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from organisational decisions concerning specific issues or problems which (by some normative standard) have beneficial rather than adverse effects upon pertinent stakeholders.
H0:1 0, There is no relationship between CSR disclosure and financial performance H1:1= 0, There is a relationship between CSR disclosure and financial performance
Hypotheses 2
H0:2= 0, There is no significant influence between CSR disclosure and financial performance
of a firm (accounting based indicators),
H1:2 0, There is significant influence between CSR disclosure and financial performance of a
firm (accounting based indicators), Hypotheses 3
H0:3= 0, the disclosure in the Banking Industry is more than the Manufacturing Industry H1:30, the disclosure in the Banking Industry is not more than the Manufacturing Industry.
THEORETICAL FRAMEWORK
Since CSR is being viewed differently by contributors in the management literature, this study examines two major theories which appeared to have shaped their contributions. THE AGENCY THEORY Agency theory suggests the existence of a contract (Jensen and Meckling, 1976) and thus a fiduciary relationship between two people the principal and the agent (Eisenhardt, 1989), for example, employer-employee, lawyer-client, shareholders-management, etc. The idea of agency theory, is to control the substantial goal conflicts between principals and agents, particularly
where agents, by virtue of their positions, engage in opportunistic behaviour to the detriment of their principals (Fontrodona and Sison, 2006), who often find it difficult and expensive to verify the actions of their agents (Eisenhardt, 1989). The theory also mirrors the different attitudes of both the principal and the agent to risk, whereby the principal is risk neutral and the agent, riskaverse (Eisenhardt, 1989; Wiseman and Gomez-Mejia, 1998; Donaldson, 1961, Williamson, 1963).
THE STAKEHOLDER THEORY The idea of stakeholders theory was first hinted by Johnson (1971) in his definition of CSR, where he conceives a socially responsible firm as being one who balances a multiplicity of interests, such that while striving for larger profits for its stockholders, it also takes into account, employees, suppliers, dealers, local communities and the nation. The theory was later developed by Freeman (1984) and thereafter refined by various authors (e.g. Freeman, 1994; Bowie, 1991; Evan and Freeman, 1988, 1994; Freeman and Evan, 1990; Freeman and Phillips, 2002 etc). Contrary to the proponents of the agency theory, Freeman (1984) posits that managers bear a fiduciary relationship to stakeholders, whom he defines as groups or individuals who can affect or are affected by the achievement of the organizations objectives, such as stockholders, supplier, employees, customers and the local community.
Probabilistic sampling methods will be considered as best for study by adapting simple random sampling, this is to ensure that each element of the population have an equal chance of selection. This will promote accuracy and validity of the outcomes. The annual reports of the sampled companies will be use for this research. The sample companies comprises are of different industrial sectors namely, consumer products, industrial products, construction, trading/services, finance, infrastructure project, properties, plantations and technology. The sampling size include three Manufacturing Industries which are; Guinness Nigeria PLC, GlaxoSmithKline(GSK) Consumer Nigeria PLC, Oando PLC, and, three Banking Industries which are; First Bank of Nigeria PLC, Access Bank PLC, Stanbic IBTC Bank PLC.