Structural Model Framework of Relationship between Corporate Social Responsibility and Market Performance in Nigerian Banking and Manufacturing Sector
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Date
2021-06-24
Journal Title
Journal ISSN
Volume Title
Publisher
Texila International Journal of Management
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.