ROLE OF CORPORATE SOCIAL RESPONSIBILITY IN THE FINANCIAL PERFORMANCE OF HORMUUD TELECOM-MOGADISHU-SOMALIA
Abstract
The field of corporate social responsibility (CSR) has grown exponentially in the last decade. Nevertheless, there remains a protracted debate about the legitimacy and value of corporate responses to CSR concerns. There are different views of the role of the firm in society and disagreement as to whether wealth maximization should be the sole goal of a corporation. The relationship is tested by using empirical methods. The Corporate Social Responsibilities of Hormuud Telecom goes far beyond the old model of philanthropy of donating money for a good cause at the end of the financial year. The main objective of the study was to find out the role of Corporate Social Responsibilities on the financial performance. The research design followed was descriptive and a survey study was adopted. A sample of 316 out of over 1500 employees of the Hormuud Telecommunication were interviewed. These were accessed by use of questionnaires regarding the variables of financial performance factors. The obtained data from the survey was analyzed using SPSS. From the analysis, it was found out that, Social Networking (SNW) play a major role in organizational financial performance through increased revenue, customer loyalty and profits. Philanthropic activities were also agreed that they are relevant to financial performance. From the regression analysis prediction, philanthropic activities would negatively contribute to a -.297 unit per activity, and lastly physical environment is to be taken care of but its contribution to financial performance was relatively low to their counterpart variables. The study concluded that, CSR activities should be supported by organizations in order for them to realize the earmarked financial benefits but also to avoid government penalties in fines. The study recommends that, organizations should uphold CSR activities including all SNW, philanthropy and Physical environment support. The study also recommends that further studies be done on the subject of CSR and its role on financial performance of organization and to take this study to other entities as well.
Key Terms: Corporate Social Networking, Corporate Social Philanthropy, Corporate Social Environment
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DOI: http://dx.doi.org/10.61426/sjbcm.v3i4.333
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