CORPORATE SOCIAL RESPONSIBILITY AND PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Abstract

In today's world, businesses are expected to do more than just make profits. They are also
expected to give back to the communities they serve and have a positive impact on society as a
whole. This is where corporate social responsibility (CSR) comes into play. In Nigeria deposit
money banks have been taking steps towards being socially responsible by investing in various
initiatives such as education, healthcare, and environmental sustainability. But what effect
does this have on their financial performance? Does CSR actually payoff for corporations? In
this blog post, we will explore the impact of corporate social responsibility on the performance
of deposit money banks in Nigeria and examine whether or not these efforts lead to greater
success for these institutions. The study employed primary data obtained through questionnaire
administration while secondary data were obtained from the financial statements of fourteen selected
deposit money banks in Nigeria. Ordered logit and panel least square method of multiple regression
analysis were used to achieve the objectives of the study. The Hausman test result shows that the
random effect model supersedes fixed effect model. The findings of random effect model showed that
corporate social responsibility is a significant determinant of employee performance and profitability
with coefficient values of 0.043 and 0.059 at 5%. Thus, the study concludes that corporate social
responsibility has significant impact on performance of deposit money banks in Nigeria

Keywords: : Corporate Social Responsibility (CSR); Corporations; Social Services and Financial Performance