The effect of philanthropic activities on company’s profitability

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July, 2015
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This thesis sought to examine the philanthropic activities policies of six companies in Ghana and the associated benefits enjoyed by Ghanaians. Specifically, the thesis aimed at determining the effect of philanthropic activities on company‘s profitability, value creation and image enhancement it have on company‘s products and services. The methodology used in gathering the fact was mainly secondary data sources. Data on the selected companies‘ financial statements were collected, collated and analyzed using tables and graphs for easy interpretation. Purposive sampling techniques were used for the study. It was revealed from the research that, philanthropic activities have positive relationship with profitability, image enhancement and value creation. The study recommends among others that philanthropy responsibility projects should be well structured and implemented to the fullest in order to have maximum impact. In addition, organizations should liaise with community authorities to identify areas or opportunities available to them to better the lives of the people and therein enhance profit potentials through the provision of social amenities. This will go a long way to improve the general living standards of the people thereby sustaining organizational positioning.
A Thesis submitted to the Department of Accounting and Finance, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the degree of Master of Business Administration (Finance Option)