The Relationship Between Corporate Social Responsibility and Profitability: The Case of Dangote Cement Plc

Abstract

Abstract:This study seeks to find out the relationship between corporate social responsibility (CSR) investment and profitability of Dangote Cement Plc using secondary data. The study assesses the impact of CSR investment on Dangote's increase in revenue, profit after tax (PAT), and earnings per share (EPS) over a period of 5years. To achieve this, data were obtained from Dangote's annual sustainability reports and accounts for the period of 2012-2016 and analyzed using content analysis such as tables, percentages and using the trend line analysis to get the linear correlation coefficient (R-square). Findings from the analysis show that there is a positive relationship between CSR investment and profitability. Thus, Revenue shows 67.81% degree of positive relationship, profit after tax (PAT) depicts 54.28% degree of positive relationship and 60.79% is attributed to the degree of positive relationship between Earning per share (EPS) and CSR investment of Dangote cement Plc within the observed period (2012)(2013)(2014)(2015)(2016). The study concludes that Dangote's CSR investment is positively correlated with the profitability performance indicators.

Future Agenda of Iraqi Social-Business Ethics through Corporate Social Responsibility: The Post-War Era

“…Iraqi managers, entrepreneurs, and shareholders can apply CSR practices on an abrasion-flow within their companies to achieve sustainability (Lu et al, 2017), reputation (Perez, 2015), economic growth (Kolk, 2016). This yields in more positive outcomes such as acquiring social marketing, and increasing the level of profitability (Zakari, 2017). For the fast-growing and emerging market of Iraq, social aspects of business in the concept of business laws and ethics, is an area of concern, which requires attention and awareness.…”

Corporate Social Responsibility: Organization's Pull And Push Strategy

“…The success stories of the firm in the nation's manufacturing sector cannot possibly come to bare without its robust CSR initiatives that have a good blend of both the push and pull strategies taking its root from the marketing mix and situational analysis theories. Murtala (2017), shows a strong positive correlation between the firm's CSR and profitability for succeeding years. It is thereby recommended that, other organizations both in the industry and outside it should have an inclusive CSR initiatives and efficiently inculcate the push and pull strategy in the designs and implementation of such initiatives.…”

Do CSR awards enhance firms’ market value? Evidence from China

“…Some studies have investigated the relationship between firms’ CSR and accounting-based performance measures (McGuire et al , 1988; Lev et al , 2010; Barnett and Salomon, 2012; Erhemjamts et al , 2013; Rodgers et al , 2013; Zakari, 2017; Resmi et al , 2018). Meanwhile, stock-market-based performance reflects the investor’s expectation of a firm’s ability to generate forward-looking economic earnings rather than backward performance.…”