Assessing the impact of corporate social responsibility spending on performance of water supply and sanitation authorities in Tanzania

Abstract

This paper assesses the impact of corporate social responsibility spending on the performance of water supply and sanitation authorities in Tanzania. Revenue collection efficiency and non-revenue water were used as performance proxies. The study employed a retrospective longitudinal research design with a quantitative approach, utilizing secondary data from 114 water supply and sanitation authorities over five years (2015–2019). Both random and fixed effect estimation techniques were applied to determine the impact of CSR spending on performance. The results indicate a significant positive effect of CSR spending, notably enhancing revenue collection efficiency and reducing non-revenue water. Additionally, control variables such as organization size, age, number of employees, and customer complaints significantly impact performance. This study provides a nuanced understanding of how CSR spending in the public sector, specifically within water supply and sanitation authorities, can improve revenue collection efficiency and minimize non-revenue water. It emphasizes the importance of CSR activities in the water sector and advocates for policies promoting CSR to enhance organizational performance.

Keywords

• Corporate social responsibility spending
• Performance water sector
• Water sector
• Tanzania