Corporate Social Responsibility and the Performance of Non-finance Firms in Nigeria

Henry Osahon Osazevbaru; Vincent Ivwighrevero Oruwevwiruohwo Odiri; Garba Hassan Yahaya

doi:doi:10.11648/j.ijber.20211006.11

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Corporate Social Responsibility and the Performance of Non-finance Firms in Nigeria

Henry Osahon Osazevbaru, Vincent Ivwighrevero Oruwevwiruohwo Odiri, Garba Hassan Yahaya

Published in International Journal of Business and Economics Research (Volume 10, Issue 6)

Received: 12 October 2021 Accepted: 5 November 2021 Published: 17 November 2021

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Abstract

This study assessed the effect of corporate social responsibility on organizational performance by means of expo-facto research design. Secondary data of seventy-five (75) listed non-finance firms were obtained for the period 2010-2019. Corporate social responsibility (CSR) variants of local community disclosure, social donations and gifting, employees training disclosure, and health and safety disclosure, and performance proxies of gross profit margin, profit before tax margin, return on equity, and earnings before tax margin were obtained from the annual reports and accounts of the listed non-finance firms. The yearly panel data obtained was analyzed using both descriptive and inferential statistics. The fixed and random effects result indicated that while corporate social responsibility significantly affects gross profit margin, profit before tax margin and earnings before tax margin, insignificant effect was found for the return on equity. Given the findings of the study, it was recommended among others that firms should gear efforts toward providing sustained and enhanced social responsibility activities in the areas of employees’ health and safety, community development projects, customers’ complaints, and social donations and gifting in order to attain maximum performance as well as competitive advantage. Again, firms should see CSR as a dynamic investment which promotes crucial attitudes of employees, local community and consumers, instead of simply being a cost to the firm.

Published in	International Journal of Business and Economics Research (Volume 10, Issue 6)
DOI	10.11648/j.ijber.20211006.11
Page(s)	209-218
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

CSR Disclosure Indexes, Financial Performance, Internal Environment, Society, Stakeholders

References

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APA Style

Henry Osahon Osazevbaru, Vincent Ivwighrevero Oruwevwiruohwo Odiri, Garba Hassan Yahaya. (2021). Corporate Social Responsibility and the Performance of Non-finance Firms in Nigeria. International Journal of Business and Economics Research, 10(6), 209-218. https://doi.org/10.11648/j.ijber.20211006.11

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ACS Style

Henry Osahon Osazevbaru; Vincent Ivwighrevero Oruwevwiruohwo Odiri; Garba Hassan Yahaya. Corporate Social Responsibility and the Performance of Non-finance Firms in Nigeria. Int. J. Bus. Econ. Res. 2021, 10(6), 209-218. doi: 10.11648/j.ijber.20211006.11

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AMA Style

Henry Osahon Osazevbaru, Vincent Ivwighrevero Oruwevwiruohwo Odiri, Garba Hassan Yahaya. Corporate Social Responsibility and the Performance of Non-finance Firms in Nigeria. Int J Bus Econ Res. 2021;10(6):209-218. doi: 10.11648/j.ijber.20211006.11

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@article{10.11648/j.ijber.20211006.11,
  author = {Henry Osahon Osazevbaru and Vincent Ivwighrevero Oruwevwiruohwo Odiri and Garba Hassan Yahaya},
  title = {Corporate Social Responsibility and the Performance of Non-finance Firms in Nigeria},
  journal = {International Journal of Business and Economics Research},
  volume = {10},
  number = {6},
  pages = {209-218},
  doi = {10.11648/j.ijber.20211006.11},
  url = {https://doi.org/10.11648/j.ijber.20211006.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20211006.11},
  abstract = {This study assessed the effect of corporate social responsibility on organizational performance by means of expo-facto research design. Secondary data of seventy-five (75) listed non-finance firms were obtained for the period 2010-2019. Corporate social responsibility (CSR) variants of local community disclosure, social donations and gifting, employees training disclosure, and health and safety disclosure, and performance proxies of gross profit margin, profit before tax margin, return on equity, and earnings before tax margin were obtained from the annual reports and accounts of the listed non-finance firms. The yearly panel data obtained was analyzed using both descriptive and inferential statistics. The fixed and random effects result indicated that while corporate social responsibility significantly affects gross profit margin, profit before tax margin and earnings before tax margin, insignificant effect was found for the return on equity. Given the findings of the study, it was recommended among others that firms should gear efforts toward providing sustained and enhanced social responsibility activities in the areas of employees’ health and safety, community development projects, customers’ complaints, and social donations and gifting in order to attain maximum performance as well as competitive advantage. Again, firms should see CSR as a dynamic investment which promotes crucial attitudes of employees, local community and consumers, instead of simply being a cost to the firm.},
 year = {2021}
}

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TY  - JOUR
T1  - Corporate Social Responsibility and the Performance of Non-finance Firms in Nigeria
AU  - Henry Osahon Osazevbaru
AU  - Vincent Ivwighrevero Oruwevwiruohwo Odiri
AU  - Garba Hassan Yahaya
Y1  - 2021/11/17
PY  - 2021
N1  - https://doi.org/10.11648/j.ijber.20211006.11
DO  - 10.11648/j.ijber.20211006.11
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 209
EP  - 218
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20211006.11
AB  - This study assessed the effect of corporate social responsibility on organizational performance by means of expo-facto research design. Secondary data of seventy-five (75) listed non-finance firms were obtained for the period 2010-2019. Corporate social responsibility (CSR) variants of local community disclosure, social donations and gifting, employees training disclosure, and health and safety disclosure, and performance proxies of gross profit margin, profit before tax margin, return on equity, and earnings before tax margin were obtained from the annual reports and accounts of the listed non-finance firms. The yearly panel data obtained was analyzed using both descriptive and inferential statistics. The fixed and random effects result indicated that while corporate social responsibility significantly affects gross profit margin, profit before tax margin and earnings before tax margin, insignificant effect was found for the return on equity. Given the findings of the study, it was recommended among others that firms should gear efforts toward providing sustained and enhanced social responsibility activities in the areas of employees’ health and safety, community development projects, customers’ complaints, and social donations and gifting in order to attain maximum performance as well as competitive advantage. Again, firms should see CSR as a dynamic investment which promotes crucial attitudes of employees, local community and consumers, instead of simply being a cost to the firm.
VL  - 10
IS  - 6
ER  -

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Author Information

Henry Osahon Osazevbaru

Department of Business Administration, Faculty of the Social Sciences, Delta State University, Abraka, Nigeria
Vincent Ivwighrevero Oruwevwiruohwo Odiri

Department of Business Administration, Faculty of the Social Sciences, Delta State University, Abraka, Nigeria
Garba Hassan Yahaya

Department of Business Administration, Faculty of the Social Sciences, Delta State University, Abraka, Nigeria

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APA Style

Henry Osahon Osazevbaru, Vincent Ivwighrevero Oruwevwiruohwo Odiri, Garba Hassan Yahaya. (2021). Corporate Social Responsibility and the Performance of Non-finance Firms in Nigeria. International Journal of Business and Economics Research, 10(6), 209-218. https://doi.org/10.11648/j.ijber.20211006.11

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ACS Style

Henry Osahon Osazevbaru; Vincent Ivwighrevero Oruwevwiruohwo Odiri; Garba Hassan Yahaya. Corporate Social Responsibility and the Performance of Non-finance Firms in Nigeria. Int. J. Bus. Econ. Res. 2021, 10(6), 209-218. doi: 10.11648/j.ijber.20211006.11

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AMA Style

Henry Osahon Osazevbaru, Vincent Ivwighrevero Oruwevwiruohwo Odiri, Garba Hassan Yahaya. Corporate Social Responsibility and the Performance of Non-finance Firms in Nigeria. Int J Bus Econ Res. 2021;10(6):209-218. doi: 10.11648/j.ijber.20211006.11

Copy | Download

@article{10.11648/j.ijber.20211006.11,
  author = {Henry Osahon Osazevbaru and Vincent Ivwighrevero Oruwevwiruohwo Odiri and Garba Hassan Yahaya},
  title = {Corporate Social Responsibility and the Performance of Non-finance Firms in Nigeria},
  journal = {International Journal of Business and Economics Research},
  volume = {10},
  number = {6},
  pages = {209-218},
  doi = {10.11648/j.ijber.20211006.11},
  url = {https://doi.org/10.11648/j.ijber.20211006.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20211006.11},
  abstract = {This study assessed the effect of corporate social responsibility on organizational performance by means of expo-facto research design. Secondary data of seventy-five (75) listed non-finance firms were obtained for the period 2010-2019. Corporate social responsibility (CSR) variants of local community disclosure, social donations and gifting, employees training disclosure, and health and safety disclosure, and performance proxies of gross profit margin, profit before tax margin, return on equity, and earnings before tax margin were obtained from the annual reports and accounts of the listed non-finance firms. The yearly panel data obtained was analyzed using both descriptive and inferential statistics. The fixed and random effects result indicated that while corporate social responsibility significantly affects gross profit margin, profit before tax margin and earnings before tax margin, insignificant effect was found for the return on equity. Given the findings of the study, it was recommended among others that firms should gear efforts toward providing sustained and enhanced social responsibility activities in the areas of employees’ health and safety, community development projects, customers’ complaints, and social donations and gifting in order to attain maximum performance as well as competitive advantage. Again, firms should see CSR as a dynamic investment which promotes crucial attitudes of employees, local community and consumers, instead of simply being a cost to the firm.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Corporate Social Responsibility and the Performance of Non-finance Firms in Nigeria
AU  - Henry Osahon Osazevbaru
AU  - Vincent Ivwighrevero Oruwevwiruohwo Odiri
AU  - Garba Hassan Yahaya
Y1  - 2021/11/17
PY  - 2021
N1  - https://doi.org/10.11648/j.ijber.20211006.11
DO  - 10.11648/j.ijber.20211006.11
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 209
EP  - 218
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20211006.11
AB  - This study assessed the effect of corporate social responsibility on organizational performance by means of expo-facto research design. Secondary data of seventy-five (75) listed non-finance firms were obtained for the period 2010-2019. Corporate social responsibility (CSR) variants of local community disclosure, social donations and gifting, employees training disclosure, and health and safety disclosure, and performance proxies of gross profit margin, profit before tax margin, return on equity, and earnings before tax margin were obtained from the annual reports and accounts of the listed non-finance firms. The yearly panel data obtained was analyzed using both descriptive and inferential statistics. The fixed and random effects result indicated that while corporate social responsibility significantly affects gross profit margin, profit before tax margin and earnings before tax margin, insignificant effect was found for the return on equity. Given the findings of the study, it was recommended among others that firms should gear efforts toward providing sustained and enhanced social responsibility activities in the areas of employees’ health and safety, community development projects, customers’ complaints, and social donations and gifting in order to attain maximum performance as well as competitive advantage. Again, firms should see CSR as a dynamic investment which promotes crucial attitudes of employees, local community and consumers, instead of simply being a cost to the firm.
VL  - 10
IS  - 6
ER  -

Copy | Download