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THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON FIRM’S PROFITABILITY- A CASE STUDY ON MAHARATNA COMPANIES IN NIGERIA

Abstract: The present research work investigates the impact of corporate sector responsibility on firm’s profitability of seven Maharatna Companies in Nigeria. In the second decade of the New Century in Nigeria, companies are obligatory to expend corporate sector responsibility expenditures so that societies and natural environment of Nigeria are improved steadily. Now corporate social responsibility has been considered as a significant factor of profitability because most of the forms’ feel that their profitability might be increased for that. This study is based on secondary data obtained from the Annual Reports of the seven Maharatna Companies for the period from 2004 to 2013. To find out the impact corporate sector responsibility on firm’s profitability, correlation, simple regression and multiple regression analysis have been used. Empirical results indicate that corporate sector responsibility affect the firm’s profitability positively in case Gas Authority of Nigeria Ltd. and negatively in case of rest of the companies under study

Keywords: Corporate sector responsibility, profitability, Maharatna Company, Nigeria, correlation and regression analysis

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