Corporate Social Performance Determinants: A Study of Marketing Petroleum and Food and Beverages Industry in Nigeria

Abstract

A corporation operating within any societal environment should have mutual and positive relationship with the society. This relationship can be achieved and maintained in the long run if the company discharge its social responsibility adequately as a positive gesture in the exchange of societal resources utilized, nuisance created or damages caused. This study examined the effect between profitability, firm size, corporate tax (CT) and Corporate Social Performance (CSP) focusing on the Nigerian marketing petroleum and food and beverages sector. The population of this study comprises of marketing petroleum and food and beverages companies that are listed in the Nigerian Stock Exchange (NSE). Data were collected from the annual report and accounts of the selected companies for a period of ten years (2006- 2015). Using the profit before tax and interest, tax paid and the annual turnover as proxies for profitability, corporate tax and firm size respectively. This study also employed Structural Equation Modelling (SEM) for data analysis. The results revealed a significant positive effect between profitability, corporate tax and CSP. The result of the study shows a significant negative effect between firm size and CSP. Recommendations made include the need for Nigerian government, organisation, environmentalist, accountants, economists, and expert in business management to collaborate in educating and sensitize the investing public and corporate bodies to consider CSP as one of the important guidance factor for investment decision.