Corporate social responsibility and firms’ financial performance: The case of Tanfoam and Zantel in Arusha
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Date
2014
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Mzumbe University
Abstract
The field of Corporate Social Responsibility (CSR) has grown exponentially over years.
There are different views of the role of the firm in society and disagreement as to
whether wealth maximization should be the sole goal of a corporation. This study
focused on the corporate social responsibility (CSR) and firms’ financial performance.
The aim of this study was to analyze the outcome of corporate social responsibilities on
financial performance of the firms. Specifically, the study aimed to find out the reasons
for the companies to engage in corporate social responsibility, to explore types of
corporate social responsibilities which are more practiced by the firms and lastly to
examine relationship between corporate social responsibilities and firms’ financial
performance.
The study adopted a case study research design where Zantel and Tanfoam Ltd located
at Arusha were selected as units of analysis. Primary data were collected through
questionnaire and documentary source such as journals, books and various organization
reports for secondary information. A total of 42 respondents were used. With the help of
computer software programme called Statistical Package for Social Sciences (SPSS)
version 16.0, data collected were analyzed both quantitatively and qualitatively using
percentages, mean weight and frequencies followed by interpretation, comparison and
explanation from cross tabulation, charts and figures
The outcome of the study indicated that the motives to engage in CSR included
preserving reputation, employee motivation and give profit back to society.
Philanthropic was the main type of CSR mostly practiced. The relationship between
CSR and financial performance indicated that companies practicing CSR increased
financial performance. Eventually, the study recommends that companies may promote
sales, expand the branches in the region which will result into increased amount of profit
hence uplift the amount of percentage to be allocated to CSR. Also the researcher
suggests that a longitudinal study may be adopted in providing deeper insight into the
relationship between CSR and financial performance.
Description
A dissertation submitted in partial to the requirements for the award of the Degree of Master of Science in Accounting and Finance (MSc A&F) of Mzumbe University
Keywords
Corporate social responsibility, Firms’ financial performance, Marketing, Tanfoam-Tanzania, Zantel-Tanzania
Citation
APA