Corporate Social Responsibility and the Return on Capital Employed of Quoted Oil and Gas Companies in Nigeria

This study examines the impact of corporate social responsibility (CSR) on the return on capital employed of quoted oil and gas companies in Nigeria, with a particular focus on the roles of ethical and economic responsibilities. Using data from ten oil and gas firms listed on the Nigerian Stock Exchange for the period 2013 to 2023. The study employs Ordinary Least Squares (OLS) regression analyses to assess the relationship between CSR dimensions and ROCE. The results reveal that economic responsibility has a significant positive impact on ROCE, highlighting its critical role in driving financial performance. Ethical responsibility, however, shows a positive impact on ROCE. The findings underscore the importance of prioritizing economic responsibilities while strategically managing ethical and legal obligations to achieve a balance between short-term financial gains and long-term sustainability. The study concludes with recommendations for oil and gas companies to optimize their CSR strategies and leverage firm-specific characteristics to enhance ROCE.