Authors : Amah, Cletus Okey; Joseph, Roland Ikechukwu

Volume/Issue : Volume 10 - 2025, Issue 4 - April

Google Scholar : https://tinyurl.com/3ajjpuk3

Scribd : https://tinyurl.com/yh39tdhm

DOI : https://doi.org/10.38124/ijisrt/25apr1085

Google Scholar

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Note : Google Scholar may take 15 to 20 days to display the article.

Abstract : This study set out to examine the correlation between Corporate Social Responsibility (CSR) and the performance of financial institutions in Rivers State. The study was based on social contract theory, legitimacy theory, and stakeholders' theory. The study utilized a cross-sectional survey, which is a sort of quasi-experimental methodology, to assess the study's respondents. The research population consisted of middle and senior management workers from financial organizations. A total of 240 respondents were easily given copies of the questionnaire. The data collected from this procedure were examined and a total of 4 hypotheses were evaluated using Spearman's Rank Correlation. The results obtained from these tests indicated a favorable and statistically significant correlation between CSR and the financial performance of organizations in Rivers State. The study indicates that CSR initiatives are essential and effective means for financial institutions to gain the trust and support of important stakeholders, such as consumers and local communities. Allocating resources towards CSR initiatives may assist banks in cultivating a favorable and constructive reputation, ultimately contributing to their achievements. The study's findings and conclusion suggest that banks aiming to enhance and maintain their reputation should prioritize investing more in their CSR initiatives. This can be achieved by allocating a higher percentage of their post-tax profits towards addressing significant socio-economic and environmental issues in the communities where they operate. By doing so, banks can improve their public image and overall success. Furthermore, it is crucial for companies to demonstrate ethical responsibility in their product and service design, as well as in their interactions with important stakeholders and the general public. This study has provided evidence that implementing these strategic approaches can enhance public trust and contribute to overall corporate success.

Keywords : Corporate Social Responsibility, Financial Institutions, Corporate Success.

References :

1. Abdillah, P., Saraswati, E. and Purwanti, L. (2020). Effect of Corporate Social Responsibility Disclosure (CSRD) on Financial Performance and Role of Media as Moderation Variables. International Journal of Multicultural and Multireligious Understanding 7(4), 457-475. http://dx.doi.org/10.18415/ijmmu.v7i4.1719.
2. Abilasha, N, and Tyagi, M. (2019). Impact of CSR on financial performance of Top 10 performing CSR Companies in India. IOSR Journal of Economics and Finance, 10(2) Ser. II (Mar. – Apr.2019), 49-55.
3. Abubakar, M.D. & Ameer, R. (2011). The Impact of Sustainability Practices on the Financial Performance: Evidence from Listed Oil and Gas Companies in Nigeria. Dimensional Corporate Governance, CSR, Sustainability, Ethics & Governance book series (CSEG), 215-233.
4. Akanbi, A.A., & Ofoegbu, O.E. (2012). Impact of corporate social responsibility on bank performance in Nigeria. Journal of US-China Public Administration, 9(4), 374-383.
5. Amaechi, K. M., Adi, B. C., Ogbechie, C., and Amao, O.O. (2006). Corporate Social Responsibility in Nigeria: Western Mimicry or Indigenous Practices? Research Paper Series-ISSN 1479-5124 No.39, International Centre for Corporate Social Responsibility Nottingham University Business School.
6. Ambler, T. & Riley, D. (2000). “Marketing Metrics: A Review of Performance Measures in Use in the UK and Spain.” Draft Paper, London Business School, pp. 1-30 Ambler and Riley.
7. Ambler, T., Kokkinaki, F., Puntoni, S., & Riley, D. (2001). Assessing market performance: the current state of metrics. In: Working Paper No. 1–903. London: London Business School.
8. Amole, B. Adebiyi, S. & Awolaja, A., (2012). Corporate social responsibility and profitability in Nigeria Bank. A causal Relationship. Research Journal of Finance and Accounting, 3(1), 6 – 17.
9. Amole, B.B., Sulaiman O.A., & Awolaja A.M. (2012). Corporate social responsibility and profitability of Nigerian banks: A casual relationship. Research Journal of Finance and Accounting, 3(1), 6-17.
10. Balabanis, G., Phillips, H. & Lyall, J. (1998). Corporate social responsibility and economic performance in the top British companies: are they linked? European Business Review, 98(1), 25-44.
11. Bedi, H.S. (2009). Financial performance and social responsibility: Indian scenario. Retrieved from http://ssrn.com/abstract=1496291.
12. Bennett, R. (2007). The use of marketing metrics by British fundraising charities: a survey of current practice, Journal of Marketing Management 23(9): 959–989.
13. Bessong, P. K & Tapang A.T. (2012). Social responsibility cost and its influence on the profitability of Nigerian banks. International Journal of Financial Research, 3(4),1-5.
14. Bhunia, A. & Das, L. (2015). The impact of corporate social responsibility on firm’s profitability- a case study on Maharatna Companies in India. American Research Journal of Humanities and Social Sciences, 1(3).
15. Carlsson, M. & Akerstom, I. (2008). The corporate social responsibility and the theory of the firm. Retrieved from http://www.business.ecu.edu.au/schools/afe/ups/papers/pdfs/wp505. Pdf.
16. Choi, J., Kwak, Y. & Choe, C. (2010). Corporate social responsibility and corporate financial performance: Evidence from Korea. Australian Journal of Management, 35, 291-311.
17. Das, K. B. & Halder, P.K. (2011). Corporate social responsibility initiatives of oils, public sector units (PSUs) in Assam. A case study of ONGC, Management convergence, 2 (2), 75-85.
18. Davies, W.F. (1997). Business philosophy: Searching for an authentic role. Business Ethics. London, Routledge.
19. Deegan, C. (2002). The legitimism effect of social and environmental disclosure: A theoretical foundation. Accounting, Auditing and Accountability Journal. 15(3), 282-311.
20. Ebere, C. C., Madugba, J. U., and Okpe, I.I., 2014. Environmental Accounting, Reporting and performance of manufacturing firms in Rivers State. Journal of Institute of Education, University of Port Harcourt, 8 (2), 34-45.
21. Eccles, R.G. (1991). The Performance Measurement Manifesto, Harvard Business Review. January-February, pp. 131-137.
22. Emezi, C. N. (2015). The impact of corporate social responsibility (CSR) on organization profitability. International Journal of Business and Management, 10 (9).
23. Ernest I.E. (2012). Bank consolidation in Nigeria: Marketing implications and challenges for surviving banks. Art and Social Science Journal (ASSJ), 31, 4-5.
24. Fodio, M.I., Abu-Abdissamad A.I., Oba, V.C. (2013). Corporate social responsibility and firm value in quoted Nigerian financial services. International Journal of Finance and Accounting, 2(7), 331-340.
25. Fombrun and van Riel (2004) it is based on a set of collectively held beliefs about a company’s ability and willingness to satisfy the interests of various stakeholders.
26. Fombrun, C. J. and van Riel, C. B. M. (2004). Fame and fortune: How successful companies build winning reputation, Pearson Education, New Jersey.
27. Gotsi, M., & Wilson, A. M. (2001). Corporate reputation: Seeking a definition corporate communications, 6(1), 24-30.
28. Herremans, I.M., Akathaporn, P., & McInnes, M. (1993). An investigation of corporate social responsibility reputation and economic performance. Accounting, Organisation and Society, 18 (7/8) 587-604.
29. Kanwal, M., Khanm, F., Nasreen, S., and Hameed, S., 2013. Impact of Corporate social responsibility on firm’s financial performance. Journal of Business and Management, 14 (5), 67-74.
30. Lantos, G.P. (2002). The ethicality of altruistic corporate social responsibility. Journal of Consumer Marketing. 19(3), 20-30.
31. Lawal, A.T., & Brimah, A.N. (2012). Financial determinants of corporate social responsibility uptake in Nigerian deposit money banks: The Zenith bank experience. Lapai Journal of Management Science (LAJOMAS), 3(1), 68-75.
32. Malik, M.S., & Nadeem, M. (2014). Impact of corporate social responsibility on the financial performance of banks in Pakistan. International Letters of Social and Humanistic Sciences, 10(1), 9-19.
33. Marken, G. A. (2002). One-minute corporate reputation management. Public Relations Quarterly, 47(4), 21-23.
34. McWilliams, A. Senegal, D., & Wright, P.M. (2006). Corporate Social Responsibility: Strategic
35. Meyer, M. W. (2004). Finding performance: the new discipline in management, in A. Neely (Ed.). Business Performance Measurement. Cambridge: Cambridge University Press. 51–62.
36. Moir, L. (2001). What do we mean by corporate social responsibility? Corporate governance. International Journal of Business in Society, 1(2), 16-24.
37. Nelling, E. & Webb, E. (2009). Corporate social responsibility and financial performance. The virtuous circle revisited. A review of Quantitative Finance and Accounting, 32, 197-209.
38. Oba, V.C. (2019) “The impact of corporate social responsibility on market value of quoted of conglomerates in Nigeria, M.Sc. Thesis Accounting department. Ahmadu Bello University Zaria
39. Richard, E. O. & Okoye, V. (2013). Impact of corporate social responsibility on the deposit money banks in Nigeria. Global business and Economics. Research Journal, 2(3), 16-33.
40. Sanni, M., Olayiwola, K., & Abdul-Baki, Z. (2014). Corporate social responsibility and profitability of selected deposit money banks in Nigeria: A panel analysis. Ilorin Journal of Management Sciences, 1(1), 221-235.
41. Seggie, S. H.; Cavusgil, E.; Phelan, S. E. 2007. Measurement of return on marketing investment: a conceptual framework and the future of marketing metrics, Industrial Marketing Management 36(6): 834–41.
42. Thiessen, A., & Ingenhoff, D. (2011). Safeguarding reputation through strategic, integrated and situational crisis management: development of the integrative model of crisis communication. Corporate Communication: An International Journal, 16(1), 8–26.
43. Tsoutsoura, M., 2004. Corporate Social Responsibility and financial performance. Hass school Business, University of California at Berkeley. Applied financial project.
44. Tuhin, M.H. (2014). Corporate social responsibility expenditure and profitability: An empirical study of listed banks in Bangladesh. International Journal of Scientific Footprints, 2(1), 107-115.
45. Uadiale, O.M. & Fagbemi, T.O. (2012). Corporate social responsibility and financial performance in developing economies: The Nigerian experience; Journal of Economics and Sustainable Development, 4(3), 28-50.
46. Ugochukwu, M. & Okafor, M. (2016). The impact of corporate social responsibility on financial performance: Evidence from listed banks in Nigeria. Expert journal of finance, 4, 1-9.