The Effect of Corporate Social Responsibility on Firm Financial Performance: A Case Study of Chama District, Zambia

Author

Emmah Nyirenda, Dr. M. Maheswaran


Abstract

 This study investigates the relationship between Corporate Social Responsibility (CSR) and firm financial performance among 20 companies operating in Chama District, Eastern Province of Zambia, over 2020–2024. Grounded in Stakeholder Theory, Resource-Based View, Agency Theory, and Legitimacy Theory, the research uses quantitative panel data analysis with Generalised Least Squares estimation. CSR performance indicators, including Environmental, Social, and Governance (ESG) scores, are analyzed against financial metrics: Return on Assets (ROA), Earnings Per Share (EPS), and Market Value Added (MVA). Board governance features such as gender diversity and board independence are also examined. Findings reveal a positive and significant influence of CSR on financial performance, underscoring CSR as a strategic investment rather than philanthropy. The study contributes empirical evidence from a rural African district context, offering practical recommendations for managers, policymakers, and development partners.



Keywords

Corporate Social Responsibility (CSR), CSR Initiatives, Corporate Philanthropy, Firm Financial Performance (FFP), Corporate Profitability, • Chama District



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References


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