Corporate social responsibility and financial performance of multinational companies in Uganda; a case study of MTN Uganda
Abstract
The study assessed the relationship between corporate social responsibility (CSR) and financial
performance (FP) in multinational companies in Uganda. a case study of MTN Uganda (2005 -
2009). The study specifically aimed at establishing corporate social responsibility practices in
MTN Uganda, examining the relationship between environmental social responsibility and
financial performance of MT Uganda, assessing the effect of community responsibility on the
financial performance of MT Uganda as well as investigating the role of corporate social
wellbeing on the financial performance of MT Uganda.
Data was analyzed using SPSS professional version 21.0 and Microsoft excel 2007 to generate
figures, tables and frequencies as well as correlation which were used to obtain core conclusions
on the findings. Results revealed that CSR impacted positively on the environment, community
and corporate well-being.
The study found a significant and positive relation between CSR and FP although there are
factors other than CSR those leads to better financial performance in MNC's. The study further
found that MTN. s observance and implementation of proper environmental practices,
community responsibilities (safe water projects, helping vulnerable areas like Bududa and
constructing low cost houses) and corporate well-being responsibilities (education and health
facilities in communities) have greatly boosted MT Uganda's financial performance. The study
concluded that MTN CSR policy is on a steady course especially with MTN Uganda's financial
commitment to MT CSR foundation which is l % of profit after tax per annum.
Keywords: Corporate Social Responsibility; Financial Performance; MTN Uganda: MTN CSR
Foundation