Corporate Social Performance and Financial Performance of Listed Deposit Money Banks in Nigeria

Abstract

Corporate social performance (CSP) focuses on a firm's results and accomplishment, or the outcome of a firm's interaction and its impact on the society. The study's focus was on CSP strategy adopted, its effect on a firm's performance and the impact of stakeholder's reaction. The objective is to measure the effect of corporate social performance as a strategy for firm's financial performance. This research adopted an expost-factor research method using a descriptive quantitative research design, data was sourced using secondary data source and extraction of variable from financial statement was used for collection method, Population size are all 13 listed deposit money bank and the entire population was censored, Data were analysed using linear regression technique and with the help of SPSS. Result shows a value of 0.027 for employee remuneration and returns on assets, and a value of 0.211 for social package and investors' confidence. Findings suggest that corporate social performance strategy adopted such as Employee remuneration have significant effect on firm's financial performance, while social package reveals non-significant effect, therefore the study recommends that corporations should ensure implementation of actual package that will encourage employees by identifying important interest of key stakeholders to ensure increased motivation.