Effect of Corporate Social Responsibility Accounting on the Financial Performance of Quoted Oil and Gas Companies in Nigeria
CHAPTER ONE
OBJECTIVE OF THE STUDY
The main objective of this study is effect of corporate social responsibility accounting on the financial performance of quoted oil quoted oil and gas companies in Nigeria. But for the successful completion of the study; the researcher intends to achieve the following sub-objectives.
- To evaluate whether societal expenditure significantly affect financial performance of oil and gas in Nigeria.
- To evaluate whether environmental expenditure significantly affect financial performance of oil and gas in Nigeria.
- To determine the type of relationship that exists between employees’ benefit cost and the firms’ financial performance.
- To ascertain whether corporate social responsibility plays significant role in profitability of oil and gas in Nigeria
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
This chapter reviews some previous studies and theories aimed at providing an analytical framework for the study on corporate social responsibility and financial performance of oil and gas companies in Nigeria. It looks at conceptual meanings of CSR and the historical origin of the concept. Empirical works done on how to measure CSR and its impact are all considered by the chapter.
THE CONCEPT OF CORPORATE SOCIAL RESPONSIBILITY (CRS)
CSR is viewed from different perspectives and angles. The perspectives vary from individual authors to organizations and as a result there is no generally accepted unified definition of the concept. But, on critically viewing the various definitions given one could observed that they are centered on three themes as stated by Wissink (2012). These themes are corporate relations to economic, societal and environmental sustainability. It is on this basis that several terms like corporate conscience, good corporate citizenship, business responsibility, business citizenship, social performance, sustainable responsible business, community relations, and responsible business are used to connote CSR. The concept is therefore closely linked to the principle of sustainability, which argues that enterprises should make decisions based not only on financial factors such as profits and dividends, but also based on the immediate and long term social and environmental consequences of their activities (Tilt, 2009). Some few notable definitions of CSR given by various authors are: Carroll (1979) defined CSR as the social responsibility of business to society at a point in time that encompasses the economic, legal, ethical, and philanthropic expectations. In the view of McComb (2002), it is described as the ability of company to link itself with ethical values, transparency, employee relations, compliance with legal requirements and overall respect for the communities in which they operate. In another similar definition by Hill, Ainscough, Shank, and Manullang (2007), CSR is the economic, legal, moral, and philanthropic actions of firms that influence the quality of life of relevant stakeholders. In a concise definition given by Baker (2004), it is described as the ability of the companies to manage the business processes to produce an overall positive impact on society. Other authors‟ definitions of CSR are found in Bowen (1953), Fitch (1976), Carroll (1979), and Lea, (2002) Some of the organizational‟ definitions of CSR are: The European Commission (2001) defined CSR as a concept which makes companies decide voluntarily to contribute to a better society and a cleaner environment by integrating social and environmental concerns in their business operations and in their interaction with their stakeholders. In another definition given by University of Miami (2007), it is considered as a means of analyzing the inter-dependent relationships that exist between businesses and economic systems, and the communities within which they are based. The World Business Council for Sustainable Development (WBCSD, 1998), defines the CSR as a continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. From the above set of definitions, it could be observed that the definitions of CSR given are based on taking into consideration peculiarities of settings in which the definitions are targeted to represent. That informed the reason why variations exist amongst the definitions and none appears to be fully comprehensive. Despite that this study is adopting the definition given by McComb (2002).
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to effect of corporate social responsibility accounting on the financial performance of quoted oil and gas companies in Nigeria
Sources of data collection
Data were collected from two main sources namely:
Primary source and Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain effect of corporate social responsibility accounting on the financial performance of quoted oil and gas companies in Nigeria.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of corporate social responsibility accounting on the financial performance of quoted oil and gas companies in Nigeria
Summary
This study was on effect of corporate social responsibility accounting on the financial performance of quoted oil and gas companies in Nigeria. Four objectives were raised which included: To evaluate whether societal expenditure significantly affect financial performance of oil and gas in Nigeria, to evaluate whether environmental expenditure significantly affect financial performance of oil and gas in Nigeria, to determine the type of relationship that exists between employees’ benefit cost and the firms’ financial performance, to ascertain whether corporate social responsibility plays significant role in profitability of oil and gas in Nigeria. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of selected oil and gas companies in Delta State. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up machinery engineers, drilling logistic supervisors, field service engineers and construction managers were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies.
REFERENCES
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- Abdulrahman, S. (2013), the influence of corporate social responsibility on profit after tax of some selected deposit money banks in Nigeria. Educ. Res. 4(10):722-732
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- Adebayo, O., Oluwatoyosi, O.T. & Elizabeth, O.M. (2012), “Corporate Social Responsibility Reporting and Financial Performance of Money Deposit banks in Nigeria Prime Journal of Business Administration and Management (BAM) ISSN: 2251-1261. Vol. 2(11), Pp. 758- 769, November 13th, 2012. www.primejournal.org/ BAM © Prime Journals
- Adeboye, O.R., &Olawale, S.R. (2012), Corporate Social Responsibility (CSR) and Business Ethics (Be): Effective Tools For Business Performance in Nigerian Banks. IjcrbWebs.Com Interdisciplinary Journal of Contemporary Research in Business Copy Right © 2012 Institute of Interdisciplinary Business Research 274 September 2012. Vol. 4, No 5
