THE INTERPLAY OF CORPORATE GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY IN THE ADVANCEMENT OF NIGERIAN ECONOMY

Abstract

Economic institutions, particularly incorporated companies remain the hobnob in the wheel of economic development. There can be no meaningful progress in the economic industry without a developed chain of companies with adequate regulation. Thus, the management of companies in Nigeria is committed to the board of directors, and regulated by an institutionalized body referred to as the Corporate Affairs Commission (CAC) within the corporate legal framework. The internal management of a company, the regulatory institution and the legal framework constitute the regime of corporate governance in Nigeria. The demand of corporate governance is basically to reward not only the shareholders but the entire stakeholders within and around the corporate industry, thereby imposing responsibility on companies. This paper is aimed at appraising the impact of corporate governance and corporate social responsibility in Nigeria as an emerging economy. The paper relies on data garnered through doctrinal research. The paper found that despite ethical and legal frameworks designed to enhance corporate governance, companies still fail and the economic industry stagger in the face of daunting challenges. It is recommended that the legal framework on corporate governance should be strengthened especially as there is poor ethical compliance culture in Nigerian corporate institutions. It calls for positioning companies to live up to their social responsibilities. Agreeably, there are innovative provisions in the Companies and Allied Matters Act, 2019 (as amended). There is need for the Corporate Affairs Commission as the regulatory body to ensure full administration of the Act and the enforcement of its provisions in the event of any infraction.