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

Figure 2: Conceptual Framework Flow Chart Showing the Flow of Activities from CSR to Employees that are Hypothesized to Affect FP Effect of Employee Dimension of Corporate Social Responsibility on Financial Performance of Listed Consumer Goods Companies in Nigeria 4 Global Journal of Management and Business Research Volume XXIII Issue V Version I Year 2023 ( ) A © 2023 Global Journals Source: Researcher’s Conceptualization (2022) many researchers that it offers any real insight into the voluntary disclosure of corporations. This research concerns the interplay between a corporation and its stakeholders and how the corporation can affect and is affected by these stakeholders. Accordingly, this research is anchored on stakeholder theory. c) Stakeholder Theory This theory, propounded by Freeman (1984) asserts that organizations have accountability toward a broad range of stakeholders. Matten, (2003) in Hashimu and Ango (2012) opined that Stakeholder Theory is considered a necessary process in the operation- alization of corporate social responsibility as a complementary rather than conflicting body of literature. The term, ‘stakeholders’ refer to groups of constituents who have legitimate claims on the firm (Freeman, 1984; Pearce, 1982; in Hills & Jones, 1992). According to Hills and Jones (1992), legitimacy is established through the existence of an exchange relationship and, stakeholders include: stockholders, creditors, managers, employees, customers, suppliers, local communities, and the general public. Following March and Simon (1958) as cited by Hills and Jones (1992), each of these groups can be seen as supplying the firm with critical resources (contributions), and in exchange, each expects its interests to be satisfied (inducements). Stockholders provide the firm with capital, and in exchange they expect the firm to maximize the risk-adjusted returns on their investments. Moreover, all stakeholders have right to be treated fairly by organizations and corporate social responsibility helps in strengthening stakeholders’ relations. There are two broad arms of stakeholder theory: Good Management Theory and Slack Resource Theory. These two theories look at the direction of the causal relationship between CSR and FP. While Slack Resource Theory states that CSR depends on FP, Good Management Theory states that FP depends on CSR. Given the peculiarity of this research, “Effect of Employee Dimension of Corporate Social Responsibility on Financial Performance of Listed Consumer Goods Companies in Nigeria; it is anchored on Stakeholder Theory as we assess the reciprocal effect of CSR on employees (a stakeholder) in affecting FP. Moreover, FP is the dependent variable while CSR to employees is the independent variable, and as such, the study is anchored specifically on Good Management Theory as contained in Figure2.