Effects of corporate social responsibility on financial performance of insurance firms in Kenya

Abstract

Thestudy sought to investigate the effects of CSR on the financial performance of insurance firms in Kenya. The study considered the three forms of CSR –Environmental CSR (ECSR), Philanthropic CSR and Community Development CSR as the independent variables and financial performance as the dependent variable. The study employed a descriptive research design to test for the effects of CSR on financial performance of insurance firms in Kenya measured by ROA. Investment in CSR was measured using monetary expenditure on CSR initiatives. Secondary data was obtained from audited financial statements, websites, publications and annual reports for the years 2008 to 2017. The objectives of the study were; to examine the effect of environmental CSR on the financial performance of insurance firms in Kenya, to establish the effects of philanthropic CSR on the financial performance of insurance firms in Kenya and to determine the effects of community development CSR on the financial performance of insurance firms in Kenya.