The Effect of Corporate Social Responsibility on Organizational Performance a Case of Pride Micro Finance Limited Masaka Branch.

Abstract

The study investigated the relationship between corporate social responsibility and organizational performance using a case study of Pride Microfinance Limited Masaka Branch. The study objectives were; To examine the effect of Economic Responsibilities and organizational performance in Pride Microfinance Limited Masaka Branch; To examine the effect of legal Responsibilities and organizational performance in Pride Microfinance Limited Masaka Branch and To examine the effect Ethical Responsibilities and organizational performance in Pride Microfinance Limited Masaka Branch. A case study design was used and data collected from a sample of 44 respondents. Self-administered questionnaires, interview guide and documentary review guide were used in the study and analysed data was presented in tables, pie chart and graphs. Findings from the study indicated that economic responsibility activities have improved the banks liquidity and also that the bank ensures cost cutting in its operations, in addition to the fact that the economic responsibility activities have improved earnings per share and the bank gives back to the society to enhance on their economic development. The bank takes initiative to protect employees respects and follows all relevant laws of the land at the local and national level are adhered to by the bank when carrying out their business and also that the bank provides products and services that meet the minimum legal requirements. It was also noted that the bank often gives back to the society all around the country and conducts its operations in a manner consistent with expectations of ethical norms and also that the bank has an ethical code of conduct which it emphasizes with each bearing its mean and standard deviation.. Finally, it is recommended that Government needs to provide an enabling environment for SMEs while encouraging other corporate bodies to follow suit. There is need to align CSR activities with development goals in order to create sustainable value with in communities. This can only be achieved with government support through partnership of the public and private sectors. It is recommended that executive management needs to get involved in CSR initiatives by formulating business strategies that embed CSR practices in business operations, and undertaking sustainable operations. CSR strategy should carefully be aligned into business strategy in order to reinforce governance and sustainable value generation in the bank and society as a whole.

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