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Impact of Corporate Social Responsibility on Profitability of Nigeria Banks

Author

Listed:
  • T.A. Odetayo
  • A.Z. Adeyemi
  • A.S. Sajuyigbe

Abstract

Bank expects to be involve and promote sustainable development through corporate social responsibility through which the organisation will behave ethically, contribute positively to the welfare of stakeholders, and improve the quality of life of the local community and society at large. This study is an empirical investigation of corporate social responsibility and profitability of Nigerian banks. To achieve the objectives of this study, data were collected from annual reports of sampled six banks, for the period of 10 years (2003–2012). Simple regression analysis was employed as a statistical technique to analyse data collected using STATA 11. The regression results revealed that there is a significant relationship between expenditure on corporate social responsibility and profitability of Nigerian Banks. The study concludes that Nigerian banks recognized the importance of corporate social responsibility for sustainable development and they are performing their obligation to the society. But little amount were spent on social responsibility, if compared with profit generated by the banks. The study recommends that government need to enact a law that will fix minimum percentage out of profit of organisation that will be spent on corporate social responsibility.

Suggested Citation

  • T.A. Odetayo & A.Z. Adeyemi & A.S. Sajuyigbe, 2014. "Impact of Corporate Social Responsibility on Profitability of Nigeria Banks," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(8), pages 252-263, August.
    • Handle: RePEc:hur:ijarbs:v:4:y:2014:i:8:p:252-263
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    References listed on IDEAS

    as
    1. Carroll, Archie B., 1991. "The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders," Business Horizons, Elsevier, vol. 34(4), pages 39-48.
    2. Peter Kekung Bessong & Arzizeh Tiesieh Tapang, 2012. "Social Responsibility Cost and Its Influence on the Profitability of Nigerian Banks," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 3(4), pages 33-45, October.
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    Cited by:

    1. Chijioke N. Ofurum & Odunayo J. Ogunyemi & Blessing N. Amobi & Bossco E. Okonya, 2019. "Social Responsibility Costs and Financial Performance in Manufacturing Companies in Nigeria: A Panel Research Design," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 9(4), pages 118-125, October.
    2. Abbas Rezazadeh Karsalari & Mehdi Aghaee & Fatemeh Ghasemi, 2017. "The Effect of Mandatory Corporate Social Responsibility on Accounting Conservatism in Tehran Stock Exchange Corporations," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(3), pages 120-125, July.
    3. Hajara Dibal Yakadi, 2022. "The Impact of Corporate Social Responsibility on The Profitability of Nigerian Banks," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(7), pages 853-870, July.
    4. Amal Alnamrouti & Husam Rjoub & Hale Ozgit, 2022. "Do Strategic Human Resources and Artificial Intelligence Help to Make Organisations More Sustainable? Evidence from Non-Governmental Organisations," Sustainability, MDPI, vol. 14(12), pages 1-23, June.

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