SLACK RESOURCES AND CORPORATE SOCIAL RESPONSIBILITY LINK: FURTHER EVIDENCE FROM MANUFACTURING FIRMS IN NIGERIA

SLACK RESOURCES AND
CORPORATE SOCIAL
RESPONSIBILITY LINK:
FURTHER EVIDENCE FROM
MANUFACTURING FIRMS IN
NIGERIA
Nnachi Egwu Onuoha
Department of Accountancy/ Banking and
Finance
Alex-Ekwueme Federal University,
Ndufu-Alike, Ebonyi State, Nigeria
ennachix@yahoo.com
&
Nelson N. Nkwor
Department of Accountancy/ Banking and
Finance
Alex-Ekwueme Federal University,
Ndufu-Alike, Ebonyi State, Nigeria
nelson.nkwor@funai.edu.ng
nelsonnkwor@ymail.com
ABSTRACT
Extant empirical literature indicates little or
no study on the extent of corporate social
responsibility (CSR) activities, using evidence
from Nigerian context, and mixed study
findings regarding slack resources and CSR
relationship. Accordingly, this paper explores:
the extent of CSR activities by manufacturing
firms in Nigeria; the effect of slack
organizational resources on CSR; the effect of
absorbed slack resources on CSR; and the
effect of unabsorbed slack resources on CSR.
Using data set collected through content
analysis of the 2017 and 2018 annual reports
of 12 manufacturing firms in Nigeria and
analyzing same by conducting one sample
Wilcoxon signed rank test and regression
analysis, we find that: the extent of CSR
activities by the studied firms is low and
insignificant; slack organizational resources,
absorbed and unabsorbed slack resources
have significant positive effects on CSR
Accounting and Finance Research Association
activities. These findings serve as a robust
empirical basis for policy makers and
regulators to insist on improved level of CSR
activities by manufacturing firms in Nigeria,
and for managers to understand the
importance of slack organizational resources
in CSR investment decision making.
Keywords: Slack Resources, Corporate Social
Responsibility, Slack Resources Theory

Leave a Reply

Your email address will not be published. Required fields are marked *