CORPORATE SOCIAL RESPONSIBILITY AND PERFORMANCE IN NIGERIAN DEPOSIT MONEY BANKS
ABSTRACT
The study entitled “Corporate Social Responsibility and Performance in Nigerian Deposit Money Bank” was designed to examine the impact of Corporate Social Responsibility (CSR) on the performance of Nigerian Deposit Money Bank. Three research hypotheses were formulated in a null form. The aim was to examine to what extent CSR proxies vis-a-vis Community Corporate Social Responsibility (CCSR), Charity Contribution (CC) & Human Resources Development (HRM) have  impacted  on  the  performance  variable  Return  On  Equity  (ROE).  The population of the study comprises all the banks that survived the recapitalization exercise. A sample of seven banks was selected using judgmental approach. This approach seemed appropriate in selecting the sample size since set of criteria were laid down and is only those that met the conditions were selected. The study adopted descriptive research design as a research method. A set of model was formulated to address the stated problem. Multiple regression models were used to test the hypotheses at 5% significance level. All the hypotheses were rejected as all the proxies(independent variables) were found to have statistical significant impact  on  the  performance  variables  at  5%  significance  level.  The  study recommends that a dialogue should be made with the business world and other stakeholders in determining common standards, reporting mechanisms and the extent to which they should be responsible.
CHAPTER ONE
INTRODUCTION
1.1    Background to the Study
Corporate Social Responsibility (CSR) is a business approach that views respect for ethics, people, communities and the environment, as an integral strategy that increase value added, and thus, improves the competitive position of a firm. It is a comprehensive set  of  policies,  practices  and  programmes  that  are  integrated  throughout  business operations and decision making processes.
Dare (2004) noted that, there is a growing global trend towards both government mandated  and  voluntary  corporate  disclosure  of  information  on  the  environmental, labour, human rights, and social impacts of business practices. The goal of this reporting grouped here under the rubric of Corporate Social Responsible (CSR) reporting, is to generate new and better information on the performance of Nigerian money deposit banks. This is aimed at supporting more informed decision-making by key shareholders, and ultimately to create new incentives for banks to reduce adverse impacts of their activities.
Over the past decade; a growing number of banks have recognized the business benefits   of   Corporate   Social   Responsible   (CSR)   policies   and   practices.   Their experiences are bolstered by a growing body of empirical studies that CSR has a positive impact on business economic performance and is not detrimental to shareholder value.
Banks also have been encouraged to adopt or expand CSR efforts due to the result of pressures  from  customers,   suppliers,   employees,   communities,   investors,   activist organizations and other stakeholders. As a result, CSR has grown dramatically in recent years, with banks of all sizes and sectors developing innovative strategies. Banks have come to realize that CSR is good for business, since it increase productivity, contribute to competitiveness and creates a positive corporate image in the eyes of consumers, investors, employees and community at large.
By the same token, socially responsible business, with a purpose beyond making profit, can have a positive social, economic and environmental impact by helping to improve working and surrounding conditions. Corporate Social Responsibility could be viewed as a symbolic relationship that exists between a firm and all the stakeholders. Ramanathan (1976), stated that there exist a social contract between the organization and society.  Jaggi and Zhao (1996),  agreed with the  social  view  when  they argue  that organization do not exist in a vacuum, but are part of society, which creates and support them. They affirm that social environment is a part of the total environment in which business operates.
Researchers  have  shown  that  being  socially  responsible  improves  business financial health. Its reputation is promoted thereby providing it with an edge over its competitors (Nendu and Urieto, 1988).
In addition, the Federal Government of Nigeria decided to set up the Federal
Environmental Protection Agency (FEPA) as stipulated in Decree 58 of 1988 to protect the potential dangers that industrial activities may pose to the environment and the society at large, (Obeya, 1991). This Decree was later amended by Decree 59 of 1992. It was this decree that created the first provided guidelines for environmental regulation in Nigeria
1.2    Statement of the Problem
Nigeria is a former crown colony of Britain  and almost every law has been inherited from the British. Financial reporting in Nigeria is guided mandatorily by the Companies  and  Allied  Matter  Act  (CAMA)  1990,  the  Statement  of  Accounting Standards issued by the Nigeria Accounting Standards Board, the Banking Act 1991 (for banking institutions) the  Insurance  Act 1993 (for insurance  Banks) the Income Tax Ordinance 1984 (for all banks and public enterprises), the Security and Exchange Rules and  Regulation  1990  (for  public  limited  banks)  and  Stock  Exchange  Rules  and regulations.
As far as Corporate Social Responsibility is concerned, most of the compelling pressures mounted on organization to engage in CRS may not necessary applicable to banks operating in Nigeria. Local consumer and civil society pressures are almost non- existent and law enforcement mechanisms have been weak and inefficient (Limbs and Fort, 2000; Oyejide and Soyibo, 2001, and Ahunwan, 2002).
According to Idoko (1998) despite the fact that Corporate Social Responsibility is increasingly   being   recognized   as   an   effective   means   of   decreasing   costs   and
*  MSC ACCT. AND FIN.