EFFECT OF CORPORATE SOCIAL RESPONSIBILITY COSTS ON THE PROFITABILITY OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA

1 Alpheaus, Ogechi E. (ACA) & Iormbagah, Jacob A.
Department of Accounting, College of Management sciences,
Michael Okpara University of Agriculture Umudike. Umuahia, Abia State.
alpheausogechieberechi@gmail.com 1
jiormbagah1@gmail.com 2

Abstract
The paper examined the effect of corporate social responsibility costs (CSRC) on the profitability of listed companies in Consumer Goods sector of the Nigerian economy. Expost facto research design was used and company level data on monetary expenditures on social and environment activities, Return on Assets (ROA) and Return on Equity (ROE) of six (6) selected listed companies were collated for the period 2013 to 2018. Correlation analysis and regression technique were adopted in analyzing the data. Results indicate that CSRC explained less than 2.5% of the total variations in ROA and ROE of companies in Consumer Goods sector. Based on acceptable statistical parameters, the paper concludes that CSRC have no significant effect on the profitability of the companies, and recommends the use of legislations to compel economic entities in the sector to upscale their investments in CSR in line with international best practices.
Keywords: Social responsibility Cost, Return on assets and Return on equity

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