ASSESSMENT OF THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) PRACTICES ON FINANCIAL PERFORMANCE

Abstract

This study aimed to assess the impact of Corporate Social Responsibility (CSR) practices on the financial performance of Geita Gold Mining (GGM) in Geita. Specifically, the study aimed to examine the impact of consumer protection, of charitable contributions and community engagement practices within CSR practices on financial performance at GGM. The study addressed the problem of understanding how CSR practices contribute to financial gains for mining companies in Tanzania. A positivist philosophy guided this research, with a quantitative research approach employed to systematically collect and analyze numerical data. A descriptive research design was applied to capture data at a specific point in time, allowing a snapshot of CSR practices' influence on financial performance. The targeted population included GGM employees and community stakeholders involved in CSR initiatives. Simple random sampling was used to ensure an inclusive and representative respondent pool. Data collection tools included structured questionnaires featuring 5-point Likert scale questions to capture respondents' perceptions. Descriptive analysis and multiple linear regression analysis were used to analyze the data. The findings revealed a positive relationship between CSR practices specifically, consumer protection, charitable contributions, and community engagement and financial performance at GGM. Consumer protection practices were found to enhance financial performance by fostering trust and loyalty among local communities, while charitable contributions and community engagement improved corporate image and stakeholder relations, both contributing to financial outcomes. The study concludes that CSR practices have a significant positive impact on financial performance at GGM. It recommends that GGM continue investing in CSR activities, focusing on consumer protection, charity, and community engagement, to further enhance financial performance and community relations. The study highlights the role of CSR as a strategic investment that aligns social responsibility with financial profitability for sustainable business growth