Effect of Corporate Social Responsibilities of Corporate Institutions on Their Host Communities: A Case of Ebonyi State University and Zenith Bank Plc.

Abstract

Corporate social responsibility by banks in Nigeria tends towards finding out
the extent of the benefits derivable by the community from the activities of banks in their environments. This becomes necessary because the banking and education sectors like other organizations both governmental and non-governmental have major roles to play in fast tracking the well-being of the society. This work therefore aims at studying the effect of Corporate Social Responsibilities of corporate institutions on their host communities: A case of Ebonyi State University and Zenith Bank Plc. The study used qualitative data and multiple regression techniques in the analysis. The result of the descriptive analysis shows strong positive relationships between corporate institutions and their host communities. The results of principal component analysis indicate that, there are two factors whose Eigenvalues exceed 1.0. Analysis of the correlation matrix indicates that a significant positive relationship between corporate social responsibility and host communities in Abakaliki. The regression estimation results reveal that the variables- monetary donation (MD) and non-monetary donations (NMD) are statistically significant in explaining the level of host community’s confidence in
bank corporate social responsibility in Abakaliki. The hypotheses testing shows that bank corporate social responsibility has helped in boosting host community’s confidence on bank social responsibility in Abakaliki. We therefore recommend that since CSR is generally seen to have positive relationship with financial performance (profitability) of banks, and cordial coexistence between the university system and the host community, corporate management should incorporate in their policies the practice of CSR, which should be followed up with measures to ensure implementation.