The Relationship between Corporate Social Responsibility and Firm Performance; Case of Kilimanjaro Airport Development Company, Tanzania

Corporate social responsibility has been in the cycle of intensive discussion among scholars on whether when practised has any effect on the firm’s performance. Some firms especially small ones tend to ignore the concept of corporate social responsibility while others take pride and fully involve themselves. The question has been whether it has any positive effect on the overall firm performance. The purpose of the study was to determine the relationship between corporate social responsibility and the performance of Kilimanjaro Airports Development Company (KADCO). The study explored different financial and non-financial aspects of KADCO’s performance. A descripto-explanatory research design was used covering a stratified simple random sample of 377 respondents drawn from a target population of 20, 000. The collected data was analysed using descriptive and inferential statistical tools. Whereas means and standard deviation were used to determine and explain variable characteristics, inferential statistics was used to establish and explain variable relationships and making predictions (inferences) from the sample data. The study established a statically significant and positive relationship between corporate social responsibility and performance of Kilimanjaro Airport Development Company. The relationship between discretionary social responsibility and performance of Kilimanjaro Airport Development Company was established at r=.692, p=.000. The effect of ethical social responsibility on performance was positive and significant at 0.691, p=.000. The effect of legal social responsibility on performance was established at 0.645, p=.000 while that of economic social responsibility was established at 0. .618**. Therefore, all independent variables had a positive influence on performance of Kilimanjaro Airport Development Company. The study recommends that Kilimanjaro Airport Development Company should continue to engage itself in corporates social responsibility.