Nexus Between Corporate Social Responsibility Disclosure And Profitability Of Firms Listed At Dar Es Salaam Stock Exchange.

Abstract

Modern corporations are for people and the environment, making CSR disclosure essential. It is debatable if CSR disclosure influences corporate profitability. This study aims to demonstrate the relationship between CSR disclosure and the profitability of Dar es Salaam Stock Exchange-listed firms (DSE). The research used mixed methods with an explanatory sequential design on 21 publicly traded firms from 2006 to 2021. DSE and annual reports were mined for data. Interviews produced qualitative information. Using the Random Effect model with three estimates (1, 2, 3) and theme analysis, quantitative and qualitative data were analysed. Analysis revealed that CSR disclosure has a significant positive effect on firm profitability measured by ROA and ROE. Findings signify legitimacy and stakeholder theory in relation to CSR disclosure practices. CSR disclosure benefits the image, business, and public trust of a firm, as well as its sales. Managers should encourage CSR for image and commercial enhancement. Community and the firm rely on one another. CSR disclosure enhances community-business connections. The mixed study design, new control variables, and paucity of literature on the relationship between CSR disclosure and corporate profitability in east Africa contribute to the originality of this research.