Journal of Finance and Accounting

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

Received: 09 May 2017    Accepted: 22 May 2017    Published: 26 July 2017
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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.

DOI 10.11648/j.jfa.20170504.18
Published in Journal of Finance and Accounting (Volume 5, Issue 4, July 2017)
Page(s) 171-176
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

CSR, Profitability, Revenue, PAT, EPS, Dangote

References
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Author Information
  • Post Graduate School of Accounting and Finance, Leeds Beckett University, Leeds, UK

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  • APA Style

    Murtala Zakari. (2017). The Relationship Between Corporate Social Responsibility and Profitability: The Case of Dangote Cement Plc. Journal of Finance and Accounting, 5(4), 171-176. https://doi.org/10.11648/j.jfa.20170504.18

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    ACS Style

    Murtala Zakari. The Relationship Between Corporate Social Responsibility and Profitability: The Case of Dangote Cement Plc. J. Finance Account. 2017, 5(4), 171-176. doi: 10.11648/j.jfa.20170504.18

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    AMA Style

    Murtala Zakari. The Relationship Between Corporate Social Responsibility and Profitability: The Case of Dangote Cement Plc. J Finance Account. 2017;5(4):171-176. doi: 10.11648/j.jfa.20170504.18

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  • @article{10.11648/j.jfa.20170504.18,
      author = {Murtala Zakari},
      title = {The Relationship Between Corporate Social Responsibility and Profitability: The Case of Dangote Cement Plc},
      journal = {Journal of Finance and Accounting},
      volume = {5},
      number = {4},
      pages = {171-176},
      doi = {10.11648/j.jfa.20170504.18},
      url = {https://doi.org/10.11648/j.jfa.20170504.18},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.jfa.20170504.18},
      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.},
     year = {2017}
    }
    

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    T1  - The Relationship Between Corporate Social Responsibility and Profitability: The Case of Dangote Cement Plc
    AU  - Murtala Zakari
    Y1  - 2017/07/26
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    JF  - Journal of Finance and Accounting
    JO  - Journal of Finance and Accounting
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    EP  - 176
    PB  - Science Publishing Group
    SN  - 2330-7323
    UR  - https://doi.org/10.11648/j.jfa.20170504.18
    AB  - 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.
    VL  - 5
    IS  - 4
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