ABSTRACT
This project work is done to know the effects of corporate Social responsibilities on profit performance by PZ and Unilever Nigeria Plc and how the provision of these social responsibilities to the environment would enhance productivity and sustainability of the firm. It looks at all forms of potential responsibilities that can be carried out and the actual responsibilities that are carried out by these companies in fulfilling their social obligations to the society.
Table of contents
Title page i
Certification ii
Declaration iii
Dedication iv
Acknowledgment v
Table of contents vi
List of tables ix
Abstract x
CHAPTER ONE
1.1 Background of the study 1
1.2 statement of problem 4
1.3 objectives of the study 6
1.4 research question 6
1.5 significance of the study 7
1.6 research hypothesis null hypothesis 8
1.7 scope of the study 8
1.8 limitation of the study 8
CHAPTER TWO
2.1 literature review 10
2.2 An overview of the concept “responsibility” 13
2.3 Corporate social responsibilities of organizations to their respective stakeholders 16
2.4 The need for corporate social responsibility 21
2.5 Corporate social responsibility as a business survival strategy 25
2.6 The issue of corporate social responsibility 28
2.7 The extent of corporate social responsibility in nigeria. 32
2.7 The corporate social responsibility controversy 33
CHAPTER THREE
3.1 Research design 38
3.2 Area of the study 38
3.3 Population of the study 39
3.4 Determination of sample size 40
3.5 Methods of data collection 41
3.6 Sampling technique 42
3.7 Data analysis 42
3.8 Validity and reliability of methods of investigation 43
CHAPTER FOUR
4.1 Analysis of data 44
4.2 Testing of hypothesis 49
CHAPTER FIVE
5.1 Summary of findings 53
5.2 Conclusion 54
5.3 Recommendation 55
References 57
Appendix 60
List of tables
Table 4.1.1 In response to company’s perception of customers
Table 4.1.2 In response to company’s aim of production
Table 4.1.3 The employees being held at a high esteem in the company
Table 4.1.4 Provision of healthy workings conditions
Table 4.1.5 Benefits being paid to the employees
Table 4.1.6 Provision of health clinic and transportation
Table 4.1.7 Benefits are being paid to the employees
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In the early 1930’s the mission of business was primarily economic, but within the past few decades, there have been pronounced changes in the views of many business managers and marketers about their corporate Social responsibilities, which have paralleled and partly reflected the changing priorities and expectation of society about business society functions. This is because business relies on the society for its continuous existence. In view of this, the interrelationship between organizations and their environment has become interestingly important. As a result organizations especially in the business sectors are no longer viewed as private endeavours that are free to pursue their own ends as long as they do not break any law. Instead, their actions are seen as having public consequences that go beyond serving customers and paying returns to owners. The outcome of this notion is raising public clamour for corporate Social responsibilities on the part of business as well as other social organizations.
But the business decision makers have the task of knowing what to do to meet the demands of various claimants of corporate social responsibilities. All these claims have made the issue of corporate social responsibilities a great concern to business. Corporate social responsibilities are essentially concerned with public interest. It is the intelligent and objective concern for the welfare of society which restraints individuals and corporate bodies from ultimately destructive activities no matter how immediately profitable and which equally leads to direction of positive contributions towards human betterment.
The idea of corporate social responsibilities recognizes that each person is attached to an extended social system in which he or she is partly dependent. Consequently certain obligations or corporate social responsibilities arise from this attachment. Business owners should also consider the needs and interest of others that might be affected by their actions. Business operates on a dynamic environment that changes with time, so public needs have changed likewise their expectation from firms society gave business its charter to exist and the charter can be amended or revoked at any time if business fails to live up to the society’s expectations.
The provision of better social environment benefits both society and business. The society gains though better neighbourhoods and employment opportunities, cleaner and safer neighbourhoods on which to operate, fewer unemployed persons reduce the chance of social unrest. Educated members of the community provide a more attractive labour pool from where to draw personnel. People make up societies; human beings today are part and parcel of the social organization and are utterly dependent on it. Human society makes possible the production and distribution of goods and services. Business can only exist within an organized society, when people are totally self sufficient, the concept of business has no place in their lives. The organization of society then makes it possible for people to engage in business activities. In return, those in business must make a contribution to the society that sustains their existence, that is why business owners have obligation to the society in which they operate and responsibilities to others who live in society with them.
While an organization is busy establishing goals, objectives, developing and executing strategies for achieving its stated propose, it should recognize that it operates within an environment, which expects it to operate in such a manner that would not disrupt its existence. Furthermore, the environment or community also expects the organization to assist in tackling its socio economic problems. It is the contribution of the organization to the development of its environment that constitutes corporate social responsibilities. Peter Dreucker(1970:10) suggests two major ways by which the demands for corporate social responsibilities arise. In the first place, it arises from the social impacts of business organization. In other words, the negative consequences of business activities like rapid urbanization and rural urban drift, traffic hold-ups environmental pollution, deceptive advertising, defective products offered for sale, tax evasion and avoidance, all create disenchantment and demand for more socially responsible behaviour.
Secondly, corporate Social responsibilities also arise from the problems of failing standard of living, illiteracy, poor infrastructure facilities and social amenities and the growing disenchantment with government and its inability to solve major social problems. Hence, society has come to expect business with their successful operation to solve major part of these problems by developing effective corporate social responsibility objectives and strategies. The business system is made up of internal and external components. The community, the schools, churches, customers, government, shareholder and suppliers are all members of the external components and the business organization depends on all of them for survival. Hence, they own some obligations in the ways of discharging certain corporate Social responsibilities to them. Similarly within the internal component of the business system, the employees, the management and other social organizations are found. They equally demand that they should reap from the surplus generated by the organization in which they have their best.
1.2 STATEMENT OF PROBLEM
This study attempts to determine how organizations such as Pz and Unilever Nigeria plc, Aba fulfilling its obligations to the stakeholders can serve as a strategy for carrying out effective business operations expectably. Most times, all the claims made by the various stakeholders are too much on the organization, in that the organization cannot solve all society’s problems with their limited resource, yet they are expected to get actively involved in getting them solved. In trying to assuage the load, most organizations indulge in some unethical acts which most times backfire at them. In the case of organization’s corporate obligation to the government which include payment of taxes and other financial obligations, which seem to be costly to business and restrict its flexibility in decision making. In trying to avoid the wrath of the regulation on them, most organizations give part of the accumulated financial obligations to some set of people as bribe than which of course, will not be recorded anywhere. But in the long-run, when the records will be reviewed, those organizations will still be seen as owing. Likewise in the community, most times organizations are given a particular area or zone where they can site their organizations of firms. But most times, some organizations bribe their way out and site their firms in residential areas. Their waste products pollute the environment which can arouse hostile actions from the community and which will of course affect the organization because the organization needs a conducive environment for its activities.
Most corporations, especially multinational corporations (MNCs) have already adopted corporate social responsibility policy despite the fact that there are still debates over the concept. Under globalization, the state’s power has weakened, whereas the power and influence MNCs have significantly strengthened, making them become more state-like. This expansion of role played by MNCs in society has urged the rise of concerned groups to pressurize them to take up more social responsibility. As Amaeshi, Osuji and Nnodim (2006) argues, although the MNCs do not bear legally any responsibilities for the practices of its suppliers, they have a deontological duty to use power responsibly and influence the weaker parties by setting codes of conduct and standards.
1.3 OBJECTIVES OF THE STUDY
The primary objective of this study is to determine and identify the effects of corporate Social responsibilities on selected companies; Pz and unilever Nigeria plc. In more specific terms, other objectives include:
1. To determine whether effect of corporate Social responsibility can contribute to business survival.
2. To identify the modalities adapted by the company on social responsibility.
3. To identify the importance and advantages derived from corporate Social responsibilities to the environment.
4. To determine the various ways by which organizations can carry out their corporate Social responsibilities to the environment.
5. To determine the effects of non-compliance to corporate Social responsibilities.
1.4 RESEARCH QUESTION
Effect of corporate Social responsibilities has really contributed greatly to the business survival of organizations especially for organizations with long-term plan. This is so because, if an organization winds up before the long or medium run because of hostile environments caused by non-effective corporate Social responsibilities, all the efforts geared towards survival in the long run becomes fruitless. In view of this research work, I shall attempt to address the following central issues.
1. How can corporate social responsibility contribute to business survival?
2. How can the modalities be adapted by the company on social responsibility?
3. What importance and advantage could be derived from corporate social responsibilities to the environment?
4. What are the various ways through which organizations carry out their corporate Social responsibilities to the environment?
5. What effects could there be if there is non-compliance to corporate Social responsibilities?
1.5 SIGNIFICANCE OF THE STUDY
In essence, research work is aimed at serving certain signification in relation to individual, or a particular event. The significance lies in the fact that the success of an organization business survival in its environment is dependent to a large extent on fulfilling the organisation’s socials responsibilities to its environment. The community, managers and organization are conscious of the spirit of give and take existing between the business and its environment and demand strangely that the role of business should not only concentrate on rendering services to customers and paying dividends to shareholders but also should focus attention to the needs and aspiration of factors within its environment. As a result of the above, effect of corporate Social responsibility is very significant towards business survival.
1.6 RESEARCH HYPOTHESIS NULL HYPOTHESIS
Ho: The effect of social responsibilities has no significant role to play in profit making organisation.
Ho1: There is no significant relationship between corporate responsibility and company sustainable growth.
Ho2: Corporate social responsibility does not contribute to the profit objective of the company.
1.7 SCOPE OF THE STUDY
This study is aimed at investigating the effect of corporate Social responsibilities on profit performance of selected companies in Abia state. Though the aim and objective of the researcher is to discover responsibilities by some organizations to their environment, it is narrowed down to the activities of selected companies (Pz and unilever Nigeria Plc).
1.8 LIMITATION OF THE STUDY
Notwithstanding the area of the study covered during the research, the study was greatly affected by certain constraints, which became unavoidable within the time limit.
Time constraint: The researcher was constrained by the time limit. Time posed a threat to the successful coverage intended in the course of this study.
Cost factor: It is not unusual that the prevailing economic predicament posed to great extent a problem in procuring the whole material/information needed and other relevant data constraint herein. Notwithstanding the foregoing limitation associated with this study, the project was well conceived and concluded to serve the purpose for which is intended.
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