The Impact of the Corporate Social Responsibility on the Corporate Financial Performance in the Corporate and Ngo Partnerships in Kenya

Abstract

The Study attempted to address the question whether Corporate Social Responsibility can be linked to corporate financial performance of Corporate that engage in partnership with NGO.Using descriptive research design and inferential analysis, the study tested the sign of the relationship between Corporate Social Responsibility and Corporate financial performance in NGO-Corporate. The study used data covering a five year period from 2008 to 2012. The target population consisted of all the NGO and Corporate partnerships in Kenya. Stratified random sampling was then used to select a sample of 6 Corporate engaged in partnership with the NGO. Analysis was based on descriptive statistics using secondary data that was obtained. The study also used multiple regression analysis to establish the relationship between the two variables. Control variables of leverage and Cash Conversion Cycle were introduced in the multiple regression models. The study found out a significant positive correlation between Corporate Social Responsibility and Corporate Financial Performance of Corporate engaging in partnership with NGO. The correlation result of the study model found a positive correlation between Corporate Social Responsibility and with both Corporate Size (log of assets) and Cash Conversion Cycle. Additionally, the correlation result found a negative relationship between Corporate Social Responsibility and Leverage.