MJAMR

Corporate social responsibility and its impact on financial performance of Kisoro local government

Akampurira Nuwahereza


Abstract

The study aimed at the effect of Corporate social responsibility on financial performance of Kisoro local government. Prior studies employed rigorous quantitative and qualitative research methodologies to examine the relationship between CSR and financial outcomes for local administrations like Kisoro. The study leveraged an ex-post facto research design using longitudinal data spanning 2010 to 2019 obtained from the Uganda Local Government Finance Commission. Through regression analysis controlling for other socioeconomic factors, they were able to establish the direction and magnitude of impact from CSR on revenue mobilization over extended periods. From the findings, the estimated value of the dependent variable (financial performance) when the independent variable (CSR) was zero. The coefficient for CSR was 0.562. This represented the change in the dependent variable (financial performance) for a one-unit change in the independent variable (CSR). The standard error for the constant was 0.296, and for CSR, it was 0.052. These values represented the standard deviation of the coefficient estimates, providing a measure of their precision. The standardized coefficient (Beta) for CSR was 0.676. This value represented the change in standard deviations of the dependent variable associated with a one-standard-deviation change in CSR. It was recommended that Kisoro local government formulates an independent strategic CSR policy and budget anchored on partnership principles. Specifically, the district should prioritize basic programs addressing critical needs like skills training, agricultural extension, rural electrification and feeder roads rehabilitation that offer highest socioeconomic returns.

Keywords

Corporate social responsibility expenditures and financial performance
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Akampurira Nuwahereza (2024). Corporate social responsibility and its impact on financial performance of Kisoro local government. Metropolitan Journal of Academic Multidisciplinary Research, 3(1). https://journals.miu.ac.ug/pages/article.php?article_id=1232

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