Corporate Social Responsibility and Financial Performance of Profit Making Organisations in Uganda Case Study: Mtn Uganda

Abstract

This research seeks to examine the relationship between corporate social responsibility (CSR) and the financial performance of profit making organizations in Uganda. The research mainly focuses on the preservation of the environment, commitment to employees and involvement in community as the CSR elements and how they contribute to the financial performance of profit making organizations.

The research is built from a controversy that exists between these two major objectives of maximizing profits and effecting CSR since organizations have to use their income to carry out CSR which directly reduces the profits of an organization. From this point of view, many organizations fear taking on the risk of investing in CSR as they regard it to be a cost pull rather than a profit pull.

The company to be analyzed in this paper is MTN Uganda as its participation in CSR is paramount and evident in activities like sponsoring sports such as the annual inter region soccer tournament, annual Kampala marathon, fair treatment of employees, water provision and concern for customers and yet it seems to be one of the most successful organizations in Uganda. Its concern for stakeholders by the use of its resources and how it still manages to realize high profit levels is an aspect that the research investigates.

It is intended at the end that businesses realize the working and importance of participating in CSR both to the stakeholders and the business itself in the long run as it could also be a form of marketing and advertising hence abandon the negative perception that most business managers have towards CSR.

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