Corporate Social Responsibility Disclosure and Financial Performance of Firms in Kenya: A Stakeholder Approach

Abstract

Using panel data set from companies listed on the Nairobi Securities Exchange in Kenya, a developing country, this paper examines the potential influence of corporate social responsibility disclosure (CSRD) on corporate financial performance. Using data from annual reports, CSRD information was collected for the period 2007-2015 using quantitative content analysis while financial performance data was collected for the period 2008-2016, a one-year lag behind CSRD data. Control variables were firm size, industry type and leverage. There was found to be no statistically significant impact of CSRD on financial performance. Since neutrality of the relationship is empirically proven, the conclusion is that CSRD has little or no contribution to financial performance and the implication is that effective financial reporting for companies listed on the NSE does not include reporting on CSR activities. Theoretically the study proposes that unequal controlling strengths of different stakeholders be assumed under the stakeholder theory for application within different national contexts in order for managers to be able to make the necessary tradeoffs among competing stakeholders.

Corporate Social Responsibility Disclosure and Firm’s Operational, Financial and Market Performance: A Study of Content Analysis of Firms Listed at Pakistan Stock Exchange

“…The authors declared no potential conflicts of interest w.r.t the research, authorship and/or publication of this article. (Goloshchapova et al, 2019;Singh, 2014;Tate, Ellram, & Kirchoff, 2010;T. Wang & Bansal, 2012)…”

Sustaining the Oil and Gas Industry through corporate social responsibility practices by multinational oil and gas companies in emerging economies.

“…These companies account for a large share of state revenues in economies where their operations persist [5,6]. Thus, development interventions through programmes in education, health, commerce, energy, agriculture, transport, and infrastructure in many emerging countries cannot be ignored [7,8,9,10]. Although one would have assumed that the 'Acts of God' that drive oil companies to act socially responsible are bone out of mere benevolence to society, [11] a rm that these oil and gas companies engage in supernormal profitable ventures with CSR as key drivers.…”

Sustaining oil and gas multinational operations through corporate social responsibility practices

“…These companies account for a large share of state revenues in the economies where their operations persist [5,6]. Thus, development interventions through programmes in education, health, commerce, energy, agriculture, transport, and infrastructure by oil and gas companies in many emerging countries cannot be ignored [7][8][9][10].…”