Institutional Drivers for Corporate Social Responsibility of Ghanaian Firms

Abstract

The concept of corporate social responsibility (CSR) has dominated the academic space with a significant number of studies focusing on attempting to establish the relationship between corporate responsibility and firm performance. Minimal empirical attention is, however, accorded to attempting to establish what drives corporate responsibility among firms. This study sought to examine the institutional drivers for CSR practices of firms in Ghana using a mixed-method approach. An interview was conducted with personnel in charge of executing their respective firm’s corporate responsibility initiatives to obtain a firsthand insight into the level of appreciation for CSR among Ghanaian firms as well as to identify the drivers for CSR. The drivers for CSR were classified into internal and external institutional drivers. The study sourced for data for its analysis by administering questionnaires to 100 respondents. Responses were quantitatively analyzed using a regression technique. Among the internal drivers for CSR, it was found that only board commitment to CSR was a significant and positive driver of corporate responsibility. International trade relations, the media, and the local community were similarly found to be significant and positive drivers of CSR among the external drivers. Regulations was found to be a significant driver for CSR but impacted on corporate responsibility negatively. It is recommended that incentives by the government, award schemes, and enforcement of CSR reporting be implemented to drive a broad adoption of CSR among firms in developing nations.