Regulatory perspective for deepening CSR disclosure practice in Nigeria

The purpose of this study is to assess the need for a regulation of Corporate Social Responsibility (CSR) disclosure practices of listed non-financial sector entities in Nigeria. Survey research method was adopted in the study. Information gathered from the primary source (questionnaire) was used to test the users’ perception on the need for a regulated practice in Nigeria. Both Content Validity and Cronbach’s Alpha (α) were used to test the validity and reliability of the research instrument respectively. The Cronbach’s Alpha showed an appreciable level of reliability of 0.851. Results of pairwise comparison showed that both the regulators and management group agree on the need to regulate CSR disclosure practice while the opinions of the other groups (academics, information intermediaries and investors) varied significantly. The two hypotheses constructed in the course of the study tested the perceptions of the users on the need for a CSR disclosure regulation. Findings based on an ANOVA analysis of the users perceptions revealed that a voluntary CSR disclosure practice might not be effective enough in curbing the inadequacy of CSR disclosures of these entities and as such there might be a need to regulate the practice. The paper exposes the mind of users of accounting information on their understanding of the level of CSR disclosure practices of listed non-financial sector entities in Nigeria and their demand for a more regulated system of CSR disclosure practice. There is currently no research assessing how CSR disclosure practices of listed non-financial sector entities in Nigeria can be improved. It is expected that the study will promote a movement for curtailing the haphazard preparations of CSR information in Nigeria.   Key words: CSR disclosure, accounting, corporate social responsibility, non-financial sector.