EFFECT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) ON THE FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS (DMB) IN NIGERIA.

Abstract

Nigeria is a developing nation, so there is a need to pay attention to the topic of corporate social responsibility. Corporate social responsibility (CSR) is a new and rapidly expanding concept in businesses and sectors. However, a fresh management idea is still guided by corporate social responsibility (CSR). Sustainability issues are said to include Corporate Social Responsibility (CSR). Within the banking industry, the interest in Corporate Social Responsibility (CSR) has risen significantly during the past ten years. Corporate organizations have realized how important good relationships with the local communities are for a company's growth, profitability, and survival. The impact of corporate social responsibility (CSR) on the financial performance of a few Nigerian banks is examined in this study. Using various performance indicators, including Return on Assets (ROA), Return on Equity (ROE), and Earnings per Share (EPS) from their annual report, this study attempts to investigate the effect of CSR on the financial performance of selected Nigerian banks. In order to do this, the Central Bank of Nigeria's (CBN) annual report for 10 (ten) chosen deposit money banks for 10 (ten) years out of 33 (thirty-three) deposit money banks in Nigeria is being used. The simple linear methodology was used using a descriptive data research design to analyze the relationship between CSR and financial performance in order to meet the study objectives and provide a solution to the research problem. According to this study's findings, corporate social responsibility (CSR) has a favorable effect on return on assets (ROA) but a negative effect on all other factors. The correlation between corporate social responsibility (CSR) and return on assets (ROA), return on equity (ROE), and earnings per share (EPS) is also negative, with a probability value (p) greater than 0.05 or 5%. Based on the aforementioned, this study demonstrates that there is a negative relationship between CSR and the financial success of a few selected deposit money banks. Premised on its findings, the study suggests that that financial institutions make CSR one of their top priorities. DMB and other sectors of the Nigerian economy would benefit from a greater focus on Corporate Social Responsibilities (CSR) if the federal government of Nigeria were to enact regulations governing contributions to CSR.