CORPORATE SOCIAL RESPONSIBILITY REPORTING ANS EXECUTIVE COMPENSATION IN NIGERIA

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CORPORATE SOCIAL RESPONSIBILITY REPORTING AND EXECUTIVE COMPENSATION IN NIGERIA

ABSTRACT

The objective of the study is to examine the effect of executive compensation on corporate social responsibility reporting. Adopting a survey research design, we test this hypothesis using a sample size of 100 companies selected randomly quoted on the Nigerian Stock Exchange with audited financial statement specifically for the year 2014. We employ the T-test and Ordinary Least Square (OLS) regression technique to analyse the data. Our findings reveal a negatively significant between executive compensation and CSSR. CSRR, Executive Compensation, NSE Companies

CHAPTER ONE

1. INTRODUCTION

The increased interest in the role of business in society today has been prompted by increased attention to the awareness of environmental and ethical and moral issues. It means our society has become increasingly concerned that greater influence and success by local and international organisations has not been equivalent to effort and desire in addressing important social issues including poor treatment of employees and labourers, faulty production output and environmental degradation or resultant pollution by the industries emanating from their activities as it has continuously been reported in the mass media. It is therefore important for all and sundry to realize that the public has countlessly decried the demeaning treatment by organisations and the outcry for increased social responsibility by firms will not disappear if these firms fail to respond appropriately and in a timely manner to the challenges these pose for our societies.

The idea of corporate social responsibility (CSR) is one of the moral and ethical issues encompassing corporate decision making; thus the decision by an organisation to undertake certain activities or refrain from it because they are beneficial or detrimental to society is a central and recurrent question. Notwithstanding, organisations’ desire to legalize their activities is considered to be one of the significant motivations for their CSR performance and is accepted by many researchers (Cho and Patten, 2007; Craig Deegan, 2002; De Villiers and Van Staden, 2009; O’Donovan, 2002; Van Staden and Hooks, 2007). Craig Deegan, 2002, opined that corporate social responsibility reporting is essential for organisations’ long term survival and organisations need to be sure that there are…

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