An Exploration of Corporate Social Responsibility Executives’ Perspectives of Corporate Social Responsibility Reporting and Stakeholder Management in Ghana

Abstract

This study examines the perspectives of CSR executives on CSR reporting and stakeholder management in Ghana. Using a qualitative research approach, out of a total sample of 20 firms, the study sought the views of ten (10) CSR executives from companies that have been consistent on the Ghana Club 100 over the 2010 - 2012 (three) period. Respondents were selected using the purposive and stratified sampling techniques. The descriptive and thematic analyses were used to draw and discuss the central themes in relation to the research objectives. The findings indicate that CSR information of companies was disclosed using not only embedded and standalone reports but through other outlets including; corporations’ websites, newsletters, press conferences and at verbal presentations during AGMs of shareholders. Companies were found to take advantage of voluntarily reporting their corporate philanthropic activities in order to generate mileage; enhance their reputation and brand; attract investors and further contracts; enlarge their clientele base and to win awards. Besides, in order to elude pressure groups and enhance credibility, companies adopted effective means to manage their stakeholders for the ultimate purpose of ensuring survival and enhancing performance. The findings also show that CSR reports of companies serve as a tool that helps in correcting negative perceptions stakeholders have about firms. It was also observed that the absence of effective communication of CSR actions may fuel stakeholder scepticism which may be significantly detrimental to the effectiveness of managing stakeholder groups. In addition, whereas factors such as nature of ownership, age and size of the firm were observed to be important in promoting evidence on voluntary CSR reportage of companies, profitability was found to produce inconclusive evidence on CSR reporting. Furthermore, most firms do not seem to have significant challenges in preparing and reporting their CSR mainly due to companies having engaged in restricted CSR activities and committed to selective CSR reporting. In managing stakeholders however, some companies are challenged with balancing the conflicting interests of diverse stakeholders. For effective CSR reportage, it is recommended that policy makers and regulatory bodies provide and promote homogenous guidelines not only for listed but all business entities operating in the country. This study suggests that companies in Ghana should adopt appropriate mechanisms that promote the implementation of stakeholder management policies at firm-level and take cognizance of the stakeholder involvement strategy which is a two-way proactive communication approach of engaging stakeholders. This will foster trust thereby helping to boost stakeholder confidence. Finally, firms are encouraged to provide more detailed, informative and nuanced CSR reports that are capable of meeting the information needs of their various publics.