Social and Economic Consequences of Corporate Social and Environmental Disclosures in Nigeria

Abstract

This paper examined the consequences of corporate social and environmental disclosures in Nigeria (CSED). The research method was based on the survey of a sample of 351 shareholders, management and auditors. The results indicate a varying degree of differences with respect to stakeholders and gender with regard to the social and economic consequences of CSED. Specifically, there were significant differences among the stakeholders on the social and financial consequences of CSED in Nigeria. While the female respondents believed more on the social impacts of CSED, there was no gender difference regarding the financial consequences. Again, it was found that CSED is not used as profit-maximizing strategies by firms in Nigeria. It is concluded that corporate social and environmental disclosures have more social than financial imparts and hence support the legitimacy theory. The results have important implications for Nigerian companies as they formulate their socio-environmental strategy and communication. Therefore, it is recommended that companies should increase the disclosures on social and environment issues to improve their social and environmental performances which could eventually impact on their financial performances. DOI: 10.5901/mjss.2015.v6n6p177