The Influence of Corporate Social Investments on Sustained Growth of Firms Listed at Nairobi Securities Exchange

Abstract

The study sought to establish the association between Corporate Social Investment (CSI) and sustainable growth of firms listed at the Nairobi securities exchange. The study's objectives were to establish the extent of CSI for firms listed at the NSE and to establish the relationships between CSI programs and sustained growth for firms listed at the Nairobi Securities Exchange. A cross-sectional survey design was used in the study. The population of the study consisted of all the 64 listed companies at the NSE while the sample size was 32 obtained from all the 12 segments at the NSE using stratified random sampling. Analysis was done using descriptive and inferential statistics techniques. Frequencies and means, standard deviations were used to characterize the data. The study output was reported using figures and tables. The researcher used regression analysis and Pearson Moment Correlation to establish the effect of annual expenditure on recreation, annual expenditure on sports, annual expenditure on scholarships, annual expenditure on health care and annual expenditure on environmenton the sustainable growth of firms listed at the NSE.The study concluded that firms listed at the NSE have implemented CSI activities to a very great extent. The study found out that CSI implementation has led to improvement in sustainable growth to a great extent. The study found out that there was avery strong relationship (R= 0.873) between corporate social investment and sustainable growth of firms listed at the NSE. The results also revealed that corporate social investment contributes 70.8% of variance in sustainable growth of the firms listed at the NSE. The study also concludedthat annual expenditure on recreation, annual expenditure on sports, annual expenditure on scholarships, annual expenditure on health care and annual expenditure on environment produced a positive and significant effect on the sustainable growth of firms listed at the NSE. This study therefore recommends that the firms listed at the NSE should increase their expenditure as this had a positive impact on their sustainable growth. The study found out that corporate social investment contributes influences 70.8% of the sustainable growth of the firms listed at the NSE. This implies that there are other factors that greatly influencesustainable growth other than CSI. Therefore, there is need to establish these other factors through further studies.