Firm’s Engagement in Corporate Social Responsibilities in Nigeria

Abstract

This study examined firms engagement in corporate social responsibilities in Nigeria using secondary data derived from the audited annual reports of the five (5) selected listed Oil and Gas Companies in Nigeria from 2008 - 2017. The study proxied firm’s involvement by Firm Age (FMA), Employee Turnover (EPT), Customers Satisfaction (CSF) and Reputation (RPT) as the independent variables, while Responsibility of firms in Nigeria was proxied by CSR as the dependent variable. The study applied GRETL software, and used Ordinary Least Square (OLS) for the estimation of the result. The results revealed that the independent variables: EPT, CSF and RPT have positive significant impact on CSR while FMA shows a negative impact. The coefficient of R-squared which is 0.935067 shows that all the independent variables have 94% positive impact on CSR while the coefficient of Adjusted R-squared, 0.931820 suggests that 93% of all independent variables could be explained by the changes in CSR. The study concludes that firm’s age is not a strong and powerful measure of CSR as it does not play a significant role in determining the CSR of oil and gas sector in Nigeria. Thus, it was recommended that the management of the selected oil and gas sector should maintain quality assets that are durable. This is necessitated by the potential of the organizations that have such assets to invest more substantial funds towards Corporate Social Responsibility.