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