Accounting for Environmental Sustainability and Corporate Social Responsibility

Student: Samuel Olusola OJO (Project, 2025)
Department of Accountancy
Federal Polytechnic, offa, Kwara State

Abstract

This study investigates the impact of environmental sustainability and corporate social responsibility (CSR) on the financial performance of quoted firms in Nigeria. The research specifically examines how Corporate Social Responsibility (CSR) expenditure, Environmental Maintenance Cost (EMC), and Personal Benefit Cost (PBC) influence Profit After Tax (PAT) as a measure of profitability. An exploratory research design was adopted, utilizing secondary data obtained from the annual reports of firms listed on the Nigerian Exchange Group (NXG). Multiple linear regression and Student’s t-test, analyzed through the Statistical Package for Social Sciences (SPSS), were employed to test the hypotheses at a 5% significance level. Findings revealed that CSR and EMC have no significant or negative impact on PAT, while PBC exerts a strong positive and significant influence. The study concludes that firms’ expenditures on social and environmental responsibilities are not directly proportional to financial performance. It recommends that organizations, government agencies, and NGOs strengthen their commitment to sustainability and transparency to achieve balanced economic and environmental outcomes.

Keywords
accounting environmental sustainability corporate social responsibility
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