THE EFFECTS OF CORPORATE SOCIAL RESPONSIBILITY ON FIRMS PERFORMANCE IN NIGERIA
Iyabo Adeyanju Felicia, Mukhtar Shehu Aliyu, PhD and Aminu Bello Muhammad, PhD
Volume 11 Issue 7
Abstract
This study examines the influence of Corporate Social Responsibility (CSR) on the financial performance of cement manufacturing companies in Nigeria, with a specific focus on BUA, Lafarge and Dangote cement factories. The research objectives were to assess the effects of philanthropic and ethical responsibilities on the financial performance of the selected companies. It was measured by using gross margin obtained from annual reports spanning 2011 to 2022 and cost benefit analysis from qualitative data obtained from employees in the CSR and financial department of the cement manufacturing companies. Quantitative data analysis included descriptive statistics such as mean, standard deviation, skewness, kurtosis, pooled, fixed and random effects models and the Hausman specification test. Qualitative analysis was carried with thematic analysis. The findings reveal significant associations between certain CSR dimensions and performance, with ethical responsibilities demonstrating positive effects. However, philanthropic responsibilities were found to have non-significant impacts on firm performance. The study underscores the importance of sector-specific analyses in understanding CSR-performance dynamics and highlights implications for strategic decision-making and policy formulation in the Nigerian cement manufacturing sector. These findings contribute to the broader discourse on CSR and firm performance, emphasizing the need for nuanced approaches to CSR implementation and measurement tailored to industry context Keywords: Corporate Social Responsibility (CSR), Firm Performance, Ethical, Philanthropic, Financial
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