ABSTRACT

This study set out to assess corporate social responsibility and financial performance of quoted manufacturing firms in Nigeria. The study was specifically designed to examine the effect of corporate social responsibility cost on return on assets, return on equity and profit after tax. Guinnes Nigeria Plc. served as the case study for an eleven (11) year period from 2011-2020. The study adopted the ex-post facto research design and this involved sourcing secondary data from the annual reports and accounts of Guinness Nigeria Plc. for the period of 2011-2020. Simple regression analysis was employed to analyse the data using the Statistical tool for Social Sciences (SPSS) version 20. The results of the analysis revealed that corporate social responsibility cost has significant effect on return on assets, return on equity and profit after tax. Based on the findings, the study recommends that manufacturing firms should institute proactive waste management systems and structures that ensure that the disposals of the harmful by-products in every aspect of their operations are properly handled. Such systems need not be compelled by government regulation, but should be voluntarily provided by the firms themselves. Also, corporate social responsibility projects should be provided by firms especially within and for the benefit of their host communities, especially as government has not been very successful in meeting the basic needs of most communities. Typical areas of intervention for firms in Nigeria include education, health and physical infrastructure support. Such actions ensure that a firm enjoys a positive image and good neighborliness from its host community.