Integrity and Corporate Social Responsibility as Strategic Corporate Governance Practices and Financial Performance of Medium-Scale Enterprises in Cross River State

Abstract

This research examined the relationship between corporate governance practices, with emphasis on integrity and corporate social responsibility (CSR), on the financial performance of medium-scale enterprises (MSEs) in Cross River State, Nigeria. The study was driven by two clearly defined objectives, corresponding research questions, and null hypotheses. A correlational survey research design was adopted, targeting a population of 434 individuals, comprising CEOs, accountants, and managers from officially registered MSEs across the state. To ensure statistical accuracy a sample size of 208 respondents was determined using Taro Yamane’s formula, while proportional and stratified sampling techniques were employed to capture diverse subgroups within the population. Data collection was carried out using a structured questionnaire titled Corporate Governance Integrity and Corporate Social Responsibility Practices and Financial Performance in Medium-Scale Enterprises Questionnaire (CGICSRPFPMSEQ). The instrument’s reliability was confirmed through a Cronbach’s alpha coefficient of 0.85, indicating a high degree of internal consistency. Data analysis was performed using the Pearson Product-Moment Correlation (PPMC) to test the null hypotheses at a 0.05 significance level. The findings revealed a statistically significant positive relationship between corporate governance practices, particularly integrity and CSR, and the financial performance of MSEs in Cross River State. The results stress the critical role of ethical governance and corporate responsibility in fostering improved financial outcomes among medium-scale enterprises. Based on these findings, the study concludes that the institutionalization of transparent, ethical, and socially responsible governance frameworks contributes significantly to the financial success of MSEs. It is, therefore, recommended that business leaders and policymakers prioritize the implementation of integrity-driven and socially responsible governance practices, supported by strategic oversight mechanisms, to enhance the financial sustainability and overall performance of enterprises within the sector.