IMPACT OF CSR INITIATIVES BY SMALL ENTERPRISES ON NON-FINANCIAL PERFORMANCE IN LAGOS STATE, NIGERIA

Authors

Jane Ejeh Department of Business Administration, Faculty of Management Sciences, University of Lagos, Yaba, Nigeria
Sunday Ayaogu Department of Business Administration, Faculty of Management Sciences, University of Lagos, Yaba, Nigeria
Itohan Iyobhebhe Department of Business Administration, College of Humanities, Management and Social Sciences, Mountain Top University, Ogun State, Nigeria

Corporate Social Responsibility (CSR), Non-Financial Performance, Customer Loyalty, Brand Awareness, Customer Perception, Emotional Connection

This study investigates the impact of Corporate Social Responsibility (CSR)

initiatives by small enterprises on non-financial performance indicators in Lagos State, Nigeria.

Specifically, it examines how CSR influences customer loyalty, brand awareness, customer

perception, and emotional connection. Employing a quantitative research design grounded in

positivist philosophy, data were collected through structured questionnaires from purposively

sampled small businesses actively engaged in CSR activities in Oworonshoki, Lagos. Each of the

scales for all variables was self-developed. Using descriptive and inferential statistics, particularly

regression analysis through SPSS, to determine the relationship between the independent and

dependent variables. The study tests four hypotheses relating CSR initiatives to the targeted non-

financial performance metrics. The findings reveal that CSR initiatives have a significant positive

impact on all examined aspects of non-financial performance. CSR explains 25.4% of the variance

in customer loyalty, 41.0% in brand awareness, 16.3% in customer perception, and 35.5% in

emotional connection. The results reject the null hypotheses and establish CSR as a key driver for

enhancing customer-related outcomes beyond financial measures. The study underscores the

strategic importance of CSR for small enterprises in building stronger customer relationships and

improving brand engagement within Lagos State. The study recommends that small enterprises

prioritise CSR initiatives as a core business strategy to foster customer loyalty and brand

reputation. Additionally, policymakers should support CSR engagement among small businesses

through incentives and awareness programs.