Globally, organizations are concerned with value re-investment to the society in appreciation of the contributions of the society to their growth, sustenance and survival. Hence attention is further directed to the potential consumers as well as non consumers of corporate offers as marketing concept philosophies are integrated into societal marketing concept as means of achieving desired level of social responsibility. Given this as the thrust of operations, corporate attention is increasingly being given to issues like equal employment opportunity, thus it is easier for corporation to be re-oriented to corporate social responsibility philosophies. But in the developing economies represented by Nigeria; consumers are unwilling to sacrifice convenience and pay potentially higher prices to protect the environment as they lack knowledge to make informed decisions dealing with their purchase, use and disposition of product; pollution control; energy and natural resources conservation and consumers’ and workers’ protection –Preston and Post (1975). Businesses thus operate on the philosophy of maximization of positive effects of their activities on the society as the negative impacts of these activities are minimized-Farrell and Fraedrich (2007). This is the thrust of corporate social responsibility as considered an obligation among businesses in the advanced societies of the globe.
At an earlier point in history, societal expectations from business organizations did not go beyond efficient resource allocation and its maximization. But today, it has changed and modern business must think beyond profit maximization toward being at least socially responsible to its society.
Corporate social responsibility (CSR) is a fast growing concept in banking industry with little attention paid to its linguistic. CSR is common in the literature but not in the practice. Despite the need for business to be morally conducted, one of the primary reasons in CSR is whether organisations pursue it for economic reasons or because of the advantages involve. Unfortunately, there has been few or no empirical test conducted in support of the advantages and disadvantages involve in CSR. This makes CSR practice sustainable to the popular accusation of being a profitable public relations and marketing strategies (Adegboyega and Taiwo, 2011).
Today’s heightened interest in the role of business in society has been promoted by increased sensitivity to the awareness of environmental and ethical issues. It means our society has become increasingly concerned that greater influence and progress by firms has not been accompanied by equal effort and desire in addressing important social issues including problems of poverty, drug abuse, crime, improper treatment of workers, faulty production output and environmental damage or pollution by the industries as it has overtime been reported in the media. It is therefore very essential for all to realize that public outcry for increased social responsibility will not disappear if business organizations fail to respond to the challenges these had posed for the society (Amaechi, 2009).
In modern business world, corporate social responsibility has been emphasized by stakeholders as a driving tool for success to be accomplished. It has become an increasing evident and crucial component of overall performance of business organizations generally. Conscious of this concept, ordinary citizen, potential investors, pressure groups, politicians, insurance companies and a wide range of other stakeholders are increasingly demanding organizations to account for the social, natural environment and economic impacts that they have on every community in which they operate (Nwachukwu, 2006).
CSR has today become imperative, due to the goodwill it generates and the belief that the overall health of both the corporate entities and the environment where they operate are mutually dependent.
Corporate bodies in their desire to achieve sustainable development and improve the quality of life, execute operations in such manners that ensure the protection of natural environment
without however relegating to the background the desire to make economic progress Rondinelhi and Vastag (2006) and Berkowitz, Kerin, Hartley and Rudelius (2000). This is irrespective of whether or not consumers are socially responsibly in their purchases, use of product and unwilling to sacrifice convenience and pay potentially higher prices to protect the environment as they lack knowledge to make informed decisions dealing with the purchase, use and disposition of environmentally sensitive products-Speer (2007), hence, consumers are accountable for unethical and socially irresponsible corporate behavior unlike in the developed societies where marketers and consumers are accountable for ethical and social responsible behavior-Berkowitz, Kerin, Hartley and Rudeluis (2000). Thus, the de-emphasis for profit and stakeholders’ responsibilities in favour of societal responsibility at best the optimization of both is a pre-requisite for the needed macro economic development of Nigeria as firms in the petroleum industry begin to show inclination for social audit.
Corporate social responsibility in act and deed enhances corporate images, reputations and market share as it attracts more employers and employees, and creates relationship between public relations and publicity, given that organizations are perceived to be honest and fair when mistakes are admitted, apologies are quickly, genuinely and sincerely made and activities are performed to make up for mistakes-Handy (2006) and Turban and Greening (2007). Advocates of corporate social responsibility stress the fact that business opportunities and profit are generated based on systematic and vigorous efforts of organizations at finding
solutions to social problems-O’Toole (2001). It also saves organizations from illegalities and convictions that have the ability of reducing corporate sales growth and accounting returns over a period of time-Baucus and Baucus (2007). Based on the foregoing, it is discernable that corporate social responsibility is an integral part of corporate strategic management and marketing philosophies. some of the problems that necessitated this research work include;
High rate of poverty in some of the area were these brewery firms are operating. High level of unemployment which shows that some of the companies in the country are not meeting up to their expectations. This study aims at findings solutions to the problems identified above.
1.3 Objective of the study
The broad objective of this research work is to evaluate the effect of corporate social responsibility reporting on financial performance of Nigerian banking sector with particular reference to GTBank .Access Bank and Zenith bank Plc. Specific objectives of this research work includes the following;
1.4 Research Questions
Based on the above objectives, the researcher asked the following questions;
1.5 Research Hypotheses
Ho: Social responsibility expenditure does not influence the Return on asset of Nigerian financial institutions.
Ho: There is no relationship between social responsibility expenditure and Return on Equity of Nigerian financial institutions.
Ho: Social responsibility expenditure does not influence the Earning per share of Nigerian financial institutions.
1.6 Significance of the Study:
The result of this exercise will aid the concessionaire (Government of Nigeria) and trans multinational corporations to evaluate their level of commitment to their corporate social responsibility objectives and functions in the light of their dependency on the environment as source of inputs and market for corporate outputs.
It will also highlight the degree of neglect of government as a regulatory agent in the execution of its social responsibility duties. The harmonizations of the above quality environment management programmes will catalyze the environment and Nigeria to high height in its quest for economic development.
The study will also be of significant to Nigerian banks as it will serve as an eye opener to them in the area of their social responsibilities to the environment were they operates.
This research work will also be of great importance to the land owners and those in the urban and rural areas were the banks and companies are operating as it will help them know more on responsibilities of their tenant banks or companies operating in their lands.
This research work is central on effect of corporate social responsibility reporting on financial performance of Nigerian banking sector and will endeavor to show all relevant information that will enhance the actualization of the research objectives put into place. The researcher would have carried out research work into all known companies in Nigeria but for the constraints that confronted her, she limited her research works to only three banks which are GTBank, Access Bank and Zenith bank Plc all in Enugu metropolis.
1.8 Limitation Of The Study
The researcher was constrained by the following problems.
One of the major factors that contributed to the limited scope of this study with regard to the population sample and distance is lack of fund. This research work was sponsored by the researcher and full time student prudence was the watch word and rather than expand the research it was pronged down to one company only.
The scarcest resources of all the constraints that besieged that researcher are time since the research was carried out at student level. The time used had to be compatible to the demand of other curses and assignments.
Another serious problem added to the above is the issue of information disclosure, companies feel relevant assisting researcher by providing adequate information. This under-operative tendency usually keeps researcher to coming to the companies until they are given audience. This statistical and logistical constraints are serious limitation that hinders a work of this type in addition of security of reliable data which might be classified as top secret by the management staff and as such would lead to getting little or no information of importance to the study.
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