INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY ON FINANCIAL SUSTAINABILITY AMONG CHARITABLE ORGANIZATIONS IN NAKURU COUNTY, KENYA

Abstract

Corporate Social Responsibility (CSR) is becoming a corporate world concern. However, the impacts of CSR activities by charitable organizations on their financial performance are not clearly understood. This research investigated the influence of corporate social responsibility on financial sustainability among charitable organizations in Nakuru County, Kenya. It delved on the following questions: Does CSR economic activities influence the financial sustainability of charitable organizations in Nakuru County? How does CSR social activities influence the financial sustainability of charitable organizations? In which way does CSR environmental conservation activities influence the financial sustainability of charitable organizations? The study was premised on social entrepreneurship, stakeholder and agency theories. It involved 124 charitable organizations and employed purposive sampling procedure. Questionnaires were used for collecting data, and analyzed using the Statistical Package for Social Sciences. Descriptive analysis was used to analyze data using means and standard deviations. The results of the correlation analysis indicated no  relationship between economic activities and financial outlook of the organizations (r = 0.161, p > 0.05), a moderate relationship (r = 0.249, p ≤ 0.05) between social activities and financial performance, and a strong relationship (r = 0.0.515, p ≤ 0.05) of environmental conservation activities and financial wellbeing of charitable organizations. The findings indicated that the model R² was 0.430, meaning CSR sponsored activities could explain upto 43% of the variations of the financial performance of charitable organizations in Nakuru County, Kenya.