ABSTRACT

The study focused on the effect ofcorporate social responsibility costs onfinancial performance ofquoted banks in Nigeria. Communities have expressedmore mistrust ofcorporations because ofvarious scandals. This has put business ethics in the spot light influencing companies to be good corporate citizens, respecting the law but also to create good social values andprinciples. The study made used ofan ex-post facto research design and data collected were analyzed using regression analysis. The study revealed that the estimated coefficient ofthe regression parameter has a positive sign and thus conform to our a-priori expectation. The implication ofthis sign is that the dependent variables Return on Asset (ROA), Return on Equity (ROE) andProfit after Tax (PAT) arepositively affected by Corporate SocialResponsibility Cost (CSRC). The study also revealed that there is a very high relationship between Corporate Social Responsibility Cost (CSRC) and the various dependent variables that is Return on Asset (ROA), Return on Equity (ROE) and Profit Margin (PM). Based on thefindings, the study therefore concludes that deliberate actions taken to reduce the nuisance brought about by waste products generated by firms often brings aboutpositive socialresponsibility rating, image and acceptability ofthefirm within its operating area. Also while behaving in a socially responsible way normally raises the cost profile ofa firm, there have been evidence, although not unchallenged, that firms that do so tend to enjoy better long run corporate performance, arising mostly from the support, friendliness and peace they often experience in their operating environment. It is recommended that Firms should ensure to put measures in place to reduce the nuisance ofenvironmental pollution through abatement, as expenditures made on pollution abatement are normally offset in the long run by the firms’ enjoyment ofa healthy and sustainable operating environment. Also, corporate social responsibility projects should be provided by firms especially within andfor the benefit oftheir host communities, especially as government has not been very successful in meeting the basic needs of most communities. Typical areas ofinterventionforfirms in Nigeria include education, health andphysical infrastructure support. Such actions ensure that afirm enjoys a positive image and good neighborlinessfrom its host community