Yushau Ango, Mercy Ekele


Rare studies have considered the effect of corporate social responsibility on firm performance in the manufacturing industry in Nigeria. This study therefore determined the effect of corporate social responsibility on firm performance in the Nigeria brewery. Secondary data covering the period from 2006 to 2015 were used. Data on corporate social responsibility, sales volume and profit of the firm were sourced from the publications of Nigeria Brewery annual reports. Data collected were analyzed using graph, Pearson Correlation and Ordinary Least Square. The results from the trend analysis showed that spending on corporate social responsibility has an upward trend average of 19% between 2006 to 2015 (t= 3.951825, p<0.05), also both profit and sales volume has been trending upward at an average of 13% annually (t= 3.020217, p<0.05) and (t= 4.730571, p<0.05) respectively, which are statistically significant. The correlation analysis showed that there is strong relationship between CSR and sales, and CSR and profit. Furthermore, the results from the regression analysis showed that a 1% increase in corporate social responsibility has a positive and significant effect of 44% on firm performance in Nigeria as measure by sales volume (t = 4.730571, p<0.05); also, an increase in corporate social responsibility by 1% also has a positive and significant effect on firm performance by 44% as measure by profit of the firm (t = 3.020217, p<0.05). The study concludes that corporate social responsibility has an effect on the sales and profit of the Nigerian brewery. The study therefore recommends among others that management should invest more in corporate social responsibility since it enhances firm performance.


Corporate Social Responsibility, Firm Performance

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