A Thesis/Dissertation Submitted in Partial/Fulfilment of the requirements for
Award of Degree of Master in Business Administration-Corporate Management
(MBA-CM) of the Mzumbe University
The study sought to assess effect of corporate social responsibility on local community
wellbeing in Tanzania. The specific objectives of this study were; to determine the effect of,
social, to find out environmental and to examine economic CSR dimensions on the local
community wellbeing in Ilala Municipality. A descriptive design was adopted with
questionnaire as data collection instrument involving 50 respondents who were community
members. A multiple regression analysis was performed to analyze the relationship between
an independent and a dependent variable to assess the effect of corporate social
responsibility on local community welfare. Findings indicate that, the CSR dimension of
environment significantly impact local community well-being. The environmental aspect in
CSR greatly impacts the well-being of local communities. Activities that do not erode
natural capital by responsible organizational environmental protection efforts are part of the
environmental element. Also findings indicate that the social aspect of CSR has an
significant impact on the health of local communities because the social dimension of CSR
activities help coordinating blood drives, supporting cancer patients or hosting charitable
events, encouraging employers to pay equal salaries based on the concept of adequacy,
fairness and human dignity, maintaining good relationships and promoting them. In addition
to that, it is revealed that economic aspect dimension of CSR has a profound impact on the
well- being of local populations, as CSR has helped societies to alleviate poverty, to support
the elderly, to enhance their quality of life and to sustain a safe atmosphere and to create job
opportunities for economically disadvantaged people. For example, the CRDB bank provides
1% of the profit to support the community socially and economically. The study concludes
that, all the three key dimensions of CSR have significant impact on local community’s wellbeing in regards to the findings. Social, environmental, and economic were found to be the
powerful predictors of community welfare. Since the environmental dimension of CSR has a
significant effect on local community well-being, hence, the policy makers should ensure
that organizations continue to be engaged in local community CSR operations to enhance the
wellbeing of residents by building environmental conservation equipment, ordinary
environmental assessments, tree planting, natural useful resourcing.