ORPORATE SOCIAL RESPONSIBILITY AND REPUTATION OF MICRO ENTERPRISES IN LAGOS STATE, NIGERIA.

This study examined the effect of Corporate Social Responsibility (CSR) on the reputation of micro enterprises in Lagos State, Nigeria. Specifically, it focused on three dimensions of CSR—philanthropic, ethical, and economic responsibilities—and their impact on community responsibility, customer trust, and employee satisfaction as components of organizational reputation. A quantitative research design was adopted, and data were collected from selected micro enterprises through structured questionnaires. Regression analysis was used to test the hypotheses. The findings revealed that all three dimensions of CSR had significant positive effects on the elements of reputation. Philanthropic responsibility was found to strongly influence community responsibility, ethical responsibility had a significant impact on customer trust, and economic responsibility contributed to employee satisfaction. The study concludes that CSR is a strategic tool for enhancing the reputation and sustainability of micro enterprises. It recommends that micro businesses actively invest in CSR initiatives to build trust, loyalty, and community goodwill. The study contributes to the understanding of CSR’s role in small-scale business reputation and provides a basis for further research on sustainability and stakeholder engagement in Nigeria’s micro enterprise sector. The study employed a survey research design to collect data from 200 employees across micro enterprises in Lagos State. A structured questionnaire, anchored on a Likert-type scale, was used to measure dimensions of CSR and their effects on community responsibility, customer trust and employee satisfaction. The research instrument was subjected to validity and reliability testing to ensure its robustness. Data were analyzed using descriptive statistics and multiple regression analysis to test the hypotheses raised in this study at 5% confidence level. Regression analysis revealed that philanthropic responsibility had a significant effect on community responsibility (β = 0.122, t = 3.86, p < 0.05), ethical responsibility significantly influenced customer trust (β = 0.275, t = 7.916, p < 0.05), and economic responsibility had a strong effect on employee satisfaction (β = 0.301, t = 8.663, p < 0.05). The adjusted R² values indicated that CSR variables collectively explained a meaningful proportion of the variance in the reputation components: 12.5% for community responsibility, 21.7% for customer trust, and 9.3% for employee satisfaction. These results suggest that CSR plays a vital role in shaping the public image and internal satisfaction of micro enterprises. The study concludes that implementing socially responsible practices enhances stakeholder relationships and long-term sustainability. Recommendations were made for micro enterprise owners to invest more deliberately in ethical operations, community support, and fair economic practices to strengthen their overall reputation.