The Relationship Between Corporate Social Responsibility and Profitability: The Case of Dangote Cement Plc

Abstract

This study seeks to find out the relationship between corporate social responsibility (CSR) investment and profitability of Dangote Cement Plc using secondary data. The study assesses the impact of CSR investment on Dangote's increase in revenue, profit after tax (PAT), and earnings per share (EPS) over a period of 5years. To achieve this, data were obtained from Dangote's annual sustainability reports and accounts for the period of 2012-2016 and analyzed using content analysis such as tables, percentages and using the trend line analysis to get the linear correlation coefficient (R-square). Findings from the analysis show that there is a positive relationship between CSR investment and profitability. Thus, Revenue shows 67.81% degree of positive relationship, profit after tax (PAT) depicts 54.28% degree of positive relationship and 60.79% is attributed to the degree of positive relationship between Earning per share (EPS) and CSR investment of Dangote cement Plc within the observed period (2012-2016). The study concludes that Dangote's CSR investment is positively correlated with the profitability performance indicators.