CSR Practices and its Impact on the Performance of Corporate

Organizations in Developing Countries: Evidence from West Africa

Thesis Submitted to

Texila American University

in partial fulfilment of the requirement for the award of the
Degree of Doctor of Philosophy
in
Management

Submitted by
Kingsley Nwagu

Under the guidance of

Professor James C. Ihemeje

&
Dr. N.S. Shanthi
 Abstract of the Thesis
The unwillingness of many business organizations to genuinely commit to corporate social
responsibility (CSR) practice or see it as a source of competitive advantage like their counterparts
in developed nations suggests that there could be some differences in awareness or perception of
CSR across the divide. This raises the need to provide empirical evidence on the relevance of CSR
practices and how its impact on the performance of corporations will promote sustainable
operation in developing countries using multinational corporations. Consequently, this research
purpose is to study CSR practices and its impact on the performance of corporate organizations in
developing countries using multinational corporations from West Africa. The population for this
study consist of selected listed multinational companies in Nigeria and Ghana. The data was
collected using structured questionnaire and was measured in an interval scale through the
research questionnaire. The statistical tool used to analyze the set variables is multiple regression.
It involves the collection, collation, analyses, and interpretation of data for this study. It further
incorporated ANOVA to show CSR Practices and its impact on the performance of corporate
organizations as explained by the independent variables through the coefficient of determination
R2.This design is useful and most appropriate in measuring the degree of association between two
or more variables. It is also useful in measuring the effect of independent variables on a dependent
variable. As predicted, the study provides evidence that CSR practice indeed can be integrated into
corporations’ business strategy for enhanced performance. Rather than just being beneficial to the
society, CSR can be value added opportunity for corporations’ that engages in responsible actions.
The research adds to existing literature on CSR practices and its impact on corporate performance.
The research will guide environmental policy makers, government research, business managers,
and other business stakeholders to comprehend the benefit CSR can offer in order to enhance
environmental sustainability and promote business performance.
 I: Introduction
1.1 Introducing the topic of Research
This study was undertaken to understand corporate social
responsibility Practices and its Impact on the Performance of
Corporate Organizations in Developing Countries: Evidence
from West Africa. The purpose of this study was to ascertain the
impact that CSR Practices has on the Performance of Corporate
Organizations in Developing Countries drawing evidence from
Western Africa. In this study, all the concepts associated with
corporate responsibility, theories and several related literature
have been analyzed and inference drawn via the use of
econometric estimation techniques. The inferential result
obtained were in consonance with existing literatures on the
subject matter.
1.2 Conceptual Definitions

 CSR definitions is ambiguous; terms like corporate social performance,

corporate social investment, corporate citizenship, business ethics are used
interchangeably.
 Corporate Social Responsibility (CSR): CSR is the accepted term for activities
corporate executives initiate that go above and beyond legal requirements. These
initiatives attempt to enhance the company's effect on environmental and social aspects
of the society they serve.
 Corporate Social Performance (CSP): CSP is a measure of a corporation's CSR
initiatives. No single standard of CSR exists, but efforts are compared with competitors
and measured by indirect means.
 Corporate Performance (CP): CP is the measure of a firm's performance by activity
level measured in divers dimension such as market share or customer loyalty. In financial
terms it could be measured using accounting-based ratios such as net earnings, return on
assets or return on equity.
 Ethics: Actions of right or wrong, using moral principles and individual values to guide
decision-making and actions.
 Stakeholder: Any person that can affect or is affected by the achievement of the firm's
goals.
1.3 Theoretical Framework

• Stakeholder Theory: originated with Freeman's (1984) research. It is largely concerned

with delivery of financial outputs. It provides excuse for managerial opportunism
(Jensen, 2000). It stipulates equal treatment of all stakeholders (Gioia, 1999).
• Legitimacy Theory: Posits that entities repeatedly seek to ensure that they operate
within the acceptable norms of their respective societies. It explain environmental and
social disclosures (Campbell, Craven and Shrives, 2003). It describes a condition which
exists when an organization’s value system is consistent with the value system of the
society of which the organization is a part. (Pfeffer & Salancik,1978). Organisations
may utilize it to legitimize their existence that may be empirically tested.
• Contractual Theory: Originates from Ronald Coase’s work, who claimed that firms
exist as less costly alternatives to market transactions. (Burtler 1989). In the Coasean
view, the firm is a market where parties with economic assets contract with the firm to
deploy these assets in productive activity. In the actual world, the transaction costs
involved in the market activity can be relatively high, and some coordination is attainable
more cheaply by organising economic activity in firms.
• Ethical Theory: A theory or system dealing with values relating to human conduct, with
respect to the rightness and wrongness of certain actions and to the goodness and badness
of the motives and ends of such actions.
 II: Review of Literature
Relevant literature was reviewed under the following subheadings; conceptual
framework, theoretical framework, empirical review and summary of review of related
literature.
 CSR has been a subject of study for some time, but no consensus concerning its
definition and its constituent dimensions, constructs and principles (Nguyel et al.,
2020).
 Dahlsrud conducted a comprehensive review of CSR literature and identified 37
different definitions of CSR in 2008. The result from that study shows there is
considerable variation in CSR perceptions and meanings.
 Milton Friedman and Archie Caroll offer two contrasting views of the
responsibilities of business organizations to society.
 Friedman (1970) argues against the concept of CSR when stating that the only social
responsibility of a company is to increase its profits while staying within the rules of
the game.
 In contrast to the opinion above, Carroll & Buchholtz (2003) argues that CSR
requires consideration of paramount issues beyond the fundamental economic,
technical, and legal requirements of the company.
 These two views sit on opposite sides. The first suggests that the responsibility of a
business is only to its owners. In contrast, the second contends that the interests of
other stakeholders, apart from the shareholders, should also be considered.
 Review of Literature
 International agencies and legislative bodies have also
proposed a definition of CSR.
 CSR is seen as 'actions by companies over and above their
legal obligations towards society and the environment'
(Federation of Community Development Learning, 2009).
 CSR had been understood generally as being the way through
which a company achieves a balance of economic,
environmental and social imperatives ("Triple-Bottom-
LineApproach"), while at the same time addressing the
expectations of shareholders and stakeholders. (UNIDO).
 These views are in line with Caroll's opinion, as they
explicitly include the interests of stakeholders other than
shareholders.
 Review of Literature
Empirical Review
Past works on CSR abound, the study focused on 27 related empirical works for example;
 Rieschick (2017): Using organizations from food and beverage industry, examined
the effect of CSR on CFP. The study adopted financial data from the organization for
analysis. The significance test appears twice for a bivariate regression analysis. The
magnitude of the correlation coefficient reveals that financial performance had no
relationship with social and environmental CSR initiatives.
 Akinleye & Adedayo (2017): Examined the impact of CSR on profitability of
multinational corporations in Nigeria, with focus to understand the relationship and
impact of CSR spending on profit after tax, as well as the causal relationship between
corporate social spending and profit after tax. Result show that there is weak negative
correlation between corporate social spending and profit after tax. Corporate social
spending influences profit after tax negative and insignificantly. Evidence exist for
unidirectional causal relationship.
 Babalola (2012): investigated impact of CSR on profitability and found that CSR
accounts for variations in financial performance.
 Akhalumen, Odion, & Ohiokha (2016): assessed CSR and CFP in Nigeria. The
result show that CSR have impact on CFP.
 Review of Literature
CSR In Western Africa
Interest in CSR due to growing interest in
 –Africa as a continent (e.g. rise in economic growth, FDI,
international trade);
 –Practical dilemmas of how companies balance the desire for
internalisation with the need for local responsiveness.
 understanding of CSR is contested with assertions that the concept
is a ‘western-imposed agenda’
 Argument that there are sufficient Acts of legislation and laws on
CSR but agencies are too weak to enforce them.
 CSR agenda is performed through philanthropy. However, new
platforms and cognitive mindsets that favour strategic CSR are
emerging e.g. new cooperation such as AUDA NEPAD, APRM
etc.
 Rationale & Need for the Study
 This study is significant because it serves as an added
contribution to the existing work of other authors. It
discusses CSR and its impact on the performance of a
business. It goes further to examine the effects of CSR
practices on the performance of corporate organizations with
evidence from West Africa.

 The result of study is expected to shows that the relationship

between the CSR and corporate performance. It is going to
be useful for managers in making a prudent and financial
decision, and note the better ways to relate with employees,
government agencies and other business stakeholders. It will
also expand their knowledge on the research topic.
 Statement of the Problem

CSR is complex and requires organizational resources such as

expertise, personnel, time, and money. The challenging question
for leaders in this category is:
 How do we recover the funds invested through CSR? What is
the impact of CSR practice on the company's performance?
The shortage of research studies which surveys the impact of CSR
practices on the performance of business organizations in
developing countries especially Western Africa constitutes a
problem to both business and society. Some business leaders
refrain from their responsibility to the community due to doubts
and fear that they may encounter losses as there are no clears
understanding of how social responsiveness affects their
organization's performance.
 Research Questions
 To what extent does community development & philanthropy
impact on the performance of corporate organization in
developing countries?
 How does reputation influence the performance of corporate
organization in developing countries?
 What is the effect of internationalization on corporate
performance in developing countries?
 Does environmental sensitivity influence corporate
performance of organizations in developing countries?
 What is the influence of employee diversity on the performance
of corporate organizations in developing countries?
 To what extent does leadership ethics affect the performance of
corporate organizations in developing countries?
 Objectives
 Determine the impact of community development &
philanthropy on the performance of corporate organization in
developing countries.
 Examine the effect of reputation on the performance of
corporate organizations in developing countries.
 Establish the effect of internationalization on the performance of
corporate organizations in developing countries.
 Assess the influence of environmental sensitivity on the
performance of corporate organizations in developing countries.
 Examine the influence of employee diversity on the
performance of corporate organizations in developing countries.
 Determine the effect of leadership ethics on performance of
corporate organizations in developing countries.
 Hypotheses
 Ho1: Community development & philanthropy does not
significantly impact the performance of corporate organizations in
developing countries.
 Ho2: Firms reputation do not significantly affect the performance
of corporate organizations in developing countries.
 Ho3: Internationalization does not significantly affect the
performance of corporate organizations in developing countries.
 Ho4: Environmental sensitivity does not significantly influence
the performance of corporate organizations in developing
countries.
 Ho5: Employee diversity has no significant effect on the
performance of corporate organizations in developing countries.
 Ho6: Leadership ethics has no significant effect on the
performance of corporate organizations in developing countries.
 III: Methodology
Research Design
The study adopted a survey research design incorporating both
quantitative approach and survey strategy for interview. In the
current research context, perceptions of the individuals was
sought in order to examine CSR Practices and its Impact on the
Performance of Corporate Organizations in Developing
Countries: Evidence from West Africa. The use of survey enabled
the researcher to obtain valid and reliable information through
analyzing and understanding the data from the corporations. This
is because the design is useful and most appropriate in measuring
the degree of association between two or more variables. It is also
useful in measuring the effect of independent variables on a
dependent variable (Tang and Zhang, 2013).
 Variables
 Corporate Performance
 Community Development & Philanthropy
 Reputation
 Internationalization
 Environmental Sensitivity
 Employee Diversity
 Leadership Ethics
 Model Specification
The following equation is formulated for the study;
COP = f(CDP, REP, INT, ENS, EDV, LDE) ………………………...…(1.0)
Expressing the functional notation in equation (1.0) in econometric form;
COP = ß0 + ß1CDP + ß2REP + ß3INT + ß4ENS + ß5EDV + ß6LDE + εi’.(2.0)
Where;
COP = Corporate Performance
CDP = Community Development & Philanthropy
REP = Reputation
INT = Internationalization
ENS = Environmental Sensitivity
EDV = Employee Diversity
LDE = Leadership Ethics
ß0, = Constant
ß1, ß2 ß3 – ßn = Coefficients
εi = Error term.
 Sample
The study sample was based on the population comprising of
multinational companies in Nigeria. The sampling technique is
simple sampling method. In this technique, all the items of the
population have equal chances of being selected in a sample.
Selection of items could be done through either simple sampling,
systematic sampling, stratified sampling or cluster sampling
(Yusoff et al., 2016). Stratified sampling technique was adopted
to select the multinational companies. While simple sampling
technique was used to select respondents. The simple sampling
major advantage over simple random sampling is that it is faster
and less susceptible to sampling errors. In stratified sampling, the
target population is divided into homogeneous sub-populations
before a simple or systematic sampling is then used to further
select items equally (Aykol and Leonidou, 2014).
Measures/Tools Used for Data Collection
Questionnaires were administered by 10 persons
trained by the researcher for the purpose of data
collection in the field.
Questionnaires are best suited for
surveys(Yusoff et al., 2016). Its selection was
guided by the nature of data to be collected,
the time available and the study objectives.
 Measures contd..

 Documentary Sources and Others

Other relevant information necessary to aid the
study were obtained from audited financial
statement of corporations, textbooks related to
the study, magazines, journals, presented
conferences and previous reports as well as the
internet. The primary data on the other hand
were mainly obtained from questionnaires
adopted for the study.
 Procedure
Questionnaires were used to obtain the primary data
required for this work, and these were administered by
10 persons trained by the researcher for the purpose of
data collection in the field.
The research adopted 5 likert scale of Strongly Agreed
(SA) = 5, Agreed (A) = 4, Undecided (U) = 3,
Disagreed (D) = 2and Strongly Disagreed (SD) = 1in
rating the responses from the respondents. The
respondents were required to read, understand and tick
an appropriate choice. The questionnaires were
administered by the trained persons so as to obtain more
information and also obtain clarity of information
obtained from the respondents.
 Time Line
Data collection, collation and analysis took about
19 weeks as follows:
 Selection, recruitment and training of
Personnel took about 4 weeks
 Questionnaires administration and return took
about 11 weeks
 Collation of data and analysis took about 5
weeks
 Data Analysis & Technique
 This research employed quantitative methods of analyzing
data. Data collected were presented using statistical tools used
for data analysis. The study used descriptive statistics which
enabled the researcher to describe and compare variables
numerically such as; mode, mean and median.
 Multiple regression analysis was carried out. Multiple
regression techniques helped in showing how the variables are
related to each other, whether positively or negatively related.
Multiple regression techniques incorporating ANOVA was
done to show CSR Practices and its impact on the performance
of corporate organizations as explained by the independent
variables through the coefficient of determination R2.
 For data analysis, Statistical Package for Social Sciences
(SPSS) was used.
 Ethical Considerations
 Ethical aspects of the study have been addressed by implementing the
following measures:

 Respondents have participated in the survey voluntarily and have been

fully informed about the aims and objectives of the study.

 Texts belonging to other authors that have been used in any part of this
study have been fully referenced.

 The questionnaires did not contain any degrading, discriminating or any

other unacceptable language that could be offensive to any members of the
sample group.

 The questionnaire has been designed to collect information directly related

to the research questions, and no private or personal questions were asked
from respondents.
IV: Results & Interpretation
Figure 4.1: Analysis of questionnaire distributed to Companies selected for this study

450

400

350

300

250

200

150

100

50

Administered Correctly Filled and Returned

Correctly Filled and Returned (%) Incorrectly Filled or Not Returned
Incorrectly Filled or Not Returned(%)

Source: Field Survey, 2020

 Return Rate of Questionnaire
Correctly
Incorrectly
Companies Correctly Filled Incorrectly
Filled or
Administered Filled and and Filled or Not
Samples Not
Returned Returned Returned (%)
Returned
(%)

Cadbury Nig. 7 7 1.8 0 0

Nestle Nig. 29 28 7.1 1 0.25
Unilever Nig. 13 12 3.0 1 0.25
GSK. Nig. 2 2 0.5 0 0
7up Bottling 45 43 10.9 2 0.5
Guinness Nig. 11 11 2.8 0 0
PZ Cussons 18 17 4.3 1 0.25
Nig. Breweries 41 40 10.1 1 0.25
Dangote Cement 173 170 43.0 3 0.8
Dangote Sugar 9 9 2.3 0 0
Flour Mills Nig. 47 45 11.4 2 0.5
Total 395 384 97.2 11 2.8
 Demographic Information of Respondents
Frequency Percentage
Male 210 54.7
Education Qualification Female 174 45.3
Total 384 100
Single 66 17.2
Married 284 74.0
Marital Status Divorced 34 8.9
Total 384 100
16 – 25 Years 56 14.6
26 – 35 Years 83 21.6
Age
36 – 45 Years 130 33.9
46 Years and above 115 29.9
Total 384 100
Less than a decade 124 32.3
A decade and above 260 67.7
Years in Corporation
Total 384 100
Low level manager 181 47.1
Middle Level manager 139 36.2
Job Level Top Level manager 64 16.7
Total 384 100

SSCE 86 22.4
OND 33 8.6
HND 32 8.3
Education Qualification BSC/BA 139 36.2
MSC/MBA 73 19.0
Others 21 5.5

Total 384 100

Source: Field Survey, 2020
 Multiple Regression Results
Table 4.4 Multiple Regression Results
Model Unstandardized Standardi t Sig.
Coefficients zed
Coefficien
ts

(Constant)
B
-2.641
Std. Error
.494
Beta
-5.350 .000
Decision Rule:
Community The decision rule is
Development & .026 .071 .016 .361 .719
Philanthropy to reject the null
Reputation .227 .108 .089 2.105 .036

Internationalization .070 .088 .035 .798 .425

hypothesis and
Environmental
-.232 .111 -.099 -2.090 .037
accept the alternative
Sensitivity
Employee
.742 .109 .299 6.821 .000
if the sig. value of
Diversity
Leadership Ethics .901 .057 .590
15.78
.000
the variables under
5
R Square 0.527 study is lower than
Adjusted R Square 0.520
F 70.029 0.05 level of
Sig. 0.000
a. Dependent Variable: Corporate Performance significance.
Source: SPSS 20.0
 Results/Findings for IV-1 (CDP)
Ho1: Community development & philanthropy does not significantly impact the
performance of corporate organizations in developing countries.

HA1: Community development & philanthropy significantly impact the

performance of corporate organizations in developing countries.

Standardized
Variable Coefficient t-Stat Sig.
(Beta)
Community
Development & 0.016 0.361 0.719
Philanthropy

Study result findings from table 4.4.1 accepted the hypothesis as evidenced by β1 = 0.016, ρ
˃ 0.05, and infer that although community development & philanthropy showed a positive
coefficient, the impact on performance of corporate organizations is insignificant. We
therefore accept the null hypothesis that community development & philanthropy does not
significantly impact the performance of corporate organizations in developing countries.
The findings are not consistent with Rampersad& Skinner (2014) that CSR activities of
firms were initially of a philanthropic nature and mainly done through donations to
communities in areas of identified needs.
 Results/Findings for IV-2 (REP)
Ho2: Firms reputation does not significantly affect the performance of corporate
organizations in developing countries.

HA2: Firms reputation significantly affects the performance of corporate organizations in

developing countries.

Standardized
Variable Coefficient t-Stat Sig.
(Beta)

Reputation 0.089 2.105 0.036

Source: Extracted from Table .4.4

As evidenced by β2 = 0.089, ρ ˂ 0.05, implying that firms reputation significantly affect the
performance of corporate organizations in developing countries. We therefore reject the null
hypothesis that firms reputation do not significantly affect the performance of corporate
organizations in developing countries. This shows that the higher a firm’s reputation the
higher the performance. Study findings are consistent with Aniuga & Okolo (2015) which
posits that corporate reputation as a logical outcome of the quality of corporate governance
operated in an organization.
 Results/Findings for IV-3 (INT)
Ho3: Internationalization does not significantly affect the performance of corporate
organizations in developing countries.

Ho3: Internationalization significantly affects the performance of corporate

organizations in developing countries.

Standardized
Variable Coefficient t-Stat Sig.
(Beta)

Internationalization 0.035 0.798 0.425

Source: Extracted from Table .4.4

As evidenced from the study results (β3 = 0.035, ρ ˃ 0.05), hypothesis 3 was not rejected
suggesting that although with positive coefficient internationalization does not significantly
affect the performance of corporate organizations in developing countries. We therefore
accept the null hypothesis that internationalization does not significantly affect the
performance of corporate organizations in developing countries. This is in line with the
study Zhou (2018).
 Results/Findings for IV-4 (ENS)
Ho4: Environmental sensitivity does not significantly influence the performance of
corporate organizations in developing countries.

Ho4: Environmental sensitivity significantly influences the performance of corporate

organizations in developing countries.

Standardized
Variable Coefficient t-Stat Sig.
(Beta)
Environmental
Sensitivity -0.099 -2.090 0.037

Source: Extracted from Table .4.4

The study findings showed that hypothesis 4 was not rejected as illustrated by β4 = -0.099,
ρ ˂ 0.05. However, environmental sensitivity from the result had a negative coefficient but
significant. We therefore reject the null hypothesis that environmental sensitivity does not
significantly influence the performance of corporate organizations in developing countries.
Hence, environmental sensitivity needs to be given a strategic consideration. The result
agrees with Rieschick (2017) that corporate performance had no relationship with social
and environmental CSR initiatives.
 Results/Findings for IV-5 (EDV)
Ho5: Employee diversity has no significant effect on the performance of corporate
organizations in developing countries.

Ho5: Employee diversity significant effect on the performance of corporate organizations

in developing countries.

Standardized
Variable Coefficient t-Stat Sig.
(Beta)

Employee Diversity 0.299 6.821 0.000

Source: Extracted from Table .4.4

Table above rejected the hypothesis as evidenced by β5 = 0.299, ρ ˂ 0.05, and infer that
employee diversity had positive effect on the performance of corporate organizations in
developing countries. Thus, increasing employee diversity will lead to increase the
performance of corporate organizations in developing countries. We therefore reject the null
hypothesis that employee diversity has no significant effect on the performance of corporate
organizations in developing countries. In the views of Ursil & Fayaz (2018) employee
diversity provides both challenges and opportunities for corporations.
 Results/Findings for IV-6 (LDE)
Ho6: Leadership ethics has no significant effect on the performance of corporate
organizations in developing countries.

Ho6: Leadership ethics significant effect on the performance of corporate organizations

in developing countries.

Standardized
Variable Coefficient t-Stat Sig.
(Beta)

Leadership Ethics 0.590 15.785 0.000

Source: Extracted from Table .4.4

The study findings showed that hypothesis 6 was rejected as evidenced by β6 = 0.590, ρ ˂
0.05. This implied that leadership ethics had a significant effect on performance of
corporate organizations in developing countries. However, this significant effect was found
to be positive. We therefore reject the null hypothesis that leadership ethics has no
significant effect on the performance of corporate organizations in developing countries.
This supports Mohammad (2013) that ethical leadership improve the environment and
promote stakeholders positive sensitivity attitude toward the organizations in private and
public sector.
 Discussion
• The impact of community development & philanthropy on the
performance of corporate organization in developing countries.
The study tested the impact of Community Development & Philanthropy (CDP)
on performance of corporate organizations in developing countries. The result of
the regression estimate from Table 4.4 above indicate that there is a positive
impact of Community Development & Philanthropy (CDP) on performance of
corporate organizations. This is evidenced by coefficient value of 0.016.
Statistically, the Sig. value of 0.719 is higher than the acceptable significance
value of 0.05. Following the empirical result, Community Development &
Philanthropy (CDP) is found to have positive but insignificant effect on
performance of corporate organizations. The findings supports the study of Sen &
Cowley (2013) establish that CSR Practices is critical for policy makers in
making decisions to improve the citizens’ quality of life. In the words of Bani-
Khalid & Ahmed (2017) corporate social responsibilities totally left in the hands
of private individuals will dampened further the benefits accruing to the society.
However, our finding is in variance with Frynas& Stephens (2015) which posits
that increased investment through CSR Practices will not trigger increased
development.
 Discussion Contd.
• Examine the effect of reputation on the performance of corporate
organizations in developing countries.
The effect of Reputation (REP) on performance of corporate organizations was
tested. The result of the regression estimate from Table 4.4 above indicate that there
is a positive effect of Reputation (REP) on performance of corporate organizations.
This is evidenced by coefficient value of 0.089. Statistically, the Sig. value of 0.036
is lower than the acceptable significance value of 0.05. Following the empirical
result, Reputation (REP) is found to have positive and significant effect on
performance of corporate organizations. The significant effect is line with the study
Kiessling, Isaksson, &Yasar (2015) which shows that funds that are meant to be
invested in the CSR in the various companies are not sufficient enough.
Furthermore, Saadaoui and Soobaroyen (2018) posits that the key to good results
lies in establishing a strong informative system that, to the extent possible, links
specific CSR expenditure decisions so as to ensure the usage of the allocated fund
as transparently as possible. However, Nelson & Evans (2014) noted that efficiency
of corporations’ expenditure for building intangible assets like reputation and brand
varies across nations. The finding reveals that as in reputation financing has
increased over the years with its growing relevance adequately.
 Discussion
• Establish the effect of internationalization on the performance of corporate
organizations in developing countries.
The study further tested the effect of Internationalization (INT) on performance of
corporate organizations in developing countries. The result of the regression estimate
from Table 4.4 above indicate that there is a positive effect Internationalization
(INT) on performance of corporate organizations. This is evidenced by coefficient
value of 0.035. Statistically, the Sig. value of 0.425 is higher than the acceptable
significance value of 0.05. Following the empirical result, Internationalization (INT)
is found to have a positive but insignificant effect on performance of corporate
organizations. Our result of insignificant effect is in variance with Küçükbay &
Sürücü (2019) which concludes that internationalization plays a significant role in
building corporate organizations of developing countries.Akinleye & Adedayo
(2017) found that CSR issues in Nigeria is weak and need critical strategic attention.
Also, Zhou (2018) observed that in order to meet the desired impact level of CSR in
developing countries, foreign companies operation in the nations ought to be
increased considerably. This finding is in accord with an earlier study Dinsmore
(2014) which conclude that corporate performance increase with increase in CSR
and therefore recommends that relevant authorities should strategize to ensure
internationalization to bring CSR desired benefit for all in society.
 Discussion
• Assess the influence of environmental sensitivity on the performance of
corporate organizations in developing countries.
The study tested the influence of Environmental Sensitivity (ENS) on performance of
corporate organizations in developing countries. The result of the regression estimate
from Table 4.4 above indicate that there is a negative effect of Environmental Sensitivity
(ENS) on performance of corporate organizations. This is evidenced by coefficient value
of -0.099. Statistically, the Sig. value of 0.037 is lower than the acceptable significance
value of 0.05. Following the empirical result, Environmental Sensitivity (ENS)is found
to have negative but significant effect on performance of corporate organizations. Our
finding of insignificant influence is in line with Bhattacharyya (2015) which posits that
CSR Practices reforms that emphasis pooling mechanism, especially environmental
sensitivity is therefore required in developing countries. To, Nguyen, Ho & Nguyen
(2020) the quality of life in developing nations may not have improved at the same rate
as the indicator of CSR reform because of probable increases in morbidity and in psycho-
social stress due to economic hardships of the continent over the past decades. This is of
great concern as Nelson & Evans (2014) results shows that social and community
funding mechanisms have distinct advantages and disadvantages when applied to a
corporations’ management than on grounds of efficiency, equity and technical feasibility.
 Discussion
 Examine the influence of employee diversity on the performance of corporate
organizations in developing countries.
The study also tested the influence of Employee Diversity (EDV) on performance of
corporate organizations. The result of the regression estimate from Table 4.4 above
indicate that there is a positive effect of Employee Diversity (EDV) on performance of
corporate organizations. This is evidenced by coefficient value of 0.299. Statistically,
the Sig. value of 0.000 is lower than the acceptable significance value of 0.05.
Following the empirical result, Employee Diversity (EDV) is found to have significant
effect on performance of corporate organizations. This implies that increased Employee
Diversity (EDV) in the corporations promote the overall well-being of the citizen
through accelerated output. In line with Ogbo, Kifordu&Ukpere (2014), diversity in the
hierarchy and authority line has a positive relationship to performance of corporations,
including additional resources for investment in the community. To Jamali&Sidani
(2012), it is necessary to develop effective and efficient corporate social responsibility
programs, increase employee diversity, make an effective use of the host community
population and create better environment in order to foster growth in society. Also, in
the same line, Aniuga&Okolo (2015) posits that diversity plays a significant role in
sustaining performance of corporate organizations of developing countries.
 Discussion
• Determine the effect of leadership ethics on performance of corporate
organizations in developing countries.
The study further tested the effect of Leadership Ethics (LDE) on performance of
corporate organizations in developing countries. The result of the regression
estimate from Table 4.4 above indicate that there is a positive effect of Leadership
Ethics (LDE) on performance of corporate organizations. This is evidenced by
coefficient value of 0.590. Statistically, the Sig. value of 0.000 is lower than the
acceptable significance value of 0.05. Following the empirical result, Leadership
Ethics (LDE) is found to have a positive and significant effect on performance of
corporate organizations. Our study is in accord with Yazdani & Murad (2015) which
concludes that ethical attitude among corporate leaders’ plays a significant role in
promoting performance of corporate organizations of developing countries. To
Kiessling, Isaksson&Yasar (2015), observed that for corporate organizations to
achieve sustainable cordial relationship with host community, Managers must
observe ethical approach in all activities and decision made towards the people.
This findings are in accord with the study Carroll &Buchholtz (2015) which posits
that corporation management are reflective of the organizational activities hence
must maintain ethical prospects to achieve a conflict free working environment.
 Summary
 The study investigated the CSR practices and its impact on the performance of
corporate organizations in developing countries using evidence from West
Africa.
 The relevance of CSR practices in enhancing performance of corporate
organizations have ignited concerns of scholars following the world
globalization with related challenges.
 The study adopted various tests to establish the association between the
variables under study.
 The study established from the regression that all the CSR variables showed a
positive and significant relationship with the performance of corporate
organizations except for internationalisation variable with a coefficient value of
0.035 and a Sig. value of 0.425.
 Furthermore, on variable specifics heterogeneity exists on the relevance of CSR
Practices variables on performance of the corporations under study. This implies
that the CSR Practices are critical factors with potential to influence the level of
performance in the corporations.
 The study shows that CSR Practices variables jointly trigger performance of
corporations in developing countries.
 Conclusion
 Need to reengineer: The heterogeneity that exists among the CSR
practices variable as it relates to the performance of corporate organizations
call for re-engineering in order to explore the potential growth virtues
embedded in the CSR practices that are yet to be adopted by organizations.

 Need for long term strategy: The positive coefficients of CSR Practices
such as, community development and philanthropy, reputation,
internationalization, employee diversity, and leadership ethics in relation to
the performance of corporate organizations in developing countries is a
further indicator that the organizations can become better through the long
term focus strategy on these practices to accelerate performance.

 Make & implement CSR policies: The study also reveals that the many
environmental challenges faced by the multinationals emanating from CSR
can be well addressed through enhanced strategic policy implementation.
 Limitations of the Study
• Limitation as described by Peloza (2009), limitations are areas
over which the researcher have no control. For this study, a
barrier would be a short time limit. The short time limit
reduces the population sample to focus on publicly listed
companies. A major expected limitation in this study involved
the population which the sample will be drawn which may not
reflect the true perception of the entire country on CSR. The
availability and accuracy of information for use in the
methodology could be a limitation as information will be
provided only through questionnaire responses and this
information could be subjective and biased. The researcher
will mitigated these by possibly verifying information from
published articles.
 Implications of the Study
In this study, we provide a comprehensive in-depth review of CSR
practices focusing on various pressing challenges that must be
addressed for successful deployment of CSR Practices in the developing
countries. We also provide future directions for enhancing the adoption
of CSR Practices which includes more government concern on CSR
Practices. We present a case study on multinational corporations in West
African countries, to strengthen our claim that CSR Practices can offer
an unprecedented opportunity for a corporation in the area of enhanced
performance. The case study also indicates that some corporate-specific
adjustments, such as consideration of cultural issues are necessary for
effective positioning of CSR Practices. This research work will guide
researchers, policymakers, the populace, environmental professionals as
well as the multinational corporation to comprehend the various benefits
CSR practices can offer and most importantly assist them to take
necessary steps to make use of this powerful platform to its full
potential.
 Directions for Future Research
One of the major challenge reported on past study on CSR
practices is the consensus agreement on the distinct CSR
measures. Future studies need to develop measures to assess
the level of CSR practices among organizations with less
regard whether they are multinational or not. Comparability
among these measure over time, will help researchers achieve
comparative results across cultural and geographical areas.
Related measures to aid measurements of specific CSR
innovations or at the organizational level could be key focus of
future research. The variable CSR largely lack a strong
definition among researchers and practitioners and continues
to change over time. This perception that may not change, as
societal norms are always evolving as well.
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