as a good project;
it offers them financial support, business management training, and a year’s
mentorship to sustain their businesses. They acknowledge the contribution KickStart
makes to uplift their lives and identify with the KBL brand, which positively reflects
KBL as a good company.
Stakeholders are important; they must be involved in CSR programmes and their
concerns and issues should be considered for the success of the programmes. KBL
has limited its stakeholder engagement to internal stakeholders namely, the trustees
and the project manager, and externally the media and judges. Collaboration with the
youth organisations will give credibility to KickStart whose target audience is the
youth.
While acknowledging limited stakeholder engagement, the CSR implementation
framework is recommended for KBL to streamline and prioritise key issues around
the high unemployment among the youth, identify key players to be involved, and
specify what their contributions should be in addressing the problem.

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