CORPORATE SOCIAL RESPONSIBILITY AND THE FINANCIAL PERFORMANCE OF LISTED OIL AND GAS FIRMS IN NIGERIA

Abstract

This study looked at corporate social responsibility and the profitability of listed oil and gas firms in Nigeria. The study evaluated the impact of ethical responsibility practices, social responsibility practices and environmental responsibility practices on the profitability of oil firms in Nigeria. Using the ex-post facto research design, data from the annual financial and sustainability reports for 2014 to 2023 for the sampled companies were gathered and analysed using the multiple regression analysis method 
testing the hypotheses at a significance level of 0.05, the study found that ethical responsibility practices with p value of 0.2303 has no significant impact on profitability of oil companies in Nigeria, environmental responsibility practices with p value of 0.2741 has no significant impact on profitability of oil companies in Nigeria, while social responsibility practices with p value of 0.0239) has a significant impact on the profitability of oil companies in Nigeria. These findings revealed that among the CSR practices evaluated, only social responsibility practices had a significant on profitability of oil and gas firms in Nigeria. In line with the findings, 
the study concludes that while social responsibility practices are beneficial, other CSR factors do not have the same level of influence on financial performance. The study recommends that oil and gas firms should invest more in social responsibility practices, reassess and align their ethical responsibility practices and environmental responsibility practices with broader business goals to enhance their overall impact. 
Keywords: Corporate Social Responsibility, Return on Total Asset, Oil and Gas Firms, Ethical Responsibility Practices, Social Responsibility Practices, 
Environmental Responsibility Practices and Profitability