Firm Characteristics And Corporate Social Responsibility: A Panel Study Of The Nigerian Listed Oil And Gas Companies.

Abstract

Over the years, business objective has been synonymous with profit maximization. However, globalisation and changes in ecological order have redefined primary objective of economic profitability to include social and environmental considerations. The paradigm shift in organization objective became inevitable in view of the expansion in business operations and attendant environmental hazards leading to climate change. This paper seeks to validate or refute the assumption that bigger companies tend to behave responsibly through corporate information disclosure, programme, and activities. Data on Corporate Social Responsibility (CSR) information of eight (8) selected listed oil and gas companies operating in Nigeria over the sample period of 2010 to 2019 were collected and analyzed using a panel regression. The study found that CSR disclosure initiative of the listed oil and gas companies in Nigeria was significantly and positively influenced by firm’s size and age. Although, the possible influence of other firm characteristics such as financial performance as suggested in the literature were excluded in the current study due to data constraint. The study recommends that, future studies in this area should consider those factors. Furthermore, it recommends that government at the federal level arbitrate in the conflict between the oil and gas companies and members of their host communities in the Niger Delta region of Nigeria with a view to helping the oil and gas companies operating in the region maximize the potential of their corporate size to facilitate their CSR commitment in the region and Nigeria as a whole.