Assessment Of The Impact Of Corporate Social Responsibility Of Commercial Banks In Nigeria On Their Profitability (A Study Of First Bank Plc.):- Emmanuel, Prince I.

ABSTRACT

The need to examine the impact of corporate social responsibility of commercial banks in as a result of the rising cost of running a viable business organization in Nigeria and lack of basic infrastructure as well as divergent views in the literature regarding the type ofrelationship that exists between CSR and corporate performance. the study focus. The data used for the computational experiment analyzed using the Pearson correlation coefficient and the multiple regression analysis technique. The hypotheses formulated were tested on an SPSS package to achieve the corresponding objective. The result of the multivariate regression analysis which examined the impact of corporate social responsibility on commercial banks profitability revealed a Beta (0) value of 0.993 at 1% level ofsignificance. This means that for every unit change increment in the CSR expenditure will lead to 0.993 or 99.3% increase in the profit after tax of the bank. The coefficient of determination (R2) revealed a value of 0.987 which shows that CSR accounted for 98.7% of the variations in the profit after tax of First Bank pic. while the remaining 1.3% variations is due to other variables not present. The study concluded that there is a strong positive relationship between banks CSR activities and profitability. The implications of this study include the need for banks to demonstrate high level of commitment to corporate social responsibility based on the stakeholders’ theory in other to enhance their profitability in the long run.