Influence of corporate social responsibility on non-financial performance

Abstract

Purpose

Using a multinational corporation (MNC), Nestlé Ghana Limited (NGL) that operates in a developing economy (Ghana) as a case study, this paper aims to examine the influence of customers’ CSR awareness level and their perception of NGL’s corporate social responsibility (CSR) motives on the firm’s non-financial performance (image and reputation).

Design/methodology/approach

A quantitative approach, using questionnaires and simple random sampling method, was used to survey 300 customers. Structural equation model-partial least square (SEM-PLS) was used to analyse the data.

Findings

The results show that customers’ CSR awareness levels have a positive impact on NGL’s image and reputation. In contrast, the study revealed that customers’ perception of NGL’s CSR motives has a negative impact on NGL’s image and reputation.

Practical implications

NGL should maintain a balance between customers’ perception of its CSR motives and its image and reputation to project the firm’s CSR position as posted in the firm’s create shared value report.

Originality/value

The study is one of the few studies in sub-Saharan Africa, and especially in Ghana, about how an MNC’s CSR engagements influence its image and reputation in a developing economy context. It further makes a contribution to CSR literature in Ghana.

Citation

Nyarku, K.M. and Ayekple, S. (2019), "Influence of corporate social responsibility on non-financial performance", Social Responsibility Journal, Vol. 15 No. 7, pp. 910-923. https://doi.org/10.1108/SRJ-04-2017-0059