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

Abstract

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.