Implications of Corporate Social Responsibility Practice on Manufacturing Firms’ Performance in Nigeria

Chapter 27 in Managing Diversification for Sustainable Development in Sub-Saharan Africa: Proceedings of 2016 International Conference of the Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, 8th-10th November, 2016

18 Pages Posted: 20 Sep 2017

See all articles by Emmanuel Ikechukwu Okoye

Emmanuel Ikechukwu Okoye

Nnamdi Azikiwe University - Department of Accountancy

Leonard Amaefule

Imo State University

Ulumma Onyekpere

Alvan Ikoku Federal College of Education

Date Written: November 8, 2016

Abstract

Manufacturing endeavors have been described as strong catalyst to economic growth and development; hence, scholars have continued to lay emphasis on the need to diversify Nigerian economy from dependence on oil to a productive economy. However, the activities of manufacturing firms in any society do not go without some adverse environmental effects. Thus, manufacturing firms, like many other corporate firms, are required to be corporate social responsible citizens. This study therefore examined the implications of corporate social responsibility practice on manufacturing firms’ performance in Nigeria. Time series data on the key variables of the study as highlighted in the specific objectives were sourced from the published accounts of two quoted manufacturing companies in Nigeria. Ordinary Least Square (OLS) regression analysis with ANOVA test was utilized in determining the relationships among the variables. Findings revealed an insignificant positive relationship between corporate social responsibility (CSR) costs and the firms’ profit before tax; a significant positive relationships between expenses on CSR and earnings per share as well as on market value per share of the firms. The study thus concluded that it is still not clear that the level of adherence to CSR obligations by Nigerian firms in general and manufacturing firms in particular have warranted positive impact on their profit performance.

Keywords: Corporate Social Responsibility, Manufacturing firms, Performance, Shareholders and Nigerian economy

JEL Classification: M41

Suggested Citation

Okoye, Emmanuel Ikechukwu and Amaefule, Leonard and Onyekpere, Ulumma, Implications of Corporate Social Responsibility Practice on Manufacturing Firms’ Performance in Nigeria (November 8, 2016). Chapter 27 in Managing Diversification for Sustainable Development in Sub-Saharan Africa: Proceedings of 2016 International Conference of the Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, 8th-10th November, 2016, Available at SSRN: https://ssrn.com/abstract=3039478

Emmanuel Ikechukwu Okoye (Contact Author)

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria

Leonard Amaefule

Imo State University ( email )

Samek Road,
Off Okigwe Road,
Owerri, Okigwe Road 460222
Nigeria
08036181818 (Phone)

Ulumma Onyekpere

Alvan Ikoku Federal College of Education

Owerri, South-East
Nigeria

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