In the Nigerian society, Corporate Social
Responsibilities [CSR] has been a highly cotemporary and contextual issue to
all stakeholders including the government, the corporate organization itself,
and the general public. The public contended that the payment of taxes and the
fulfillment of other civic rights are enough grounds to have the liberty to
take back from the society in terms of CSR undertaken by other stakeholders.
Some ten year ago, what characterized the Nigerian society was fragrant
pollution of the air, of the water and of the environment. Most corporate
organizations are concerned about what they can take out of the society, and
de-emphasized the need to give back to the society [their host communities].
This attitude often renders the entire community uninhabitable. A case in mind
is the Niger Delta area of Nigeria. This translated to negative integrity and
reputation on the part of corporate identity as people perceived this as
exploitation and greed for profitability and wealth maximization within a
decaying economy of Nigeria. However, the general belief is that both business
and society gain when firms actively strive to be socially responsible; that
is, the business organizations gain in enhanced reputation, while society gains
from the social projects executed by the business organization. In modern day
however, having seen the benefits and average favorable pay-back period of their
investment in CSR, corporations are now seriously involved in this project,
which had impacted in the society wonderfully and profitably. This study is
therefore, intended to consider the imperative and benefits of CSR on the
Nigeria society. The perceived gap supposedly created is harnessed and investigated
for possible resolution, using the banking and communication industries as a
case study. The research approach is both descriptive and analytical. Data
collected for this study are from both primary and secondary sources, relying
heavily on the relevant information available from both banking and
communication sectors, and other sources. Tests were conducted using both
regression and correlation analysis. The regression result reveals a strong and
significant relationship between CSR and Societal Progress such that the
relationship between CSR and Societal Progress is statistically significant. It
is thus conclusion that CSR plays a significant role in Societal
Progressiveness in terms of environmental and economic growth. The study
recommends that, while improvement in the depth of participation by banking and
telecommunication industries in economic and environmental development is
desirable, they are encouraged to close ranks and forge common interest in
addressing certain social responsibilities, especially those bothering on
security and technological advancement of the polity.
Keywords: Corporate Social Responsibility, societal Progressiveness, Banking,
Front Page i
Title page ii
Table of contents vi
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 1
of the Problem 2
and Objectives of the Study 3
1.6 scope and limitation
of the study 4
of Terms 4
TWO: LITERATURE REVIEW
2.1.2 Definition of Corporate Social
Pyramid of Corporate Social Responsibility 8
Versus Explicit Corporate Social Responsibility 8
2.1.5 The Three Components of Sustainability - The
Triple Bottom Line 9
of Corporate Social Responsibilities 10
of a Firm 14
Responsibility to Stakeholders 16
Corporate Social Responsibility 18
2.1.10 What Drives Corporate Social Responsibilities
of Corporate Social Responsibilities in Nigeria 20
2.1.12 Implementation of Corporate Social
Responsibilities in Nigeria 23
Background of MTN Nigeria 24
on Corporate Social Responsibilities by the
in Nigeria 25
Background of Guarantee Trust Bank Nigeria 30
2.2.1 Introduction 34
Capitalism and Marxist Theory 36
2.2.3 Corporationsin Global Capitalism 39
as a Spectacle 42
THREE: RESEARCH METHODOLOGY
3.1 Introduction 44
of Data Collection 44
3.5 Method of Data Analysis 45
FOUR: DATA ANALYSIS AND INTERPRETATION
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of Findings 54
5.2 Conclusion 55
5.3 Recommendations 56
OF THE STUDY
an earlier point in history, societal expectations from business organizations
did not go beyond efficient resource allocation and its maximization. But
today, it has changed and modern business must think beyond profit maximization
toward being at least socially responsible to its society. Today’s heightened
interest in the role of business in society has been promoted by increased
sensitivity to the awareness of environmental and ethical issues. It means our
society has become increasingly concerned that greater influence and progress
by firms has not been accompanied by equal effort and desire in addressing
important social issues including problems of poverty, drug abuse, crime, improper
treatment of workers, faulty production output and environmental damage or
pollution by the industries as it has overtime been reported in the media. It
is therefore very essential for all to realize that public outcry for increased
social responsibility will not disappear if business organizations fail to
respond to the challenges these had posed for the society.
view of the perceived information gap, it is therefore worthwhile collating and
aggregating in a more organized manner, the contributions of Nigerian
corporations [using banking and communications industries as a focus] to the
well-being of the society. This is necessary if only to show, in a graphic and
mathematical ways that the industries seriously identify with the aspirations
of the communities and the general public. In the early years of this century,
two Americans independently and without knowing of each other were among the
first businessmen in the world’s history to initiate major community reforms.
Carnegie preached and financed the free public library. Julius Rosenwald
fathered the country farm agent system and adopted the infant 4-H CLUBS.
Carnegie was already retired from business and one of the world’s richest men.
Rosenwald who had recently bought a near bankrupt mail order firm called Sear
Roebuck and Company, was only beginning to build both his business and fortune.
The two held basically different philosophies. Carnegie believed that the sole
purpose of being rich is to be a philanthropist, that is, the “social
responsibility of wealth”. Rosenwald believed that you have to be able to do
good to do well, that is, the “social responsibility of business”. J. Irwin
miller of the Cummins Engine Co. Ltd in Columbus, Indiana, has systematically
used corporate funds to create a healthy community which, at the same time is a
direct, though intangible investment in a healthy environment for his company.
Miller specifically aimed at endowing his small industrial town with the
‘quality of life’ that would attract to it the managerial and technical people
on whom a big high-technology business depends.
if business and particularly Nigerian business learns that to do well it has to
do good, can we hope to tackle the major challenges facing developing societies
today. The economic realities ahead are such that ‘social needs’ can be
financed increasingly only if their solution generates commensurate earning
which precisely is what business is known for. We can actually say firms
involved in Corporate Social Responsibility are actually not regretting because
of the increase it has made on their sales leading to profit and how they have
impacted the environment. The significance of corporate social responsibility
as a vital tool for the societal progressiveness cannot be over emphasized.
This can be seen from the points of view of showing concern for the welfare of
the community in order to reap peace, competent and cheaper manpower, a
platform for a better community; by making the host community worthy of
livelihood in terms of infrastructural development; and by boosting their
image, reducing advert cost, gaining an edge over competitors, and making your
name as a firm an household name in the society.
1.2 STATEMENT OF THE PROBLEM
In recent years there
have been series of arguments, debates and controversies among businessmen,
academics, government officials and the society in general on what should be
the principle objectives of business enterprises. Over the years, managers have
neglected the problems created by corporate firms to their host communities.
These problems possess a lot of threat and sometimes make life difficult for
these communities. The privilege giving
to organization to operate in the society stems from the fact that society
believes that there is a mutual interdependency existing between them, that is,
the organization and the society. The relationship between organizations and
their host community has become increasingly important.
Despite the roles played
by organizations carrying out corporate social responsibility and the growing
importance of social responsibility, the following issues have not been fully
Why should organizations be socially
responsible to their environment?
What benefits do organizations get from
performing its corporate social responsibility?
Why is social responsibility considered as
a waste drain of business resources?
Are organizations in Nigeria socially
In view of the perceived
information gap, it is therefore worthwhile collating and aggregating in a more
organized manner, the contributions of Nigerian corporations [using banking and
communications industries as a focus] to the well-being of the society.
1.3 RESEARCH QUESTIONS
To which degree are CSR commitments
successfully enacted in practice?
Is CSR perceived as a meaningful tool for
social and economic development?
What are the opportunities and limitations
What are the factors responsible for the
adoption of corporate social responsibility.
1.4 AIM AND OBJECTIVES OF THE STUDY
of this study has been to evaluate some of the opportunities and limitation for
Corporate Social Responsibility (CSR) to improve the socio-economic development
of Lagos Society with examples of banking and telecommunication industries
The main objective of this study has been
to compare statements and codes of conducts of companies (MTN and GTBank)
involved with the findings of a worker interview study. In doing this, the
study evaluates which factors of corporate responsibility that translates into
perceived social or economic development and to which degree are they
implemented. The specific objectives of the study are to:
Ascertain the degree at which CSR
commitments is successfully enacted in practice
Determine if CRS is perceived as a meaningful
tool for social and economic development.
To identify the opportunities and
limitations of CRS.
Examine the factors responsible for the
adoption of corporate social responsibility.
1.5 RESEARCH HYPOTHESES
In pursuit of the
objective of identifying the effectiveness and workability of corporate social
responsibility, the following hypotheses have been formulated, which intend to
test in the course of this study:
CSR commitments are not successfully enacted in practice.
CSR commitments successfully enacted in practice
CSR is not perceived as a meaningful tool for social and economic development.
CSR is perceived as a meaningful tool for social and economic development
1.6 SCOPE AND LIMITATION OF THE STUDY
This research work will
focuses on the banking and telecommunication industries in Nigeria, but with
particular reference to MTN and GTBank, Badagry, Lagos State.This research is
likely to be faced with a lot of problems and limitations of are Nigerians attitude
to the supply of information to a researcher due to fear of unknown and also,
financial constraints, the scope and dimension of this study will not be
extended beyond this limit.
1.7 DEFINITION OF TERMS
Social Responsibility: (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business/ Responsible
Business) is a form of corporate self-regulation
integrated into a business model. CSR policy
functions as a built-in, self-regulating mechanism whereby a business monitors
and ensures its active compliance with the spirit of the law, ethical
standards, and international norms.
Banking: A bank
is a financial
intermediary that accepts deposits and channels those
deposits into lending
activities, either directly by loaning or indirectly through capital markets.
A bank links together customers that have capital deficits and customers with
Telecommunication is communication at a distance
by technological means, particularly through electrical signals or
electromagnetic waves. Due to the many different technologies involved, the
word is often used in a plural form, as telecommunications.
Environment: (systems), the surroundings of a physical system that may
interact with the system by exchanging mass, energy, or other properties.
Socio-Economic Development: is the
process of social and economic development in a society. Socio-economic
development is measured with indicators, such as GDP, life expectancy, literacy
and levels of employment. Changes in less-tangible factors are also considered,
such as personal dignity, freedom of association,
personal safety and freedom from fear of physical harm, and the extent of
participation in civil