CORPORATE SOCIAL RESPONSIBILITY AND FIRM FINANCIAL PERFORMANCE IN NIGERIA: MEDIATING ON ETHICAL RESPONSIBILITY

Oladipo Niyi Olaniyan (), Alani Olusegun Efuntade () and Olubunmi Omotayo Efuntade ()
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Oladipo Niyi Olaniyan: Department of Accounting, Faculty of Management Science, Federal University, Postal: Department of Accounting, Faculty of Management Science, Federal University
Alani Olusegun Efuntade: Procurement Unit, Office of the Vice Chancellor, Federal University, P.M.B. 373, Oye Ekiti, Nigeria, Postal: Procurement Unit, Office of the Vice Chancellor, Federal University, P.M.B. 373, Oye Ekiti, Nigeria
Olubunmi Omotayo Efuntade: Department of Economics, College of Social and Management Sciences, Afe Babalola University, (ABUAD) PMB 5454 Ado-Ekiti, Ekiti State, Nigeria, Postal: Department of Economics, College of Social and Management Sciences, Afe Babalola University, (ABUAD) PMB 5454 Ado-Ekiti, Ekiti State, Nigeria

Annals of Spiru Haret University, Economic Series, 2021, vol. 21, issue 1, 71-95

Abstract: The study examined the impact of corporate social responsibility on financial performance in Nigeria. The purpose of the study was to mediate the role of ethical social responsibility and its impact on the financial performance of the Nigerian manufacturing company. This study is predicated on the stakeholder theory, managerial theory, utilitarian theory and rational theory. Primary data sources were explored in presenting the facts of the situation. This paper investigates how the relationship between corporate social responsibility and employee performance affect the financial performance of manufacturing firms. The upshots of the analysis, using structural equation modelling on 150 completed questionnaires sent to the manufacturing companies in Nigeria, suggest that ethical social responsibility is significantly associated with the incorporation of corporate social responsibility through employee performance, which in turn has a significant and positive impact on financial performance. The results contribute to previous studies that have found reliable results on the direct association between ethical social responsibility and financial performance by demonstrating that employee performance acts as a mediator in the relationship between ethical social liabilities together with the financial performance of the corporation. Managers can strengthen their stakeholder relations and ultimately improve their financial performance if ethical social responsibility to stakeholders is integrated into business routines.

Keywords: corporate social responsibility; financial performance; ethical social responsibility; employee performance (search for similar items in EconPapers)
JEL-codes: C10 M41 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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