Effects of corporate social responsibility on firm performance

This study sought to analyse the effects of corporate social responsibility (CSR) on firm performance in listed firms in Zimbabwe. The specific objectives of the study were to analyse the relationship between CSR and profitability, ascertain the effect of CSR on competitive advantage and establish the impact of CSR on sales revenue in listed firms in Zimbabwe. Quantitative research techniques anchored on the positivist research philosophy were the main methods used to undertake the study. A sample of 14 purposively selected firms engaged on CSR responded to questionnaires which were augmented by secondary sources such as annual reports as well as industry reports and RBZ publications. Regression analysis and correlation analysis were the main tools used to analyse the data. The study found a positive relationship between CSR and firm profitability in listed companies¿ in Zimbabwe. It also found out that CSR has a positive effect on competitive advantage and that CSR has a positive impact on sales in listed firms in Zimbabwe. Hence, the study recommends that firms should engage in social and environmental initiatives to improve their image in the eyes of stakeholders.