AN ASSESSMENT OF CORPORATE SOCIAL RESPONSIBILITY ON ORGANISATIONAL PERFORMANCE IN THE BANKING INDUSTRY (A CASE STUDY OF UNITED TRADING COMPANY NIGERIA PLC.)

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Product Code: 00002273

No of Pages: 51

No of Chapters: 5

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ABSTRACT

This research study has comprehensively delved into the effect social responsibility on organizational performance with First Bank Plc as a case study. The objective of this study is to examine whether social responsibility enhances customer's patronage and to examine whether social responsibility has effect on the profit of the organisation. The survey research method was employed in this study and the questionnaire was the main research instrument used in collecting information from the respondents. Thus, chi-square statistical tool was

used to analyse the collected data and conclusion was drawn from the analysis that the respondent strongly believes and accept that social responsibility have impact on organization performance and it was revealed that consumer's patronage depend on the extent which a company is socially responsible.


TABLE OF CONTENT

 

CHAPTER ONE

GENERAL INTRODUCTION

1.0    Introduction

1.1    Background to the Study

1.1.2 Historical Background of First Bank of Nigeria Plc

1.2    Statement of the Problem

1.3    Purpose of the Study

1.4    Research Questions

1.5    Statement of Hypothesis

1.6.1 Scope of the Study

1.6.2 Limitations

1.8    Definitions of Basic Terms

 

CHAPTER TWO

LITERATURE REVIEW

2.1    Introduction

2.2    What is Corporate Social Responsibility

2.3    Range of Corporate Social Responsibility

2.4    The Need For Social Responsibility

2.5    Organizing for Social Responsibility

2.6    Managers of Corporate Social Responsibility Programmes

2.7    Strategic Planning Process

2.8    Limits of Corporate Social Responsiveness

 

CHAPTER THREE

RESEARCH METHODOLOGY

3.0    Introduction

3.1    Data Collection Technique

3.2    Re-Statement of Research Questions

3.3    Re-Statement of Research Hypothesis

3.4    Research Design

3.5    Population, Sample and Sampling Technique

3.5.1 Population

3.5.2 Sample

3.5.3 Sampling Technique

3.6    Instrumentation

3.6.1 Interview

3.6.2 Observations

3.6.3 Questionnaires

3.7    Limitations of the Study

 

CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATION

4.0    Introduction

4.1    Data Interpretation

4.2    Test of Hypothesis

 

CHAPTER FIVE

SUMMARY, FINDINGS, RECOMMENDATIONS AND CONCLUSION

5.0     Summary

5.1    Findings

5.2    Recommendation

5.3    Conclusion

Bibliography

Questionnaire

 

 

 

 

 

 

 

 

CHAPTER ONE

INTRODUCTION

 

1.0   Background to the Study

Corporate social responsibility is described essentially as a concept, whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis (Osuagwu, 2002).

 

Corporate social responsibility is also a process by which companies manage their relationships with a variety of stakeholders who can have a real influence on their operation, the business case becomes apparent. Thus it should be treated as an investment, not as a cost, much like quality management.  They can thereby have an inclusive financial, commercial and social approach, leading to a long term strategy minimizing risks linked to uncertainty.

 

Corporate social responsibility has important implications for all economic and social actors as well as for the public authorities who should take them into account in determining their own actions, Several member states have recognized its importance and have taken active steps to promote it.

Many factors are driving this move towards corporate social responsibility.

·       New concerns and expectations from consumers, public authorities and investors in the context of globalization and large scale industrial change.

·       Social criteria are increasing influencing the investment decisions of individuals and institutions both as consumers and as investors.

·       Increased concern about the damage caused by economic activity to the environment.

·       Transparency of business activities brought about by the media and modern information and communication technologies.

 

Social responsibility is the contribution of the organization to the development of its environment while an organization is busy establishing goals, objectives and executing strategies for achieving its predetermined purpose. It aims to further the long­ range potential of the organization as it directly relates to the changing social environment.

 

Business enterprises were being asked to take an un-accustomed task. Enterprises were essentially aware that they were expected to utilize their financial and man power resources with no prospect or limited prospect of profit to carry on activities that had traditionally been the responsibility of government or such no profit institution as the university.

 

The reason for this demand is not far fetched.  Human wants have expanded, hence the new and ambitious social goals by the government to maximize employment opportunities for all who wants to work, providing higher education for all who can benefit assuring adequate health care, rebuilding the cities, overcoming environmental pollution and continually stimulating economic growth.  To achieve these goals, government requires the collaboration of the private, public and non-profit sector of the economy.

 

Against the background, Miller concluded that while government should play the role of “system managers” in harnessing a national attack on social issues and problems, business must accept an increased and larger responsibility for resolving them.

 

Peter Drucker stated the issue for thright when he wrote that “the new demand is a demand that business and businessmen make concern for society central to the conduct of business itself.

 

It is a demand that the quality of life becomes the business of business.  The traditional approaches ask: how can we arrange the making of cement (emphasis of mine) so as not to impinge on social values and beliefs of individual and their freedom and on the good society altogether.  The need command is for business to make social value and beliefs, create freedom for the individual and altogether produce the good of society.

 

Business for obvious reasons plays a central role in any economy. At present in Nigeria, private business is still the primary means of converting resources into goods and services the society needs to function. The recognition of the above view has led to the establishment of National Directorate of Employment (N.D.E) as part of elements of Structural Adjustment Programme.

 

The success of business system in satisfying economic service objectives lead to new expectation. According to Drucker the new expectation is logical because if some leadership groups were successful in providing the quantities of life by creating certain economic values that society needs, it is only natural to expect the same leadership to assume responsibility for providing the "quality of life". This is because possesses capabilities which can significantly supplement those of government. For example, it is possible for business to contribute the zeal created by the prospect of profit. Some enterprises possess skills in job training, in housing design and finance. While some can contribute ingenuity and creativity that can produce new solutions. All these when properly harnessed can make the society a better place to live.

 

As it aims to further the long-range potential of an organization in relation to· environment, the response of many business manager to increasing social pressures (quality of life) has begun to be guided by enlightened self-interest. The social responsibility concept becomes an ethical one that calls for acting to further ones own best interest while taking into account the effect of ones behaviour on others. This concept also includes the nation that when one helps others, one also benefits in the long run.

 

Business efforts to support public education, for instance not only help society as a whole but also provide better educated employees for the future. The substance of social responsibility emphasizes the effect of executive actions on the entire social system.

 

1.2   Statement of the Problem

As Keith Davis (2003) p-qt it that business does not exist in isolation in our society and that a healthy business system cannot exist within a sick society. Also business usually benefits from a stable and well managed social and political environment. Any social unrest caused by prejudice and poverty is harmful to business. It is therefore imperative on corporate body to consider their acts within the framework of the whole social system.

 

Thus, most corporate citizen doesn't believe to be socially responsible, all they are concerned about is their efficiency and survival, which is measured through their profitability. To them being socially responsible is a

·       Lack of fund to finance or carry out the responsibility mapped-out or drawn to be achieved.

·       Lack of commitment by the organization or the stakeholders on the project; becomes a problem.

This and other reasons are the major reason for this study.

 

1.3   Purpose of the Study

The main purpose of the study is the effect of corporate social responsibility on organization performance. Thus, to achieve the above objective, the following are the specific objectives:

1.    To examine whether social responsibility enhances customer's patronage

2. To examine whether social responsibility have effect on the profit of the organisation.

 

1.4   Research Questions

(1)     To what extent does corporate social responsibility aid the performance of the organization.

(2)    To what extent does Social responsibility has effect on organization profit?

(3)    To what extent does organization go about in developing social policies and programmes?

(4)    To what extent does Social responsibility helps to enhance customer's patronage?

 

1.5   Statement of Hypothesis

Ho:     Social responsibility does not have effect on organization profit

HI:    Social responsibility has effect on organization profit.

Ho:     Social responsibility does not help to enhance customer's patronage

HI:    Social responsibility helps .to enhance customer's patronage

 

1.6 Scope of the Study

The area of my concentration is mainly at First Bank Nigeria Plc located at Samuel Asabia House, 35 Marina, Lagos.

 

This study is restricted to social responsibility on organizational performance in the banking industry. The study covers a representative number of the generality of the workers in these enterprises. No special consideration is given to sex, age and nationality in collective data from the respondents.

 

1.7 Limitations

Every research study or under taking has its own limitation or short comings. There is no exemption in the case of this study.

 

Thus, the level of accuracy in this study is proportional to the availability of information that the respondents are willing to give. Also there is this uncertainty that information give it's without bias.

 

This study is also constraint to lack of adequate time to carryout the investigation, high cost involves in research work, and other intellectual and physical issues that rob research studies of its

perfection.

 

1.8   Definitions of Basic Terms

Corporate: Is a body made up of an autonomous unit.

Responsibility: An obligation to perform an assigned task. Environment: Is the total of all external forces that influence an individual or community.

 

Business Ethics: Is a system of moral principle applied specifically to business activities.

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