Corporate Social Responsibility And Financial Performance Of The Nigeria Consumer Goods Sector

Abstract

This study adopts an expo facto research design. The aim is to examine the
effect of Corporate Social Responsibility (CSR) on the financial performance
of quoted firms in the consumer goods sector in Nigeria. A total of twenty
eight quoted firms in Nigeria stock exchange market under the consumer
goods sector constitute the population, out of which fifteen firms with up-todate financial information are selected and analyzed. Data are extracted
from corporate annual reports and accounts of the selected firms for the
period 2012-2015. Data for corporate social responsibility proxy by
environmental expenditures are extracted from the sustainability reports
and firm's financial performance. This is determined by return on assets
(ROA), return on shareholders fund (ROSF), and lastly return on capital
employed (ROCE). In testing the research hypotheses, simple regression
techniques is used. The findings reveal that Corporate Social Responsibility
has significant effect on return on Shareholders’ funds and return on capital
employed of quoted firms. Also, Corporate Social Responsibility has a
positive relationship but insignificant impact on return on assets. Based on
the findings, it is recommended that organizations incorporate corporate
social responsibility agenda into their corporate strategy to improve their
financial performance.