STAKEHOLDERS PERCEPTION OF CORPORATE SOCIAL RESPONSIBILITY IN NIGERIA DEPOSIT MONEY BANKS

ABSTRACT

This study is on Stakeholders Perception of Corporate Social Responsibility in Nigeria Deposit Money Banks. It examines the extent of CSR practice by Nigeria Deposit Money Banks and uses the perception of bank employees and customers to determine the existence of any link between Corporate Social Responsibility (CSR) and Corporate Reputation. A review of published financial statements of a sample of 9 Nigeria Deposit Money Banks selected by simple random sampling from a group of 21 Nigeria Deposit Money Banks forms the basis of this study. The published financial statements were reviewed using CSR Disclosure Checklist adapted from Global Reporting Initiative (GRI) Guidelines, while likert-scale questionnaires were used to obtain responses from stakeholders on their perception. The stakeholders were made up of 215 bank employees and 215 bank customers. With the aid of SPSS, descriptive and inferential statistical analyses were carried out and findings of the study reveal that in spite of the fact that banks practice CSR, there is no uniformity in the way it is practiced. Banks’ CSR activities are directed more at employees, customers and shareholders neglecting social and environmental responsibilities. This is not consistent with the perception of surveyed stakeholders who favoured social and environmental CSR oriented activities more. Findings of the study also revealed that CSR geared towards employees, customers, shareholders, social and environmental have positive and significant impact on corporate reputation. It is recommended that Nigeria bank regulators should develop a framework that encapsulates all aspects of corporate social responsibilities while banks also harness the support of their Board of Directors towards pursuing CSR programmes. It is also recommended that Nigeria Deposit Money Banks should develop a peer-review framework to action and monitor performance of all aspects of CSR activities so as to provide benchmarks that will help them compete with other global banks.