EXPLORING SUSTAINABILITY REPORTING FOR FINANCIAL PERFORMANCE OF SELECTED COMPANIES LISTED AT THE NAIROBI SECURITIES EXCHANGE IN KENYA
Charles N. Ngatia - Lead Consultant, Sotian Solutions Limited, Kenya
ABSTRACT
The objective of this study is to examine the sustainability reporting and financial performance of selected companies listed at the Nairobi securities exchange in Kenya. The study adopted a descriptive research design aimed at investigating the sustainability reporting and performance of a selected companies listed at the Nairobi securities exchange in Kenya. The target population of this study was the 1144 management staff working in companies listed at the Nairobi securities exchange in Kenya. The primary research data was collected from the management staff working in companies in Kenya and secondary data was collected from newspapers, published books, internet, journals and magazines as well as other sources such as the annual reports and financial statements. The quantitative data in this research was analyzed by descriptive statistics using statistical package for social sciences (SPSS) version 21. Descriptive statistics includes mean, frequency, standard deviation and percentages was used to present the findings and major patterns emerging from the data. In addition, a multivariate regression model was applied to determine the relative importance of each of the three variables with respect to companies’ financial performance. Overall the study found that social disclosure had the greatest effect on financial performance of companies followed by uniqueness of resources and proficiency disclosure while environment conservation disclosure had the least effect. The study also deduced that procurement practices and market presence affect the financial performance of companies to a very great extent while tax compliance and jobs created affect financial performance of companies to a great extent. The study further found that recycling and reusing of water and energy use affect the financial performance of the company to a very great extent. Pollutants emitted and Carbon foot print affects the financial performance of companies to a great extent. The study also concludes that companies offer affordable services through lower tariffs. The study further concludes that most companiess manage their own carbon foot print to offset their operational emissions through purchasing credits while some apply the six principles of green procurement. The study recommends that companies stimulate local cultures and education to the public, provide information on non-financial matters should be improved, as this increases transparency. Companies should increase their environmental awareness and involvement, and try to reduce their negative damaging effect on it as well as stimulating environmental friendly projects by providing finance/funding.
