The impact of Corporate social responsibility on financial performance of listed companies: Case of Dairibord Holdings.

Abstract

The study aimed to establish the impact of Corporate Social responsibility on the financial performance of Dairibord Holdings. The sub-objectives were to assess the influence of CRS on sales and to establish the effect of CRS on the profitability of Dairibord Holdings. The study also aimed to assess the impact of CSR on the total costs and to establish the influence of CSR on the customer buying decisions of Dairibord Holdings. A qualitative research method was used in the study and exploratory design was also used. The population was made up of 50 employees who were Accounts Clerks, Assistant Accountants, Accountants, Admin Clerks, Admin Clerks, Admin Assistants, and Administrators. A sample of 10 Accounts Clerks, 9 Assistant Accountants, 9 Accountants, 8 Admin Clerks 6 Admin Assistants, and 4 Administrators were chosen using stratified sampling technique from each stratum. The study used closed-ended questionnaires to gather data from respondents. The data collected was presented graphically, in charts, numerically, and in table format. Findings showed that CSR had no impact on the financial performance of Dairibord holdings. Data collected showed that CSR did not positively influence the sales or profit, had no significant effect on the total costs, and did not positively influence customers’ buying decisions of Dairibord Holdings. It was concluded that corporate social responsibility has no impact on the financial performance of listed companies in Zimbabwe as it was determined in the case of Dairibord Holdings. From the findings, it was recommended that expenditure on corporate social responsibility needs to be monitored and controlled within the capacity of the company because it was established that CSR does not have an impact on the financial performance of listed companies in Zimbabwe. CSR may not be assumed to have a positive impact on the financial performance of listed companies in Zimbabwe, since it was determined to have no impact on financial performance in the case of Dairibord Holdings.