Impact of Corporate Social Responsibility on Profitability of Quoted Food and Beverages Companies in Nigeria

Abstract

The study examines the impact of Corporate Social Responsibility on Profitability of Quoted food and beverages companies in Nigeria from 2006 to 2015. . The population of the study consists of seventeen (17) quoted foood and beverages companies listed on the Nigerian stock exchange out of which twelve (12) were sampled based on the data availability.  The study was carried out using secondary data collected from annual reports and accounts of the sampled companies. The data collected were analysed using multiple regression techniques.  The denpendent variable is profitability which is measured with profit after tax, while the independent variable is corporate social responsibility was measured using the amount spent on corporate social responsibility activities.The result of the study reveal that corporate social responsibility has a significant positive impact on profitability with value 0.007 and the R2 of 0.3704.The study recommend that companies should embark on corporate social responsibility since it has positive correlation with companies profitability. Government should come up with clearly defined responsibility issues and should ensure its full implementation. This is because CSR activities help in raising the standard of living of communities and that the activities of the companies affect the life of the host communities. Keyword: Corporate Social Responsibility, Profitability, Food and Beverages