ABSTRACT

The study focused on the effect of corporate social responsibility on profitability of quoted banks in Nigeria. Communities hive expressed more mistrust of corporations because of various scandals. This has put business. ethics in the spot light influencing companies to be good corporate citizens, respecting the law but also to create good social values and principles. The study made used of an export facto research design and data collected were analyzed using regression analysis. The s'tudy revealed that the estimated coefficient of the regression parameter have a positive sign and thus conform to our a-priori expectation. The implication of this sign is that the dependent variables Return on Asset (ROA), Return on Equity (ROE) and Profit after Tax (PAT) are positively affected by Corporate Social Respohsibility Cost (CSRC). The study also revealed that there is a very high relationship between Corporate Social Responsibility Cost (CSRC) and the various dependent variables that is Return on Asset (ROA), Return on Equity (ROE) and Profit Margin (PM). Based on the findings, the study therefore conclude that deliberate actions taken to reduce the nuisance brought about by waste products generated by firms often brings about positive social responsibility rating, image and acceptability of the firm within its operating area. Also, while behaving in a socially responsible way normally raises the cost profile of a firm, there have been evidence, although not unchallenged, tha.t firms that do so tend to enjoy better long run corporate performance, arising mostly from the support, friendliness and peace they often experience in their operating environment. It is. recommended that Firms should ensure to put measures in place to reduce the nuisance of environmental pollution through abatement, as expenditures made on pollution abatement are normally off-set in the long run by the firms' enjoyment of a healthy and sustainable operating environment. Also, corporate social responsibility projects should be provided by firms especially within and from the benefit of their host communities, especially as government has not been very successful in meeting the basic needs of most communities. Typical areas of intervention for firms in Nigeria include education, health and physical infrastructure support. Such actions ensure that a firm enjoys a positive image and good neighborliness from its host community.