Corporate Social Responsibility and Financial Performance of Nawiri Sacco Society Limited in Embu County, Kenya

This study explored the relationship between Corporate Social Responsibility (CSR) and financial performance in the context of Nawiri Sacco Society Limited in Embu County, Kenya. Given the dynamic nature of CSR and the divergent results from global studies on its impact on financial performance, this research aimed to shed light on whether CSR activities contributed positively to Nawiri Sacco's financial outcomes. Specifically, it examined how stakeholder expectations, regulatory compliance, CSR-related costs and risks, and industry characteristics affected the Sacco’s financial performance. The research employed a regression model to evaluate these factors, with a notable emphasis on how stakeholder pressures and regulatory frameworks shaped CSR's financial implications. Data was collected from 85 executive members through structured questionnaires, achieving an impressive 88.9% response rate, which supported the reliability of the results.The findings indicated a significant relationship between CSR and financial performance, revealing mixed effects among the different CSR factors. For instance, stakeholder expectations showed a negative impact on financial performance, suggesting that while stakeholder engagement was critical, excessive focus could strain financial resources. Conversely, regulatory compliance, cost implications, and industry characteristics demonstrated a positive association, highlighting the potential of CSR to improve financial outcomes when effectively managed. These insights reinforced the need for a balanced CSR strategy that aligned with both social responsibilities and financial goals. This study contributed to existing literature by focusing on a Sacco's CSR practices, adding a unique perspective on how socially responsible initiatives could affect financial performance in cooperative institutions, particularly within the Kenyan context.