Corporate Social Responsibility and Profitability in Selected Business Firms of Kasese District- Uganda.
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Date
2014-11
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Economics and Management Sciences .
Abstract
The study was set to establish the relationship between Corporate Social Responsibility (CSR)
and profitability in selected business firms of Kasese District. The study had its specific
objectives as; (i) To find out the level of corporate social responsibility in the selected business
firms of Kasese District, (ii) To examine the role of corporate ethical business practices on
profitability of Business firms in Kasese District. (iii) To find out how the corporate legal and
economic responsibility of business firms translates into profits. (iv)To examine the relevance of
the Philanthropic responsibilities of a business firm to its profits.
The study employed descriptive and correlational design; data was collected using a researcher
devised questionnaire and interview guide. The researcher used the judgmental Pearson’s
correlation coefficient(r) and the regression linear analysis were used to establish the relationship
between CSR and the profitability of business firms in Kasese District In regard to the
demographic characteristics, the study was dominated by respondents in the age bracket 31-
4oyears (82, 41 %), majority were male (62%) and mostly the married (121, 60.2%) with Degree
holders 108(54%) being the majority. Results showed the overall average mean on the level of
CSR as (3.78) interpreted as satisfactor3. In regard to the corporate ethical business practices, a
very satisfactory average mean of 4.11 was established as respondents confirmed that good
business ethical practices attract and influences consumer behavior (4.31) and that the fair and
right pricing improve sales (4.29). In regard to the level of profitability, the researcher established
a satisfactory level of profitability with an average mean of 3.87 through increased sells; enjoy an
increased level of returns on equity of the business firm (4.28) and profitability in business firms
taking an upward trend (4.27). The results suggested a positive and strong correlation between
CSR and Profitability (r = 0.908, Sig.= 0.000) an implication that the prevalence of CSR in a
business firm is directly responsible for business firms’ profit improvement. The regression
analysis showed a very significant relationship (Sig. 0.000**) between CSR and profitability with
a 99% level of significance given the “Adjusted R-Square” that shows 80.3% of the variance
accountable for profitability with “R-Square 0.825’ that reveal the dependence of profitability on
the corporate social responsibility. The researcher concluded by highlighting a great linkage of
CSR with the profits of any business firm. The researcher recommends that all business firms’
stakeholders now have a food for thought for further establishment of any gaps to consolidate and
put right the corporate social responsibility to improve on their business firms profits.
Description
A thesis submitted to the College of Higher Degrees and Research in Partial Fulfillment of the Requirements for the Award of a Degree of Master of
Business Administration of Kampala International University.
Keywords
Corporate, Social responsibility, Profitability, Business Firms, Kasese District