Samuel Taiwo Toluyemi, Sunday Joseph Inyada, Ebenezer Adebisi Alo*
Issue :
ASRIC Journal of Social Sciences 2023 v4-i1
Journal Identifiers :
ISSN : 2795-3602
EISSN : 2795-3602
Published :
2023-12-29
Corporate Social Responsibility (CSR) implementation is not supported by the profit maximization objectives of most businesses because it frequently involves substantial expenditures with little to no direct revenue generation. There is no consensus among scholars on the relationship between CSR and enterprise performance. This study, therefore, adds to the body of knowledge by distributing 450 structured questionnaires to elicit information on the connection between CSR and enterprise success. The relationship between CSR and business performance was evaluated using Spearman correlation analysis, while the hypotheses were tested using the Kruskal-Wallis-H-test. The confirmatory tests revealed that the gathered data had no reliability or validity issues. The study found a positive correlation between CSR and enterprise performance using profitability ratios (ROTA, ROE) and liquidity (current ratio) metrics. However, ROS and efficiency ratio (inventory turnover) indicated a negative relationship between CSR and performance. Therefore, the results revealed that businesses can combine doing well with doing good. Hence, enterprises are advised to align their CSR initiatives with their business plans. Similarly, time-series data might be used to extend the frontiers of research on the association between CSR and business performance. Additionally, the study area could be expanded to include more geopolitical areas of Nigeria. Six keywords were used in the study. Keywords: Corporate Social Responsibility (CSR), Profit-Maximization.