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.
