Corporate Social Responsibility and Firm Performance: Evidence from Nigeria

Abstract

The fundamental objective of this research was to investigate the relationship between corporate financial performance and corporate social responsibility in Nigeria. Time series data from 1991 to 2010 were computed from the financial statements of the samples studied. The period was assumed long enough to capture the effect of the dependent variable on the regressors of the model. Co-integration and error correction modeling techniques were used to obtain the empirical results. We found a statistically significant positive relationship between corporate financial performance and corporate social responsibility. Against the above backdrop, it was recommended that corporate entities that are doing well should channel more resources to affecting their host communities and their operating environment in general.