A survey of the opinion of investors of listed firms at the NSE towards corporate social responsibilities

Abstract

This study examines the perceived opinions and attitudes of investors of listed firms at the NSE on corporate social responsibilities. Using a sample of 50 respondents selected from five brokerage firms in Nairobi through convenience sampling method, primary data was collected. Descriptive analysis with the help of Statistical Package for Social Sciences together with content analysis were then used to analyze the data and make conclusions on the findings. The survey findings indicated that on the overall, the respondents have a strong support for the corporate social responsibilities engagement at 70.8% as they feel it creates intangible (relational) assets like goodwill, trust, reputation etc. The respondents further opinioned at 72.5% that such assets enhances the firm performance by way of improved revenue, market size etc. They also held that firms practicing social responsibilities are likely to be protected by the society from risks of disruptions in times of bad events hence survival at 73%. However, the protection is not guaranteed all the times as evident in their strong support for the regulatory framework on audit procedures at 88%. The overall implication is that managers should invest in social responsibilities but in select activities that can exploit the strategic value of such social engagements. There should be a trade off between social investment and value creation as over allocating resources to social engagements may dilute firm value or even collapse the firm.