Impact of Corporate Social Responsibility on Financial Performance of Listed Information Communication and Technology Firms In Nigeria

Abstract

This study addresses the growing need for empirical evidence on the financial outcomes of CSR initiatives in the Nigerian ICT sector, a context characterised by rapid digital transformation, institutional weaknesses, and high socio-economic expectations. This study investigates the impact of Corporate Social Responsibility (CSR) on the financial performance of listed Information and Communication Technology (ICT) firms in Nigeria, 
with particular emphasis on CSR expenditure, Environmental, Social, and Governance (ESG) score, CSR reporting practices, community involvement, and innovation for social good. Adopting a correlation research design and a positivist philosophy, the study employed a census approach on nine ICT firms listed on the Nigeria Exchange (NGX) Group between 2015 and 2024. Secondary data were collected from audited annual financial statements, CSR disclosures, and sustainability reports. The study employed a random panel regression model to examine the relationship between CSR dimensions and financial performance measured by Return on Assets (ROA). The findings revealed that 
CSR expenditure, ESG score, CSR reporting practices, community involvement, and innovation for social good had a statistically insignificant effect on financial performance. Therefore, the study recommends that enhancing CSR strategy integration into core business operations, prioritising innovation for social good, adopting standardised ESG reporting frameworks, and exploring long-term value creation mechanisms will optimise both social and financial outcomes.  

Keywords: corporate social responsibility, financial performance, listed 
information and communication technology firms, Nigeria