THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON FINANCIAL PERFORMANCE IN THE CASE OF NILE INSURANCE SHARE COMPANY

Abstract

The primary objective of this study was to investigate the influence of corporate social responsibility (CSR) variables, including ethical, economic, philanthropic, and community development, on the financial performance of Nile Insurance at the head office. The research employed a descriptive and explanatory survey design, utilizing both quantitative approaches and primary and secondary data sources. Primary data was collected through questionnaires distributed to all departments and heads directly responsible for CSR-related issues, while secondary data was obtained from annual reports and other published documents of the insurance company. A structured questionnaire was used to measure the level of CSR, and financial performance was evaluated in terms of return on assets (ROA). A total of 110 employees participated in the study. The data was analyzed using SPSS software, employing descriptive and inferential statistics. Reliability was assessed using the Cronbach alpha test, and inferential analyses included ANOVA, Pearson correlations, and linear regression modeling. The results reveal that the three CSR variables (economic, community development, and philanthropic) were positively related to financial performance, with economic responsibility being the most significant predictor. However, ethical responsibility had an insignificant and negative effect on financial performance. The study suggests that Nile Insurance should reassess its approach to ethical responsibility within its CSR strategy to enhance financial performance and reallocate resources towards other CSR activities with a more positive impact.