Impact of Corporate Social Responsibilty on Poverty Reduction: The Moderating Role of Organisational Demography. Evidence From Selected Firms in the Service Sector

Abstract

This study examined the role of Corporate Social Responsibility on poverty reduction from selected firms in the service sector in Ghana Club 100 of Ghana Investment Promotion Centre. Ten CSR and HR managers and twenty-one beneficiaries were purposively sampled and interviewed. Data gathered were analysed thematically. The study found that CSR initiatives have positive impact on poverty reduction because corporate engagement can help address social and economic challenges, although there are challenges. Some organisations used CSR as a public relations tool without making genuine commitments to social development. Additionally, CSR initiatives are often limited in scale and time, meaning that without sustainable, long-term investments, their impact on poverty can be minimal. The study revealed that organisational demography such as leadership style plays a central role in determining how CSR is integrated into the organisation operations. Participants emphasized that transformational leadership style influences CSR activities. However, many organisations are not motivated by the company location for their CSR activities, rather they prioritise areas with the greatest need such as deprived communities over proximity to their own business operations. Additionally, the study showed that health-related CSR activities were found to have the most significant impact on poverty reduction, followed by educational support and environmental protection initiatives while, philanthropic CSR activities was the most impactful CSR initiative on poverty reduction, legal CSR served as a minimum requirement for ethical business conduct rather than a proactive strategy for poverty reduction.