Global Journal of Management and Business Research, A: Administration and Management, Volume 23 Issue 5

Effect of Employee Dimension of Corporate Social Responsibility on Financial Performance of Listed Consumer Goods Companies in Nigeria 1 Global Journal of Management and Business Research Volume XXIII Issue V Version I Year 2023 ( ) A © 2023 Global Journals Author α: Department of Accounting, University of Jos, Jos, Plateau State, Nigeria. Author σ: Department of Accounting, University of Jos, Jos, Plateau State, Nigeria. Aminu U. YUGUDA, Accountant General of Gombe State, Gombe State, Nigeria . Corresponding Author ρ: Department of Accounting, Gombe State University, PMB 127, Gombe State, Nigeria. e-mails: wadphonse26@yahoo.co.uk , wadphonse26@gmail.com Abstract - Despite laudable programs by the Nigerian government and policymakers, the consumer goods sector in Nigeria continues to experience declining financial performance. The research examined the effect of the contribution of the employee dimension of corporate social responsibility on the financial performance of listed consumer goods companies in Nigeria. Descriptive and causal research designs were found appropriate for the study. The secondary source of data collection via panel data was used. Data collection method was corporate responsibility to employee checklist and by extraction from annual reports and accounts of listed consumer goods companies in Nigeria. The inferential statistics of multiple regressions were employed to attain the research objective. The Python 3.8 and E views 10 were the statistical packages used in the study for data analysis. Findings showed a positive and significant effect of corporate responsibility on employees on the financial performance. The paper recommends that the consumer goods companies should do more on the corporate responsibility on employees’ relations to improve employees’ motivation and corporate reputation and image that has the potential to improve financial performance. Keywords: corporate social responsibility, employees, financial performance, sequence charts, panel data regression analysis. I. I ntroduction he contribution of consumer goods companies is recognized across the globe. In Nigeria, although the consumer goods sector is growing, it is, however, experiencing stiff and fierce competition (Klynveld, Peat, Marwick & Goerdeler (KPMG), 2014; and Osundina, 2014) as cited by Kabuoh, Moibi, Ademilua & Babajide, (2020). To bolster this position, Yinka (2019), Agboifor (2018) and Zwingina and Opusunju (2017) documented that the high rate of collapse of the manufacturing industry especially in consumer goods firms in Nigeria and continuous decline in financial performance (profitability) is attributed to factors such as increased competitive landscape from globalization, the decline in consumers' purchasing power due to the inaccessibility of the dollar in the economy and delayed policy response, which have resulted to weak macroeconomic conditions, weak labour market dynamics (high unemployment and underemployment), reduced disposable income and poor corporate performance . The comprehensive study by Kabuoh, Moibi, Ademilua & Babajide, (2020) covering 2010-2016 indicates that 46% of consumer goods companies reported dwindling performance showing the decline in the percentage increase in sales revenue and profitability. Consequently, this has posed a significant concern for the Nigerian government and policymakers. To address the declining financial performance of the Nigerian consumer goods sector, the government, and public sector have evolved policies in an attempt to address identified loopholes and bolster the consumer goods sector. Interestingly, in 2017, the Nigerian government restricted or placed bans on certain imports destined for the country, especially in the food, drug, and cosmetics categories, which require some inspections, testing, and reviews, and clearance of imports is typically delayed to the detriment of the importer (International Trade Administration, 2020). Again, the International Trade Administration (2020) states that the Nigerian government has several import substitution policies which aim to increase local production over imports through subsidies, tariffs, quotas, and other trade barriers. Also, that the Federal Government of Nigeria has put in place directive that stipulates that preference be granted to domestic manufacturers in all government procurements. Moreover that at least 40% expenditure for the procurement of manufacturing items such as; uniforms and footwear, food and beverages, furniture and fittings, stationery, motor vehicles, pharmaceuticals, construction materials, and information technology shall T Prof. Ekoja Benjamin Ekoja α , Dr. Saratu L. Jim-Suleiman σ , Alphonsius Dzeawuni Wirnkar ρ & Aminu U. Yuguda Ѡ