This paper examined the effect of Corporate Social Responsibility (CSR) and standard compliance of health institutions with the associated recurs in South West Geo – Political Zone of Nigeria, this was with a view to spur all related corporate organization to add value to their operational business environment in developing economy instead of incurring undue penalty cost when agitation ensued. Both primary and secondary data were sourced and analyzed through descriptive statistics techniques of Analysis of Variance (ANOVA) and Simple Percentage Method (SPM). The result revealed that there were significant relationship between CSR and earnings potentials of health institutions in Nigeria. On the average, CSR cost showed p-value of (0.000) > (0.05) level of significant in normal situation and p-value of (0.18) > (0.05) level of significance when crisis occurred. The result obtained from (80.1% indigenes of host community and 65.711% staff of selected hospitals showed that needs of host communities are often neglected until when agitation is staged. Out of six corporate health institutions studied, it was found that benefits derived from voluntarily compliance with the principles of CSR as prescribed by ISO 26000 reduces social costs compared to when crisis results. Basic principles like human rights observation, labour standardization, environmental pollution protection, health education, treatment-cost reduction and harsh treatments avoidance among others factors are the basic CSR costs which a workings corporate health Institutions need to meet up with. Based on this, the study recommends proactive response to all corporate organization to meet the recommended standards on CSR and to adequately evaluate the critical needs of people of the host communities from time to time.