CORPORATE SOCIAL RESPONSIBILITY AND CORPORATE PERFORMANCE IN NIGERIA

Chinuba Okafor and Ernest Oshodin

Department of Accounting

University of Benin, Benin City

ABSTRACT

The thrust of this paper is to examine the relationship between corporate social responsibilities and companies performance. Three consecutive years data were collected on profit after tax, companies’ contribution towards education, health and community development from the annual reports of twenty companies quoted in the Nigeria Stock Exchange. The ordinary least square regression result of the data collected on both corporate social responsibilities and firm performance revealed that while there is positive and not significant relationship between profitability and companies’ contribution towards education and health, there is negative and not significant relationship between profitability and communities’ development investment by companies in Nigeria. it is on this note it is recommended that while corporate social responsibilities could be seen as good gesture by companies and therefore encourage, corporate entities should not be coerced to undertake more than what they can comfortably contribute to their host communities as corporate social responsibilities.

Keywords: corporate social responsibility, Corporate Performance, National Health Insurance Scheme, Education Tax.