Corporate Governance and Corporate Social Responsibility Practices in Listed Deposit Money Banks in Nigeria

Abstract

The increasing emphasis on Corporate Social Responsibility and its potential impact on stakeholder’s satisfaction and financial performance have driven the need for this research. This study examined the relationship between corporate governance and corporate social responsibility (csr) practices among listed deposit money banks in Nigeria. Ex-post facto research design was employed. The population of the study comprised of the 15 deposit money banks in Nigeria listed on the Nigerian Exchange Group (NGX) as at 31st December,2022, which formed the sample size using census sampling method. Data were obtained from the annual audited financial reports of the banks from the period 2011 to 2022. Data were analysed using the Panel Corrected Standard Errors (PCSE) regression method. The findings revealed that there is a significant positive relationship between transparency measured by the transparency index and CSR practices, a significant positive relationship between environmental sustainability measured by the Dow jones sustainability indices and CSR, and stakeholders’ engagement measured by stakeholder’s feedback score has a positive but insignificant relationship with CSR practices. The study concluded that adherence to corporate governance codes, especially in areas of environmental sustainability and transparency, enhances csr practices. It recommended that Deposit money banks should pay keen attention to corporate governance practices, especially in environmental sustainability. Regulators are also advised to entrench stakeholders’ engagement committees in corporate governance codes to foster better stakeholder engagement.