IMPERATIVES OF CORPORATE SOCIAL RESPONSIBILITY ACCOUNTING ON THE PERFORMANCE OF SELECTED OIL & GAS COMPANIES IN RIVERS STATE
DOI:
https://doi.org/10.53555/bma.v8i4.2070Keywords:
Community environmental disclosures, Human resources disclosures, Product disclosuresAbstract
The study was premised of the fact that most oil & gas companies in Nigeria have continued to view value creation narrowly, while optimizing short-term financial performance without recourse to stakeholders’ social and environmental needs as well as ignoring the broader influence that determine their longer-term success. This paper seeks to establish the imperatives of Corporate Social Responsibility Accounting on the performance of selected oil & gas companies in Nigeria. To this end, seven oil & gas companies were selected from a number of firms in Rivers State, Nigeria. Hypotheses were formulated, and a review of related literature was made. Data were collected through primary and secondary sources. The data were presented and analyzed, while the formulated hypotheses were tested using multiple regression analysis with the aid of the E-View. Based on the findings of this study, we conclude that community disclosure issue, human resources disclosure issues, and product disclosure issues, as measures of corporate social responsibility accounting in the annual reports of companies do not affect the corporate performance of oil & gas companies in Rivers State. The government should put in place suitable legislation for all companies to make adequate disclosure of their activities to the social and Environment, accounting standards to be published locally and internationally and reviewed continually to ensure dynamism compliance and meets environmental situational needs. Firms should also formulate and implement environmentally friendly policies to enhance their completeness.
Downloads
References
[1] Adams, C.A. & Frost, G.R. (2019). The internet and change in corporate stakeholder engagement and communication strategies on social and environmental performance. Journal of Accounting and Organizational Change, 2(3): 281-303.
[2] Ahmad, Z., Hassan, S. & Mohammad, J. (2020). Determinants of environmental reporting in Malaysia. International Journal of Business Studies, 11: 69- 90.
[3] Appah, E. (2016). A Study of Social Accounting Disclosure in the Annual Reports of Nigerian Companies. Asian Journal of Business Management, 3(3): 145–151.
[4] Asterious, D. & Hall, S. (2017). Applied Econometrics: A Modern Approach, London: Palgrave Macmillan.
[5] Beredugo, S. B. & Mefor, P. (2012). The Impact of Environmental Accounting and Reporting on Sustainable Development in Nigeria. Research Journal of Finance and Accounting. 3(7), 55-66
[6] Beredugo, S. B. & Ekpo, B O. (2019). Mediating Effect Of Corporate Governance On The Relationship Between Sustainability Disclosure And Shareholders' Value Added Of Manufacturing Firms In Nigeria. Accounting Frontier, 2(2), 157-176.
[7] Beredugo, S B, Ihendinihu, J U. & Azubike, J. U. B. (2019). Environmental Accounting Disclosure and Quality of Financial Reports: The Mediating Effect of Corporate Governance in Quoted Manufacturing Firms in Nigeria. Proceeding of the 9th International conference of Accounting and Finance Research Association (AFRA), with the theme “African Economies in the Emerging Global Order. 521-532.
[8] Bassey, B.E., Effiok, S.O. & Eton, O.E. (2013). The Impact of Environmental Accounting and Reporting on Organisational Performance of Selected Oil & Gas Companies in Niger Delta
[9] Region of Nigeria. Research Journal of Finance and Accounting, 4(3): 57 -74.
[10] Branco, E., Manuel, C. & Rodrigues, L. (2017). Issues in Corporate Social and Environmental Reporting Research: An Overview. Issues in Social and Environmental Accounting 1 (1): 77 – 90.
[11] Campbell, D. (2019). A longitudinal and cross-sectional analysis of environmental disclosure in UK companies: A research note. British Accounting Review, 36: 107-117.
[12] Davies N. & L. Okorotie, L. (2017). Corporate Social Responsibility Accounting: A wake-up call to the Nigerian Accountant. Nigerian Accountant, 40(2): 44 – 48.
[13] Ekpo, B., Okon, E. E. & Beredugo, S. B. (2019). Addressing Sustainability Exposures through Corporate Social Responsibility in Nigeria: An International Perspective. International Journal of Trend in Scientific Research and Development. 3(5), 1177-1186.
[14] Essia U. (2015). Issues in Mordern Economic Thought, Vol 3. The Evolution of Economics, Facts, Phantoms and Fictions. Calabar, Seasprint Publishers.
[15] Gamble, G. & Jackson, H. (1996). Environmental disclosure annual report: An international perspective. The International Journal of Accounting, 31(3), 293- 331.
[16] Gao, S.S., Heravi, S. & Xiao, J.Z. (2020). Determinants of corporate social and environmental reporting in Hong Kong: A research note. Accounting Forum, 29, 233–242.
[17] Gujarati, D.N. & Porter, D.C. (2014). Basic Econometrics (5th ed). New York:McGraw Hill.
[18] Haniffa, R.M. & Cooke, T.E. (2016). The impact of culture and governance on corporate social reporting. Journal of Accounting and Public Policy, 24: 391–430.
[19] Hossain, M., Islam, K. & Andrew, J. (2016). Corporate Social and Environmental Disclosure in Developing Countries: Evidence from Bangladesh, Proceedings of the Asian Pacific Conference on International Accounting Issues, Hawaii, October, 2011.
[20] Iatridis, G. (2018). Accounting disclosure and firms' financial attributes: Evidence from the UK stock market. International Review of Financial Analysis, 17: 219–241
[21] Jaroslava, H. & Miroslau, H. (2016). Environmental accounting: An important part of an information system in the conditions when the company approaches to the environmental influences its prosperity. Vadyba/Management. Nr; 3(12): 22- 31.
[22] Kiabel B.D. (2014). Accounting Principles. Port-Harcourt; Mgbaa Printing Press.
[23] McWilliams, A. & Siegel, D. (2017). Corporate social responsibility: A theory of the firm perspective. Academy of Management Review 26 (1): 117-127.
[24] Micheal, A. (2017). Human Resources Management Practice. London. Kogan Page.
[25] Moneva, J.M., Rivera-Lirio, J.M. & Munoz-Torres, M.J. (2020). The corporate stakeholder commitment and social and financial performance. Industrial Management & Data Systems, 107(1), 84-102.
[26] Nossa, V. (2015). Disclosure ambiental: uma análise do conteúdo dos relatórios ambientais de empresas do setor de papel e celulose em nível internacional. Tese (Doutorado em Controladoria e Contabilidade) – Faculdade de Economia, Administraçãoe Contabilidade, Universidade de São Paulo, São Paulo.
[27] Nyquist, S. (2018). Environmental information in annual reports: A survey of Swedish accountants. Managerial Auditing Journal, 18: 682-691.
[28] O’Donovan, G. (2018). Environmental disclosures in the annual report: Extending the applicability and the predictive power of legitimacy theory. Accounting, Auditing & Accountability Journal, 15(3):344-371.
[29] Oyadonghan, K.J. & Eze, P.G. (2016). Social and Environmental Accounting: The Challenges of Implementation in Oil Prospecting Companies in the Niger Delta States of Nigeria. Research Journal of Finance and Accounting, 4(11): 1 – 7.
[30] Pramanik, A.K., Shil, O.H. & Das, A.B. (2017). Environmental accounting and reporting. New Delhi: Deep publication PVT. Ltd.
[31] Porter, M. & Kramer, M. (2015). The Big Idea: Creating Shared value. Harvard Business Review, January-February.
[32] Sen, S., & Bhattacharya CB (2001). Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. J. Marketing Res. 38(1), 225–243.
[33] Shaeer, A. (1998). Possibility of expression the environmental performance of economic enterprises through the conceptual framework of the accounting theory. Scientific Journal, Faculty of Commerce, Asiout University, 25(3), 54-65.
[34] Subroto, P.H. (2019). A correlational study of corporate social responsibility and financial performance: An empirical survey toward ethical business practices in Indonesia. Unpublished Doctoral Dissertation. Capella University.
[35] Sutami, E., Anggraini, R. & Zakania, A. (2016). The Effect of Voluntary Disclosure of Environmental Disclosure of Environment Performance and Level of Externalities on Corporate Economic Performance. 3rd International Conference on Humanities & Social Sciences, April 2. Faculty of Liberal Arts, Prince of Songkla University.
[36] Tilt, C.A. (2017). The content and disclosure of Australian corporate environmental policies. Accounting, Auditing and Accountability Journal, 14: 190-212.
[37] Van Staden, C. & Hooks, J. (2019). A comprehensive comparison of corporate environmental reporting and responsiveness. British Accounting Review, 39: 197-210.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 International Journal For Research In Business, Management And Accounting
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
All journals related to business, management, and accounting can be freely copied, circulated, and reprinted in Green Publication journals, as long as they are duly referenced by original authors. Green Publication follows CC licenses. “A Creative Commons (CC) license is one of the public copyright licenses that allows for the free reuse of an otherwise copyrighted "work." If an author wants to give others the right to publish, use, and build on a work created by the author, he may use a CC license. Green publication use the CC 4.0 license. This license allows anyone to write, remix, tweak, and build on your work, even commercially, as long as the original creation is attributed to you”. This is the most appropriate license available. Recommended for increasing the distribution and use of licensed products.
