Agriculture And Extension  ·  Level 6
Farm Management Principles

Chapter 3: Manage farm resources

📚 2 Topics
⚑ What you will be able to do

By the end of this chapter, you will be able to:

  • Identify corporate social responsibilities in a farm management setting.
  • Support cultural opportunities within the workplace effectively.
  • Understand how social and cultural responsibilities impact farm operations.
  • Promote a positive and inclusive work environment on the farm.

These skills will help you create a respectful and responsible farm workplace that benefits everyone involved.

Compiled by: Bonface Omondi

Corporate social responsibility (CSR) has become a vital consideration for farm managers and agricultural extension professionals in Kenya as farms increasingly operate within communities and ecosystems that demand ethical stewardship and sustainable practices. Managing farm resources effectively goes beyond productivity and profitability; it also involves addressing social, environmental, and economic impacts on local populations and the broader society. In Kenya, farms that embrace CSR contribute to rural development, environmental conservation, and community well-being, aligning their operations with national development goals such as Vision 2030. This chapter explores the concept of CSR within the agricultural sector, its importance, and the various ways farms can implement responsible practices.

3.1 Corporate social responsibilities

Corporate social responsibility describes the way a farm business takes account of the people and the environment affected by its work, in addition to its own profit. A farm employs workers, buys inputs, uses land and water, sells food and fibre and lives beside neighbouring families, so what it does reaches far beyond its fence. Extension officers advise farm managers and farmers' groups on how to balance profit with fair treatment of workers, respect for neighbours and care of natural resources. Example: a dairy unit that pays its milkers on time, treats its waste water before it leaves the farm and keeps good relations with the households around it is practising corporate social responsibility, even if it never uses the term.

3.1.1 Definition of terms

Several terms are used when corporate social responsibility is discussed on farms. Learning them clearly helps an extension officer to explain the subject in plain words to farmers and managers.

Corporate social responsibility

Corporate social responsibility is the commitment of a business, including a farm, to operate in a way that is economically sound, lawful, ethical and beneficial to society. It means obeying the law and also going further, for example by treating workers fairly, caring for the environment and supporting the local community. The word corporate here refers to any organised business, so a smallholder farm, a farmers' group and a large estate all have social responsibilities in proportion to their size.

Stakeholders

Stakeholders are all the people and groups affected by a farm or having an interest in how it runs. They include the owner, workers, suppliers of seed and feed, buyers, neighbours, local leaders, government agencies and consumers. A farm manager who knows who the stakeholders are can ask what each one expects and plan accordingly.

Sustainability

Sustainability means managing farm resources so that today's production does not reduce the ability of future farmers to produce. It involves care of soil, water, trees and other living things, and the wise use of energy and inputs. A farm that keeps its soil covered and its water source clean can keep producing for many years.

Ethical farming

Ethical farming means farming in a way that is honest and fair to people and humane to animals. It covers fair labour conditions, welfare of livestock, truthful dealing with buyers and suppliers, and avoiding harm to neighbours and the environment. An ethical practice may go further than what the law requires.

Social accountability

Social accountability is the farm's duty to explain its actions to its stakeholders and to answer their concerns. It is shown by keeping honest records, reporting openly on matters such as wages, safety and waste, and responding when a neighbour or worker raises a complaint. A suggestion box or a regular meeting with the community is a simple way to practise it.

3.1.2 Importance of corporate social responsibilities

Corporate social responsibility is important to a farm because the business depends on people and natural resources that it does not fully control: willing workers, healthy soil, clean water, reliable buyers and the goodwill of neighbours. A farm that cares for these things protects its own future. The main benefits are described below.

Community relations

A farm that deals fairly with its neighbours earns their trust and cooperation. Neighbours are more likely to report theft or fire, allow access across their land when needed and settle disputes by talking. Example: a farm that fixes a damaged water pipe quickly and tells neighbours before a noisy job such as grinding feed avoids long quarrels.

Environmental conservation

Responsible farms protect the soil, water and wildlife on which production depends. Practices such as terracing, planting trees, safe handling of chemicals and keeping a strip of vegetation along streams reduce erosion and pollution. Such practices help the farm to meet the requirements of the National Environment Management Authority and keep the land productive.

Worker welfare

Workers who are paid fairly, trained, given protective clothing and treated with respect work more safely and carefully. This usually means fewer accidents, less absence and fewer workers leaving. A poultry farm with clean housing for workers' rest and washing areas, for instance, keeps its experienced attendants for longer.

Market access

Many buyers prefer produce from farms that treat workers well and protect the environment, and some set conditions on how produce is grown and handled. A farm that can show good practices and clean records finds it easier to keep its buyers and to sell to new ones.

Access to finance and support

Lenders and development partners are more willing to support a farm that keeps good records, obeys the law and has a good reputation in its community. A farmers' group that shows it handles its funds openly and treats its members fairly is more likely to be trusted with credit or with support for a project.

Fewer disputes and penalties

A farm that obeys labour, safety and environmental rules and settles complaints early avoids court cases, fines and closure of its operations. The cost of prevention is usually smaller than the cost of repairing damage to people, property and reputation.

3.1.3 Types of corporate social responsibilities

Here a farm's responsibilities are grouped into three types: economic, legal and ethical. They are linked, and a well-run farm meets all three at the same time. The table shows how they differ.

Responsibility The question it answers Farm example
Economic Does the farm earn enough to continue and to treat people fairly? Paying workers and suppliers on the agreed dates from farm income
Legal Does the farm obey the laws that apply to it? Providing safe working conditions and handling waste as the law requires
Ethical Does the farm do what is right even where no law demands it? Giving animals good care and dealing honestly with buyers

3.1.3.1 Economic responsibilities

Economic responsibilities are the duties of a farm to operate profitably and efficiently in a way that is fair to workers, suppliers and the community. A farm that makes losses cannot pay wages, repay credit or invest, so profit is itself a responsibility, but it must be earned fairly and not at the expense of others. Example: a horticultural farm that buys part of its inputs from local agro-dealers and pays its seasonal workers promptly strengthens the local economy and keeps its workforce.

  • Operate profitably: the farm plans and keeps records so that it earns enough to cover costs, repay loans and renew its equipment.
  • Pay fair wages on time: workers are paid the agreed amount on the agreed day, and never less than the legal minimum for the agricultural sector.
  • Pay suppliers and out-growers fairly: farmers who supply produce to a larger farm or a farmers' group receive fair prices and clear terms.
  • Create and keep jobs: the farm gives employment, and where possible trains workers so that they gain skills and can earn more.
  • Support local business: inputs, transport and services are bought locally where quality and price allow, so that income circulates in the community.
  • Use resources efficiently: the farm avoids waste of seed, feed, water, fuel and fertiliser, which lowers cost and protects the environment.

3.1.3.2 Legal responsibilities

Legal responsibilities are the duties a farm must meet because the law requires them. They are not optional, and failing to meet them can lead to fines, closure of the business or a claim for compensation. An extension officer should know the main laws that affect a farm so that farmers can be advised before a problem arises. Example: a farm that employs casual workers must keep proper terms of employment, a safe workplace and records of wages paid.

  • Labour law: the Employment Act, 2007 sets rules on terms of employment, payment of wages, working hours, rest, leave and the protection of children from work that harms them.
  • Workplace safety: the Occupational Safety and Health Act, 2007 requires an employer to provide a safe workplace, safe equipment, protective clothing, training and first aid.
  • Compensation for injury: the Work Injury Benefits Act, 2007 makes an employer responsible for compensating a worker who is injured or falls ill because of work, and the employer arranges the cover that the Act requires.
  • Environmental protection: the Environmental Management and Co-ordination Act, 1999 and its regulations, administered through the National Environment Management Authority, control pollution, waste disposal and the protection of rivers, wetlands and other sensitive land.
  • Water use: the Water Act, 2016 requires a permit from the water authorities for abstraction of water from rivers or boreholes for farm use in the circumstances the law describes.
  • Pesticides and other inputs: only products registered for use in Kenya are used, and they are applied as the label directs, with the stated waiting period before harvest.
  • Taxes and statutory payments: the farm registers with the Kenya Revenue Authority where required, pays its taxes and remits the statutory deductions it makes from workers' pay.

3.1.3.3 Ethical responsibilities

Ethical responsibilities are the duties to do what is right, fair and honest, even where the law does not require it. Law sets a minimum standard of behaviour, while ethics asks whether an action is fair to the people and animals affected. Farms that act ethically build a reputation for honesty that buyers, workers and neighbours trust. Example: a farm that gives its livestock enough clean water and shade, although no inspector checks daily, is meeting an ethical responsibility.

  • Animal welfare: animals are given enough feed and clean water, shelter, healthy conditions and gentle handling, and are free from unnecessary pain and fear.
  • Honest dealing: weights, grades and quality of produce are described truthfully, and prices and terms are clear to buyers and out-growers.
  • Fair and respectful treatment of workers: no worker is discriminated against because of gender, age, disability, origin or religion, and workers are heard when they raise a concern.
  • No child labour: children are not used for work that harms their health or prevents them from getting an education.
  • Responsible use of chemicals: farms go beyond the legal minimum by warning neighbours before spraying, keeping chemicals away from water and food stores, and disposing of empty containers safely.
  • Respect for neighbours and shared resources: the farm avoids actions that harm others, such as polluting a shared stream or letting animals stray into neighbours' crops.

Practice Questions

  1. Define corporate social responsibility and explain its relevance to farm management in Kenya. (10 marks)

  2. Describe five key terms related to corporate social responsibility and explain their significance in agricultural operations. (15 marks)

  3. Discuss five reasons why corporate social responsibility is important for farms in Kenya. Use relevant examples. (15 marks)

  4. Identify and explain five types of corporate social responsibilities that a farm can undertake. (15 marks)

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🔒3.2 Conducting quality control and customer service

In Kenya’s agricultural sector, maintaining high quality standards and delivering excellent customer service are essential for farm enterprises to remain competitive and profitable. Quality control ensures that farm products meet market and regulatory requirem…

Chapter Summary

This chapter explored the concept of corporate social responsibilities (CSR) within farm management, beginning with clear definitions of key terms related to CSR. It emphasized the importance of CSR in fostering sustainable and ethical farming practices that benefit both the community and the environment. The discussion then detailed various types of corporate social responsibilities, including economic responsibilities that focus on profitability and financial sustainability, legal responsibilities that ensure compliance with laws and regulations, and ethical responsibilities that promote fairness and integrity beyond legal requirements. The chapter also addressed the significance of conducting quality control to maintain high standards in farm produce, which directly impacts customer satisfaction and trust. Additionally, it highlighted the role of effective customer service in building strong relationships with clients and enhancing the farm's reputation. Through integrating CSR with quality control and customer service, farm managers can achieve balanced growth that supports economic viability while upholding social and ethical obligations.

Self-Assessment

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A. Written Assessment

  1. What is meant by corporate social responsibility (CSR) in the context of agricultural enterprises? (3 marks)
  2. Identify and explain two economic responsibilities that a farm business should uphold. (4 marks)
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Chapter Examination Questions

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SECTION A (40 Marks) - Answer ALL Questions

  1. Define corporate social responsibility in the context of a Kenyan agricultural cooperative. (4 marks)
  2. Explain three reasons why corporate social responsibility is important for a large-scale farm in Kenya. (4 marks)
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Am I competent?

At the start of this chapter we promised you would be able to:

  • Identify corporate social responsibilities in a farm management setting.
  • Support cultural opportunities within the workplace effectively.
  • Understand how social and cultural responsibilities impact farm operations.
  • Promote a positive and inclusive work environment on the farm.

Tick each one you can genuinely do.

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