Impact of Corporate Social Responsibility Adoption on Profitability of Private Food Manufacturing Companies in Kisumu City
DOI:
https://doi.org/10.47604/ijfa.3787Keywords:
Profitability, Private Food Manufacturing Companies, Corporate Social Responsibility, AdoptionAbstract
Purpose: The purpose of this study was to establish the impact of CSR adoption on profitability of private food manufacturing companies in Kisumu City. This was done through the determination of impact of environmental, ethical, and philanthropic responsibility of the firms on profitability of private food manufacturing companies in Kisumu City.
Methodology: Considering a study population of 300 (FMC’s) management staff, of Financial, Production, Sales, and Marketing management position; and selecting a sample size of 170 and 165 respondents, through Stratified Random Sampling, with primary data consisting of opinion on environmental conservation activities, ethical standards and philanthropic activities and secondary data consisting of scale of measures of environmental, ethical, and philanthropic responsibility and profitability. These were collected and analysed, using mixed methods; which was suitable for concurrently triangulating the results in describing the outcome.
Findings: The results revealed that environmental responsibility accounted for 16.5% variation of profitability at (R2=.165, p<.05) and (β=.406, p<.05). Ethical responsibility accounts for 20.2% variation in profitability at (R2=.202, p<.05) and (β=.455, p<.05), while, philanthropic responsibility accounted for 27.2% variation in profitability at (R2=.272, p<.05) and (β=.522, p<.05) of private food manufacturing companies in Kisumu. The study concluded that environmental, ethical, and philanthropic responsibilities all have positive and significant impact on profitability of private manufacturing companies in Kisumu City.
Unique Contribution to the Theory, Practice and Policy: The study therefore recommends enforcing strict compliance with legislation, for the food industry to lay down policies that ensure that all food manufacturing companies practice ethical responsibilities improvement of philanthropic responsibilities across these companies.
Downloads
References
Gardberg, A., Zyglidopoulos, S., Symeou, P., & Schepers, D. (2017). The Impact of Corporate Philanthropy on Reputation for Corporate Social Performance. Business and Society , 1-32.
Kariuki, M. (2021). Corporate social responsibility adoption practices and performance of firms listed at Nairobi Securities Exchange, Kenya. Unpublished master of business project presented to Kenyatta University .
Kenya National Bureau of Statistics. (2018). Economic survey 2018. https://www.knbs.or.ke/reports/2018-economic-survey
Mbole, U. C., Arasa, R., & Mung'unyi, E. E. (2021). Environmental Initiatives and Financial Peformance: A study of Cement manufacturing companies in Kenya. Journal of African Interdisciplinary Studies 5(8) , 40-58.
Muchiri, M. K., Gally, S. E., & Farkas, M. F. (2022). Impact of CSR on the Financial Performance of Financial Institutions in Kenya. Economies 10(7) 174 https://doi.org/10.3390/economies10070174 .
Musungu, M. (2019). Impact of Corporate social responsibity on organizational performance: Acase of Media houses in Nairobi, Kenya. Unpublished Master of Business Administration project presented to Egerton University .
Ngagi, A., & Ngali, M. (2023). Effect of Corporate Social Responsibility on the Financial Performance of SMEs in Makueni Sub County. Journal of Accounting, 4(2). Stratford Journal Publishers.
Okafor, A., Adeleye, B. N., & Adusei, M. (2021). Corporate social responsibility and financial performance: Evidence from U.S. Tech Firms. Journal of Cleaner Production, 292, Article 126078. https://doi.org/10.1016/j.jclepro.2021.126078
Rehman, M., Saima, F., Yaqoob, S., & Javed, M. (2020). Corporate social responsibility and firms’ financial performance: A new insight. Sustainability, 12(10), 4211. doi:10.3390/su12104211
Rop, F. K. (2023). Influence of Corporate social responsibility adoption on Sustainability Growth of Large Super Markets in in Kenya. An Unpublished Msster of Master of Business Administration at South Eastern University, Kenya .
Thuo, M. (2020). Impact of corporate social responsibility adoption on the financial performance of large manufacturing compnaies in Kenya. Unpublished Master of Business Administration Research project at The University of Nairobi .
Venerande, K., Namusonge, G. S., & Kule, J. (2018). Influence of Philanthropic Corporate Social Responsibility Strategy on Perceived Firm Performance in Telecommunication Sector in Rwanda. International Journal of Academic Research in Business & Social Sciences 116-131.
Vishwanathan, P., van Oosterhout, H., Heugens, P. P. M. A. R., Duran, P., & van Essen, M. (2020). Strategic CSR: A concept building meta‐analysis. Journal of Management Studies, 57(2), 314–350. https://doi.org/10.1111/joms.12514
Yang, J., & Basile, K. (2021). Communicating corporate social responsibility: External stakeholder involvement, productivity and firm performance. Journal of Business Ethics. Advance online publication. doi.org
Yang, J., & Basile, K. (2022). Communicating corporate social responsibility: External stakeholder involvement, productivity and firm performance. Journal of Business Ethics, 178(2), 501-517. doi:10.1007/s10551-021-04812
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Ondisa Imbandu Eunice, Prof. Ombok, Benjamin Owour
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
