The impact of corporate social responsibility on business performance in companies: Case study of mtn Uganda

Abstract

The study sought the impact of corporate social responsibility on business performance in companies using MTN Uganda as a case study. The study objectives were; to establish how CSR affects the organisational commitment of the companies’ stakeholders, and to find out the extent to which companies benefit from CSR categorized under the economic, the social, and the environmental factors. Both qualitative and quantitive data was gathered in order to find out the relationship between Corporate Social Responsibility (CSR) and business performance in companies, which were the independent and dependent variables respectively. The study comprised 48 respondents who were employees in the organisation, employers and other company stakeholders. Krejcie and Morgan sampling approach was used during the study. Data was collected, the answered questionnaires were gathered, and data was edited and sorted for the next steps. The data was then presented in tabular form with frequencies and percentages of each question for each objective. The researcher used Statistical Package for Social Sciences (SPSS) to compute and analyze the gathered data. It was included that the findings indicated that CSR practices carried MTN Uganda created commitment towards the company by stakeholders through staff morale, customer approval, and customer loyalty. That respondents benefited from CSR practice through customer satisfaction, community acceptance, environmental conservation, competitor practice and it has increased rivals’ costs. The findings showed the relationship between CSR and business performance in MTN Uganda, this was where by the sales of the company increased as a result of their CSR practices, that it (CSR) contributes a big percentage towards the company profitability, the practice influences company corporate image and the quality of services that MTN Uganda offer improve as a result of CSR practice. The study recommends that the Management of MTN should strengthen the monitoring and evaluation department so as to ensure that the budgeted money for CSR and its activities are effectively implemented.