Nigeria: CSR as a Vehicle for Economic Development

It is generally believed that no matter how benevolent, a government alone cannot provide all the needs of its citizenry. The development of the economy of any nation is therefore perceived as the joint responsibility of the government, the citizenry, and corporate entities operating within its boundaries. This paper examines the corporate social responsibility (CSR) activities of corporate entities in Nigeria, with specific focus on six key sectors of the economy that operate principally for profit (oil and gas; food, beverages, and tobacco; banking; telecommunications; construction; and conglomerates) and two other sectors that are not-for-profit (churches and charitable organizations). Primary data were obtained from corporate entities operating within the aforementioned sectors of the economy and duly analyzed. The study showed that corporate entities in Nigeria embrace CSR practices, with their activities being pronounced in varying degrees, in areas such as health care, manpower development and capacity building, football and sports, scholarship schemes and educational development, youth development schemes, staff welfare, provision of basic infrastructure, microcredit, business development, and economic empowerment. A major feature of these activities is that they are primarily focused on the geographical areas of operation of the respective organizations. The study also showed that rather than presenting stand-alone CSR reports, Nigerian corporate entities incorporate their CSR activities in their annual report and accounts and that the CSR philosophy of most companies is still based on the philanthropic model rather than business strategy. The study concluded that CSR activities could be a potent vehicle for economic development in Nigeria. Drawing from the experiences of advanced countries (like the UK), the paper suggests that the government should encourage corporate entities to be more involved in CSR activities, so as to serve as a more effective vehicle for economic development in Nigeria through persuasion and appropriate legislation. The implication of this is that, with the appropriate legal and regulatory framework, corporate entities in Nigeria can meaningfully partner with the government in the development of the country's economy.