Impact of the Oversight Role of NGOs on the Environmental Reporting and Social Responsibility of Listed Manufacturing Companies in Nigeria

Abstract

Public concern for the natural environment has been one of the vital issues of discussion in recent decades across the globe. Individuals are now stressing the importance of the natural environment. In the context of developing countries, nongovernmental organisations (NGOs) are well positioned to have powerful impact on the discharge of corporate social responsibility through the usual pressures and lobbies exerted by the NGOs and their various networks than any other stakeholder. This study examines the impact of NGOs on environmental reporting of quoted manufacturing companies listed on Nigerian Stock Exchange. Using simple random sampling technique, secondary data were collected from annual reports and accounts of 10 selected manufacturing companies spanning 2010–2019. Multiple regression technique was used to analyse data collected. The findings reveal that environmental reporting and corporate social responsibility costs do not have significant impact on ROA and NPM with p-value of 0.713 and 0.612 at 5% level of significance, respectively, but both variables have positive significant effect on ROA. This means that the fund committed to environmental cost by these selected firms does not reflect on their profitability for the period reviewed. Based on this, it was recommended that as a matter of urgency for international Environmental NGOs should collaborate with local ones in achieving environmental friendly society. Similarly, United Nations should channel more funding on environment-focused NGOs because environmental issue is one of the cardinal points to be achieved by Sustainable Development Goals.

Citation

Adeyemi, A.A., Bakare, O.T., Akindele, A.J. and Soyode, O. (2020), "Impact of the Oversight Role of NGOs on the Environmental Reporting and Social Responsibility of Listed Manufacturing Companies in Nigeria", Yekini, K.C., Yekini, L.S. and Ohalehi, P. (Ed.) Environmentalism and NGO Accountability (Advances in Environmental Accounting & Management, Vol. 9), Emerald Publishing Limited, Leeds, pp. 107-121. https://doi.org/10.1108/S1479-359820200000009006