CORPORATE SOCIAL RESPONSIBILITY ACCOUNTING IN THE FINANCIAL SECTOR: A STUDY OF DEPOSIT-MONEY BANKS IN NIGERIA

Abstract

Corporate social responsibility (CSR) of banks in Nigeria capture by the activities of donations to community development, educational development and health scheme have been adjudged significant in the development of host communities in Nigeria. This paper examined the corporate social responsibility of banks on profit after tax and customer deposit performance in Nigerian banking sector. The data were collected on the various operating banks in Nigeria covering 2006 to 2015 from CBN Statistical Bulletin Report, 2016Q . Statistical tools (Diagnostic check, Unit root test, VAR model and Granger Causality test) were used to analyse the data. The findings confirmed the variables were stationary and both donations to community and educational developments impacted positively on profit after tax and customer deposit in the Nigerian banking sector. Furthermore, the finding also suggested that donations to health scheme drive the customer deposit in the short run and statistically significant to profit after tax performance in Nigeria. Akaike Information Criteria (AICs) of the two models based on CSR suggest that CSR activities performed better in customer deposit than profit after tax. The study recommended that there should be need assessment campaign on the continual donations on the critical aspect of the community development via infrastructure, education and health as this will enhance banking sector growth.