CSR Practices of Multinational Companies (MNCs) and Community Needs in Africa: Evidence of Selected MNCs from Ghana

Very little literature has been written on corporate social responsibility (CSR) activities of multinational companies (MNCs) and community needs in Ghana and Africa. Studies published pertaining to CSR in Africa is still relatively few. The relationship between company size and CSR activities has not been established through research in Ghana and Africa. Many MNCs in Ghana and Africa are striving to paint a picture of their companies as being highly socially responsible due to competition in the global market. The aim of this paper is to investigate the effects of the CSR contributions of Multi National Companies (MNCs) on local communities. This study also focused on investigating the reasons for the numerous CSR activities by these MNC’s and the benefits that these communities get. Five MNC’s (Vodafone, MTN, Unilever, Nestle and Shell) CSR activities were selected because they have invested heavily in CSR in Ghana for the past decade and their CSR activities are well known in the Ghanaian communities and directly affect communities in Ghana. The study revealed and tabulates various benefits that CSR activities bring to local communities and also the benefits that MNCs also get from engaging in the various CSR activities. The study discusses how CSR activities of MNCs in developing countries differ from developed countries and proposes a conceptual framework to point out the relationship between CSR activities and stakeholder engagement especially local community in Ghana. The framework suggest there could be positive or negative effect of CSR activities on local community and hence MNCs will have to be strategic about their CSR activities in order to reap maximum benefits and minimize negative effects.