The Relationship Between Financial Performance and Corporate Social Responsibility for Oil Marketers in Kenya
Abstract
This project attempts to establish the relationship between CSR and financial
performance of Oil Marketers in Kenya. The study was conducted in Nairobi in
September 2013, and data was collected through Financial Statements obtained from the
various oil Marketers in Nairobi as well as from the ERC. The researcher used secondary
data in conducting the research. Data was analyzed using regression analysis. The
findings showed that CSR activities are correlated to profitability of Oil Marketers in
Kenya. The results of regression analysis showed that there is a significant positive
relationship between CSR and financial performance of the Oil Marketers of Kenya as
shown by P value of 0%, adjusted R Squared (R-Sq (adj)) figure. Financial performance
of Oil Marketers depends on social responsible behaviors of the Firms. In addition,
socially responsible companies have an enhanced brand image and a positive reputation
among consumers; they also have the ability to attract more accomplished employees and
business partners. High financial performance is attributed to the benefits of being
socially responsible. Further the study carried out the hypothesis testing between CSR variable
and financial performance. A Pearson coefficient measure showed a strong, significant, positive
relationship between CSR and financial performance of Oil companies in Kenya. Therefore
basing on these findings the study rejected the null hypothesis that there is no relationship
between CSR and financial performance of companies and accepted the alternative hypothesis
that there exists a relationship between Corporate Social Responsibility and financial
performance of Oil companies in Kenya. Corporate social responsibility is recommended for all
organizations whether profit or non-profit organization. From this research conducted there are
several benefits to a company engaging in social responsibility. An organization is able to
improve the image of the firm, improve share prices if quoted in stock exchange and it is
profitable in the long run. Also it is ethical to be socially responsible and it aims at improving the
community at large. Also the market share is improved and also customer satisfaction can be met.
Citation
Njehia,Andrew;November,2013.The Relationship Between Financial Performance And Corporate Social Responsibility For Oil Marketers In Kenya.Publisher
University of Nairobi School of Business