THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON THE PERFORMANCE OF DOWN STREAM OIL & GAS COMPANIES QUOTED IN NIGERIA – International Journal of Social Sciences and Management Review

THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON THE PERFORMANCE OF DOWN STREAM OIL & GAS COMPANIES QUOTED IN NIGERIA

Author: Orji, Onyebuchukwu

ABSTRACT

The continuous demand by stakeholders for firms to be socially responsible, calls for management adopt corporate social responsibility (CSR) strategies in order for them not only to attract such stakeholders and investors, but also to create a conducive business environment. Many firms across the world have to contend with the need to satisfy the requirement of international CSR practices and standards. Hence in this study, we examined the effect of corporate social responsibility on the financial performance of downstream oil and gas companies quoted in Nigeria. The dependent variable corporate social responsibility (CSR) was represented by the actual cost incurred in CSR activities as contained in the annual reports of the companies, while return on asset (ROA), return on equity (ROE) and return on sales (ROS) were used to measure performance of the firms. The study covers a period of ten (10) years. (2009- 2018). The data collected was tested using the Ordinary Least Squares (OLS) technique involving simple regression analysis, the result show a no significant relationship between corporate social responsibility and firm’s performance. We recommended that firms should still continue to be socially responsible though there are no immediate effect on their financial performance, in the long run they will reap the dividend of being socially responsible.

Keywords: Corporate Social Responsibility, Firms Performance.

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