Impact of Corporate Social Responsibility on Profitability of Nigeria Banks

Bank expects to be involve and promote sustainable development through corporate social responsibility through which the organisation will behave ethically, contribute positively to the welfare of stakeholders, and improve the quality of life of the local community and society at large. This study is an empirical investigation of corporate social responsibility and profitability of Nigerian banks. To achieve the objectives of this study, data were collected from annual reports of sampled six banks, for the period of 10 years (2003 – 2012). Simple regression analysis was employed as a statistical technique to analyse data collected using STATA 11. The regression results revealed that there is a significant relationship between expenditure on corporate social responsibility and profitability of Nigerian Banks. The study concludes that Nigerian banks recognized the importance of corporate social responsibility for sustainable development and they are performing their obligation to the society. But little amount were spent on social responsibility, if compared with profit generated by the banks. The study recommends that government need to enact a law that will fix minimum percentage out of profit of organisation that will be spent on corporate social responsibility.