Corporate Social Responsibility and Financial Performance of Selected Food and Beverage Companies in Nigeria

This study examines the effect of community involvement activities on the financial performance of food and beverage companies in Nigeria. The specific objectives are to determine the relationship between corporate social responsibility and return on capital employed, and to determine the relationship between corporate social responsibility and earnings per share. The study made use of the quantitative research method. The sample of the study comprises seventeen (17) food and beverage companies listed on the Nigerian Stock Exchange market. Quantitative Data analysis was analyzed using the Stata. The cоеfficiеnt of determination, R squаrеd, mеаsurе was put to test the significance of the regression model in explaining the relationship between corporate social responsibility practices reported in the аnnuаl reports and the financial performance. The findings of the study revealed community involvement has a positive but insignificant relationship with return on capital employed and also has a positive insignificant relationship with earnings per share in food and beverage companies in Nigeria. Consequent to this study, it was recommended among others that food and beverage companies should endeavor to improve on their corporate social responsibility disclosures especially the ones with relatively low levels of disclosures