Corporate Social Responsibility (CSR) and Corporate Profitability in Africa: Non-Linearities, Synergies and Complementarities

Kwasi  Poku Appiah; Frank Boateng

doi:10.63029/0acg7212

Authors

Kwasi Poku Appiah University of Ghana Business School, Legon, Accra, Ghana Author
Frank Boateng University of Mines and Technology Author

DOI:

https://doi.org/10.63029/0acg7212

Keywords:

Stakeholder, Shareholder, Profitability, Corporate; Social Responsibility

Abstract

The study investigates the non-linear, synergistic, complementary, and long-term effects of corporate social responsibility on corporate profitability, with a focus on stakeholder responsibility and profitability in Africa. The study employs a dynamic Generalised Method of Moments panel-data approach, analysing 369 listed firms in Africa from 2006 to 2020. The findings show an inverted non-linear threshold effect of social and governance CSR on shareholder profitability, but not on stakeholder profitability, implying that the social and governance CSR might harm corporate shareholders beyond a certain level. Managers should exercise caution when selecting and combining CSR activities, as undertaking multiple initiatives simultaneously can create synergies that improve both stakeholders' and shareholders' profitability.

Author Biography

Kwasi Poku Appiah, University of Ghana Business School, Legon, Accra, Ghana

Kwasi Poku Appiah is a seasoned Chartered Accountant and Chartered Banker with over twenty‐five years’ distinguished experience in banking, finance, auditing, accounting, and executive leadership across Ghana. He holds a PhD in Accounting from the University of Ghana, with his thesis examining the nexus between Corporate Governance, Corporate Social Responsibility, and Corporate Profitability among listed firms in Africa. He also earned an MSc in Accounting & Finance from the University of Ghana Business School and a BSc in Administration (Accounting Option) from the University of Education, Winneba. Dr Appiah has held several senior positions, most recently as Managing Director of Tobinco Pharmaceuticals Ltd (2016–2019), where he provided strategic leadership, improved financial performance, strengthened internal controls, and increased profitability. Prior to that, he served as General Manager (Finance, Operations & IT) at the same company and held key roles, including Head of Operations at Golden Pride Savings and Loans and Utrak Savings and Loans, as well as Company Accountant at Utrak Financial Services. His earlier career included internal audit roles at Denkyiraman Rural Bank and Unilever Ghana, giving him deep expertise in governance, risk management, compliance, financial reporting, and operational excellence.

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