Business Administration and Business Economics
Keywords:
Corporate Social Responsibility (CSR); Profitability; Corporate governance; Social responsible accountingAbstract
This study investigates the impact of Corporate Social Responsibility on profitability with
particular reference to the Nigeria financial services industry. The study employed a survey research
design. Primary data were collected using validated and reliable questionnaire instrument from sampled
managers of Nigeria financial Services industry in Sagamu, Ogun State and were found usable. A
sample size of 140 questionnaires was administered in this study. Correlation analysis was employed
as a statistical technique to analyze data collected using SPSS 17.0. The results revealed that corporate
social responsibility has a significant association with profitability. The study concludes that Nigeria
financial Services industry should recognize the importance of corporate social responsibility for
sustainable development as they perform their obligations to the society. And therefore, recommended
that management of Nigeria financial Services industry should continue support CSR activities because
any organization that does not invest much in corporate social responsibilities its long run existence is
threaten.
References
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development. Continental Journal Sustainable Development 2(2): 19 – 25.
Abosede, J. A., Obasan, K. A, & Raji, B. A (2001). Introductory text in research methodology for social
and management sciences students. Published by Olabisi Onabanjo University press.
Adeboye, O. R & Olawale, S. R. (2012). Corporate social responsibility and business ethics: effective
tools for business performance in Nigeria banks. Interdisciplinary Journal of Contemporary Research
Business, 4(5), 274 – 279.
Adeyanju, O. D (2012). An assessment of the impact of corporate social responsibility on nigerian
society: the examples and banking and communication industries. Universal Journal of Marketing and
Business Research, 1(1), 17 – 43. AI-beit University Mafraz, Jordan.
Ahmad, N. & Abdul, R. (2002). Awareness of the concept of corporate social responsibility among
malaysian managers in selected public listed companies.
Akindele, A. I. (2011). Corporate social responsibility: an organizational tool for survival in Nigeria.
African Journal for the Psychological Study of Social Issues, 19(2): 10-15.
Al- Hamadeen, R. (2002). Social responsibility accounting in Jordan hotel institutions, a field study,
unpublished.
Amaeshi, K., Adi, B., Ogbechie, C. & Amao, O. (2006).Corporate Social Responsibility in Nigeria:
Western Mimicry or Indigenous Influences. No. 39-2006, ICCSR Research Paper Series – ISSN 1479
– 5124.The University of Nottingham, pp. 4:17-25.
Amole, B. B., Adebiyi, S. O. & Awolaja, A. M. (2014). Corporate social responsibility and profitability
of Nigeria banks - a causal relationship. Research Journal of Finance and Accounting. 3(1), 6-17 .
Asika, N. (1991). Research methodology in the behavioural sciences. Published by Longman Nigeria
Plc.
Babalola Y.A. (2013). An impact of social audits on corporate performance: analyses of Nigerian
manufacturing firms. Research Journal of Finance and Accounting. 4(3), 96-101.
ByronS, W.J & Byron, S.J. (1982). In defense of social responsibility. Journal of Economics and
Business, 34(2), 189-192
Chapple, W. & Moon, J. (2005). Corporate social responsibility (CSR) in Asia, Business and society,
44(4), 415-441.
Dane, K. P. (2004).The relationship Between Perceptions of corporate citizenship and Organizational
Commitment. Business & society, 43(3), 296-319, Sage Publications
Emily, M. O., Mwalati, S. C., Robert, E., Musiega, D. & Maniagi, G. M. (2014). Effect of corporate
social responsibility on organization performance; banking industry Kenya, Kakamega County.
International Journal of Business and Management Invention. 3(4), 37-51.
Epstein, M. J. & Freedman, M. (1994). Social disclosure and the individual investor. Accounting,
Auditing & Accountability Journal, 7(4), 94-109.
Eyre, E. (1982). Dutch Bangla Bank Ltd. International Journal of Business and Social Research
(IJBSR), 3(4)
Folajin, O., Oluwaseun, T. & Dunsin, A. T. (2014). Corporate social responsibility and organizational
profitability: an empirical investigation of United Bank for Africa (UBA) Plc. International Journal of
Academic Research in Business and Social Sciences, 4(8).
Gray, R. H. (1988). Corporate Social Environmental Reporting: A review of the literature and a
longitudinal study of UK disclosure. Accounting, Auditing & Accountability Journal, 8(2), 47-77.
Gray, R. H., Javad, M. & Porter, D. M. (2001). Social and environmental disclosure and corporate
characteristics: a research note and extension. Journal of Business Finance and Accounting, 28(3), 327-
356.
Gray, R. H., Neimark, D. L. & Lehman, K. (1995). Corporate social reporting emerging trend in
accountability and the social contract. Accounting, Auditing and Accountability Journal, 1(1), 25-26.
Guthrine, J. & Parker, L. D. (1989). Corporate Social Reporting: a rebuttal of legitimacy theory.
Accounting and Business Research, 9(76), 343-352.
Hair, J., Black, W., Babin, B., Anderson, R., & Tatham, R. (2007). Multivariate data analysis. 6th ed.
New Jersey: Pearson Education, Inc
Islam, A. (2012). Corporate Social Responsibility (CSR) and issue to Corporate Financial Performance
(CFP): Empirical evidence on Dhaka Stock Exchange (DSE) listed banking companies in Bangladesh.
European Journal of Business and Management, 4(11).
Jamali, M. & Mirshak F. (2006). Corporate social responsibility and firms financial performance.
Journal of Academic Management 31(2), 854 – 872.
Lee, M. P. (2008). Review of the theories of corporate social responsibility: Its evolutionary path and
the road ahead. International Journal of Management Reviews, 10(1), 53-73.
Maignan, I. & Ferrell, O. C. (2004). Corporate social responsibility and marketing: an integrative
framework. Journal Academic Marketing Science, 32(1): 3-19
Maldonado-GuzmÃ, G., PinzÃn-Castro, S.Y. & Morales, C.L. (2017). Corporate Social Responsibility
and Firm Reputation in Mexican Small Business. Advances in Management and Applied Economics,
7(5), 1-3.
Margolis, J., Elfenbein, H. & Walsh, J. (2007). Does it pay to be good: a meta analysis and redirection
of research on the relationship between corporate social and financial mimeo. Harvard Business
School, Boston.
Marnelli. A. C. (2004). Mastering basic management. Hong Kong: Macmillan Press.
McGuire, J., Sundgren, A. & Schneeweis, T. (1988). Corporate social responsibility and firm financial
performance. Academy of Management Journal, 31(4), 854- 872.
McWilliams, A. & Siegel, D. (2001). Corporate social responsibility a theory of the firm Perspective.
Academy of Management Review. 26(1): 117-127.
Milne, M. J. (2002). Positive accounting theory, political costs and social disclosure analysis: a critical
look. Critical Perspectives on Accounting, 13, 369-395.
Moore, G. (2001). Corporate social and financial performance: an investigation in the U.K.
Supermarket industry. Journal of Business Ethics. 34(3/4), 299-316.
Nicolav, J. L. (2008). Corporate social responsibility, worth-creating activities. Annals of Tourism
Research, 35(4), 990-1006.
Odetayo, T. A, Adeyemi, A. Z, & Sajuyigbe, A. S. (2014). Impact of corporate social responsibility on
profitability of Nigeria banks. International Journal of Academic Research in Business and Social
Sciences, 4(8).
Ojo, O. (2010). Appraisal of the practice of social responsibility by business organizations in Nigeria.
Retrieved – December 18, 2013 from http://www.social responsibility.bus/companies/cull.pdf.
Olayinka, M. U. & Temitope, O. F. (2011).Corporate social responsibility and financial performance
in developing economies-the Nigerian experience. New Orleans, New Orleans International Academic
Conference, 815-824.
Orlitzky, M., Frank, L. S, & Sara L. R. (2003). Corporate social and financial performance a metaanalysis.
Organization Studies 24 (3, 403–441). London: SAGE Publication
Peter, K. B. & Arzizeh, T. T. (2012). Social responsibility cost and its influence on the profitability of
Nigerian banks. International Journal of Financial Research, 3(4).
Richard, E. O. & Okoye, V. (2013). Impact of corporate social responsibility on the deposit money
banks in Nigeria. Global Business and Economics Research Journal, 2(3), 71-84.
Sekaran, U. (2007). Research method for business: a skill building approach. New York: John Wiley
and sons Inc.
Shehu A. (2013). The influence of corporate social responsibility on profit after tax of some selected
deposit money banks in Nigeria. Educational Research. 4(10), 722-732.
Twaijn, M. (1988). Social responsibility indicators in the Jordaman joint stock companies. Dirasat,
University of Jordan.
Uwalomwa, U. & Egbide, B. (2012). Corporate social responsibility disclosures in Nigeria: a study of
listed financial and non-financial firms. Journal of Management and Sustainability, 2(1) 160 – 169.
Wright, P. & Ferris, S. P. (1997). Agency conflict and corporate strategy: effect of divestment on
corporate value. Strategic Management Journal, 18(1), 77- 83
development. Continental Journal Sustainable Development 2(2): 19 – 25.
Abosede, J. A., Obasan, K. A, & Raji, B. A (2001). Introductory text in research methodology for social
and management sciences students. Published by Olabisi Onabanjo University press.
Adeboye, O. R & Olawale, S. R. (2012). Corporate social responsibility and business ethics: effective
tools for business performance in Nigeria banks. Interdisciplinary Journal of Contemporary Research
Business, 4(5), 274 – 279.
Adeyanju, O. D (2012). An assessment of the impact of corporate social responsibility on nigerian
society: the examples and banking and communication industries. Universal Journal of Marketing and
Business Research, 1(1), 17 – 43. AI-beit University Mafraz, Jordan.
Ahmad, N. & Abdul, R. (2002). Awareness of the concept of corporate social responsibility among
malaysian managers in selected public listed companies.
Akindele, A. I. (2011). Corporate social responsibility: an organizational tool for survival in Nigeria.
African Journal for the Psychological Study of Social Issues, 19(2): 10-15.
Al- Hamadeen, R. (2002). Social responsibility accounting in Jordan hotel institutions, a field study,
unpublished.
Amaeshi, K., Adi, B., Ogbechie, C. & Amao, O. (2006).Corporate Social Responsibility in Nigeria:
Western Mimicry or Indigenous Influences. No. 39-2006, ICCSR Research Paper Series – ISSN 1479
– 5124.The University of Nottingham, pp. 4:17-25.
Amole, B. B., Adebiyi, S. O. & Awolaja, A. M. (2014). Corporate social responsibility and profitability
of Nigeria banks - a causal relationship. Research Journal of Finance and Accounting. 3(1), 6-17 .
Asika, N. (1991). Research methodology in the behavioural sciences. Published by Longman Nigeria
Plc.
Babalola Y.A. (2013). An impact of social audits on corporate performance: analyses of Nigerian
manufacturing firms. Research Journal of Finance and Accounting. 4(3), 96-101.
ByronS, W.J & Byron, S.J. (1982). In defense of social responsibility. Journal of Economics and
Business, 34(2), 189-192
Chapple, W. & Moon, J. (2005). Corporate social responsibility (CSR) in Asia, Business and society,
44(4), 415-441.
Dane, K. P. (2004).The relationship Between Perceptions of corporate citizenship and Organizational
Commitment. Business & society, 43(3), 296-319, Sage Publications
Emily, M. O., Mwalati, S. C., Robert, E., Musiega, D. & Maniagi, G. M. (2014). Effect of corporate
social responsibility on organization performance; banking industry Kenya, Kakamega County.
International Journal of Business and Management Invention. 3(4), 37-51.
Epstein, M. J. & Freedman, M. (1994). Social disclosure and the individual investor. Accounting,
Auditing & Accountability Journal, 7(4), 94-109.
Eyre, E. (1982). Dutch Bangla Bank Ltd. International Journal of Business and Social Research
(IJBSR), 3(4)
Folajin, O., Oluwaseun, T. & Dunsin, A. T. (2014). Corporate social responsibility and organizational
profitability: an empirical investigation of United Bank for Africa (UBA) Plc. International Journal of
Academic Research in Business and Social Sciences, 4(8).
Gray, R. H. (1988). Corporate Social Environmental Reporting: A review of the literature and a
longitudinal study of UK disclosure. Accounting, Auditing & Accountability Journal, 8(2), 47-77.
Gray, R. H., Javad, M. & Porter, D. M. (2001). Social and environmental disclosure and corporate
characteristics: a research note and extension. Journal of Business Finance and Accounting, 28(3), 327-
356.
Gray, R. H., Neimark, D. L. & Lehman, K. (1995). Corporate social reporting emerging trend in
accountability and the social contract. Accounting, Auditing and Accountability Journal, 1(1), 25-26.
Guthrine, J. & Parker, L. D. (1989). Corporate Social Reporting: a rebuttal of legitimacy theory.
Accounting and Business Research, 9(76), 343-352.
Hair, J., Black, W., Babin, B., Anderson, R., & Tatham, R. (2007). Multivariate data analysis. 6th ed.
New Jersey: Pearson Education, Inc
Islam, A. (2012). Corporate Social Responsibility (CSR) and issue to Corporate Financial Performance
(CFP): Empirical evidence on Dhaka Stock Exchange (DSE) listed banking companies in Bangladesh.
European Journal of Business and Management, 4(11).
Jamali, M. & Mirshak F. (2006). Corporate social responsibility and firms financial performance.
Journal of Academic Management 31(2), 854 – 872.
Lee, M. P. (2008). Review of the theories of corporate social responsibility: Its evolutionary path and
the road ahead. International Journal of Management Reviews, 10(1), 53-73.
Maignan, I. & Ferrell, O. C. (2004). Corporate social responsibility and marketing: an integrative
framework. Journal Academic Marketing Science, 32(1): 3-19
Maldonado-GuzmÃ, G., PinzÃn-Castro, S.Y. & Morales, C.L. (2017). Corporate Social Responsibility
and Firm Reputation in Mexican Small Business. Advances in Management and Applied Economics,
7(5), 1-3.
Margolis, J., Elfenbein, H. & Walsh, J. (2007). Does it pay to be good: a meta analysis and redirection
of research on the relationship between corporate social and financial mimeo. Harvard Business
School, Boston.
Marnelli. A. C. (2004). Mastering basic management. Hong Kong: Macmillan Press.
McGuire, J., Sundgren, A. & Schneeweis, T. (1988). Corporate social responsibility and firm financial
performance. Academy of Management Journal, 31(4), 854- 872.
McWilliams, A. & Siegel, D. (2001). Corporate social responsibility a theory of the firm Perspective.
Academy of Management Review. 26(1): 117-127.
Milne, M. J. (2002). Positive accounting theory, political costs and social disclosure analysis: a critical
look. Critical Perspectives on Accounting, 13, 369-395.
Moore, G. (2001). Corporate social and financial performance: an investigation in the U.K.
Supermarket industry. Journal of Business Ethics. 34(3/4), 299-316.
Nicolav, J. L. (2008). Corporate social responsibility, worth-creating activities. Annals of Tourism
Research, 35(4), 990-1006.
Odetayo, T. A, Adeyemi, A. Z, & Sajuyigbe, A. S. (2014). Impact of corporate social responsibility on
profitability of Nigeria banks. International Journal of Academic Research in Business and Social
Sciences, 4(8).
Ojo, O. (2010). Appraisal of the practice of social responsibility by business organizations in Nigeria.
Retrieved – December 18, 2013 from http://www.social responsibility.bus/companies/cull.pdf.
Olayinka, M. U. & Temitope, O. F. (2011).Corporate social responsibility and financial performance
in developing economies-the Nigerian experience. New Orleans, New Orleans International Academic
Conference, 815-824.
Orlitzky, M., Frank, L. S, & Sara L. R. (2003). Corporate social and financial performance a metaanalysis.
Organization Studies 24 (3, 403–441). London: SAGE Publication
Peter, K. B. & Arzizeh, T. T. (2012). Social responsibility cost and its influence on the profitability of
Nigerian banks. International Journal of Financial Research, 3(4).
Richard, E. O. & Okoye, V. (2013). Impact of corporate social responsibility on the deposit money
banks in Nigeria. Global Business and Economics Research Journal, 2(3), 71-84.
Sekaran, U. (2007). Research method for business: a skill building approach. New York: John Wiley
and sons Inc.
Shehu A. (2013). The influence of corporate social responsibility on profit after tax of some selected
deposit money banks in Nigeria. Educational Research. 4(10), 722-732.
Twaijn, M. (1988). Social responsibility indicators in the Jordaman joint stock companies. Dirasat,
University of Jordan.
Uwalomwa, U. & Egbide, B. (2012). Corporate social responsibility disclosures in Nigeria: a study of
listed financial and non-financial firms. Journal of Management and Sustainability, 2(1) 160 – 169.
Wright, P. & Ferris, S. P. (1997). Agency conflict and corporate strategy: effect of divestment on
corporate value. Strategic Management Journal, 18(1), 77- 83
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Published
2021-07-20
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Collective Authors. (2021). Business Administration and Business Economics: Array. Acta Universitatis Danubius. Œconomica, 15(6). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/1246
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