Abstract:
The issue of corporate social responsibility (CSR) strategy is gaining significant attentions
among scholars in this millennium. It is seen as a new approach for companies, particularly,
multinational companies (MNCs) operating in developing countries to independently take
actions that lead to better levels of societal development while simultaneously creating business
values. This study therefore examined the nexus between CSR strategy and business values of
MNCs in Ghana. The study also assessed whether MNCs’ strategic orientation will mediate the
relationship between CSR strategy and business values in Ghana. The study adopted quantitative
research methodology. Employees of selected MNCs in Ghana were sampled. A total of 267
valid and usable questionnaires were used for the analysis. Structural equation modelling (SEM)
was used to analyse the data to address the hypothesized relationships. The study shows that
CSR implementation positively predicts business values (economic value, human capital value
and reputational value). Additionally, the results indicate that CSR strategy significantly creates
business values. However, CSR implementation proved to be better predictor of business values
than CSR strategy, thus, emphasizing the age old adage that the sweetness of the pudding is in
the eating. Furthermore, the strategic orientation of MNCs was found to also contribute
indirectly to the effect of CSR implementation and CSR strategy on business values. This study
therefore, concludes that CSR must not be regarded as a cost centre, but an investment
instrument that can accrue various dividends such as improved financial status, better human
capital outcomes, attractive and appealing corporate reputations. CSR strategies should be
strategically integrated or aligned with the firm’s strategic orientation. In this way, CSR strategy
will continue to play its rightful roles in creating a healthy business and a just society, as well as
maximizing nature’s resources while minimising harms to the natural environment.
