Corporate social responsibility practices and financial performance outcomes of listed agricultural manufacturing companies in Nigeria

Abstract

This research explores the influence of corporate social responsibility (CSR) on the financial outcomes of publicly traded agricultural manufacturing companies in Nigeria, aiming to analyze the correlation between CSR initiatives and economic performance through secondary data analysis. A purposive simple sampling method was employed to determine the sample size, focusing on five companies over the financial years from 2013 to 2023. Regression analysis was conducted on data obtained from the Nigerian Exchange Group. The results affirm the hypothesis that CSR activities significantly enhance financial performance. Notably, initiatives such as employee welfare programs and community contributions had a marked impact on key performance metrics, including profit after tax (PAT), return on assets (ROA), and return on equity (ROE). The findings indicate that CSR efforts are crucial for improving financial results among agricultural manufacturing firms in Nigeria. The study advises company management to prioritize training, employee health, and compensation programs to boost workforce morale and productivity.