Title: Corporate social responsibility reporting among Nigerian firms: strategic implications

Authors: O.L. Kuye; D.G. Fagboro; E.K. Akerele

Addresses: Department of Business Administration, University of Lagos, Akoka-Yaba, Lagos State, Nigeria ' Department of Business Administration, University of Lagos, Akoka-Yaba, Lagos State, Nigeria ' Department of Business Administration, University of Lagos, Akoka-Yaba, Lagos State, Nigeria

Abstract: Corporate social responsibility (CSR) reporting refers to how companies disclose information on their CSR performance in their annual financial statements. The current paper examines: how Nigerian companies incorporated CSR into their financial accounts; the correlation between an organisation's earnings and CSR reported; and the relationship between CSR reported and firm size. Using ANOVA and Pearson product-moment correlation to test the three hypotheses postulated, the central issues that emerged were that: the recognition, manner and style of CSR in annual financial reports were not standardised in Nigeria, not withstanding stakeholders' keen interest in such disclosures; it appeared there was a significant relationship between CSR reported and a firm's earnings and capital level. This study concluded that CSR disclosures were a key concept that had gained increasing international recognition and acceptance given its crucial role in the activities of an organisation and importance to a variety of stakeholders. Consequently, relevant legal authorities, standard setting bodies and other regulators in Nigeria should expedite action on standards and guidelines on CSR reporting.

Keywords: corporate social responsibility; CSR reporting; financial statements; strategic implications; firm earnings; firm size; Nigeria; annual reports; capital levels.

DOI: 10.1504/IJBG.2014.064136

International Journal of Business and Globalisation, 2014 Vol.13 No.2, pp.225 - 249

Published online: 02 Aug 2014 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article