TY - JOUR
T1 - Corporate Social Responsibility and Business Value of Multinational Companies
T2 - Lessons from a Sub-Saharan African Environment
AU - Abugre, James B.
AU - Anlesinya, Alex
N1 - Publisher Copyright:
© 2019, © 2019 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2019
Y1 - 2019
N2 - The issue of corporate social responsibility (CSR) as an approach for businesses to independently take actions that lead to better levels of societal development as well as higher value creation for the business, particularly in developing countries has gained much advocacy. Thus, the purpose of this study is to examine the relationship between CSR and business value of multinational companies (MNCs) in sub-Saharan Africa. The study adopted quantitative research methodology and using multiple regression analysis, findings show that CSR can positively and significantly predict business values in the multinational subsidiaries. These values include direct (economic value) and indirect (human capital value and reputational business value). This paper therefore contributes to a novel CSR index from the perspective of business value and sustainability of MNCs in the Sub-Saharan Africa (SSA) environment. Thus, the paper recommends MNCs operating in Africa to enhance their social investment through their CSR strategy with the aim that CSR must not be regarded as a cost center, but an investment instrument that can accrue various dividends.
AB - The issue of corporate social responsibility (CSR) as an approach for businesses to independently take actions that lead to better levels of societal development as well as higher value creation for the business, particularly in developing countries has gained much advocacy. Thus, the purpose of this study is to examine the relationship between CSR and business value of multinational companies (MNCs) in sub-Saharan Africa. The study adopted quantitative research methodology and using multiple regression analysis, findings show that CSR can positively and significantly predict business values in the multinational subsidiaries. These values include direct (economic value) and indirect (human capital value and reputational business value). This paper therefore contributes to a novel CSR index from the perspective of business value and sustainability of MNCs in the Sub-Saharan Africa (SSA) environment. Thus, the paper recommends MNCs operating in Africa to enhance their social investment through their CSR strategy with the aim that CSR must not be regarded as a cost center, but an investment instrument that can accrue various dividends.
KW - CSR
KW - Ghana
KW - corporate reputation
KW - economic value
KW - human capital value
KW - multinational companies
KW - sub-Saharan Africa
UR - http://www.scopus.com/inward/record.url?scp=85063462888&partnerID=8YFLogxK
U2 - 10.1080/15228916.2019.1581002
DO - 10.1080/15228916.2019.1581002
M3 - Article
AN - SCOPUS:85063462888
SN - 1522-8916
VL - 20
SP - 435
EP - 454
JO - Journal of African Business
JF - Journal of African Business
IS - 4
ER -