CORPORATE SOCIAL RESPONSIBILITY COSTS AND CORPORATE FINANCIAL PERFORMANCES OF LISTED FIRMS IN NIGERIA.

Expenditures on social projects and services by firms are not allowable for tax purposes with potential negative effects on corporate profits and cash flows; yet firms are increasing expenditure on it. Research results from analysis of data on actual corporate social responsibility costs (CSRC) and corporate profits (CPRFT) of 13 listed firms in Nigeria using the ordinary least squares (OLS) equation shows that there exists a significant positive relationship between CSRC and CPRFT with β at 13.99, and the Pearson correlation coefficient positive and significant at 0.577 necessitating listed firms in Nigeria to be increasingly socially responsible to their host communities to attract the host community patronage, reduce antagonism towards the firm by the host communities, non-governmental organizations and labor, maintaining uninterrupted firm operation, increased turnover and profits.