Abstract:
The objective of this research is to provide empirical evidence, from the
perspective of the developing world, Corporate Social Responsibility (CSR)
activities and practices of Oil Companies with investments in Africa and how
investment in CSR and disclosure of CSR influences the financial
performance of Oil Companies with investments in Africa using accounting
based measures. The study employed a mixed quantitative and qualitative
research approach and descriptive research design. Panel data set on CSR
investments, financial performance represented by return on assets (ROA),
disclosures of CSR activities and company size (total assets) from the year
2007 to 2017 was analysed using random effects panel data analysis to test the
research hypotheses. Content analysis is performed on the annual reports and
other publications of the oil companies to determine their CSR activities and
practices. The findings showed that multinational oil firms with interest in
Africa take all aspects of CSR serious and are at the forefront of CSR as they
adhere and comply with international standards and best practices in the area
of CSR practices, activities and reporting. This study has also shown that
there is a significant positive relationship between investment in CSR and
financial performance of multinational oil companies with interests in Africa,
but no significant relationship between CSR disclosure and financial
performance. The positive influence of CSR on financial performance of
multinational oil companies with interests in Africa is the result of the
diligence and consistency that they have attached to CSR over the period of
the study which is yielding dividends in terms of financial performance.
