Social Responsibility Accounting and The Performance of Listed Companies in Nigeria

ABSTRACT

This research study is aimed at examining the extent to which manufacturing firms in Rivers state, disclose their social responsibility activities and report these activities. To achieve this, sixty-four (64) questionnaire were issued to top managers to gather first hand information on their knowledge of corporate social responsibility, its level of significance, how corporate social responsibility activities affects financial performance of the firm and how they report social demands met by them. A sample size of thirty-two (32) manufacturing firms registered under Manufacturing Association of Nigeria, Rivers state branch, located in Port Harcourt were selected and studied since the population is finite and small. Null hypotheses were tested using chi-square test statistic. It was revealed that corporate social responsibility brings about increased turnover growth of firm, firm’s profitability, good relationship between host communities and firms. In conclusion, it was revealed that social responsibility activities by firms is one way of increasing firms’ profitability, financial performance and enhancing their ethical values. It was also recommended that statutory acts and laws be enforced to ensure firms compliance to social responsibility activities.