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


Department Of Business Administration


PAGES: 80
FORMAT: MS WORD
Chapters: 1-5
PRICE: ₦ 5,000.00

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.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The Banking System is very important for any nation because it is the pivot of socio-economic development of any economy.  They have active developmental roles to play in the economy such as mobilizing fund from the surplus to the deficit spending units. The design of the Nigerian Banking System is geared towards greater impact on the Nigerian economy. 

In the current era companies are not only responsible to their shareholders alone, they said to be standing on the triple bottom lines of corporate responsibility which include social, environmental, and financial (Tjia and Setiawati, 2012). Accountability of the business organizations is therefore extended not only to direct stakeholders concern but also to different external parties through the implementation of different socially desirable activities (Masud and Hossain, 2012). These social activities are no longer considered as a financial burden, but rather as social capital investment (Tjia and Setiawati, 2012). They are also called ethical investment simply because they increase the positive impacts of an organization (Abbasi et al. 2012). 

Corporate social responsibility (CSR) is the encompassing term for the undertaking of these social activities. According to Ahmed et al. (2012) “CSR is generally understood to be the way a company attains a balance or integration of economic, environmental, and social imperatives while at the same time addressing shareholder and stakeholder expectations, with the understanding that businesses play a key role on job and wealth creation in society”. Uddin et al.  (2008) state that CSR “is the continuing commitment by business to behave according to business ethics and contribute to economic development while improving the quality of the life of the workforce and their families as well as the local community and society at large”.

In relation to the banking sector, CSR is said to be the obligation of banks to manage their social, economic and environmental activities at local and global level (Abbasi et al. 2012).   This involves the bank considering not only their profitability and growth, but also the interests of society and the environment by taking responsibility for the impact of their activities on stakeholders, employees, shareholders, customers, suppliers and civil society represented by NGOs (Noyer 2008 in Masud and Hossain, 2012). Although banks are not directly involved in degradation of natural environment they are facilitators as they are suppliers of funds that support production process that ultimately causes environmental degradation (Sarokin and Schulkin, 1991in Ahmed et al. 2012). Thus, according to Branco and Rodrigues (2006), the activities of banks, such as their lending and investment policies, can be considered as equally environmentally-sensitive when compared with the direct impacts of polluting industries that are dependent on the banks.

Therefore Branco and Rodrigues (2006) reasoned that banks can report on what they are doing to ensure that their lending and investment policies do not facilitate industrial activities, which are harmful for the environment. On a more direct way, Branco and Rodrigues (2006) argue that financial institutions consume vast amounts of resources, such as paper and energy, and create wastes; hence their policies regarding how they contribute to the conservation of energy and natural resources and recycling activities are important aspects of their social responsibility activities. Therefore to ensure accountability, banks are to be disclosing social related information. 

Social responsibility disclosure refers to the disclosure of information about companies’ interactions with society (Branco and Rodrigues, 2006). Due to informational asymmetry, disclosure of private information is imperative as it brings general gains in economic efficiency (Hossain and Reaz, 2007), and it is an important instrument in the dialog between business and society (Branco and Rodrigues, 2006).  Generally transparency is an important aspect of good corporate governance practice and in relation to the banking sector increased transparency through the disclosure of timely and accurate information ideally should enable a bank to access capital markets more efficiently (Hossain and Reaz, 2007). These CSR disclosures can be classified into environment, human resources, products and customers and community involvement (Branco and Rodrigues, 2006).

In recent decades, as societies in Nigeria have become more prosperous, better educated and more articulated, increasing attention has focused on the social responsibility of business firms, because business firms are allowed to flourish within society and to make use of various natural and human resources available as well as public services.

The primary goal of a company is profit. To make more profit, companies make good products, invest money to retain competent employees and develop new technology and retain customers. These efforts have not only benefitted businesses economically, but have also contributed to the development of modern society. This social contribution concept of passive social responsibility has governed the mind of business owners until recently.

1.2 STATEMENT OF RESEARCH PROBLEM

The Nigerian economy today is faced with multiplicity of challenges ranging from high unemployment rate, high poverty (which stood at 69 percent of the 163 million population of Nigeria (NBS, 2010) corruption, youth restiveness, political crises, security challenges (which has great effect on investments (Aimurie,I. et al) and economic growth among others). These problems are generally seen as social issues, thus the more social improvements relates to a company’s business, the more it leads to economic benefits as well (Porter, M .E. and Kramer, M .R.2002).  

Since the role of banks is to enhance economic growth and with all these challenges facing the economy thereby threatening economic growth at this critical time that the Nigerian banks want to be the financial hub of Africa in the year 2020 and the nation is prepared to be one among the top 20 largest economies in the world by the year 2020. Even if the banks are socially responsible to an extent, there is need for the Nigerian banks to rethink both where (that is sector(s) and location) they focus their CSR and how they go about their CSR as no business can thrive in chaos environment. 

Banking operations all over the world are technological driven, right from the door that customer passes through to enter the banking hall to the recording of the transactions between the customer and the bank or with third party (ies) requires one technology or the other which must be powered with electricity. Due to epileptic power supply in Nigeria, most organizations have to provide alternative power supply rather the relatively cheaper Nationalgrid (PHCN). This and some other factors have been militating against efficient running of business organization in Nigeria. As they have to factor the cost of fueling the alternative source of power which is always costly among others (like LPFO/Black oil, AGO/diesel and GAS) into their factors of production or operations as in the case of banks. 

However, in the face of the above challenges for banks in Nigeria, the practice of corporate social responsibility as a concept entails the practice whereby corporate entities voluntarily integrate both social and environment upliftment in their business philosophy and operations. A business enterprise is primarily established to create valueby producing goods and services which society demands. It therefore seems that the practices of CSR will further pose a burden on the financial performance of banks. This has made most observers perceive Nigeria business environment has been hostile.In the light of the above problems faced by most banks, there is the need to evaluate the impact of CSR on the profitability of the banking sector in Nigeria.

1.3 RESEARCH OBJECTIVES   

The main objective of this research work is to examine the impact of corporate social responsibility on bank performance, a case study of some selected commercial banks in Nigeria. The specific objectives of this study therefore, are: 

(i) To examine the impact of disclosure of CSR on community development and its implications to both economic and environmental bottom line;

(ii) To examine the impact of corporate social responsibility on the employee’s commitment.

1.4 RESEARCH QUESTIONS

This research will attempt to provide answers to the following questions:

(i) Does corporate social responsibility have any economic and environment impact?

(ii) Does the practice of corporate social responsibility impacts on the financial performance of an organization?

(iii) How does corporate social responsibility influence employee’s performance?

1.5 RESEARCH HYPOTHESIS

Hypothesis is a tentative statement about the universe which may or may not be true. The hypothesis for this study is therefore formulated on the basis of the objectives of the research work as stated below:

Ho:There is no significant relationship between corporate social responsibility and bank performance in Nigeria

H1:There is significant relationship between corporate social responsibility and bank performance in Nigeria.

1.6 SIGNIFICANCE OF THE STUDY

It is expected that this study will provide an indication of how the corporate social responsibility landscape looks like in Nigeria’s banking system since there are no significant differences in the structural and operational models in the various banks in Nigeria. More so, this study is important because it will add to the existing literature of banks CSR in particular on how socially responsible is the Nigerian banks in addressing the challenges and enhancing the economic growth of Nigeria, which is one of the key sector that can drive the economic growth of any nation.

The result of this research work will aid the Nigerian banking system to evaluate their level of commitment to their corporate social responsibility objectives and functions in the light of their dependency on the environment as source of inputs and market for corporate outputs. It will also highlight the degree of neglect of government as a regulatory agent in the execution of its social responsibility duties.

1.7SCOPE OF THE STUDY

This study basically seeks to examine the impact of corporate social responsibility on bank performance. This study is limited in scope to the banking industry in Nigeria from 2003 to 2013.

1.8 DEFINITION OF TERMS

For the purpose of this research, the under – listed terms are defined thus:

⦁ Corporate Social Responsibility (CSR): is a business process that a company adopts beyond its legal obligations in order to create added economic, social and environmental value to society and to minimize potential adverse effects from business activities, which includes interactions with suppliers, employees, consumers and communities in general.It also describes a company’sobligations to be accountable to all of its stakeholders in all its operations andactivities. It is a concept describing a company’s obligations to be accountable toall of its stakeholders in all its operations and activities on a voluntary basis.

⦁ Social responsibility disclosure refers to the disclosure of information about companies’ interactions with society (Branco and Rodrigues, 2006). Due to informational asymmetry, disclosure of private information is imperative as it brings general gains in economic efficiency (Hossain and Reaz, 2007), and it is an important instrument in the dialog between business and society (Branco and Rodrigues, 2006).  Generally transparency is an important aspect of good corporate governance practice and in relation to the banking sector.

⦁ Corporate performance is a vital concept that relates to the way and manner with which the financial resources at the disposal of the organization are judiciously put into usage to achieve the corporate objectives of such organization (Kajola 2008). The corporate performance of organization would disclose to the various stakeholders of the organization the continuous ability for such organization to remain in business.

⦁ Bank: is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank links customers that have capital deficits and customers with capital surpluses.

1.9 OUTLINE OF CHAPTERS

This research work is divided into Five Chapters. Chapter one is devoted to introduction, Chapter Two, dealt with the review of relevant literature on the constructs and variables of the study as well as the theoretical and empirical frameworks. Chapter Three disclosed the research methods, research design, sampling, sampling techniques, validity and reliability, while Chapter Four examined data presentation and Analysis and Chapter Five dealt with discussions, summary of findings, Conclusions, contribution to knowledge recommendations, limitation and suggestions for further studies.

.



TYPE IN YOUR TOPIC OR KEYWORD AND CLICK SEARCH:

HOW TO GET THE COMPLETE PROJECT MATERIAL ON IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) ON PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA (A CASE STUDY OF GTB PLC)

  • * Click the green DOWNLOAD Button above

    * Select any option to get the complete project material instantly.

    * Chat our 24/7 customer service desk on WhatsApp# (+234) 0803-766-4978 and get your complete project material instantly.

    * All project materials on this website are well researched by professionals with high level of professionalism.


TESTIMONIES FROM OUR CLIENTS

Please feel free to carefully review some written and captured responses from our satisfied clients.


  • Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.

    "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."


  • Hilary Yusuf, United States International University Africa, Nairobi, Kenya.

    "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"


  • Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.

    "Researchwap.net is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.net" and God bless you and your business! ."


  • Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.

    "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."


  • Sampson, University of Nigeria, Nsukka.

    "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."


  • Cynthia, Akwa Ibom State University .

    "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."


  • Elizabeth, Obafemi Awolowo University

    "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."


  • Ali Olanrewaju, Lagos State University.

    "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."


  • Willie Ekereobong, University of Port Harcourt.

    "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"


  • Theressa, Igbinedion University.

    "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 5k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"


  • Joseph, Abia state Polytechnic.

    "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."


  • Christiana, Landmark University .

    "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"


  • Musa, Federal University of Technology Minna

    "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."


  • Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.

    "I was scared at first when I saw your website but I decided to risk my last 5k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."


  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.
    Thank you for choosing researchwap.com.

FREQUENTLY ASKED QUESTIONS

  • How can I get the complete project - IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) ON PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA (A CASE STUDY OF GTB PLC)

    Simply click on the DOWNLOAD green button above and follow the procedure stated.


    Is it a complete project work or just materials?

    Yes, it's a Complete Research Project material. i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data


    What if I want to change the case study for IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) ON PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA (A CASE STUDY OF GTB PLC) , What can i do?

    Chat with Our 24/7 Customer Service Desk Now: WhatsApp# and you will be responded to Instantly


    How long does it take to get the complete project on IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) ON PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA (A CASE STUDY OF GTB PLC) ?

    Depending on how fast your payment and details is acknowledged by us, you will get the complete project within 30 minutes. However, on a very good day you can still get it within 15 minutes!


    How will I get my complete project?

    The Complete Project Material will be Delivered via your Email Address in an MS Word document format


    Can I get my Complete Project through WhatsApp?

    Yes! We also send your Complete Research Project to your WhatsApp Number


    What if my Project Supervisor made some changes to a topic i picked from your website?

    Call or Chat With Our 24/7 Custumer Care Desk: +2348037664978 and you will be responded to Instantly


    Do you assist students with Assignment, Term Paper, Seminar and Project Proposal?

    Call or Chat With Our 24/7 Custumer Care Desk: +2348037664978 and you will be responded to Instantly


    What if i do not have any project topic idea yet?

    Don't Worry! We've Got Your Covered. Chat with us on WhatsApp# (+234) 0803-766-4978 to Get Instant Help.


    Why should I trust this website?

    We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "TOPNOTCH INFOTECH ENTERPRISE". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!


    I have a fresh topic that is not on your site. How do I go about it?

    Don't Worry, Chat with us on WhatsApp# (+234) 0803-766-4978 to Get Instant Help.



PROJECT DETAILS

PAGES: 80
FORMAT: MS WORD
Chapters: 1-5
PRICE: ₦ 5,000.00




TYPE TOPIC OR KEYWORD AND CLICK SEARCH: