Profit Motive, Stakeholder Needs and Economic Dimension of Corporate Social Responsibility: Analysis on The Moderating Role of Religiosity

Aminu Ahmadu Hamidu(1), Md. Harashid Haron(2), Azlan Amran(3),

(1) Modibbo Adama University of Technology, Department of Management, Yola Adamawa State, Nigeria
(2) Universiti Sains Malaysia, Accounting and Islamic Finance Section, Pulau Pinang, Malaysia
(3) Universiti Sains Malaysia, Graduate School of Business, Pulau Pinang, Malaysia


Economic dimension of corporate social responsibility (CSR) represent the main aim of establishing all forms of business organizations. The outcome from all transactions translate into the process of attaining continuity, growth, satisfactory returns, maximization of shareholders wealth and provision of goods and services to the community. Achievement of all these goals depends on how managers are able to perfect the profit motive objective and satisfy the needs of all stakeholders. A total of 164 respondents who are the managers responsible for decision making on all corporate social responsibility activities were engaged in answering the questionnaire for this study. The managers were representing different sub sectors of the Nigerian financial sector. A statistical analysis on the data was done by using the partial least square approach (PLS-SEM). Results from the analysis revealed that both profit motive and stakeholder needs are positively related with the economic dimension of CSR. Religiosity of managers is also positively related with ability of managers to attain economic responsibilities they were employed to achieve. With the role of religiosity as a significant moderating factor managers are expected to align CSR activities with accepted religious values that instills hard work, trust and assistance to stakeholders to fulfill the overall economic dimension of corporate social responsibility.


profit motive, stakeholder needs, religiosity, economic dimension of CSR, Corporate Social Responsibility

Full Text:



Adewuyi, A. O., & Olowookere, A. E. (2010). Corporate Social Responsibility of a Nigerian Polluter: The West African Portland Cement (WAPCO) Nigerian PLC’s Case. Social Responsibility Journal, 6(1), 108–125.

Agle, B. R., Mitchell, R. K., & Sonnenfeld, J. A. (1999). Who Matters to CEOs? An Investigation of Stakeholder Attributes and Salience, Corporate Performance, and CEO Values. Academy of Management Journal, 42(5), 507–525.

Agyemang, O. S., Ansong, A., & Kyeraa, M. (2016). Let’s Talk About Firm Responsibility: The Perception of Individual Ghanaian Shareholders on Corporate Social Responsibility. Social Responsibility Journal, 12(3), 439–462.

Ajadi, A. (2006). Corporate Social Responsibility in Nigeria. In British Council Conference on CSR in Nigeria. Lagos.

Amaeshi, K. M., Adi, B. C., Ogbechie, C., & Amao, O. O. (2006). Corporate Social Responsibility in Nigeria: Western Mimicry or Indigenous Influences? The Journal of Corporate Citizenship, (24), 83–99.

Angelidis, J., & Ibrahim, N. (2004). An Exploratory Study of the Impact of Degree of Religiousness Upon an Individual’s Corporate Social Responsiveness Orientation. Journal of Business Ethics, 51(2), 119–128.

Aupperle, K. E., Carroll, A. B., & Hatfield, J. D. (1985). An Empirical Examination of the Relationship between Corporate Social Responsibility and Profitability. Academy of Management Journal, 28(2), 446–463.

Babiak, K., & Trendafilova, S. (2011). CSR and Environmental Responsibility: Motives and Pressures to Adopt Green Management Practices. Corporate Social Responsibility and Environmental Management, 18(1), 11–24.

Barnett, T., & Vaicys, C. (2000). The Moderating Effect of Individuals’ Perceptions of Ethical Work Climate on Ethical Judgments and Behavioral Intentions. Journal of Business Ethics, 27(4), 351–362.

Basah, M. Y. A. (2012). Corporate Social Responsibility and Natural Environmental Risk Management in the Context of the Banking Sector of Malaysia. Cardiff University.

Baumgartner, R. J. (2014). Managing Corporate Sustainability and CSR: A Conceptual Framework Combining Values, Strategies and Instruments Contributing to Sustainable Development. Corporate Social Responsibility and Environmental Management, 21(5), 258–271.

Blowfield, M., & Frynas, J. G. (2005). Setting New Agendas: Critical Perspectives on Corporate Social Responsibility in the Developing World. International Affairs, 81(3), 499–513.

Brammer, S., & Millington, A. (2005). Corporate Reputation and Philanthropy: An Empirical Analysis. Journal of Business Ethics, 61(1), 29–44.

Carroll, A. B. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons, 34(4), 39–48.

Carroll, A. B., & Shabana, K. M. (2010). The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice. International Journal of Management Reviews, 12(1), 85–105.

Chin, W. W. (1998). The Partial Least Squares Approach for Structural Equation Modeling. In G. A. Marcoulides (Ed.), Modern Methods for Business Research (pp. 295–336). New Jersey: Lawrence Erlbaum Associates Publishers.

Cohen, J. (1977). Statistical Power Analysis for the Behavioral Sciences. New York: Academic Press.

Dawson, J. F. (2014). Moderation in Management Research: What, Why, When, and How. Journal of Business and Psychology, 29(1), 1–19.

Donaldson, T., & Preston, L. E. (1995). The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications. Academy of Management Review, 20(1), 65–91.

Drucker, P. F. (1984). Converting Social Problems into Business Opportunities: The New Meaning of Corporate Social Responsibility. California Management Review, 26(2), 53–63.

Dummett, K. (2006). Drivers for Corporate Environmental Responsibility (CER). Environment, Development and Sustainability, 8(3), 375–389.

Friedman, M. (1962). Capitalism and Freedom. Chicago: The University of Chicago Press.

Galant, A., & Cadez, S. (2017). Corporate Social Responsibility and Financial Performance Relationship: A Review of Measurement Approaches. Economic Research-Ekonomska Istraživanja, 30(1), 676–693.

Ghani, E. K., Jamal, J., Puspitasari, E., & Gunardi, A. (2018). Factors Influencing Integrated Reporting Practices Among Malaysian Public Listed Real Property Companies: A Sustainable Development Effort. International Journal of Managerial and Financial Accounting, 10(2), 144–162.

Greenwood, M. (2007). Stakeholder Engagement: Beyond the Myth of Corporate Responsibility. Journal of Business Ethics, 74(4), 315–327.

Griffin, J. J., & Mahon, J. F. (1997). The Corporate Social Performance and Corporate Financial Performance Debate. Business & Society, 36(1), 5–31.

Gunardi, A., Febrian, E., & Herwany, A. (2016). The implication of firm-specific characteristics on disclosure: the case of Indonesia. International Journal of Monetary Economics and Finance, 9(4), 379–387.

Hair, J. F., Sarstedt, M., Pieper, T. M., & Ringle, C. M. (2012). The Use of Partial Least Squares Structural Equation Modeling in Strategic Management Research: A Review of Past Practices and Recommendations for Future Applications. Long Range Planning, 45(5–6), 320–340.

Hamidu, A. A., Haron, H. M., & Amran, A. (2015). Corporate Social Responsibility: A Review on Definitions, Core Characteristics and Theoretical Perspectives. Mediterranean Journal of Social Sciences, 6(4), 83–95.

Hasan, R., & Yun, T. M. (2017). Theoretical Linkage between Corporate Social Responsibility and Corporate Reputation. Indonesian Journal of Sustainability Accounting and Management, 1(2), 80–89.

Henseler, J., & Fassott, G. (2010). Testing Moderating Effects in PLS Path Models: An Illustration of Available Procedures. In V. V. Esposito, W. Chin, J. Henseler, & H. Wang (Eds.), Handbook of Partial Least Squares (pp. 713–735). Berlin, Heidelberg: Springer Berlin Heidelberg.

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A New Criterion for Assessing Discriminant Validity in Variance-Based Structural Equation Modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.

Idemudia, U., & Ite, U. E. (2006). Corporate–Community Relations in Nigeria’s Oil Industry: Challenges and Imperatives. Corporate Social Responsibility and Environmental Management, 13(4), 194–206.

Ite, U. E. (2004). Multinationals and Corporate Social Responsibility in Developing Countries: A Case Study of Nigeria. Corporate Social Responsibility and Environmental Management, 11(1), 1–11.

Jackson, T. (2004). Management and Change in Africa: A Cross-Cultural Perspective (1st ed.). London: Routledge.

Jamali, D., & Sdiani, Y. (2013). Does Religiosity Determine Affinities to CSR? Journal of Management, Spirituality & Religion, 10(4), 309–323.

Jensen, M. C. (2002). Value Maximization, Stakeholder Theory, and the Corporate Objective Function. Business Ethics Quarterly, 12(2), 235–256.

Kennedy, E. J., & Lawton, L. (1998). No Title. Journal of Business Ethics, 17(2), 163–175.

Lawrence, E. R., & King, J. E. (2008). Determinants of Religious Expression in the Workplace. Culture and Religion, 9(3), 251–265.

Margolis, J. D., & Walsh, J. P. (2003). Misery Loves Companies: Rethinking Social Initiatives by Business. Administrative Science Quarterly, 48(2), 268–305.

McWilliams, A., & Siegel, D. (2001). Profit-Maximizing Corporate Social Responsibility. The Academy of Management Review, 26(4), 504–505.

Miles, S. (2012). Stakeholder: Essentially Contested or Just Confused? Journal of Business Ethics, 108(3), 285–298.

Milovanović, G., Barac, N., & Andjelković, A. (2009). Corporate Social Responsibility in the Globalization Era. Facta Universitatis, Series: Economics and Organization, 6(2), 89–104.

Mitchell, M. C. (2012). Spirituality and Corporate Social Responsibility: Interpenetrating Worlds, by David Bubna-Litic, Farnham, Gower Publishing Limited, 2009, 244 pp. Journal of Management, Spirituality & Religion, 9(2), 209–214.

Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts. The Academy of Management Review, 22(4), 853–886.

Moon, J. (2002). Corporate Social Responsibility: An Overview. In C. Hartley (Ed.), the International Directory of Corporate Philanthropy. London: Europa Publications.

Muwazir, M. R. (2011). Corporate Social Responsibility in the Context of Financial Services Sector in Malaysia. Cardiff University.

Nor, S. M. (2012). Integrating Moral in a Dynamic Model of Corporate Social Responsibility in Islamic Economics and Finance. Asian and African Area Studies, 11(2), 137–150.

Obalola, M. (2008). Beyond Philanthropy: Corporate Social Responsibility in the Nigerian Insurance Industry. Social Responsibility Journal, 4(4), 538–548.

Ojo, O. (2009). Nigeria: CSR as a Vehicle for Economic Development. In S. O. Idowu & W. L. Filho (Eds.), Global Practices of Corporate Social Responsibility (pp. 393–433). Berlin, Heidelberg: Springer Berlin Heidelberg.

Okpara, J. O., & Wynn, P. M. (2012). Stakeholders’ Perceptions About Corporate Social Responsibility: Implications for Poverty Alleviation. Thunderbird International Business Review, 54(1), 91–103.

Orpen, C. (1987). The Attitudes of United States and South African Managers to Corporate Social Responsibility. Journal of Business Ethics, 6(2), 89–96.

Peng, D. X., & Lai, F. (2012). Using Partial Least Squares in Operations Management Research: A Practical Guideline and Summary of Past Research. Journal of Operations Management, 30(6), 467–480.

Rokhmawati, A., & Gunardi, A. (2017). Is Going Green Good for Profit? Empirical Evidence from Listed Manufacturing Firms in Indonesia. International Journal of Energy Economics and Policy, 7(4), 181–192.

Rokhmawati, A., Gunardi, A., & Rossi, M. (2017). How Powerful is Your Customers’ Reaction to Carbon Performance? Linking Carbon and Firm Financial Performance. International Journal of Energy Economics and Policy, 7(6), 85–95.

Siegel, D. S., & Vitaliano, D. F. (2007). An Empirical Analysis of the Strategic Use of Corporate Social Responsibility. Journal of Economics & Management Strategy, 16(3), 773–792.

Smith, W. J., Wokutch, R. E., Harrington, K. V., & Dennis, B. S. (2001). An Examination of the Influence of Diversity and Stakeholder Role on Corporate Social Orientation. Business & Society, 40(3), 266–294.

Visser, W. (2009). Corporate Social Responsibility in Developing Countries. (A. Crane, D. Matten, A. McWilliams, J. Moon, & D. S. Siegel, Eds.) (Vol. 1). Oxford University Press.

Vogel, D. J. (2005). Is There a Market for Virtue?: The Business Case for Corporate Social Responsibility. California Management Review, 47(4), 19–45.

Waddock, S. A., & Graves, S. B. (1997). The Corporate Social Performance-Financial Performance Link. Strategic Management Journal, 18(4), 303–319.<303::AID-SMJ869>3.0.CO;2-G

Waddock, S., & Smith, N. (2000). Relationships: The Real Challenge of Corporate Global Citizenship. Business and Society Review, 105(1), 47–62.

Windsor, D. (2006). Corporate Social Responsibility: Three Key Approaches. Journal of Management Studies, 43(1), 93–114.

Article Metrics



  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.