EFFECT OF CORPORATE SOCIAL RESPONSIBILITY PRACTICES ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

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EFFECT OF CORPORATE SOCIAL RESPONSIBILITY PRACTICES ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

ABSTRACT

This study investigated the impact of corporate social responsibility practices on financial performance of listed deposit money banks in Nigeria. The study used generalized least square multiple regression to analyze the secondary data extracted from the annual reports and accounts of the fifteen15 sampled deposit money banks for the period of ten years from 2006 to 2016. The study found that environmental management, employee relations and product and customer services have a positive and significant impact on the financial performance of deposit money banks in Nigeria. The study also found that corporate community development influences the financial performance of the banks positively and insignificantly. In view of the findings, the study concluded that, though environmental management is having a negative effect, the DMBs engagement in environmental management could be of corporate strategic relevance as not all investment can yield financial returns. Also, the study recommended among others that the management of listed deposit banks should patronize more of strategic CSR activities in other to be more credible which can improve their reputation since the application of CSR varies by industry.

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