Effect of corporate social responsibility on the financial performance of large manufacturing companies in Kenya

Abstract

A firm exists to pursue the interest of stakeholders. Society is a key stakeholder for any firm, and hence, its interests, needs, and viewpoints must be considered. The role of CSR, therefore, is to attain profitability in a manner that uplifts and protects societies as well as conserving the environment. The purpose of the research was to examine the effect of corporate social responsibility on the financial performance of large manufacturing companies in Kenya. The research had ROA as the dependent variable and CSR, efficiency and capital intensity as the independent variables. The study used a descriptive and a cross-sectional study design and targeted large manufacturing companies operating in Kenya. The research used secondary data. Descriptive statistics and inferential statistics were the mode of statistics. The results showed that an insignificant positive relationship between ROA and CSR whereas there is an insignificant positive relationship ROA and efficiency. The findings also found out that capital intensity had an insignificant negative relationship with ROA