Relationship between Corporate Social Responsibility and Financial Performance of Commercial Banks and Manufacturing Firms in Nigeria

Abstract

This study examines the relationship between Corporate Social Responsibility (CSR) and Financial Performance (FP) in some selected commercial banks and manufacturing firms in Nigeria. Survey research design was used in this study. This study used CAMEL ratios and Altman Z-Score indicators to measure FP. Secondary data were garnered from published Annual Reports and Accounts of selected companies and the relationship between CSR and FP was analyzed using Multiple Regression Analysis. The results revealed that the Adjusted R-Square for commercial banks was 0.800951 and that of manufacturing firms was 0.487095. The p value for commercial banks and manufacturing firms were 0.050 and 0.044 respectively. Thus, both of the p values were statistically significant. Therefore, the study established the existence of positive relationship between CSR and FP of both the commercial banks and manufacturing firms. The study recommends that business organisations should be actively involved in CSR activities as this improves FP.