Determinants of Social Responsibility Costs of Listed Manufacturing Firms in Nigeria

The study ascertained the determinants of social responsibility costs of listed manufacturing firms in Nigeria. Specifically, the study determined the relationship between firms' total assets and community development cost; total sales and staff development cost; and total equity and public utility cost respectively of listed manufacturing firms in Nigeria. The population of the study comprised all the 21 listed consumer goods manufacturing firms in Nigeria. Purposive sampling was applied in selecting the 15 consumer goods firms that made up the sample size for the study. Secondary data were collected from the annual reports of the sampled firms over a ten-year accounting period which spanned through 2013 to 2022. The Pooled Ordinary Least Square regression was used in testing the hypotheses. The findings of the study indicated that: there is a significant positive relationship between firms' total assets and community development cost of listed manufacturing firms in Nigeria (p-value = 0.0059); there is a significant positive relationship between firms' total sales and staff development cost of listed manufacturing firms in Nigeria (p-value = 0.0000); there is positive but non-significant relationship between firms' total equity and public utility cost of listed manufacturing firms in Nigeria (p-value = 0.7002). Based on the findings, it was generally recommended in the study that firms should prioritise their investment in social responsibility as their financial metrics progress so as to enhance their reputation and strengthen their relationship with their host communities and stakeholders.