THE EFFECT OF HUMAN RESOURCE DRIVEN CORPORATE SOCIAL RESPONSIBILITY ON FINANCIAL PERFORMANCE: EVIDENCES FROM NIGERIAN QUOTED CONSUMER GOODS COMPANIES

Abstract

This study examined the effect human resource (HR)-driven corporate social responsibility (CSR) on the financial performance of listed consumer goods companies in Nigeria. Despite increasing adoption of CSR initiatives, many firms continue to face challenges in linking employee-focused CSR programs to tangible financial outcomes, creating uncertainty about the effectiveness of such investments. To address this problem, the study employed a purposive sampling technique to select 15 firms from a population of 21 listed consumer goods companies on the Nigerian Exchange Group (NGX) as of 2023. Secondary data were extracted from the annual reports and sustainability disclosures of the selected firms covering a ten-year period (2014–2023). Panel regression analysis, correlation matrix, and descriptive statistics were utilized to analyze the data. The findings revealed a significant positive relationship between HR-driven CSR initiatives and firm financial performance, measured by return on assets (ROA). The helps in improving firm financial performance. The study therefore concludes that HR-driven CSR have a noteworthy impact on firm financial performance. It recommends that companies should keep funding employee-focused CSR initiatives that enhance worker welfare and productivity.