Analytical Review of Corporate Social Responsibility and Corporate Financial Performance of Some Firms from Within and Outside Nigeria

  • Abdulrahman S Department of Accounting, Faculty of Social and Management Sciences, Bauchi State University, Nigeria
Keywords: Corporate Social Responsibility (CSR), Corporate Financial Performance (CFP), Content Analysis, Stakeholders Theory, Shareholders Theory, Judgmental Sampling.

Abstract

This study analyzed the Corporate Social Responsibility (CSR) of firms with their Corporate Financial Performance (CFP) based on contextual content analysis. The study forge ahead to compare the outcomes of various conceptual and empirical studies that deals with CSR and CFP from within and outside the domicile of Nigeria. The findings from the previous studies showed conflicting results or outputs (i.e. many positive outcomes, some negative results while very few showed neutral relationship between CSR and CFP of firms). Therefore, this study is of the opinion that there is a positive cordiality between CSR and CFP because more than 50% of the authorities/scholars in the field proved it conceptually and empirically that there is positive relationship among the two concepts (i.e. CSR and CFP). As such, the issue of CSR should be given a more consideration by all the parties to it (i.e. Employees, Employers, Government, Researchers, Management and the Public at large). Since, it yields positive impact to the CFP of Firms as such a dedicated agency or commission should be established to be monitoring the Firms toward real implementation of CSR.

References

Abdulrahman, S. (2013) The influence of corporate social responsibility on profit after tax of some selected deposit money banks in Nigeria. Educ. Res. 4(10):722-732

Abdulrahman, S. (2014a) The Influence of Corporate Social Responsibility on Total Assets of Quoted Conglomerates in Nigeria. Journal of Business Administration and Management Sciences Research Vol. 3 No 1, Pp. 012-021, January, 2014 (ISSN: 2315-8727), http://www.apexjournal.org Accepted 21- January-2014

Abdulrahman, S. (2014b) Relationship Between Corporate Social Responsibility (CSR) and Total Assets of Quoted Conglomerates In Nigeria. Journal of Educational Policy and Entrepreneurial Research (JEPER) www.iiste.org Vol.1, N0.2, October 2014 Pp 69-79

Abdulrahman, S. (2014c) Corporate Social Responsibility (CSR) and Financial Performance (FP) of Quoted Conglomerate Companies in Nigeria. Published M. Sc. Thesis submitted to Accounting Department, Institute of Administration, Postgraduate School, Ahmadu Bello University (A B U Zaria), Kaduna State, Nigeria. www.kubanni.abu.edu.ng

Adebayo, O., Oluwatoyosi, O.T. & Elizabeth, O.M. (2012), “Corporate Social Responsibility Reporting and Financial Performance of Money Deposit banks in Nigeria Prime Journal of Business Administration and Management (BAM) ISSN: 2251-1261. Vol. 2(11), Pp. 758-769, November 13th, 2012. www.primejournal.org/ BAM © Prime Journals

Afonso, S. C., Fernandes, P. O., & Monte, A. P. (2012) CSR of top Portuguese Companies: Relation between Social Performance and Economic Performance World Academy of Science, Engineering and Technology 66 2012

Alexander, G. J., & R. A. Buchholz (1978), “Corporate Social Responsibility and Stock Market Performance”; Academy of Management Journal, 21(3): 479-486.

Ali, I. Rehman, K.U., Yilmaz, A.K., Nazir, S. and Ali, J. F. (2010). “Effects of Corporate Social Responsibility on Consumer Retention in Cellular industry of Pakistan’, African Journal of Business Management”, vol. 4(4), pp. 475-485

Anderson, J.C. and Frankle, A.W. (1980), Voluntary social reporting: An iso-beta portfolio analysis, Accounting review Vol. 20

Anescu, C. M. (2009), Responsible Investment: Integration, Engagement, Transparency Do investors perceive Corporate Social Responsibility as a risk factor? Evidence from an asset pricing analysis oikos PRI Young Scholar Academy 2009: Center for Finance, School of Economics, Business Administration and Law, Gothenburg, Sweden. Email: cristiana.manescu@c_.gu.se

Asongu, j. j. (2007): “the history of corporate social responsibility” journal of business and public policy volume 1, number 2

Aupperle, K. E., A. B. Carroll, & J. D. Hatfield (1985), “An Empirical Examination of the Relationship between Corporate Social Responsibility and Profitability”

Baker, M. (2004), First published Corporate social responsibility - What does it mean?

Bowman, E. H., M. Haire. (1975), A strategic posture toward corporate social responsibility

Brine, M., Brown, R. and Hackett, G., 2007. “Corporate Social Responsibility and Financial Performance in the Australian Context’, Economic Round-up”, pp. 47-58

Carroll, A. and Bocholt, A. (2003); Business and Society: Ethics and Stakeholder Management, 5th edition. Cincinnati, Ohio South Western College Publishing Australia,

Carroll, A.B. (1979), “A Three-Dimensional Conceptual Model of Corporate Performance” Academy of Management Review, 1979, Vol. 4, No. 4, p. 500

Cochran, P. L., & R. A. Wood (1984) “Corporate Social Responsibility and Financial Performance” Academy of Management Journal, 27(1): 42-56.

Dandago, K. I., & M.L Muhammad (2011), “Corporate Social Responsibility (CSR) in Kano: A Banking Industry Perspective”. Journal Publication of the Department of Accounting, Bayero University Kano, Edited by Kabiru Isah Dandago and Bashir Tijjani, Adamu Joji Publishers, Kano Nigeria

David, A.O. (2012), An Assessment of the impact of corporate social responsibility on Nigerian Society: The Examples of Banking and Communication Industries. University Journal of Marketing and Business Research Vol. 1(1) Pp. 017-043, May, 2012 www.universalresearchjournals.org/ujmbr

El Ghoul, S. Guedhami, O. Kwok C. C. Y. and Mishra, D. (2012) Does Corporate Social Responsibility Affect the Cost of Capital? Journal of Economics and Sustainable Development www.iiste.orgISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)Vol.3, No.4, 2012

Fiori, G. Donato and Izzo, M. F. (2007) Corporate Social Responsibility and Firms Performance an Analysis on Italian Listed companies, viewed 15 December 2011, http://ssrn.com/Abstract=1032851

Formbrum, C. J. & M. Shanley (1990): “What’s in a name? Reputation Building and Corporate Strategy” Academy of Management Journal 33: 233-258

Freedman, M. and Jaggi, B. (1986), an analysis of the impact of corporate pollution Disclosures included in Annual financial Statements on Investor’s Decisions. Advances in public Interest Accounting, Vol. 1 Value based mgt.

Friedman, M. (1970), “The Social Responsibility of Business Is To Increase Its Profits,” The New York Times Magazine, Sept. 13, 1970, No. 33, pp. 122-26. See www.colorado.edu/studentgroups/libertarians/issues/friedmansoc- resp-business.html

Frooman, J., (1997), “Socially Irresponsible and Illegal Behavior and Shareholders Wealth: A meta-analysis of event studies”. Business and Society, 36, pp. 221-249

Gray, R., Owen, D., & Adams, C. A. (1996), Accounting and Accountability: Changes and Challenges in Corporate Social and Environmental Reporting, Prentice-Hall, London

Griffin, J.J. and Manhon, J.F (1997), The Corporate Social Performance and Corporate Financial performance Debate: Twenty-five years of Incomparable Research. Business and Society, Vol. 36

Gunu, U (2008): “The influence of corporate social responsibility on the performance of Banks” A case study of Zenith Bank Plc. journal of Faculty of management sciences Usman Danfodiyo University Sokoto ISSN 2141-1670 vol. 2 November, 2008

Holme, L. and Watt, R. (2002), “Corporate Social Responsibility: Making Good Business Sense”. World Business Council for Sustainable Development pp. 1-31 http://books.google.com.ng/books

Iqbal, N., N. Ahmad, N.A. Basheer, and M. Nadeem, (2012), Impact of Corporate Social Responsibility on Financial Performance of Corporations: Evidence from Pakistan www.macrothink.org/ijld International Journal of Learning & Development ISSN: 2164- 4063 2012 Vol. 2, No. 6

Jones, G.R. and George, J.M. (2003), Management, Third Edition, Boston; McGraw-Hill Irwin

Keffas, G. And Olulu-Briggs, O. V. (2011) Corporate Social Responsibility: How Does It Affect the Financial Performance Of Banks? Empirical Evidence From Us, Uk And Japan Journal Of Management And Corporate Governance 2011 Cenresin Publications www.cenresin.org

Kurtz, B. (2006) Contemporary Marketing. 9th edition United Kingdom

Lungu, C. I., Caraiani, C. And Dascălu, C. (2011) research on corporate social responsibility reporting the Bucharest academy of economic studies, Romania 2011

McWilliams A. & Siegel, D. (2000), “Corporate Social Responsibility and Financial Performance: Correlation or Misspecification?” Strategic Manage. J. 21(5): pp. 603-609

McWilliams A. & Siegel, D. (2000), “Corporate Social Responsibility and Financial Performance: Correlation or Misspecification?” Strategic Manage. J. 21(5): pp. 603-609

McWilliams, A. and D. Siegel, (2001), Corporate Social Responsibility: A Theory of the Firm

Meijer, M. M. and Schuyt, T., (2005), “Corporate Social Performance as A Bottom Line for Consumers’, Business and Society”, 44, 442-461.

Oba, V. C (2009): “The impact of corporate social responsibility on market value of quoted conglomerates in Nigeria, Unpublished M. Sc. Thesis Accounting Department. Ahmadu Bello University Zaria

Ojo, O. (2007), “Appraisal of the Practice of Social Responsibility by Business Organisations in Nigeria” Covenant University, Ota, Nigeria

Orlitzky, M., Schmidt, F.L. and Rynes, S.L. (2003), Corporate Social and Financial Performance a Meta-analysis” Organisation Studies 24 (3): pp 403-441. (Online) London, sage Publication www.sagepublication.com

Preston L. E. & O’Bannon D.P. (1997), “The Corporate Social-Financial Performance Relationship”. Bus. Soc. 36: pp. 419-429

Purnomo, P. K. & Widianingsih, L. P. (2012), the Influence of Environmental Performance on Financial Performance with Corporate Social Responsibility (CSR) Disclosure as a Moderating Variable: Evidence from Listed Companies in Indonesia Rev Integr Bus. Econ. Res. Vol 1(1) 57 Copyright 2012 Society of Interdisciplinary Business Research (www.sibresearch.org)

Robotham, D. (2005). Political Economy. A Handbook of Economic Anthropology. J. G. Carrier. Northampton, MA, Edward Elgar ISBN 1-84376-175-0 pp. 41–58

Ruggie, W. G. (2002). “The theory and Practice of Learning Networks: Corporate Social Responsibility and Global Compact” Journal of Corporate Citizenship Greenleaf Publishing pp. 27-36

Servaes, A. and Tamayo, A. (2012), The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness London Business School and London School of Economics July 2012

Setiawan, E and Janet T J (2012) Corporate Social Responsibility, Financial Performance, and Market Performance: Evidence from Indonesian Consumer Goods Industry

Shah, A .(2007):“Corporatesocialresponsibility”http://www.globalissues.org/article/723/corporat e-social-responsibility

Tijjani, B. (2011),”Corporate Social Disclosure and Accounting Theories” Corporate Governance and Social Responsibility” Journal Publication of Department of Accounting Bayero University Kano Nigeria

Tilt, C. A. (2009): “Corporate responsibility, Accounting and Accountants” Flinders Business School, Flinders University, Adelaide, Australia.

Tsoutsoura, M. (2004): “Corporate social responsibility and financial performance” Applied financial project Haas school of Business University of California, Barkley

Uadiale, O. M. and Fagbemi, T. O.( 2011) “Corporate Social Responsibility and Financial Performance in Developing Economies: The Nigerian Experience”. The 2011 New Orleans international Academic Conference. UK Evidence from Disaggregate Measures, Financial Management 35, 97-116.

Ullman A. A. (1985), “Data in Search of a Theory: A Critical Examination of the Relationships among Social Performance, Social Disclosure, and Economic Performance of U.S Firms”. Acad. Manage. Rev. 10: pp. 540-557

Uwuigbe, U. & B. Egbide, (2012), Corporate Social Responsibility Disclosures in Nigeria: A Study of Listed Financial and Non-Financial Firms www.Ccsenet.Org/Jms Journal of Management and Sustainability Vol. 2, No. 1; March 2012 160 ISSN 1925-4725 E-ISSN 1925-4733

Vitezić, N. (2011), Correlation between social responsibility and efficient performance in Croatian enterprises Zb. rad. Ekon. fak. Rij. - 2011 - vol. 29 - sv. 2 - 423-442 423

Waddock, S. A., & S. B. Graves (1997) “The corporate Social Performance and Financial Performance link.” Strategic Management Journal, 18(4): 303-319

Wissink, R. (2012), Testing the relation between corporate social performance and corporate financial performance. Master thesis R.B.A Wissink University of Twente Business Administration

Wissink, R.(2012), Testing the relation between corporate social performance and corporate financial performance. Master thesis R.B.A Wissink University of Twente Business Administration

Yang, F. Lin, C. and Chang, Y. (2010), the linkage between corporate social performance and corporate financial performance African Journal of Business Management Vol. 4(4), Pp 406-413, April 2010 Available online at http://www.academicjournals.org/AJBM ISSN 1993-8233 © 2010 Academic Journals

Published
2018-01-25
How to Cite
S, A. (2018). Analytical Review of Corporate Social Responsibility and Corporate Financial Performance of Some Firms from Within and Outside Nigeria. Asian Finance & Banking Review, 2(1), 7-17. https://doi.org/10.46281/asfbr.v2i1.7
Section
Original Articles/ Review Articles/ Case Reports/ Short Communications