IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON PROFITABILITY OF LISTED MANUFACTURING COMPANIES IN NIGERIAN

This study examined the impact of corporate social responsibility on the profitability of listed manufacturing companies in Nigeria. The research adopts a quantitative approach which uses secondary data extracted from annual and financial reports of selected companies for the period of 7 years ranging from 2017-2023. The study uses the multiple regression analysis to access the relationship between corporate social responsibility expenditures and profitability. The results revealed that community development spending (CD) has a significant positive impact on profitability as a result of the company’s reputation which strengthens relationship with stakeholders. However, while investment in employee development (ED) is important for long-term sustainability, its immediate impact on profitability remains uncertain. Firms may not see direct financial returns from employee training and welfare spending in the short run but it can boost financial performance in the long run. Therefore, it suggests that companies should find a balance between social responsibility and business growth in other to maximize both financial and social benefits.