The Effectiveness of Corporate Social Responsibility in Maintaining a Sustainable Competitive Advantage in the Health Insurance Industry

This research on the effectiveness of corporate social responsibility in maintaining a sustainable competitive advantage in the health insurance industry was carried out because of poor performance of health insurance organizations such as First Mutual Health Zimbabwe, Zimnat Lion Insurance Company Ltd, CBZ Life Limited, Heritage Life Assurance Company and Eagle Insurance Company. The specific objectives of the research were to determine the relationship between CSR and sustainable competitive advantage, to establish strategies which can be implemented to incorporate CSR in the goals and objectives, to establish the relationship between CSR and brand recognition in the health insurance industry and to benchmark CSR to best practices in the health insurance industry. This study adopted theories such as Stakeholder theory and the three Domain Model. This research adopted positivism research philosophy to collect data from a diverse samples in a wider perspective by means of a more structured research instruments. This study also adopted mixed research strategy and used a cross sectional survey research design. The population of the study of 1200 was taken from managerial and non-managerial employees of health insurance organizations. The researcher adopted Krejcie and Morgan (1970) to determine a sample of 278 participants through a purposive sampling technique. Through this study it was established that CSR helps the organization to reduce business risk. Some respondents noted that CSR helps the organization in brand building, CSR leads to brand and customer loyalty, CSR results in long term market share as well as increased sales, CSR creates a favourable external environment, CSR increases productivity in an organization and CSR ensures better product quality. Most respondents agreed that the company should adopt a strategic stance towards CSR. Others noted that the company should incorporate CSR in the goals and objectives of an organization resulting in sustainable competitive advantage. Respondents noted that CSR leads to brings new customers. Other respondents noted that CSR leads to repeated purchases, CSR results in increased sales, CSR affect the brand image and CSR have economic benefits and is considered as something which impacts on brand recognition. Respondents agreed that a company should develop a benchmark method that includes economic, social and environmental aspects as well as international aspects of CSR. Some noted that a company should compare its CSR trends, a company should have a look at CSR reports at a global perspective and an organization should have CSR systems. An organization should adopt business code of ethics, which will outline employee conduct on issues such as ethics, values, environment, diversity, employee respect and customer service