Effect of Human Resource Contribution and Environmental Aspect of Corporate Social Reporting on Firm Performance

Abstract

The purpose of this study was to investigate the effect human resource contribution and environmental contribution on firm performance in Nairobi Security Exchange (NSE) Kenya. Legitimacy Theory was used in the study. This research study covered population of 44 firms listed in Nairobi security exchange in Kenya operating consistently in the security exchange during the period 2005-2010 giving a total of 264 firms’ year observation. Inferential statistics comprised of correlation and regression analysis method. The study findings revealed that Human Resource Contribution and Environmental Contribution have a positive effect on the firm performance. From findings, the study concluded that human resource and environmental issues contributions affect the performance of firms’ particularly environment contribution. The study collective results help to explain why firms should disclose reports. The results also assist CSR practitioners in convincing top management that transparent voluntary environmental disclosures are informative in terms of enhancing firm performance.