Dublin Core
Title
Assessment of the Effect of Corporate Social Responsibility on Financial Perfomance of the Mining Firms in Ghana
Creator
Lilian Donkor Mfum
Description
The recent years have witnessed an increasing scholarly focus on the phenomenon of Corporate Social Responsibility. The pressure from civil societies, governments, and the rise of corporate citizenship
have compelled firms to engage in CSR. Previous research demonstrates mixed findings in terms of the association between CSR and firm performance. This study builds on existing research by examining the effect of CSR on financial performance in the context of mining companies in Ghana.
The study also explored the nature of CSR activities of firms and the relative effect of various types of CSR on firm performance. The study adopted a quantitative research approach. Both primary and secondary data in the study was collected using questionnaires and also from annual reports of studied
companies respectively. Respondents in the study were selected using a purposive sampling strategy.
The secondary data collected was a panel data that span the period of 2015-2019. Employing mean scores as data analytical technique, the study finds that the CSR activities of mining companies largely comprise conformity to production’s quality and assurance, steps to deal with all manner of judgments,staff involvement in prominent matters, geared towards employees health and safety, donation to humanitarian activities, and active involvement in projects that benefit local communities. Moreover, using regression as data analytical technique, the results of the study reveals that CSR is related to firms profitability in a positive way after controlling for firm size and growth rates. Findings of the
study further point to a greater impact of external CSR on company profitability relative to the effect of internal CSR. From a policy perspective, the study recommends among others that mining firms should prioritize CSR and also focus more on external CSR including donations to charity and policies that enhance welfare of the communities they operate. The study culminates by suggesting future research paths.
have compelled firms to engage in CSR. Previous research demonstrates mixed findings in terms of the association between CSR and firm performance. This study builds on existing research by examining the effect of CSR on financial performance in the context of mining companies in Ghana.
The study also explored the nature of CSR activities of firms and the relative effect of various types of CSR on firm performance. The study adopted a quantitative research approach. Both primary and secondary data in the study was collected using questionnaires and also from annual reports of studied
companies respectively. Respondents in the study were selected using a purposive sampling strategy.
The secondary data collected was a panel data that span the period of 2015-2019. Employing mean scores as data analytical technique, the study finds that the CSR activities of mining companies largely comprise conformity to production’s quality and assurance, steps to deal with all manner of judgments,staff involvement in prominent matters, geared towards employees health and safety, donation to humanitarian activities, and active involvement in projects that benefit local communities. Moreover, using regression as data analytical technique, the results of the study reveals that CSR is related to firms profitability in a positive way after controlling for firm size and growth rates. Findings of the
study further point to a greater impact of external CSR on company profitability relative to the effect of internal CSR. From a policy perspective, the study recommends among others that mining firms should prioritize CSR and also focus more on external CSR including donations to charity and policies that enhance welfare of the communities they operate. The study culminates by suggesting future research paths.
Publisher
Ghana Communication Technology University Library
Date
September 2021
Contributor
Mr. Emmanuel Addai Kwaning