EFFECT OF SOCIAL RESPONSIBILITY ACCOUNTING ON FIRMS PERFORMANCE: A STUDY OF SELECTED MANUFACTURING FIRMS

Objectives of the Study
The general objective of this study is to establish the effect of social responsibility accounting on the financial performance of companies listed in Nigerian Securities Exchange.
The specific objectives are:
(i) To identify the areas accounted and the format used to account in the annual financial accounting reports of the companies listed in the study
(ii) To determine whether the companies are following the various frameworks that are available for accounting on the impact of economic activities on the society.
(iii) To determine whether by accounting on their social activities has an effect on the firm’s financial performance as measured by the Return on assets.

1.4 Research Questions
1. What are the areas accounted and the format used to account in the annual financial accounting reports of the companies listed in the study?
2. Do the companies follow the various frameworks that are available for accounting on the impact of economic activities on the society?
3. To what extent does accounting on their social activities has an effect on the firm’s financial performance as measured by the Return on assets?

1.5 Research hypothesis
The researcher for this study has chosen this hypothesis:
H0: Companies do not follow the various frameworks that are available for accounting on the impact of economic activities on the society.
H1: Companies do follow the various frameworks that are available for accounting on the impact of economic activities on the society
H0: Accounting on their social activities has no effect on the firm’s financial performance as measured by the Return on assets.
H1: Accounting on their social activities has an effect on the firm’s financial performance as measured by the Return on assets.

1.6 Significance of the Study
This study is expected to be of interest particularly to the following:
Company Accountants – They would increase their knowledge on social responsibility accounting and hence meet the challenge to come up with a systematic manner of disclosing such information. Accountants would hence expand their services in the area of social responsibility accounting to their companies.
Stock brokers and Security Analysts – They provide advisory services to investors; this study will be an invaluable source of social information for them in providing investment advices to socially and environmentally sensitive investors.
The Institute of Certified Public Accountants of Nigeria (ICPAN) – Knowledge of issues surrounding social responsibility accounting and reporting is likely to be useful in furthering the interest of ICPAN members in this area. It would contribute immensely to predict the future on the state of social reporting in Nigeria and therefore in this regard would guide the standard setters on areas requiring regulations.
Researchers and Scholars- Social responsibility accounting in Nigeria remain a fairly un-researched area. This research is likely to set a pace for more studies in the area of social responsibility accounting the state of the art for Nigerian companies.
The general public will be informed of the various approaches in which an entity can undertake social activities aimed at improving on the quality of life in the community, workplace, market place and generally giving back to society. This will lead to increased human benefit and satisfaction through quality services and goods.

1.7 Scope of the Study
The scope of the study is restricted to Nigeria, observes the effect of social responsibility accounting on firms performances