Structural Model Framework of Relationship between Corporate Social Responsibility and Market Performance in Nigerian Banking and Manufacturing Sector
DOI: 10.21522/TIJMG.2015.06.02.Art006
Authors : Olanipekun, Wahid Damilola, Lawal, Azeez Tunbosun, Mustapha, Rahman Oladimeji
Abstract:
The study examined the relationship
between CSR and market performance using a structural equation model framework.
Survey research design was used in the study. Data for this research was obtained
from Primary sources through the aid of a structured questionnaire. Krejche and
Morgan formular were used to estimate the sample size. 384 copies of questionnaires
were administered to employees of the selected companies out of which only 305 copies
were found to be useful for data analysis. The data were analyzed using descriptive
statistics and inferential statistics of partial least square structural equation
model (PLS-SEM). The hypothesis was tested at 0.05 alpha levels. Findings revealed
that social responsibility and sustainability are the variable that best predicts
the market performance with the following values (β =.372, t= 3.859, p=0.000). The
next vital predictor in order of importance is the economic responsibility and sustainability
(β = .244, t= 3.545, p= .000) and finally, environmental responsibility and sustainability
(β = .169, t= 2.495, p= .013) is significantly related to market performance. Based
on the findings, the study concluded that CSR philosophy facilitates the unlocking
of the human capital which makes significant contribution to the success of an organization.
The study recommends that organizations should embrace the spirit of being socially
responsible; because by involving in CSR, it will add to the goodwill of their companies,
thereby, increasing their financial worth and eventually boosting their image to
gain an edge through increasing patronage for their services.
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