Socio-economic Performance of Manufacturing Companies in Urban Ghana

Abstract

The integration of sustainable development practices including environmental management accounting, environmental performance assessment, social equity, economic efficiency and corporate social performance into the daily management portfolios of business has acted as the catalyst towards the socio-economic performance of businesses. This paper explored the effects of environmental sustainability practices on socio-economic performance of manufacturing companies in urban Ghana. The study involved six manufacturing companies. Using the cross-sectional design with a two-stage sampling technique, 600 respondents were selected from the 6 companies. The hypothetical model was tested using regression analysis, to verify the hypothetical relationships between variables in the study. A 2-tailed test involving Pearson product-moment correlation coefficient was run to ascertain the relationship between ESPs and economic performance of MCs. The results of the study from the model Summary showed R Square of 0.813 indicating that about 81% of the socio-economic performance of manufacturing companies is accounted for by environmental sustainability practices (ESPs). There is a significant negative profit margins in the operational activities of companies (-0.550) at 0.01 due to ESPs in the company. It is concluded that environmental sustainability practices relate to socio-economic performance of manufacturing companies.

Keywords: Environmental sustainability practices, environmental accountability, corporate sustainability performance, environmental citizenship, environmental injustice, manufacturing companies, Ghana

DOI: 10.7176/EJBM/11-15-09

Publication date:May 31^st 2019