Impact of Corporate Social Responsibility on Profitability of Nigeria Banks

Abstract

Through corporate social responsibility, the bank hopes to be involved in and support sustainable development by 
acting morally, improving stakeholder welfare, and raising the standard of living in both the local community and 
society at large. This research examines Nigerian banks' profitability and corporate social responsibility 
empirically. Data was gathered from the annual reports of six banks that were sampled throughout a ten-year 
period (2003–2012) in order to accomplish the goals of this research. The statistical method used to analyze the 
data gathered using STATA 11 was simple regression analysis. The findings of the regression analysis showed a 
strong correlation between Nigerian banks' profitability and their corporate social responsibility spending. 
According to the study's findings, Nigerian banks are fulfilling their social duty and have acknowledged the 
significance of corporate social responsibility for sustainable growth. However, compared to the banks' profits, 
very little was spent on social responsibility. According to the report, the government should pass legislation 
requiring a minimum portion of an organization's profits to be allocated to corporate social responsibility.