The Impact of Corporate Social Responsibility Reporting On Profitability of Nigerian Manufacturing Firms

Abstract

The performance of business organizations is affected by their strategies and operations in market and non-market environments. Hence, there is a debate on the extent to which company directors and managers should consider social and environmental factors in making decisions. It is therefore against the foregoing that this study examined the impact of corporate social responsibility on profitability of Nigerian manufacturing firms for the period 2004 to 2013. The resulted showed that with CSR, the impact of corporate social responsibility has positive and significant impact on net profit of manufacturing firms in Nigeria. The implication is that as the companies add to the social wellbeing of the society where the company is located it affects their return in terms of profit positively. This result reinforces the accumulating body of empirical support for the positive impact of CSR on financial performance.

Keywords: Corporate Social Responsibility, Profitability, Manufacturing Firms