Corporate Social Responsibility Practices and Performance Firms: An Empirical Analysis of Selected Manufacturing in Plateau State-Nigeria

Abstract

Manufacturing firms in Nigeria are faced with operational challenges due to increasing demands for corporate social responsibility (CSR) compliance amid a difficult economic environment. Also, a gap in existing literature regarding the nuanced impact of different CSR dimensions (environmental, economic, ethical, and philanthropic responsibilities) on firm performance in plateau state, Nigeria, necessitate this region-specific study. This study examined the impact of CSR practices on the performance of selected manufacturing firms in Plateau State, Nigeria. Specifically, it assesses the effects of environmental, economic, ethical, and philanthropic responsibilities on firm performance. A descriptive-survey research design was employed. Both simple random/proportional stratified sampling technique was used to obtain a sample of 365 respondents from a population of 1,354 employees across 14 manufacturing firms in the state. Data were analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM). The findings revealed that environmental responsibility has insignificant effect on firm performance. Economic
responsibility showed a significant negative effect on firm performance, indicating potential drawbacks of overemphasizing cost-cutting measures. Ethical responsibility demonstrated a significant positive effect on firm performance, suggesting that firms benefit from integrating ethical practices, such as transparency and fair labour practices. Philanthropic responsibility was found to have a strong positive impact on firm performance, highlighting the role of community support and charitable activities in enhancing stakeholder goodwill and corporate reputation. Based on these findings, it was recommended that manufacturing firms in Plateau State should incorporate sustainable practices, balance economic goals with long-term investments, foster ethical practices, and strengthen philanthropic initiatives to improve their operational efficiency, stakeholder relationships, and overall performance.