Determinants of Corporate Social Responsibility Budgets in Public Sector Organizations: Evidence from Tanzanian Water Supply and Sanitation Authorities

Abstract

This study examine the determinants of budget size for corporfate social responsibility investment in the public sector, focusing on water supply and sanitation authorities in Tanzania. Using a restrospective longitudinal research design, quantitative data were collected from 114 water supply and sanitation authorities' annual reports, budget reports and performance reviews over a five years period (2015-2019). Data were analyzed using the fixed effect insrumental variable estimation technique. the findings indicate that the budget size for corporate social responsibility investment is determined by; revenue collection efficiency, organizational indebtedness, corporate social responsibility spending prior to the year of budget, organization size and age. this study contribute to the literature by including the historical trend on actual corporate social responsibility spending, addressing the previous overlooked factor. the study recommends that policy makers establish specific policy mandating a minimum budget allocation, such percentage of revenue collection, to ensure consistency and committed corporate social responsibility engagement by water supply and sanitation authorities in Tanzania.