Journal of Accounting and Management ISSN 1119-2454 Volume 2, Number 1 www.nda.edu.ng June, 2019 JAM is a Publication of the Department of Accounting & Management, Nigerian Defence Academy, Kaduna 18 Abstract Corporate Social Responsibility and Financial Performance of Conglomerate Companies in Nigeria Abdulrahman Bala Sani 1 Taophic Olarewaju Bakare 2 Abdulfatai Olanrewaju Nurudeen 3 1,2 Department of Accounting and Finance, Usmanu Dan Fodiyo University, Sokoto 3 Department of Accounting, Kwara State University, Malete sonyaxle9@gmail.com 1 abubackrie@gmail.com 2 nurudeen313@gmail.com 3 Social objective is one of the newest management strategies where companies try to create a positive impact on society while doing business. Business has changed from profit making activities to social welfare activities where businesses are not only responsible to its shareholders but also to all of its stakeholders. There has been an increasing global concern for the harmful long -term impact of industrial activities on the environment. These uncontrolled impacts of industrial activities on the environment have created critical ecological challenges on the planet. It is has a result of this that the study evaluates the effect of corporate social responsibility on financial performance of quoted conglomerate companies in Nigeria. The study used a sample of five (5) conglomerate companies quoted on the Nigerian Stock Exchange (NSE) for a period of nine (9) years spanning 2010 to 2018. Panel regression technique was employed in analyzing data collected for the study. Findings of the study showed that corporate social responsibility to employeeshas positive and significant effect on profit after tax (PAT), return on asset (ROA). Moreover, it has significant effect on return on equity (ROE), while corporate social responsibility to the community has positive effect on PAT, ROA and ROE. The study concludes that corporate social responsibility of the quoted conglomerate companies in Nigeria has significant effect on their financial performance. The study thereby recommends that conglomerate companies in Nigeria should increase their corporate social responsibility to the community in which they operate; this will contribute to their turnover, also more emphasis should be laid on corporate social responsibility to their employees as a motivating factor to increase productivity. Keywords: corporate social responsibility, profit after tax, return on assets, return on equity. 1. Introduction Financial benefit is the main focus that drives companies to adopt corporate social responsibility. Therefore, it is no longer strange that sustainable development and reduction of poverty are the key issues that require urgent attention from governments, most ly in developing countries. However, government cannot meet these alone without the participation of private sector. Michael (2013), Policy makers are paying much attention to the potential contribution of the private sector to such policy objectives. As the issue of sustainable development becomes more important, corporate social responsibility is an element that addresses these issues and therefore it becomes more vital in the daily operations of conglomerate companies in Nigeria (Hilda, Hope & Nwoye 2015). Social objectives otherwise known as corporate social responsibility is one of the newest management strategies where companies try to create a positive impact on society while doing business (Rao & Krishna, 2002).Corporate Social Responsibility (CSR) activities are no longer only charitable events but tools for boosting positive image of the company, employee and customer satisfaction and organizational profitability. Islam (2012) confirmed that the concept of business has changed from profit making activities to social welfare activities where businesses are not only responsible to its shareholders but also to all of its stakeholders. Holme and Watts (2002) defined CSR as the continuous commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large. Businesses can use ethical decision making to secure their businesses by making decisions that allow for government agencies to minimize their involvement in the corporation. Corporate social responsibility as defined by Pearce and Robinson (2011) is the obligation which a firm has to satisfy the financial interest of its stockholders as well as to meet the needs of the society. Performing CSR is necessary for firms that want to be successful in the long run (Korkchi & Rombaut, 2006). Fundamentally, CSR internalizes all external consequences of an action, both its costs and benefits. The term CSR encompasses a variety of issues revolving around companies‘ interactions with society. Analysis of prior research has shown that in the last two decades, there has been an increasing global concern for the harmfu l long- term impact of industrial activities on the environment. These uncontrolled impacts of industrial activities on the environment have created critical ecological challenges on the planet; which have aggravated phenomena like climate change, ozone depletion, over- exploitation of natural resources, air pollution and increased radioactive water pollution that has resulted to the continued destruction of water marines thereby disrupting the sustainable development of such environment (Finavante, 2010). There are growing concerns that larger society provides great opportunities for companies to use public resources to operate their businesses (Carroll, 1979). Some experts are of the idea that most rules and regulations are formed due to public outcry, which threatens profit maximization and therefore the well-being of the shareholder and that if there were no outcry; there would be little regulation (Carroll, 1999). Stakeholders are now holding corporate firms accountable for the social and economic effects they are having in every community where they are operating (Akindele, 2011). In Nigeria, the issue of corporate social responsibility cannot be separated