Abstract
This study analyzed the Corporate Social Responsibility (CSR) of firms with their Corporate Financial Performance (CFP) based on contextual content analysis. The study forge ahead to compare the outcomes of various conceptual and empirical studies that deals with CSR and CFP from within and outside the domicile of Nigeria. The findings from the previous studies showed conflicting results or outputs (i.e. many positive outcomes, some negative results while very few showed neutral relationship between CSR and CFP of firms). Therefore, this study is of the opinion that there is a positive cordiality between CSR and CFP because more than 50% of the authorities/scholars in the field proved it conceptually and empirically that there is positive relationship among the two concepts (i.e. CSR and CFP). As such, the issue of CSR should be given a more consideration by all the parties to it (i.e. Employees, Employers, Government, Researchers, Management and the Public at large). Since, it yields positive impact to the CFP of Firms as such a dedicated agency or commission should be established to be monitoring the Firms toward real implementation of CSR.
Highlights
The field of tension between Corporate Social Responsibility (CSR) and Corporate Financial Performance (CFP) is addressed in studying the relationship between the two concepts because firms are mostly grapping on strategic, tactical and operational levels to identify ways to meet society’s demands
Some researchers discovered mixed results which partake 13% approximately to zero decimal place (i.e. 9 Empirical Researches). 4.Conclusion and Recommendations This study was conducted to analyse the cordiality between CSR and CFP among the empirical studies carried out from within and outside Nigeria
Some studies conducted such as Pava and Krausz (1996) identified and reviewed 21 empirical studies in his study, while Margolis and Walsh (2003) reported that 122 published studies empirically examined the relationship between CSR and CFP during the period 1971 – 2001
Summary
The field of tension between Corporate Social Responsibility (CSR) and Corporate Financial Performance (CFP) is addressed in studying the relationship between the two concepts because firms are mostly grapping on strategic, tactical and operational levels to identify ways to meet society’s demands. Waddock and Graves (1997) found a positive association between CSP and return on asset, return on equity, and return on sales of firms, and tested such association to be bidirectional This is inconsistent to findings from other prior studies which have identified a negative relationship (i.e., Aupperle, Carroll & Hatfield 1985; Friedman 1970; Adeboye & Olawale 2012; Igbal Ahmad & Nadeem 2012; Marcia, Otgontsetseg & Hassan 2013; Freedman and Jaggi, 1986). Those that found neutral relationship (MacWilliams & Siegel 2000; Adeboye, and Oluwatoyosi & Elizabeth 2012;), are of the view that CSR have neutral relationship with financial performance of corporations. Other studies on CSR and CFP are tabulated below for a better expatiation:
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