Corporate social responsibility and access to finance among Ghanaian SMEs: The role of stakeholder engagement

Abstract

This paper investigates whether stakeholder engagement mediates the relationship between corporate social responsibility and access to external finance. The study relied on primary data ascertained from 423 SMEs operating within the Accra Metropolis of Ghana. The data were analyzed using partial least-squares estimation technique. The study revealed the mechanism through which CSR initiatives assist firms to access external finances. It was established that firms that engage more with their stakeholders are better positioned to access financial resources from external sources. Hence, it was recommended that SME managers should involve their stakeholders in the design of their CSR programs. The paper contributes to our knowledge of the CSR literature by showing how CSR initiatives influence firms’ access to finance among SMEs in developing economies.

Keywords

• corporate social responsibility
• access to finance
• stakeholder engagement
• capital constraints
• financial resources
• smes