Title: The Role of Sustainability Accounting in Driving Corporate Social Responsibility in Nigeria's Manufacturing Sector
Authors: Ibrahim Muhammed Nezifi Salawu Shaibu Aliyu Ochere Shafiyu
Volume: 9
Issue: 8
Pages: 164-178
Publication Date: 2025/08/28
Abstract:
This study investigates the influence of sustainability accounting, environmental, social, and governance (ESG) disclosures, and governance mechanisms on corporate social responsibility (CSR) performance and financial performance in Nigeria's manufacturing sector. With the growing emphasis on sustainable business practices and transparency, understanding the interplay between these factors is critical for enhancing organizational accountability and long-term value creation. The study adopted a quantitative research design, utilizing secondary data from annual reports of 30 listed manufacturing firms over a five-year period (2019-2023). Data were analyzed using descriptive statistics, correlation analysis, and regression techniques to examine the relationships between sustainability accounting, ESG disclosures, governance mechanisms, CSR performance, and financial outcomes. The findings indicate that sustainability accounting significantly improves CSR performance, ESG disclosures positively influence financial performance, and governance mechanisms play a key role in facilitating effective sustainability reporting and implementation. Control variables such as firm size and profitability were positively associated with the adoption of sustainability practices, while leverage had a negative impact. The study concludes that integrating sustainability accounting, ESG reporting, and robust governance practices enhances both social and financial performance in Nigerian manufacturing firms. Based on these findings, the study recommends that firms institutionalize comprehensive sustainability accounting practices, prioritize transparent ESG disclosures, and strengthen governance structures to ensure effective oversight of sustainability initiatives, thereby enhancing accountability, stakeholder trust, and long-term value creation.