ABSTRACT

Corporate social responsibility by banks in Nigeria towards fmding out the extent of adoption,

the benefits to the banks especially the relationship of Corporate Social Responsibilities (CSR) to

the profitability of the banks and the need for regulation on Corporate Social Responsibilities

(CSR) for banks in Nigeria. This becomes necessary because the banking sector like other

organizations both governmental and nongovernmental has a major role to play in fast racking

the well-being of the society. This study sought to examine the influence of corporate social

responsibility cost on corporate performance of First Bank Nigeria Plc. Results of the study

showed that the estimated coefficient of the regression parameter have a positive sign and thus

conform to our a-priori expectation. The implication of this sign is that the dependent variables

Return on Asset (ROA), Return on Equity (ROE) and Profit after Tax (PAT) are positively

affected by Corporate Social Responsibility 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 after

Tax (PAT). Based on the findings, the study therefore conclude that deliberate actions taken to

reduce the nuisance brought about by waste products generated by firms often brings about

positive social responsibility rating, image and acceptability of the firm within its operating area.

Also while behaving in a socially responsible way normally raises the cost profile of a 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. The study came with the following recommendations

Arising from the findings and conclusion of the study, the following

recommendations are proffered: 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. Firms should ensure to put

theasures in place to reduce the nuisance of environmental pollution through abatement, as

expenditures made on pollution abatement are normally off-set in the long run by the firms!

enjoyment of a healthy and sustainable operating environment. 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.