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Corporate Responsibility Report and Stakeholders' Expectations Gap in Industrial Sector in Nigeria

TONYE, Ogiriki, and EDUGO, Elaye

Abstract

The study investigated the alignment between corporate social responsibility (CSR) reporting and stakeholder expectations in Nigeria’s industrial goods sector, specifically focusing on social and governance disclosures. The study utilized a paired sample t-test to assess whether the CSR reporting of nine listed industrial goods companies matched shareholder expectations. The findings revealed that governance reporting was largely aligned with shareholder expectations, as evidenced by a significant positive correlation (r = 0.990, p = 0.000). However, social responsibility reporting exhibited a substantial gap, with shareholders expecting higher disclosures than were provided by companies. Paired sample t-tests further confirmed this discrepancy, with social responsibility reporting (SOCR - Actual CSR) showing a significant mean difference of 9.91 (t = 14.140, p = 0.000), while governance reporting (GOVR - Actual CSR) also had a significant gap, with a mean difference of -2.62 (t = -5.534, p = 0.000). In conclusion, the study highlights a significant gap between shareholders' expectations and actual CSR reporting in the Nigerian industrial goods sector, particularly in social responsibility disclosures. Companies are encouraged to strengthen their social responsibility reporting to better align with stakeholder expectations. The study recommends that companies adopt more comprehensive reporting standards to enhance transparency and meet shareholder expectations, particularly focusing on improving social disclosures. Additionally, regulatory bodies should consider implementing stricter guidelines for CSR reporting to ensure that companies fully align with the growing demand for sustainability and social accountability.

Keywords

Stakeholder ExpectationsSocial Responsibility ReportingGovernance Reporting

References

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