Original Research Article | OPEN ACCESS
Corporate Social Responsibility Compliance among Manufacturing Firms in Nigeria

O. E. Igbekoyi1 , M. E. Alade2, R. Oladele3

1,2Department of Accounting, Faculty of Social and Management Sciences AdekunleAjasin University, Akungba-Akoko, Ondo State, Nigeria.; 3Department of Accounting, Faculty of Management Sciences Federal University Oye-Ekiti, Ekiti State, Nigeria.

For correspondence:-  O. Igbekoyi   Email: estyshola@gmail.com

Received: 8 March, 2019        Accepted: 25 March, 2019        Published: 31 March, 2019

Citation: Igbekoyi OE, Alade ME, Oladele R. Corporate Social Responsibility Compliance among Manufacturing Firms in Nigeria. Account Tax Rev 2019; 3(1):27-41 doi:

© 2019 The authors.
This is an Open Access article that uses a funding model which does not charge readers or their institutions for access and distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0) and the Budapest Open Access Initiative (http://www.budapestopenaccessinitiative.org/read), which permit unrestricted use, distribution, and reproduction in any medium, provided the original work is properly credited..

Abstract

The study assessed the trend of compliance of manufacturing firms in Nigeria to Corporate Social Responsibility (CSR). This is done with a view to assess the ratio of funds committed to CSR from Total Income (TI) and the explanatory power of the latter on the former. The population of the study comprised of 74 manufacturing firms quoted on the Nigerian Stock Exchange. A sample size of 25 firms was selected using purposive sampling technique so as to capture only firms that are in existence consistently within the time frame of this study. Data were collected from annual reports of the selected firms for the period of 2002-2016. Data collected were analysed using tables, graphs and cross-sectional regression trend analysis with the aid of E-view statistical package. The findings of this study revealed that the rate of compliance of Nigerian manufacturing firms to CSR is more than the rate of non-compliance. However, it was found that the firms’ engagement in CSR was unstable over the period under review and statistically insignificant at certain point in time. It was also found that the ratio of funds committed to CSR is relatively small compared to the total income derived in a given year even though TI largely explained change in CSR cross-sectionally. Hence, as a matter of policy, this study advances that government should put monitoring agency in place to track corporate compliance on CRS,using aspecified threshold (or rate) of the entity’s total income that should be set aside for CRS purpose.

Keywords: Compliance, Corporate social responsibility, Manufacturing, Total income, Trend analysis.


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