The role of corporate social responsibility on financial performance of private organisations in Uganda

Abstract

The study examines the role of Corporate Social Responsibility (CSR) on the financial performance of private organizations mainly Coca Cola Company Uganda. The concept of Corporate Social Responsibility was limited to company’s commitment to its employees, donations to charity and environmental protection while the financial performance of private organizations was limited to returns on investment, profits and market share. The study employed a case study research design which involved an intensive analysis of research variables. The study used a sample size of 50 respondents which comprised of management and employees. Purposive sampling was used to select the respondents. The respondents were issued with closed ended questions. The findings revealed that company’s committement to its employees boost financial performance of private. The study concludes that company’s committement to its employees is vital in boosting the financial performance of private organizations and recommends that the companies should continue advancing their committement to their employees. The findings on donations to charity also show that companies gain favor from the government in terms of tax reductions. Similarly, the findings reveal that environmental protection increases the financial performance of private organizations by lowering costs and risks of complying with present and future environmental regulations. Generally, the study found out that various corporate social responsibility activities positively affect financial performance of private organizations. This therefore concludes that corporate social responsibility activities are one of the contributing variables explaining the financial performance of private organizations. The study recommended that the Management of coca cola company should ensure that corporate social responsibility activities are seen as the key factors which can boost the financial performance of their business. Furthermore, there is also a need for regular monitoring of corporate social responsibility activities to ensure increase in employee’s commitment towards business so as to increase on the company’s sales and market share