Relationship between Corporate Social Responsibility and Total Assets of Quoted Conglomerates in Nigeria

Abstract

The study evaluates the relationship between corporate social responsibility and total assets of quoted conglomerates in Nigeria, for the period of the study (i.e. 2006 -2011) by considering the entire population of eight (8) quoted conglomerate companies to be the sample size which is known as census approach. Secondary data culled from annual reports of quoted conglomerates in Nigeria, and fact books of Nigeria Stock Exchange (NSE) was utilised. The study used correlation analysis in interpreting the result of the formulated hypothesis with the helped of statistical package of social sciences (i.e. SPSS Version 16.0) as a tool of analysis. Based on the outcome of the result, it shows that there is a strong positive relationship between CSR and TA and it is significant at 1%. This gave the basis of rejecting the null hypothesis. Therefore, the study herby recommends that conglomerates companies should take CSR commitment as an important mechanism of boosting their economies of scale, because the more committed to corporate social responsibility a conglomerate company is, the more investors and consumers patronize company’s shares and products respectively, the more the increment in the activity level as a result of improvement in profitability and vice versa.

Keywords: Corporate Social Responsibility (CSR), Political Economy Theory, Census Approach, Employee Relation (ER), Environmental Management System (EMS)