IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) ON PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA

IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) ON PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA (A CASE STUDY OF GTB PLC)

ABSTRACT
This research work seeks to examine the impact of corporate social responsibility on bank performance on the commercial banks in Nigeria. Time series data from 2004 to 2013 were computed from the financial statements of the samples studied. The period was assumed long enough to account for corporate social responsibility on five commercial banks in Nigeria.Annual reports from the secondary source of data collection where the CSR expenditure and return on assets (ROA) for the period of 2004-2013was used for the computational experiment. The data collected for this study were analyzed using correlation and regression analysis. The hypothesis formulated was tested. The study concluded that there is positive relationship between banks CSR activities and bank performance. The study reveals that corporate social responsibility has a great impact on the society by adding to the infrastructures and development of the society and concludes that a company has to give back to the society in which it operates and also provide infrastructural facilities to the society as a way of giving back and developing the society. It was recommended that corporate social responsibilities should be seen by the firm as social obligations business concerns owe their shareholders, the local (host) community, general public, customers, employees and the government in the course of operating their legitimate businesses, such that CSR should be included in the law and enforced on the firms accordingly and that Government should fix a minimum percentage of profit corporate firm should expend on corporate social responsibility activities.