Relationship Between Corporate Social Responsibility Practice and its Effects on the Bottom Line

Abstract

The study comparatively evaluates the relationship between Corporate Social Responsibility and Profitability in the Energy, Telecommunication, and Transport industries in Ghana. The study adopted a quantitative research approach through a cross-sectional survey design to sample 50 employees from VRA, MTN Ghana, and CETSED Content and regression analysis were utilized for analysis of the research objectives/hypotheses stipulated by the study. A five-point closed-ended Likert Scale self-administrable structured questionnaire and researcher guide to aid participants answer relevant questions was used to confirm that innovations in strategic stakeholder engagement fuelled increases in corporate bottom-line of selected companies. The four major steps of analyzing data collected from Atkinson’s (2002) categories of quantitative data analysis was used, following which the primary data/information gathered and coded was analysed using the Statistical Package for Social Sciences to guarantee validity and reliability of the various investigations conducted. The hierarchical multiple regression of the Baron and Kenny’s (1986) procedure was also adopted to analyse for study the mediating effect of innovation on the relationship between strategic stakeholder engagement and corporate bottom-line. The study discovered a statistically significant positive influence of perceptions of CSR towards the customers on organization’s image in general. The energy and transport industry observed a greater significant influence of employee perceptions of CSR towards customers on organization’s image as compared to the telecommunication sector which was not significant.