Determining the Contribution of Corporate Social Responsibility on Organizational Performance
International Journal of Economics, Finance and Management Sciences
Volume 2, Issue 1, February 2014, Pages: 84-91
Received: Dec. 15, 2013; Published: Feb. 20, 2014
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Authors
Ijeoma, N. B., Deptartment of Accountancy, Nnamdi Azikiwe University, Awka-Nigeria
Oghoghomeh, T., Department of Accountancy, Delta State University, Asaba Campus-Nigeria
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Abstract
This study was on determining the contribution of corporate social responsibility on organizational performance. The purpose of this study was to determine the contribution of corporate social responsibility on company’s profit after tax and to ascertain if there exists significant contribution of corporate social responsibility on company’s profit after tax. The source of data for this study was secondary data obtained from Central Bank of Nigeria Statistical Bulletin 2010 and annual reports 2008-2012 of three selected public limited companies operating in Nigeria. The statistical tool employed was the regression analysis and the line graph analysis. From the result of the analysis it was found that corporate social responsibility was able to explain and contribute significantly to company’s performance more in OANDO Group Nig. Plc since it was able to explain about 96.1% of the behavior of profit after tax in OANDO Group Nig. Plc, 21.4 % in Guiness Nig. Plc and 9.5% in Total Nig. Plc. This result implies that OANDO Group Nig. Plc was observed to spend more in terms of corporate social responsibility amongst the observed company’s and in turn corporate social responsibility contributing to its performance. Also, it was found that Guniess Nig. Plc recorded the largest profit after tax over the observed period followed by OANDO Group Nig. Plc. It can be generalized that sustainability reports does have an association with company performance. Social performance disclosure has an association with company’s performance as was found by the result of OANDO Group Nig. Plc. For companies, improving sustainability performance is important and it is equally important as improving company’s financial performance. Sustainability means the development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It means that, in running the business, a company need to concern to the needs of future generations. Though reporting on its environmental performance may expose a company to criticisms and also have minimal effect in the short run. It is advisable that the company continues to disclose its environmental performance because in the long run it would help in achieving sustainability.
Keywords
Corporate Social Responsibility, Sustainability, Environmental Performance, Regression Analysis, Report
To cite this article
Ijeoma, N. B., Oghoghomeh, T., Determining the Contribution of Corporate Social Responsibility on Organizational Performance, International Journal of Economics, Finance and Management Sciences. Vol. 2, No. 1, 2014, pp. 84-91. doi: 10.11648/j.ijefm.20140201.19
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