MJAMR

Corporate Social Responsibility And The Survival Of Business Organization. A Case Study Of Mukwano Enterprises Company

Osuta Caleb, Irumba Alex


Abstract

This study examined the factors influencing the practice of Corporate Social Responsibility (CSR) and its impact on business performance across companies of varying sizes. Using logistic regression analysis, the study explored key variables including company size, management commitment, regulatory environment, and corporate culture. The results indicated that larger companies, with more resources, were more likely to engage in CSR activities (β = 0.45, p < 0.001), with an odds ratio of 1.57. A strong positive relationship was also found between management commitment and CSR practice (β = 0.82, p < 0.001), showing a 127% increase in the odds of engaging in CSR for every unit increase in management commitment. The regulatory environment had a negative effect on CSR (β = - 0.33, p = 0.028), suggesting that stricter regulations reduced the likelihood of CSR engagement (odds ratio = 0.72). Corporate culture, although positively related to CSR (β = 0.29), was not statistically significant (p = 0.108). In terms of CSR approaches, philanthropy (β = 0.64, p < 0.001) and environmental initiatives (β = 0.47, p = 0.003) had significant positive effects on CSR practice, while employee welfare (β = 0.12, p = 0.276) did not significantly predict CSR engagement. The study also revealed that business performance, measured by revenue growth (β = 0.39, p < 0.001), market share (β = 0.55, p < 0.001), and profitability (β = 0.24, p = 0.003), was positively influenced by CSR, while employee turnover (β = -0.21, p = 0.020) negatively affected performance. The study concluded that larger companies and those with committed management are more likely to engage in CSR. However, excessive regulatory constraints may hinder CSR adoption, particularly for smaller firms. Companies should prioritize CSR practices such as philanthropy, environmental sustainability, and community engagement to improve their performance. Furthermore, reducing employee turnover and fostering a commitment to CSR within management can lead to better long-term business success. Recommendations include supporting smaller companies to adopt CSR through policy changes, reducing regulatory burdens, and encouraging leadership to integrate CSR into the core strategy of the organization. Additionally, fostering employee engagement in CSR initiatives and focusing on market growth can enhance both social and financial outcomes.

Keywords

Corporate Social Responsibility (CSR) Logistic Regression Company Size Management Commitment Regulatory Environment Business Performance Philanthropy Environmental Initiatives
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Osuta Caleb & Irumba Alex (2024). Corporate Social Responsibility And The Survival Of Business Organization. A Case Study Of Mukwano Enterprises Company. Metropolitan Journal of Academic Multidisciplinary Research, 3(12). https://journals.miu.ac.ug/pages/article.php?article_id=1179

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