Abstract

Over the last four decades, the pressure on organizations to engage in CSR has increased. Being socially responsible involves costs and therefore, it should be beneficial to the business and improve sustainability.

This study seeks to investigate the influence of Corporate Social Responsibility (CSR) on financial performance of Small and Medium-Sized Enterprises in Cameroon. To achieve these objectives, the study employed a descriptive survey design to sampled 150 correspondents of SMEs using a structure-questionnaire.

The data was then analyzed using Multiple regression analysis. The hypothesis was tested using the analysis of variance (ANOVA) statistical technique at 0.05 significant levels.

It was seen that philanthropic CSR activities have a positive significant effect on the performance of SMEs at 95% confidence interval, where SMEs engagement in philanthropic activities recorded an increase in the financial performance of (β1=0.601, P<0.05).

It was also revealed that SMEs engagement in Ethical CSR activities also recorded an increase in financial performance of (β2=0.531, P<0.05) and environmental (β3=0.323, P<0.05).

It was concluded that SMEs engaged in philanthropic CSR activities, Ethical CSR activities and Environmental CSR activities had an increase in ROA, ROE and ROI.

Based on the findings, it was suggested that the Cameroon government should provide incentives (tax incentives) to SMEs that are engaged in CSR activities, this will help encourage SMEs to be engaged more in CSR practices.