Relationship Between Business Activities and Social Costs in Nigeria: The Effects on Environment

Abstract

This paper aimed to study the linkage between business firms’ actions and their resultant social costs on the environment in Nigeria. The report also attempted to provides a broad view of businesses and their resulting actions on the earth as they operate within contemporary Nigerian society. The sampling method adopted for this study was the stratified random sampling technique. The instrument used for data analysis was Chi-square (X2), adopted for hypothesis testing. A total number of 287 questionnaires were returned and considered out of the 300 questionnaires that were distributed. Data obtained was analyzed with the inferential statistical technique. Pearson Chi-square was employed to test each hypothesis at a 95 percent confidence level. Results were analyzed through Pearson Chi-square and hypotheses tested using chi-square statistics at 0.05 level of significance. SPSS version 21 was used for linear-by-linear association in hypotheses testing, assumptions establishing a linear relationship of variables were met, and error terms independence was conducted. Therefore, the study believed that if business firms are allowed to pollute the environment, the result is a rise in waste and numerous environmental consequences. Consequently, society as a whole is hurt as its overall social welfare declines. This study, therefore, recommended that the business firms should always make considerable strides in improving the performance of their products, with a strong focus on enhancing environmental efficiency with a long-term aim for zero-emission of vehicles.