International Journal of Trend in Scientific Research and Development (IJTSRD)

Volume 6 Issue 3, March-April 2022 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470

Corporate Social Sustainability Practice and Financial

Performance of Consumer Goods Firms in Nigeria
Obiora Fabian., Ph.D; Onuora, J. K. J., Ph.D; Egwuom Mary Jane. I
Department of Accountancy, Chukwuemeka Odumegwu Ojukwu University, Igbariam, Anambra State, Nigeria

ABSTRACT How to cite this paper: Obiora Fabian. |

Background: Sustainability practice deals with the measurement, Onuora, J. K. J. | Egwuom Mary Jane. I
analysis and communication of interactions and links between social, "Corporate Social Sustainability Practice
environmental and economic issues constituting the three dimensions and Financial Performance of Consumer
of sustainability Goods Firms in
Nigeria" Published
Aim: This study empirically investigated the relationship between in International
corporate social sustainability practice and financial performance of Journal of Trend in
listed consumer goods firms’ in Nigeria. The study is vital as it Scientific Research
portrays the extent to which corporate social sustainability practice and Development
influences firms’ performance. In order to determine the relationship (ijtsrd), ISSN: 2456- IJTSRD49501
6470, Volume-6 |
between corporate social sustainability practice (CSSP) and firms’
Issue-3, April 2022, pp.197-206, URL:
performance, corporate social sustainability disclosure index by GRI www.ijtsrd.com/papers/ijtsrd49501.pdf
was used while firms’ performance on the other hand was
represented by return on equity (ROE). Copyright © 2022 by author(s) and
Materials and Methods: Four hypotheses were formulated to guide International Journal of Trend in
the investigation and the statistical test of parameter estimates was Scientific Research and Development
Journal. This is an
conducted using OLS regression model operated with STATA 15. Ex
Open Access article
Post Facto design was adopted and data for the study were obtained distributed under the
from the Nigerian Stock Exchange Factbook and the published terms of the Creative Commons
annual financial reports of the entire listed consumer goods firms on Attribution License (CC BY 4.0)
NSE with data spanning from 2016-2021. (http://creativecommons.org/licenses/by/4.0)
Results: The finding generally indicates that human rights disclosure,
labour practices and decent work disclosure, product responsibility
disclosure and societal disclosure have significant influence on firms’
performance (ROE) at 1%-5% significant level.
Conclusion: Based on the findings of the study, the study concludes
that corporate social sustainability practice has positively improved
firms performance over the years.
Recommendation: The study however suggests that firms should
disclose more of this information in their annual reports in order to
legitimize their operations by making public known about her
commitment of business to contribute to sustainable economic
development, working with employees, their families and the local
communities as this disclosure is relevant for investors decision
making.
KEYWORDS: Corporate Social Sustainability Practice, Labour
Practice & Decent Work Disclosure, Human Rights Disclosure,
Product Responsibility Disclosure, Societal Disclosure, Firms
Performance

1. INTRODUCTION
In today’s global world, organizations have many and services and the way organizations operate their
challenges to operate and earn profits. People have businesses. People are more conscious about an
more knowledge about organizations, their products organization’s work for the prosperity of the society,

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the environment in which they operate and earn CSR expenditure and financial performance of
profits. Hence, companies are facing many problems corporations in developing nations remains unclear.
with a new role, which is to fulfill the demands of the Moreover, most studies on social sustainability were
present generation in a socially responsible way. conducted in developed countries with properly
Organizations must take responsibility for the ways enacted environmental and social laws which is not
they operate in the societies and natural environment the case of Nigeria. Therefore, this study was carried
because their operations impact societies and the out to evaluate the relationship between corporate
natural environment (Oladele&Makuolu, 2020). social sustainability practice and financial
Corporate social sustainability practice has nowadays performance with reference to firms quoted under
a much wider scope than it used to be, it adds consumer goods sector of Nigerian Exchange Group
environmental and social concerns to economic (NGX) where no specific study had concentrated to
imperatives. It is difficult to believe however, that the best of our knowledge. Content analysis was
firms have only minor financial interests to invest in adopted using Global Reporting Initiative (GRI) G4
such proxies (McWilliams, Siegel & Wright, 2006). which remains most authoritative and widely used in
On a wide range of issues, corporations are the international and national arena and also most
encouraged to behave socially responsible since popular voluntary reporting guideline worldwide.
strategic managers are consistently faced with the This is to capture the relationship which exists
decision of how to allocate scarce corporate resources between corporate social sustainability practice and
in an environment that is placing more and more financial performance of consumer goods firms in
pressures on them. These pressures are not coming Nigeria.
directly from traditional concerns of strategic To achieve this purpose, this hypothesis was
management but from concerns about social issues in formulated:
management. H01: There is no significant relationship between
However, previous studies have focused mainly on Human Rights Disclosure and performance of
the developed countries and there is less work done in consumer goods firms in Nigeria
determining the impact of corporate social H02: Labour Practices and Decent Work Disclosure
sustainability practice (CSSP) on financial has no significant relationship with
performance in developing countries like Nigeria. In performance of consumer goods firms in
developing countries, most firms are not quite Nigeria
familiar with the importance of CSSP and thus don’t
pay much attention to the concept of CSSP. H03: There is no significant relationship between
Nowadays people have more knowledge about the Product Responsibility Disclosure and
organizations and the work they are doing for the performance of consumer goods firms in
welfare of the society. Nigeria
Also some corporations are becoming conscious of H04: Societal Disclosure has no significant
their international market and are creating appreciable relationship with performance of consumer
effort as regards to social sustainability and goods firms in Nigeria
responsibility practices. The result of sampled 2. Review of Related Literature
industries in Nigeria shows that few companies are 2.1. Corporate Social Sustainability Practice
becoming social friendly while a large number of Mubeen and Arooj (2014) defined corporate social
firms are still apathetic about their environmental and practice as the organizational responsibility to
social responsibility (Okafor 2018). Thus, the study develop their process in a manner that accommodates
becomes a necessity so as to examine the relationship social, environmental and social aspects in their
between corporate social sustainability practice and strategies and focuses on satisfying the other
firms performance. As reported in the study of stakeholders’ interests as well.
Kanwal, Khanam, Nasreen and Hameed (2013), some
business organizations in Nigeria incur huge Ajide and Aderemi (2014) identified that in Nigeria
expenditures on social responsibility because they the role of corporate social responsibility is growing
regard Corporate Social Responsibility (CSR) as a within many companies and societies. It is considered
public relations stunt used by large corporations to as the organization’s operation to have a long-term
look good in front of customers and other and sustainable impact on society, which has a
stakeholders. However most companies do not find prospective to have positive influence on the
the justification for such, as the relationship between companies that practice it. Therefore, the concept of
CSR is expressed in companies’ consistent

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commitment to provide benefits to the environment, 2.1.1. Firms Performance
workforce and community while still pursuing their According to Malik and Okere (2020), financial
corporate goals. It is essential for a company to performance can be defined as measures that evaluate
maintain its dedication to acting justly and the financial position of a company over a specified
contributing to economic growth while also time period to know how efficiently is using its
enhancing the status of labour force and the resources to generate income. It was this definition
community at large. that prompted consideration of alternative measures
of performance so that the response of corporate
As cited in Omaliko, Nwadialor and Nweze (2020),
social responsibility (CSR) to firms performance (FP)
Nigerian Code of Corporate Governance (NCCG)
can be statistically established and generalized rather
2018, paying adequate attention to sustainability
than relying on CSR behaviour to a particular
issues including environment, social, occupational
performance measure.
and community health and safety ensures successful
long term business performance and projects the Financial performance is a subjective measure of how
Company as a responsible corporate citizen well a firm can use assets from its primary mode of
contributing to economic development. business and generate revenues. This term is used as a
general measure of a firm's overall financial health
The following policies are recommended by NCCG
over a given period of time, and can be used to
2018 as regard to social sustainability practice;
compare similar firms across the same industry or to
Report on the Company’s business principles,
compare industries or sectors in aggregation
practices and efforts towards achieving
(Omaliko and Okpala, 2020).
sustainability;
Report on the most environmentally beneficial 2.2. Theoretical Framework
options particularly for companies operating in 2.2.1. The Stakeholders’ Theory
Stakeholder’s theory is a very basic theory to
disadvantaged regions or in regions with delicate
corporate social sustainability practice. This theory
ecology, in order to minimize environmental
was propounded by Freeman in the year 1984.
impact of the Company’s operations;
Freeman’s stakeholder theory asserts that managers
the nature and extent of employment equity and must satisfy a variety of constituents (e.g., workers,
diversity (gender and other issues); customers, suppliers, local community organizations)
opportunities created for physically challenged who can influence firms’ outcomes.
persons or disadvantaged individuals; According to this view, it is not sufficient for
the environmental, social and governance managers to focus exclusively on the needs of
principles and practices of the Company; etc stockholders, or the owners of the corporation.
Stakeholder theory implies that it can be beneficial
The position of Global Reporting Initiative (G4-LA1, for the firm to engage in certain CSR activities that
LA9, G4-HR4, HR8 and G4-SO1) on social non-financial stakeholders perceive to be important;
sustainability practice is as follows because in the absence of this, these groups might
Report on the total number and rate of new withdraw their support for the firm (McWilliams &
employee hires during the reporting period, by Siegel, 2000). A fundamental aspect of stakeholder
age group, gender and region. theory, in any of its aspects, is that it identifies
Report on education, training, counseling, numerous different factions within a society to whom
prevention, and risk-control programs in place to an organization may have some responsibility
assist workforce members, their families, or Stakeholder’s theory is a theory of organizational
community members regarding serious disease management and business ethics that addresses moral
and values in managing organizations. In the
Operations and suppliers in which employee
traditional view of the firm, the shareholder view, the
rights to exercise freedom of association or
shareholders or stockholders are the owners of the
collective bargaining may be violated or at
company, and the firm has a binding financial
significant risk
obligation to put their needs first, to increase value for
The total number of identified incidents of them. However, stakeholder theory argue that there
violations involving the rights of indigenous are other parties involved, including governmental
peoples during the reporting period. bodies, political groups, trade associations, trade
Percentage of operations with implemented local unions, communities, financiers, suppliers,
community engagement, impact assessments, and employees, and customers. Sometimes even
development programs competitors are counted as stakeholders - their status

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being derived from their capacity to affect the firm and also invest in areas that enhance value for the
and its other stakeholders. firm.
Thus, the study is anchored on stakeholders’ theory, Ohikha, Odion and Akhalumeh (2016) empirically
as its concern is to encourage business managers to examined the impact of corporate social responsibility
carry out social sustainability practices which the on firms financial performance. The paper adopted a
non- financial stakeholders consider very important pooled panel survey research design method. Annual
so as to maximize stakeholders’ value as well as reports of twenty nine (29) sample firms from 2005 to
minimize environmental costs. 2010formed the source of data collection where CSR
(donations), earnings per share (EPS), size, tang, and
2.3. Empirical Review
leverage for 174 observations were used for the
2.3.1. Corporate Social Sustainability Practice
computational experiment. The data collected for this
(CSSP) and Firms’ Performance
study were analyzed using the panel data regression
Azumah (2020) examined the impact of Corporate
analysis. The result indicated that corporate social
Social Responsibility (CSR) on the performance of
responsibility (CSR) has little impact on the sample
manufacturing firms in Nigeria. An ordinary least
firms’ EPS. The study concluded that the
square regression is applied to annual aggregate data
performance of EPS is higher than the independent
to determine the type of relationship that exist
variables (CSR, Lev, size, and tang) from the analysis
between the dependent and independent variables. A
result because lower coefficient of variation infers
simple linear regression model is used in this study.
higher performance, consistency and efficiency of
The dependent variable is the performance indicator
result. The paper recommends amongst others that
while the independent variable is: corporate social
corporate organizations should be involved in SR by
responsibility expenditure (ECSR). The financial
spending reasonable amount of their revenues on
performance indicators include: Profit after tax
social responsibility as this will in turn lead to
(PAT), Asset Financial Value (AFV) and Return on
increase in earnings as defined by the triple-bottom-
Investment (ROI), while the non-financial
line reporting.
performance indicators are; Average Manufacturing
Capacity Utilization (AMCU), Employee’s Onyekwelu and Ekwe(2015) examined whether
Productivity rate (EMR) and Company’s output rate corporate social responsibility predicate good
(COR). The technique used in estimating the financial performance using the banking sector in
parameters of the specified model is the Ordinary Nigeria. The study adopted the ex-post facto as it
Least Squares (OLS) estimation method. The results made use of historical research design and secondary
of this study show that Corporate Social data used. Analysis was done using the Ordinary
Responsibility Expenditure (ECSR) has a positive and Least Square Regression. The findings shows that the
significant impact on the Financial and non-financial amount committed to social responsibility vary from
Performance of Manufacturing Firms. A number of one bank to the other. The data further revealed that
recommendations are made based on the research the sample bank invested less than ten percent of their
questions, research objectives and research findings annual profit to social responsibility. The researchers
prominent among them is the need for increased recommended that companies in Nigeria particularly
spending on CSR to improve the symbiotic profitable one should give greater priority to
sustainable relationship between CSR activities and Corporate Social Responsibility because this has the
firms’ performance. tendency to assist them to survive and maintain their
profitability and also diffuse the tensions and
Olanyinka and Oluwamayowa (2011) carried out a
hostilities usually experienced by companies in their
research on Corporate Environmental Disclosure and
localities.
market value of Quoted Companies in Nigeria.
Descriptive research design was adopted and Swati (2014) examined impact of Firm characteristics
secondary data only was used. A sample size of fifty toward Corporate Social Responsibility expenditure.
firms quoted in Nigeria Stock Exchange (NSE)was The variables used in this research are size of firm,
purposively selected for analysis based on the firm profitability, firm leverage, and sales of the firm.
availability of environmental disclosures in their The populations are all firm BSE 30 index in 2007-
annual reports. The hypothesis was tested using 2012 periods. The analysis methods are using
correlation coefficient. The findings review that the multiple regression analysis. The research found that
inclusion of environmental disclosure will enhance firm size, firm profitability, firm sales, have an
market value. The study recommends that business influence toward the Corporate Social Responsibility
should take caution in areas where environmental expenditure, while firm leverage have no influence
activities impacts negatively on the value of the firm

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toward the Corporate Social Responsibility to maximize profits, while not-for-profit may use
expenditure. CSR to satisfy shareholders‟ social ambitions. The
Omaliko and Okpala (2020) found in their study on study revealed that when people make donations or
environmental disclosures and dividend distributions privately provide public goods, such as charity, there
by companies in Nigeria using a regression model may be many factors influencing their decision other
that environmentally friendly companies achieve than altruism. Social pressure, guilt, sympathy or
higher profits and also pay higher dividends. simply a desire for a "warm glow" may all be
important. Within this framework two opposing
Oladele and Makuolu (2020) assessed the impacts of perspectives on CSR can be taken. Firstly, CSR may
corporate social responsibility (CSR) on the financial constitute a special form of investment into
performance of some quoted firms in Nigeria. The innovation that may result in negative costs (net
study focuses on oil and banking sectors being the benefits) over time. Secondly, shareholder value
two sectors that mostly dominate the CSR activities in maximization in general, as well as profit
Nigeria. Profit after tax of the firms is used to proxy maximization in particular, can motivate CSR.
their performance while total expenditure on CSR, Stakeholders may be endowed with respective social,
total asset, working capital and leverage ratio are used environmental or ethical preferences. CSR treats the
as independent variables in the model. Panel data existence of social or environmental preferences as
analysis is adopted as the major estimating techniques exogenously given and focuses on the interactions
and the results show that CSR expenditure of the between firms and stakeholders. The study considered
firms though, have positive impacts on their such impure altruism formally and developed a wide
performances but the effect is not significant. Total set of implications. In particular, the study discussed
asset of the firms remains the most significant the invariance proposition of public goods, the
variable on their performances. The study also sufficient conditions for neutrality to hold, the
showed that the banking sector is more organized and optimal tax treatment of charitable giving and
unique in their approaches to CSR and its implication calibrates the model based on econometric studies in
on their performances is more than the oil firms. It is order to consider policy experiments.
recommended that firms in Nigeria should engender
ways to make their CSR expenditure impact 3. Methodology
positively and significantly on their performances and This study adopts ex-post facto design. This was
relevant authorities should also beam more search adopted based on the fact that our data is secondary
light on the oil sector where diverse approaches to data that exists already which cannot be manipulated
CSR exist. or controlled. The population of the study consists of
the entire 21 firms quoted under Consumer Goods
Okiro, Omoro and Kinyua (2013) tested the Sector of Nigerian Exchange Group (NGX) as at
relationship between investment in CSR and 2022 business list covering from 2016-2021. The use
sustained growth of commercial banks in Nairobi of quoted Consumer Goods Sector Firms on Nigerian
County, Kenya. The researchers sought to establish Exchange Group (NGX)could be justified based on
the relationship between banks‟ sustained growth and the fact that only few studies had concentered on
CSR. The findings revealed an increasing positive corporate social sustainability practice and financial
attitude towards CSR in terms of investment. There performance with reference to Consumer Goods
was a general agreement that CSR was essential for Sector of NGX especially in the developed economies
the success of the firm. Since commercial institutions to the best of our knowledge. Out of 21 firms that
work to generate profits by offering the best services formed our sample size, 2 firms have empty financial
to customers, they would provide proper care to retain information within the period under study (Golden
its customers. The researchers found that investment Guinea Breweries Plc and Multi-Trex Integrated
in CSR activities had a positive effect on a bank’s Foods Plc) which was removed. On the other hand,
sustained growth. The findings further indicated that BUA Foods Plc was dropped as it was listed on the
there was a weak positive relationship between the floor of Nigerian Exchange Group (NGX) as at 5th
variables and that only 11% of banks‟ sustained January 2022. The selected firms range from Cadbury
growth could be explained by investing in CSR Nigeria Plc, Champion Breweries Plc, Dangote Sugar
activities. Refinery Plc, DN Tyre& Rubber Plc, Flour Mills
Kitzmuellery and Shimshack (2012), while studying NigPlc, Guiness Nigeria Plc, Honeywell Flour Plc,
economic perspectives on CSR, realized that International Breweries Plc, MnicholsPlc, N Nigeria
individual preferences were the ultimate driving force Flour Plc, Nascon Allied Industries Plc, Nestle
behind any form of CSR. Inthe presence of social Nigeria Plc, Nigerian Breweries Plc, Nigerian
stakeholder preferences, firms may use strategic CSR Enamelware Plc, P Z Cussons Nigeria Plc, Unilever

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Nigeria Plc, Union Dicon Salt Plc to Vita foam n
Nigeria Plc. j = Σj=1TODit, j
Based on this, a total of 18 firms formed our sample NOIj
size with 108 observations. The data were obtained
where, NOIis the number of indicators in a
from the Annual Reports and Accounts of the
sustainability dimension (see appendix 1), j is the
sampled firms. OLS Model was employed and data
sustainability dimension and n=1,2,3……….. Using
were collected form the annual reports and accounts
the sustainability index for each dimension, we
of the selected consumer goods firms in Nigeria.
individually and carefully read each of the consumer
3.1. Operationalization and Measurement of goods firms’ annual reports and accounts in
Variables calculating the indices.
3.1.1. Dependent Variable
3.2. Model Specification
The dependent variable in this study is Firms’
In line with the previous researches, the researcher
Performance and it was proxy and measured using
adapted and modified the Model of Atanda, Osemene
Return on Equity (ROE) as used in the study of
and Ogundana (2021) in determining the relationship
Omaliko and Okpala (2020), Omaliko, Okeke and
which exists between corporate social sustainability
Obora (2021).
practice and firms performance. This is shown below
3.1.2. Independent Variable as thus:
Corporate social sustainability practice was measured TBQ = β0 + β1SUS + µ
using labour practice and decent work index, product
The above model is modified for the study as thus:
responsibility index, society index and human rights
Model: ROEt = β0 + β1SSD + µ
index adopted from the Global Reporting Initiative as
used in the study of Laskar (2018),Atanda, Osemene We further decomposed the overall social
and Ogundana (2021) etc. A dichotomous procedure sustainability practice (SSP) index into 4 main
by (GRI) was applied in scoring the items whereby dimensions according to Global Reporting Initiative
specifically, a “1-point” score was awarded for each (GRI) and as such, a disaggregate econometric model
item that is disclosed in the annual report and is specified as thus:
otherwise, a “0-point”. See appendix 1. Consequently, Model: ROEt = β0 + β1HRDt+ β2LPDDt+ β3PRDt +
we obtained average sustainability disclosure index β4SDt + µ
by taking simple average of total index score (TOD) Where:
obtained for all indicators in a dimension (HRD, HRD = Human Rights Disclosure
LPDD, PRD & SD) i.e. LPDD = Labour Practice and Decent Work
Average Sustainability Disclosure Index it, Disclosure
PRD = Product Responsibility Disclosure
SD = Societal Disclosure
4. Results and Discussion
This section presents the results from the analysis of data and its interpretation
Table 1: Descriptive Statistics of our Variables from the Listed Consumer Goods Firms in Nigeria
HRD PRD SD LPDD ROE
Mean 3.258333 2.67537 2.088148 1.854074 1.837037
Maximum .6986135 .7448746 .7514175 .4483512 1.269895
Minimum 5 6 7 3.1 9
Std. Dev. 1.8 1.4 .8 .9 1.5
N 108 108 108 108 108
Source: Researcher’s Computation (2022).
Table 1 helps to provide some insight into the nature of the listed consumer goods firms in Nigeria used in the
study as regard to corporate social sustainability practice and firms performance. The mean value of return on
equity stood at 1.837037 which is an indication that most listed consumer goods firms in Nigeria have a positive
value for return on equity.
Similarly, a positive mean value of 3.258333 was also recorded for human rights disclosure (HRD) with a
standard deviation value of 0.6986135. This indicates that firms under our observation moderately disclose this
information in their financial reporting. There is also a high variation in maximum and minimum values of HRD
which stood at 5 and 1.8 respectively. This wide variation in HRD values among the sampled firms justifies the

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need for this study as the firms with higher HRD values are assumed to have higher profit than those firms with
low HRD values.
The average labour practice and work decent disclosure (LPDD) for the sampled firms was 1.854074. Thus
implies that firms with LPDD value of 1.854074 and above are those firms that moderately disclose this
information in their financial reporting. There is also a high variation in maximum and minimum values of
LPDD which stood at 3.1 and 0.9 respectively. This wide variation in LPDD values among the sampled firms
justifies the need for this study as the researcher assumes that firms with higher LPDD values are higher profit
making firms than firms with low LPDD values.
Also, a positive mean value of 2.67537 was also recorded for product responsibility disclosure (PRD) with a
standard deviation value of .7448746. This indicates that firms under our observation moderately disclose this
information in their financial reporting. There is also a high variation in maximum and minimum values of PRD
which stood at 6 and 1.4 respectively. This wide variation in PRD values among the sampled firms justifies the
need for this study as the firms with higher PRD values are assumed to have higher profit than those firms with
low PRD values.
The average societal disclosure (SD) for the sampled banks was 2.088148. Thus implies that firms with SD
value of 0.7514175 and above are those firmsthat poorly disclose this information in their financial reporting.
There is also a high variation in maximum and minimum values of SD which stood at 7 and 0.8 respectively.
This wide variation in SD values among the sampled firms justifies the need for this study as the researcher
assumes that firms with higher SD values are higher profit making firms than firms with low SD values.
4.1. Test of Hypotheses
OLS Statistical Test Tool was explored to test the linear relationship between the dependent and independent
variables. It was operated using STATA version 15 as shown on the tables below:
Table 2: Result on the Relationship between Corporate Social Sustainability Practice and
Performance of Consumer Goods Firms in Nigeria.
Source | SS df MS Number of obs = 108
-------------+------------------------------ F( 4, 103) = 7.29
Model | 38.0825344 4 9.52063361 Prob> F = 0.0000
Residual | 134.469316103 1.30552734 R-squared = 0.2207
-------------+------------------------------ Adj R-squared = 0.1904
Total |172.55185 1071.61263411 Root MSE = 1.1426
------------------------------------------------------------------------------------------
ROE | Coef. Std. Err. t P>|t| [95% Conf. Interval]
-------------+----------------------------------------------------------------------------
HRD | .0275926 .2030468 0.14 0.000 .4302881 .3751028
LPDD | .2505066 .2393108 1.05 0.029 .2241099 .7251231
PRD | .6740902 .2046913 3.29 0.001 .2681332 1.080047
SD | .4511083 .2650425 1.70 0.002 .9767575 .0745409
_cons | .6805231 .6481310 1.050 .026 .6048919 1.965938
Source: Result output from STATA 15.
4.2. Discussion of Findings In view of the above analysis as shown on table 2, the
The result of the analysis of the study using OLS result shows that there is a significant and positive
Model is expressed as follows: relationship between human rights disclosure and
performance of listed consumer goods firms in
H01: There is no significant relationship between
Nigeria. With a P-value of 0.000, the test is
Human Rights Disclosure and performance of
considered statistically significant at 1% level. This
listed consumer goods firms in Nigeria
could be verified with the positive coefficient of

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correlation of 2.8% which indicates that human rights (2014), Onyekwelu and Ekwe (2015) who reported
disclosure ensures firms performance by 2.8%. Based positive and significant relationship between the
on this, we rejected the null hypothesis and accepted variables.
alternate hypothesis which contends that human rights
H04: Societal Disclosure has no significant
disclosure has significant relationship with relationship with performance of listed
performance of listed consumer goods firms in
consumer goods firms in Nigeria.
Nigeria
In view of the above analysis as shown on table 2, the
This agrees with the a priori expectations of Ohikha,
result shows that there is a significant and positive
Odion and Akhalumeh (2016), Olanyinka and
relationship between societal disclosure and
Oluwamayowa (2011)who found positive and
performance of listed consumer goods firms in
significant association between the variables. Nigeria. With a P-value of 0.002, the test is
H02: Labour Practices and Decent Work Disclosure considered statistically significant at 1% level. This
has no significant relationship with could be verified with the positive coefficient of
performance of listed consumer goods firms in correlation of 45.1% which indicates that there is
Nigeria societal disclosure ensures corporate performance by
45.1%. Based on this, we rejected the null hypothesis
In view of the above analysis as shown on table 2, the
and accepted alternate hypothesis which contends that
result shows that there is positive and significant
societal disclosure has significant relationship with
relationship between Labour Practices and Decent
performance of listed consumer goods firms in
Work Disclosure and performance of listed consumer
Nigeria. The finding of this study is also in
goods firms in Nigeria. With a P-value of 0.029, the
consonance with the study of Etale and Otuya (2018),
test is considered statistically significant at 5% level.
Nnamani et al (2017), Olayinka et al (2011) who
This could be verified with the positive coefficient of
reported positive and significant relationship between
correlation of 25.1% which indicates that Labour
the variables.
Practices and Decent Work Disclosure ensure
performance by 25.1%. Based on this, we rejected the 5. Conclusion
null hypothesis and accepted alternate hypothesis The study having established a model fit on corporate
which contends that Labour Practices and Decent social sustainability practice (HRD, LPDD PRD &
Work Disclosure has significant relationship with SD) concludes corporate social sustainability practice
performance of listed consumer goods firms in has significant relationship with performance of listed
Nigeria. The finding of this study is also in consumer goods firms in Nigeria.
consonance with the study of Azumah (2020),
5.1. Recommendation
Kitzmuellery and Shimshack (2012), Okiro, Omoro
Since the study shows that social responsible and
and Kinya (2013) who reported positive and
friendly firms’ make higher profit, the study suggests
significant relationship between the variables.
that firms should disclose more of this information in
H03: There is no significant relationship between their annual reports in order to legitimize their
Product Responsibility Disclosure and operations by making public known about her
performance of listed consumer goods firms in commitment of business to contribute to sustainable
Nigeria` economic development, working with employees,
In view of the above analysis as shown on table 2, the their families and the local communities as this
result shows that there is positive and significant disclosure is relevant for investors decision making.
relationship between Product Responsibility References
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Table 3: Global Reporting Initiative (GRI) Social Sustainability Disclosure Indicator
Social Sustainability
S/N Indexes D. Code
Disclosure
Labor Practices and
Employment G4-LA1, G4-LA2, G4-LA3
Decent Work
Labor/Management Relations G4-LA4
G4-LA5, G4-LA6, G4-LA7,
Occupational Health and Safety
G4-LA8
Training and Education G4-LA9, G4-LA10, G4-LA11
Diversity and equal Rights G4-LA12
Equal Remuneration for Women and Men G4-LA13
Supplier Assessment for Labor Practices G4-LA14, G4-LA15
Labor Practices Grievances Mechanism G4-LA16
Human Rights Investment G4-HR1, G4-HR2
Non Discrimination G4-HR3
Freedom of Association & Collective
G4-HR4
Bargaining
Child Labor G4-HR5
Forced or Compulsory Labor G4-HR6
Security Practices G4-HR7
Indigenous Rights G4-HR8
Assessment G4-HR9
Supplier Human Rights Assessment G4-HR10, G4-HR11
Human Rights Grievance Mechanisms G4-HR12
Society Local Communities G4-SO1, G4-SO2
Anti-Corruption G4-SO3, G4-SO4, G4-SO5
Public Policy G4-SO6
Anti-Competitive Behavior G4-SO7
Compliance G4-SO8
Supplier Assessment for Impacts on
G4-SO9, G4-SO10
Society
Grievance Mechanism for Impacts on
G4-SO11
Society
Product Customer Health and Safety G4-PR1, G4-PR2
Product and Service Labeling G4-PR3, G4-PR4, G4-PR5
Marketing Communications G4-PR6, G4-PR7
Customers Privacy G4-PR8
Compliance G4-PR9
Source: Adapted From GRI G4 (2015).

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