Determining the Relationship between Corporate Social Responsibility and Company Profitability in Zimbabwe: A Case of a Listed Telecommunication Company

The investigation and analysis of the relationship between corporate social responsibility (CRS) and company profitability in Zimbabwe is the aim of the study. The concept of sustainable development emphasises that businesses should prioritise financial and business results in addition to paying attention to their local environment, society, and community. CSR is considered to be a key element of strategic planning. It might lead to higher business profitability. The study employed Stata as the statistical tool and the Vector Auto Regression (VAR) model of regression analysis to investigate the impact of CSR on profitability. Correlation and regression analysis were used to analyse secondary data taken from the annual reports of a Zimbabwean Listed Private Limited company, and the hypothesis was assessed. In Zimbabwe, the telecommunications sector is at the forefront of the information age and is essential to a company’s success and long-term viability. Out of the three mobile telecom companies under the Ministry of Information, Communication Technology, Postal and Courier Services, the company served as Zimbabwe’s sole publicly traded mobile telecoms provider from 2010 to 2015. (MICTPCS). In its capacity as the industry’s regulating body, MICTPCS promotes mobile telecommunications companies to include CSR as a client-focused component of their daily operations. The study’s findings indicate that CSR has no appreciable effect on profitability and that there is no causal relationship between it and either [1-3]. Zimbabwe lacks a corporate social responsibility policy; businesses participate voluntarily as a marketing strategy. A policy must be created and implemented to ensure that organisations act ethically.

Author(s) Details:

Banele Dlamini,
Department of Accounting and Finance, Lupane State University, Zimbabwe.

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Keywords: Corporate social responsibility, profitability, telecommunication industry, Zimbabwe

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