Effect of Corporate Sustainability on Firms’ Performance in Nigeria (2011 – 2020)
Publication Date: 09/06/2023
Author(s): Okechukwu Theresa Ijeoma (Rev. Sr), Ugwu James Ike (Ph.D, CNA).
Volume/Issue: Volume 6 , Issue 2 (2023)
Abstract:
This study examined the effect of corporate sustainability on firms’ performance in Nigeria covering the period ten years ranging from 2011 to 2020. It was necessitated by the cost implication of Corporate Sustainability on Firms’ performance in Nigeria. Specifically, the objectives of the study are to examine the effect of economic, environmental and social sustainability on the profit for the year of the selected firms in Nigeria. This study adopts ex-post facto research design as the researcher made use of past data in the form of secondary data to investigate the effect of corporate sustainability on performance of firms. Four (4) major high sustainability firms were purposively selected based on the complete availability of data for the period under review and their greatest effect on environment in Nigeria namely; Julius Berger Nigeria Plc., Conoil Plc., Nigeria Breweries Plc. and Dangote Cement Plc. The study used secondary data extracted from the annual reports of the selected firms. Panel data regression method was used to estimate the parameters of the model. The major findings of the study were that economic, environmental and social sustainability have probability values of 0.184406, -0.124495 and 0.064896 respectively which implies that they have non significant impact on profit for the year of selected firms in Nigeria. It is therefore the recommendation of this study that firms should be intentional and strategic in incorporating sustainability measures in their business activities.
Keywords:
Corporate Sustainability, Firms’ Performance, Economic, Environmental, Social Sustainability, Nigeria
