CORPORATE SOCIAL RESPONSIBILITY: ITS IMPACT ON ORGANIZATIONAL PERFORMANCE: (A STUDY OF GUINNESS NIGERIA PLC).

CORPORATE SOCIAL RESPONSIBILITY: ITS IMPACT ON ORGANIZATIONAL PERFORMANCE: (A STUDY OF GUINNESS NIGERIA PLC).

ABSTRACT

The entirely of this research focused on the effect of corporate social responsibility on organizational performance. corporate social responsibility is simple incorporating the needs of the public into organizational policy. corporate social responsibility can help organizations to entice customers, attract and retain talent, assure investors, reduce operating costs, improving employee morale and enhance a company’s reputation. However, most organsiations are not convinced about the need to fully involve in the concept. A survey design was used for the study a total of (90) respondent was used as the population, the sample size is (84). The questionnaire was used to obtain useful data for the study. The study was analyzed with the simple percentage technique while the stated hypothesis were tested using the chi-square (X²) statistical tool. The result shows that corporate social responsibility enhance the well-being of citizens.

TABLE OF CONTENTS

TITLE PAGE - - - - - - - ii

DECLARATION - - - - - - - - iii

CERTIFICATION - - - - - - - - iv

DEDICATION - - - - - - - - v

ACKNOWLEDGEMENTS - - - - - - vi

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study - - - - - 1

1.2 Statement of  Problem - - - - - - 8

1.3 Objective of the Study - - - - - - 10

1.4 Research Questions- - - - - - - 11

1.5 Statement of the Hypothesis - - - - - 12

1.6 Significance of  Study - - - - - - 13

1.7 Scope of the Study - - - - - - 14

1.8 Definition of Key Terms - - - - - 15

CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction - - - - - - - - 18

2.2 Conceptual Framework - - - - - - 33

2.3 Theoretical Framework - - - - - - 45

2.4 Empirical Review - - - - - - - 50

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Research Design - - - - - - 56

3.2 Population of the Study - - - - - - 57

3.3 Sample Size - - - - - - - - 57

3.4Sampling Technique - - - - - - 58

3.5 Method of Data Collection - - - - - 58

3.6 Technique for Data Analysis - - - - - 59

3.7 Model Specification and Variable Definition - - 59

3.8 Measurement of Variables - - - - - 59

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

4.1 Presentation of Data - - - - - - 60

4.2 Discussion of Findings - - - - - - 79

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary - - - - - - - - 80

5.2 Conclusion - - - - - - - 80

5.3 Recommendations - - - - - - - 93

References - - - - - - -    - 95

Appendix - - - - -         - - - 98

CHAPTER ONE

INTRODUCTION

The concept of corporate social responsibility (CSR) is not new; discuss about it began since 1950s and has since continued to grow in importance and significance. It has been subjected to a lot of debate, comment and research. In spite of the seeming endless discussion about it, CSR has seen a lot of development in both academic communities and practitioners all over the world. The corporate scandals and business failures that characterized organizations in the last decade, brought to lime light the dilemma associated with short-term investments as well as accentuating the significance of long-term investment outlook for firms. However, for organizations to thrive in the long run, they need to look beyond profit maximization to stakeholder relations, of which corporate social responsibility-making social, economic and environmental contributions to the society can be one facet. Therefore, as firms grow in size and influence, they must have the ability to reconcile and balance multiple bottom lines and manage the interests of multiple stakeholders rather than being mere contributors to the global economy Carroll, & Shabana (2020).

According to Nasieku, Togun and Olubunmi (2017), corporate social responsibility (CSR) is a commitment to improve the well-being of a community through discretionary business practices and contributions of corporate resources. CSR basically implies the supportive duties of an organization to the community or society it operates from. It is a concept that emphasizes responsive and extended social contribution of businesses to the society. The fundamental idea of corporate social responsibility often referred to as charitable giving and philanthropic contributions is that business and society are intertwined rather than separate. This is based on the fact that successful corporate social responsibility initiatives are posited to improve companies’ reputation, increase customers loyalty and strengthened brands which can ultimately boost share price and raise investment Adebayo, Oluwatoyosi, & Elizabeth, (2012).

However, Nigeria’s stakeholders place more emphasis on economic, legal and ethical responsibilities than on philanthropic components. Therefore, understanding and effective management of stakeholders’ as well as their expectations can enhance organizational performance and competitive advantage. In this study, we shed light on the organizational and performance implications of integrating social and environmental issues into an organization’s strategy and business model through the adoption of corporate policies.

Many organizations in Nigeria are driven by the need to make and move profits to the detriment of all the stakeholders. Some do not adequately respond to the need to host communities, employees welfare, environment protection and community development. (Osemene, 2012). There is now a growing need for originations to shift form the norms and begin to incorporate public interest. Companies are scrambling to find the balance between responding to consumer pressure, government mandates, and employee demands, while at the same time satisfying their investors and shareholders (Pax, 2016).

According to Onwuegbuchi (2021) corporate social responsibility is the deliberate inclusion of public interest into corporate decision making and the honoring of a a triple bottom-line of people, planet and profit. In other words, corporate social responsibility policy entails self-regulation, adherence to rules and regulations, ethical standards, environmental responsibility and sustainability, consumer’s satisfaction, employer welfare, communities and shareholders benefit Aggarwal, (2013).

Travis (2016) opined that, corporate social responsibility programmes can help organizations entice customers, attract and retain talent, assure investors, reduce operating costs, improve employee morale and enhance a company’s reputation. However, business owners should understand the benefits and limitations of corporate social responsibility programmes in order to choose an initiative that benefits the community and the company. Many corporations have been forced into corporate social responsibility. They know that it does not make good business sense to be seen as a company that is damaging the world that we live in Ahmad, Sulaiman and Siswantoro, (2018).

In fulfillment of its corporate social responsibility and as part of its commitment to its community development initiatives. Guinness Nigeria plc has sponsored ten youths to the Institute of Industrial Technology (IIT). The programme was designed to bridge the gap that exist in the Nigerian educational system as well as to impart individuals with the knowledge and skills to help them become independent and responsible citizens of the country.

Corporate social responsibility has a huge impact not only on the local community, but also on the world. Its affects social, economic, and environment. Bad and good corporate social responsibility has effects that reach country to the air that we breathe. (Garry, 2021). He further stated that, investors are more likely to invest in a corporations that has shown corporate social responsibility. Investors are aware of the customer’s strength of opinion regarding unethical companies. The customers is now in a better position to shape corporate social responsibility than ever before. Good corporate social responsibility policy will attract good investors which will provide necessary resources to improve and sustain organizational performance Albassam, (2014).

Statement of the Problem

Convincing shareholders or other financial decision makers to allocate resources to a programme designed to benefit some thing other than the company’s bottom-line can be the first obstacle an organization must overcome. (Travis, 2016). Top management of most firm’s are reluctant to provide adequate resources needed for the successful implementation of corporate social responsibility programmes. This action has a trickle-down effect on the acceptance of the organization’s in the public.

Timing of corporate social responsibility programmes can also be a problem. A programme that is introduced to sway public opinion immediately after a company crisis can do more reputation damage if they are perceived by customers and stakeholders as insincere. Thus, customers are sometimes skeptical about the intentions of organization’s corporate social responsibility programme.

A poorly developed corporate social responsibility strategy is capable of retarding the growth of the community where an organization operation.  This is because, when firms are making huge sum of amount as profit without giving doubt affect the economic well-being of the inhabitant of that environment.

Objective of the Study

The main objective of the study is to examine the impact of corporate social responsibility on organizational performance. In order to achieve the above, the following specific objectives will be designed.

1. To determine the effect of management attitude towards corporate social responsibility programme.

2. To examine how the timing of corporate social responsibility affects consumer perception about the organization.

3. To determine the impact of corporate social responsibility on citizens well-being.

Research Questions

1. To what extent does management attitude affects corporate social responsibility programme?

2. How does the timing of corporate social responsibility affects consumer perception about the organization?

3. Does corporate social responsibility have an impact on the well-being of the citizens?

Research of Hypothesis

The hypothesis will be stated in null, represented by (Ho), and alternative, represented by (Hi) hypothesis respectively:

1. Ho: There is no relationship between management attitude and corporate social responsibility programme.

Hi: There is a relationship between management attitude and corporate social responsibility programme

2. Ho: There is no relationship between corporate social responsibility and consumer perception about the organization.

Hi: There is a relationship between corporate social responsibility and consumer perception about the organization.

3. Ho: There is no relationship between corporate social responsibility and the citizens well being.

Hi: There is a relationship between corporate social responsibility and the citizens well being.

Scope of the Study

The study was hinged on the tenet of the impact of corporate social responsibility on organizational performance, using Guinness Nigeria Plc as an organization under view. The study will however be completed within the duration given.