The catalytic effect of digitalization and health measures during COVID-19 on corporate social responsibility in the African context
Authors: Ben Romdhane Youssra , Elamine Maryam 
Published: November 2024

Purpose

This study aims to examine the effect of digitalization and sanitary measures during the COVID-19 pandemic on corporate social responsibility (CSR) in the African context. While CSR has traditionally been analyzed in developed markets, this paper explores how multinational subsidiaries can leverage CSR practices to create financial opportunities and market stability for themselves and their communities in Africa.

Design/methodology/approach

The authors use a panel of data from six listed African companies for the period ranking from January 2006–2022 to analyze the effect of financial performance (FP), digitalization and health measures on the social responsibility of these companies. The authors provide a robust test that improves the understanding of the impact of pandemics and innovation on CSR, using Machine Learning (ML) linear regression.

Findings

The results show that the social responsibility of African companies is highly dependent on FP and digitalization. On the other hand, the authors demonstrate that the moderating role of epidemic instability negatively affects social responsibility through FP, but on the other hand strengthens CSR in the presence of digitalization. The results of the initial analysis remain largely unchanged, demonstrating the validity and robustness of the empirical results through ML models. This article highlights some of the obstacles and opportunities for CSR adapted to the crisis context. The authors conclude that adjusting innovation strategies improves the forecasting performance of responsible companies, especially in a context of instability.

Research limitations/implications

The paper clearly shows that CSR literature varies across different regions. Given that the financial market in Africa is characterized by a lack of opportunity for innovation as well as financial stability, this paper represents an important first step in the elaboration of a CSR development strategy. In light of the results presented above, the study makes an important contribution to the literature on CSR, in particular the CSR practices of multinationals in developing countries and also provides CSR managers with various insights into the types of support they will need to leverage and improve the internal underpinnings of their CSR strategies and collaboration.

Practical implications

The results of this study contribute to the understanding of digital transformation in responsible business, offering empirical evidence of its benefits in tackling the health crisis. In addition, the study highlights the role of an innovative approach in enhancing reputation and developing sustainable, trusting relationships with stakeholders.

Originality/value

This research pioneers the academic link between innovation and epidemic crisis in responsible business, filling a notable gap and introducing a new academic perspective. In concrete terms, it provides women entrepreneurs with actionable insights into the digital strategies essential to improving business performance in a context of instability. Methodologically, the study sets a benchmark for research innovation, using ML to provide a reproducible model for exposing robust results and for future research in this evolving field.