ABSTRACT
This research project is on the of social accounting practices on the performance of banks in Nigeria. The purpose of the project was to identify the relationship between social accounting practices and its effect on the profitability of banks. In order to achieve the purpose of the study, three hypotheses were proposed and data collected through primary and secondary sources. One hundred and eighty seven (187) questionnaires were issued to banks' staff out which one hundred and fifty (150) correctly completed and used in the study. The collected data was analysed using Pearson Correlation with the Statistical tool SPSS. The findings of the research revealed that: There is a positive and significant relationship between employee welfare activities and the performance of banks. There is a positive and statistically significant relationship between social accounting. Finally, our findings show that there is a positive relationship between Costs of Contributions to Community Development and the performance. From the findings, it was concluded that: Social accounting practices is an important consideration in the profitability of banks in Nigeria. The implantation of employee welfare policies by banks in Nigeria boosts employee performance. Costs of Contributions to Community Development incurred banks helps to improve their profitability. Considering the benefits to the banks of embarking on social accounting activities, it is recommended that banks improve their social accounting practices by increasing employee welfare and embarking on more community development activities. Banks should not only embark on social accounting activities, but should be seen to do so by all and sundry. This will improve community relationship, improve labour relations and also be an incentive for other organizations to take up social accounting activities. Finally, there is need for government to encourage other banks whose social accounting is negligible to embark on such activities. This can be achieved by rewarding those who embark on such activities through public recognition and awards and tax incentives.
The increasing need for every organization to disclose in their annual reports the various activities that affect society is becoming a very fundamental issue all over the world mostly in developed economies, but this is not the case in developing countries like Nigeria. This is because organizations are particularly more interested in the profit maximization objective to the detriment of the society.
According to Iyoha (2010), in developing countries, the concern is about how efficient organizations are in terms of how much profits are made and how much dividends are paid. No serious thoughts are given to social issues in the annual reports of organizations such as environmental protection, energy saving, fair business practice, and community involvements etc.
Asechemie (1996) stressed that the absence of financial data relating to actions and arrangements for social concern in Nigeria is not in accord with the trend in the USA, Europe and Canada where companies are required to report on the effect of compliance with laws governing corporate social conduct on capital expenditures, earnings and competitive position.
Gray (2000) defined social accounting as the “preparation and publication of an account about an organization’s social, environment, employee, community, customer and other stakeholder interactions and activities and, where, possible the consequences of those interactions and activities” Social accounting is the reporting of those costs and benefits which may or may not be quantifiable in monetary terms, arising from economic activities and substantially borne or received by host community, or particular groups not holding a direct relationship with the reporting entity (Alexander and Britton, 2000).
Environmentalist has drawn public attention to the products activities in Nigeria banking sector. This made the federal government to establish the federal Environment protection agency (FEPA) and the National Environment Standard and Regulatory Enforcement Agency (NESREA) for the purpose of monitoring industrial activities as they affect the society and prescribe necessary control measure.
Ascehemie (1996) notes that it is reasonable for Nigerian governments to go beyond the establishment of these agencies to requiring banking organizations to report scorecards on societal and other social issues. When this is done, it will reduce the disruptions in the banking sector’s operations.
According to Davies and Okorite (2007), where the social activities of organizations are fairly reported in the financial statements, duly audited and attested to and published by the organization for all to see, some of the problems would be minimized, if not eliminated.
Mamman (2004) stated that the scope of social accounting has extended beyond the issues of environment to include business decisions on human resources, customers and the general public. These decisions are based on social accounting information. In effect, accounting is supposed to be responsive to the needs of society. This is the reason why it usually responds to emerging issues. One of such issues is to disclose that the society needs social accounting reports in such the same way that capital markets require financial information supplied by financial accounting system. Users of social accounting information need the data that allow them to assess whether the entity is being socially, financially and environmentally responsible. ............... FOR ACCESS TO THE FULL PROJECT WORK, USE THE ORDER NOW! BUTTON BELOW
INTRODUCTION
.................. There has been on increasing demand for organizations to be more responsive to the issues concerning the communities in which they operate and for them on take issues like social responsibility management, social responsibility accounting and environment impact very seriously. This had culminated into the development of a concept known as “social accounting” which is described in non-normative terms how the accountant reports on the activities of the organization’s internal and external social environment.The increasing need for every organization to disclose in their annual reports the various activities that affect society is becoming a very fundamental issue all over the world mostly in developed economies, but this is not the case in developing countries like Nigeria. This is because organizations are particularly more interested in the profit maximization objective to the detriment of the society.
According to Iyoha (2010), in developing countries, the concern is about how efficient organizations are in terms of how much profits are made and how much dividends are paid. No serious thoughts are given to social issues in the annual reports of organizations such as environmental protection, energy saving, fair business practice, and community involvements etc.
Asechemie (1996) stressed that the absence of financial data relating to actions and arrangements for social concern in Nigeria is not in accord with the trend in the USA, Europe and Canada where companies are required to report on the effect of compliance with laws governing corporate social conduct on capital expenditures, earnings and competitive position.
Gray (2000) defined social accounting as the “preparation and publication of an account about an organization’s social, environment, employee, community, customer and other stakeholder interactions and activities and, where, possible the consequences of those interactions and activities” Social accounting is the reporting of those costs and benefits which may or may not be quantifiable in monetary terms, arising from economic activities and substantially borne or received by host community, or particular groups not holding a direct relationship with the reporting entity (Alexander and Britton, 2000).
Environmentalist has drawn public attention to the products activities in Nigeria banking sector. This made the federal government to establish the federal Environment protection agency (FEPA) and the National Environment Standard and Regulatory Enforcement Agency (NESREA) for the purpose of monitoring industrial activities as they affect the society and prescribe necessary control measure.
Ascehemie (1996) notes that it is reasonable for Nigerian governments to go beyond the establishment of these agencies to requiring banking organizations to report scorecards on societal and other social issues. When this is done, it will reduce the disruptions in the banking sector’s operations.
According to Davies and Okorite (2007), where the social activities of organizations are fairly reported in the financial statements, duly audited and attested to and published by the organization for all to see, some of the problems would be minimized, if not eliminated.
Mamman (2004) stated that the scope of social accounting has extended beyond the issues of environment to include business decisions on human resources, customers and the general public. These decisions are based on social accounting information. In effect, accounting is supposed to be responsive to the needs of society. This is the reason why it usually responds to emerging issues. One of such issues is to disclose that the society needs social accounting reports in such the same way that capital markets require financial information supplied by financial accounting system. Users of social accounting information need the data that allow them to assess whether the entity is being socially, financially and environmentally responsible. ............... FOR ACCESS TO THE FULL PROJECT WORK, USE THE ORDER NOW! BUTTON BELOW
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 4
1.3 Purpose of the Study 6
1.4 Research Questions 6
1.5 Hypothesis 6
1.6 Significance of the Study 7
1.7 Scope of the Study 8
1.8 Limitation of the study 8
1.9 Definition of Terms 9
1.10 Organization of the study 10
CHAPTER TWO
LITERATURE REVIEW
2.0 INTRODUCTION 12
2.1 Theoretical Review 12
2.2 CONCEPTUAL FRAME WORK 16
2.2.1 Concept of Social Accounting 16
2.2 History of Social Accounting 20
2.3 Social Accounting practice in the Banking Sector in Nigeria 23
2.4. Objective of Social Accounting 25
2.5 Problems of Social Accounting 26
2.5.1 Challenges of Implementing Social Accounting 29
2.5.2 Measurement Criteria in Social Accounting 30
2.5.3 Evaluation Basis for Social Accounting 31
2.5.4 Implication of Social Accounting on Financial
Reporting of Banks 32
2.6 Principles of Corporate Social Responsibility 33
2.7 Benefit/Cost for Banks which Behave Socially Responsible 34
2.8 Related Studies on Corporate Social Performance and
Corporate Financial Performance 36
2.9 Stakeholders Theory 38
2.9 Legitimacy Theory 38
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction 40
3.1 Research Design 40
3.2 Population of the Study 40
3.3 Sample Size Determination 41
3.4 Sources of Data 41
3.5 Method of Data Collected 42
3.6 Reliability of Instrument 42
3.6.1 Validity of Research Instrument 42
3.7 Data Analysis Technique 43
CHAPTER FOUR
DATA PRESENTATION, ANALYSES AND DISCUSSION OF FINDINGS
4.0 INTRODUCTION 45
4.1 DATA PRESENTATION 45
4.2 DATA ANALYSES 47
4.3 TEST OF HYPOTHESES 56
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.0 INTRODUCTION 58
5.1 SUMMARY OF FINDINGS 58
5.2 CONCLUSION 59
5.3 RECOMMENDATIONS 60
BIBLIOGRAPHY 61
APPENDIX 63
Reference code: C060
Reference code: C060
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