EVALUATION OF CORPORATE ENVIRONMENTAL STRATEGY AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS IN NIGERIA: CONTENT ANALYSIS

ABSTRACT

This paper is aimed at evaluating the relationship between Corporate Environmental Strategy (CES) and Financial Performance (FP) of manufacturing companies in Nigeria. Corporate environmental strategy serves as the motivating factor of the stakeholders related to the organisation which increase their financial performance. Export factor research design was used. Data were extracted from the annual report, fact book and website of manufacturing companies on one indicator of corporate environmental strategy (employee’s health-security strategy) and two indicator of financial performance (return on capital employed and return on assets) for the period of five years (2014-2018). This paper used content analysis for data collection. The population of the study consists of all companies in Nigeria stock exchange engage in manufacturing activities only as at June 2018. The judgmental sampling technique was employed to arrive at the sample size of twenty-four (24). The data collected were analyzed using descriptive statistics and regression analysis appropriately. The result of the content analysis on indicators of corporate environmental strategy and financial performance of manufacturing firm in Nigeria shows a significant relationship, where corporate environmental strategy enhances the level of profitability and financial strength of the manufacturing firms. The paper recommends that, to ensure a sound organisational activities, organisational manager should compelled themselves to employ appropriate motivational strategies that will attract the employees to increase productivity, which will lead to higher financial performance of their enterprises.

Keywords: Corporate Environmental Strategy, Financial Performance, Return on Capital Employ, Return on Assets, Employee’s health-security, Stakeholders.