An investigation of the relationship between Corporate Social Responsibility (CSR) and financial performance of companies listed on the Johannesburg Stock Exchange (JSE) in South Africa
- Authors: Soko, Leon Lenny Kudzaishe
- Date: 2017
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/7078 , vital:21215
- Description: The purpose of this study is to investigate whether there is an association between CSR and financial performance in South African companies which are listed on the FTSE/JSE SRI Index. Specifically, whether there is a difference in financial performance of companies that perform CSR activities, and those that do not. If so, which direction does this association have? The selection process of companies used in this study will now be explained step-bystep. The JSE SRI Index results show that there were 80 successful constituents as of February 2015 (JSE, 2015). These 80 companies are listed alphabetically in Appendix A, while the top 100 companies as ranked by Turnover are linked in Appendix B. Of these 100 companies, 67 were constituents of the JSE SRI Index continuously in 2015 and are shown in Appendix C. This leaves 33 companies in the top 100 which are not listed on the JSE SRI Index. Companies that were listed on the JSE SRI Index were assumed to be ‘good’ companies as the listing requirements included the performance of numerous CSR activities such as Employee development, environmental sustainability practices and stakeholder engagement. The financial performance of these 67 companies was compared to the financial performance of the 33 companies that were not listed on the JSE SRI Index which were included in the population sample of one hundred companies. Financial performance was measured using the ratios: Return on Assets and Return on Equity. The data analysis process used in this study was as follows: 1. The ratios for each company were obtained from the iNET (BFA) database, and annual and integrated reports for the period 2011 - 2015 (Appendix D;E;F). 2. The ratios for Non-SRI and SRI companies were then compared for each of the three ratios using a T-Test. The purpose of the T-Test was to show whether there is a difference in the ratios between SRI and Non-SRI companies on a year to year basis. The direction of the difference was shown by whether the SRI ratio was higher than or lower than the Non-SRI ratio. The results of this study do not seem to support any of the CSR theories, as the study concluded that there is no significant difference between the financial performance of companies that perform CSR activities and those that do not. This means that investing in CSR activities does not have a significant effect on the financial performance of a company.
- Full Text:
- Date Issued: 2017
- Authors: Soko, Leon Lenny Kudzaishe
- Date: 2017
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/7078 , vital:21215
- Description: The purpose of this study is to investigate whether there is an association between CSR and financial performance in South African companies which are listed on the FTSE/JSE SRI Index. Specifically, whether there is a difference in financial performance of companies that perform CSR activities, and those that do not. If so, which direction does this association have? The selection process of companies used in this study will now be explained step-bystep. The JSE SRI Index results show that there were 80 successful constituents as of February 2015 (JSE, 2015). These 80 companies are listed alphabetically in Appendix A, while the top 100 companies as ranked by Turnover are linked in Appendix B. Of these 100 companies, 67 were constituents of the JSE SRI Index continuously in 2015 and are shown in Appendix C. This leaves 33 companies in the top 100 which are not listed on the JSE SRI Index. Companies that were listed on the JSE SRI Index were assumed to be ‘good’ companies as the listing requirements included the performance of numerous CSR activities such as Employee development, environmental sustainability practices and stakeholder engagement. The financial performance of these 67 companies was compared to the financial performance of the 33 companies that were not listed on the JSE SRI Index which were included in the population sample of one hundred companies. Financial performance was measured using the ratios: Return on Assets and Return on Equity. The data analysis process used in this study was as follows: 1. The ratios for each company were obtained from the iNET (BFA) database, and annual and integrated reports for the period 2011 - 2015 (Appendix D;E;F). 2. The ratios for Non-SRI and SRI companies were then compared for each of the three ratios using a T-Test. The purpose of the T-Test was to show whether there is a difference in the ratios between SRI and Non-SRI companies on a year to year basis. The direction of the difference was shown by whether the SRI ratio was higher than or lower than the Non-SRI ratio. The results of this study do not seem to support any of the CSR theories, as the study concluded that there is no significant difference between the financial performance of companies that perform CSR activities and those that do not. This means that investing in CSR activities does not have a significant effect on the financial performance of a company.
- Full Text:
- Date Issued: 2017
Factors affecting the implementation of the Water Services Provision (WSP) strategy at Amathole District Municipality (ADM)
- Authors: Snombo, Kanyisa
- Date: 2017
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/5533 , vital:20939
- Description: Amathole District Municipality (ADM) in the Eastern Cape province of South Africa changed its water service provision strategy in 2012 from decentralized to a centralized strategy as a way of trying to improve its water service delivery. Since this change, no study has been done to explore how the centralized water service strategy has so far been implemented at ADM. The aim of this exploratory qualitative study was to describe how ADM implemented its centralized water strategy and also assess the extent of alignment of strategy execution using Higgins’ (2005) 8 “S” model. Purposively, a total of five senior managers were identified and interviewed in East London as they were intimately involved in the daily operation of the water service provision over the years. Data gathered through audio recorded, in-depth and semi-structured interviews with each of the senior managers and also documented reports on Water Service Provision (WSP) were analyzed using thematic analysis into meaningful patterns reflecting each of the components of Higgins’ (2005) 8 “S” model. Findings of this qualitative study reveal that senior managers had different but complementary views of what strategy they were implementing at ADM. More importantly, the implementation of centralized water services provision model by ADM was characterized by deep and persistent vacancies of key technical but also managerial positions in the new structure. Furthermore while human and financial resources were inadequate to match with the depth and variety of changes necessary to have the requisite number of staff, ADM implemented the centralized water service strategy with poor skills mix which negatively impacted on quality of water service. While ADM had ten espoused shared values, none of these were commonly and widely shared by employees in their day-to-day world of work. Instead, employee’s behavior at ADM was practically shaped by the emergent values of cooperation, and employee care and recognition. Thus there was misalignment between espoused and practiced shared values. Furthermore there was also recurrent and deep misalignment between structure, staff, resources and water quality systems which compounded the difficulties experienced by ADM in pursuit of centralized water service provision. While the use of outsourced mechanical and electrical services was a remedy to staff shortages and the lack of skills mix, it ultimately further aggravated the financial challenges of ADM by draining more of the already limited financial resources. Recommendations for improving the implementation of centralized water service strategy and areas for further research are suggested.
- Full Text:
- Date Issued: 2017
- Authors: Snombo, Kanyisa
- Date: 2017
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/5533 , vital:20939
- Description: Amathole District Municipality (ADM) in the Eastern Cape province of South Africa changed its water service provision strategy in 2012 from decentralized to a centralized strategy as a way of trying to improve its water service delivery. Since this change, no study has been done to explore how the centralized water service strategy has so far been implemented at ADM. The aim of this exploratory qualitative study was to describe how ADM implemented its centralized water strategy and also assess the extent of alignment of strategy execution using Higgins’ (2005) 8 “S” model. Purposively, a total of five senior managers were identified and interviewed in East London as they were intimately involved in the daily operation of the water service provision over the years. Data gathered through audio recorded, in-depth and semi-structured interviews with each of the senior managers and also documented reports on Water Service Provision (WSP) were analyzed using thematic analysis into meaningful patterns reflecting each of the components of Higgins’ (2005) 8 “S” model. Findings of this qualitative study reveal that senior managers had different but complementary views of what strategy they were implementing at ADM. More importantly, the implementation of centralized water services provision model by ADM was characterized by deep and persistent vacancies of key technical but also managerial positions in the new structure. Furthermore while human and financial resources were inadequate to match with the depth and variety of changes necessary to have the requisite number of staff, ADM implemented the centralized water service strategy with poor skills mix which negatively impacted on quality of water service. While ADM had ten espoused shared values, none of these were commonly and widely shared by employees in their day-to-day world of work. Instead, employee’s behavior at ADM was practically shaped by the emergent values of cooperation, and employee care and recognition. Thus there was misalignment between espoused and practiced shared values. Furthermore there was also recurrent and deep misalignment between structure, staff, resources and water quality systems which compounded the difficulties experienced by ADM in pursuit of centralized water service provision. While the use of outsourced mechanical and electrical services was a remedy to staff shortages and the lack of skills mix, it ultimately further aggravated the financial challenges of ADM by draining more of the already limited financial resources. Recommendations for improving the implementation of centralized water service strategy and areas for further research are suggested.
- Full Text:
- Date Issued: 2017
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