Coporate social responsibility, and strategic tax

Abstract

This study examines the relationship between corporate social responsibility and firms’ strategic tax in Nigeria with the use of secondary data, sourced from ten (10) randomly selected firms’ annual report and financial summary between “2005-2014”. The study makes use of ordinary least square for the analysis of collected data. Findings from the analysis show that the sample firms invested less than ten percent of their annual profit to social responsibility due to their strategic tax management. The co-efficient of determination of the result obtained shows that 62% of the explanatory variable accounts for changes or variations in selected firms profit after tax is caused by changes in corporate social responsibility (CSR) in Nigeria. The study therefore, recommends that laws and regulations to obligate firms to be recognized, adequate attention should be given to social accounting in terms of social costs and to comply with social responsibility should be enacted.

Keywords: Corporate social responsibility and firms’ profitability