| dc.description.abstract | In recent years, Corporate Social Responsibility has been attracting heightened attention
throughout the world. Stakeholder expectations of the business have increasingly ranged from
maximum profits to strong levels of Corporate Social Responsibility (CSR). Previous
research into effects of CSR on Business Operations and Performance has yielded mixed
results. Research on CSR in the Ugandan context has however been minimal. Business
managers in Ugandan Corporations have actively embraced CSR in recent years, but there are
still questions on how CSR affects the business operations and performance.
This descriptive research study sought to answer the question and provide information to
various stakeholders on the effect of CSR, on business operations and performance with a
focus on Uganda firms. A survey questionnaire was used to collect primary data on factors
that influence CSR practice, and approaches embraced by Ugandan corporations in their
practice of CSR. Archival documents and analysis of financial results from 2007 – 2010 of
two publicly listed corporations was collected and analyzed against CSR expenditure for the
four year period.
Trend analysis indicated CSR has a positive effect on internal business processes and the non
– financial measures of performance notably corporate image, goodwill and market share. A
positive effect of CSR was further observed on sales revenue. CSR practices were however
found to have a negative effect on financial performance measures. Results of the study
indicated that CSR is just one of the myriad factors that affect business operations and
performance as there are many other factors that business managers need to take into
consideration regarding operations and performance. The insights obtained in the study are of
relevance to stakeholders and managers of an organization small or big in nature.
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The researcher picked interest in the topic after having been a direct beneficiary of
some CSR initiatives by leading companies in Uganda and also having been part of an
entity’s management that was keen on implementing CSR activities. The formation of
the CSR consultative group, a network of major Corporate Social Responsibility
stakeholders and players in Uganda, also made the researcher have a keen interest in
the issue of CSR.
Institutions like Uganda Chapter for Corporate Social Responsibility Initiatives Ltd
(UCCSRI) have undertaken research on CSR in Ugandan entities focusing on the
perceptions, approaches and needs of companies. Nkiko and Katamba (2010), and
Gisch-Boie (2008) have in the same line also highlighted the various CSR activities
that companies are engaged in including environmental responsibility, practices
concerned with labour, worker health and safety as well as quality of life of the
community. Other scholars like Wanyama et al (2006) have linked CSR to Corporate
Governance (CG).
The area defined by advocates of CSR increasingly covers a wide range of issues such
as plant closures, employee relations, human rights, corporate ethics, community
relations and the environment. Areas looked at more importantly are; workplace
(employees), market place (customers, suppliers), environment, ethics and human
rights. Important to note is that whilst the primary role of business is to produce goods
and services that society needs, there is also necessity for interdependence between
business and society for a stable environment. The forms of social responsibility that a
firm undertakes depend on its economic perspective. In Uganda, several companies
have realized the need for CSR and are linked by a CSR consultative group. | en_US |
