This research work focused entirely on the effect of
Social Responsibility on organizational effectiveness. This study however,
shows that investing in CSR initiatives brings about employees' commitment and organizational survival. It
shows the importance of CSR to Human Resources Management, the Risk of HR's
involvement in implementing CSR initiative and some theories and models were
used for further explanation. Academy Press Plc was used as a case study of
which 30% of their staff was randomly selected as my sample, questionnaires were given and completed by them.
Hence, the major instruments used in the collection of information for this
research work were questionnaires and interviews. The data obtained were
subjected to analysis through the use of percentage and Chi-square to calculate
the findings. Recommendations were made based on the findings which will go
along way in ensuring the effectiveness of an organization if implemented.
TABLE OF CONTENTS
1.2 Statement of Problem
1.3 Purpose of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Significance of the Study
1.7 Scope and Limitation of the Study
1.8 Definition of Terms
1.9 Organization of the Study
2.1 Literature of Review
2.2 Theoretical Framework
3.1 Research Method/Instrument or Approach adopted
3.2 The Population of the study
3.3 The sample and technique to be applied
3.4 Method of Data Collection
3.7 Data Analysis
4.2 Questionnaire Analysis
4.3 Testing of Hypothesis
1.1 BACKGROUND TO THE STUDY
As recent as a decade ago, many companies viewed business
ethics only in terms of administrative compliance with legal standards and adherence to internal rules and
regulations. Today the situation is different. Attention to business ethics and
social initiative are on increase across the world and many companies realize that
in order to succeed, they must earn the respect and confidence of their
customers and other stakeholders. Like never before, corporations are being
asked, encouraged and prodded to improve their business practices to emphasize
legal and ethical behaviour, through their employees. Companies, Professional
firms, government parastatals and individuals alike, are being held
increasingly accountable for their actions, as demand grows for higher
standards of Social Responsibility.
Social Responsibility is an ethical or ideological theory
that an entity whether it is a Government Corporation, Organisation or Individual is accountable to the society.
This responsibility can be 'negative' in that it is a responsibility to refrain
from acting (resistance stance) or it can be 'positive', meaning there is a
responsibility to act (proactive stance). While primarily associated with business
and governmental practices, activist groups and local communities can also be associated
with social responsibility, not only business entities.
Nevertheless, the practice of Corporate Social
Responsibility (CSR) will be the focus of this study and its effect on
organizational effectiveness will be thoroughly examined. Corporate social
responsibility simply means eliminating corrupt, irresponsible or unethical
behaviour that might bring harm to the business or company, its people and most
especially, the environment before the behaviour is being portrayed.
The following are some simple definitions of Corporate
Social Responsibility (CSR)
It is the
responsibility to profitably serve employees and customers in an ethical and
It is an organisation's obligation to maximize
its positive impact and minimize its negative impact on society.
It is the concern for
the consequences of an institution's or a person's act as its might affect the
interests of others including the environment and involuntary customers.
Also, it is a concept
that businesses should be actively concerned with the welfare of society at
It s a business's collective code of ethical
behaviour towards the environment, its customers, its employees and its
It is the
responsibility of a responsible agent who chooses to participate in a society
and acquire the benefits thereof.
According to International Standardization for
Organisation (ISO), "CSR is the action of an organisation to take
responsibility for the impacts of its activities on the society and the
environment, where this action; is consistent with the interests of the society
and its sustainable development; is based on ethical behaviour, compliance with
applicable law and inter-governmental instruments and; is integrated into the
ongoing activities of the organisation" (Drafted definition of Social
Responsibility of ISO 26000).
In principle, the term CSR refers to the Obligations of
companies to society; more specifically, it refers to a company's stakeholder
and those affected by corporate
policies and practices. Although, there is a CSR dichotomy between the
"right thing to do" (normative case) and an "enlightened
self-interest" (the business case), executives
and companies' reasoning as they relate to engaging in CSR will likely
reflect a mixture of these (Smith 2003: 52-76). Also, CSR principle is
concerned with the societal obligations of business which many organisations
agree, but, the nature and scope of these obligations has been a subject of
In today's society, a business must maintain ethical
principles in order to be successful. According to Kaliski (2001), businesses
can use ethical decision making to
strengthen their business in two (2j main
ways. The first way is to use their ethical decision making to increase productivity by embarking on programs that employees feel directly enhances their benefits,
like, better health care, better pension program and effective career
management among others. So, one thing that all companies must keep in mind is
that employees are stakeholders in the business, that is, they have a vested
interest in what the company does and how it is being run, since, most
employees will be proud to be identified with an organisation that is socially
responsible and have favourable reputation.
The second way that business can use ethical decision
making to strengthen their business is by making decisions that affect its
health as seen by the stakeholders
outside the business environment, that is, customers, suppliers, citizens and
so on. If we were to look at company like Academy Press Plc, their strong sense
of responsibility to the public is well known to be a training ground. As the
company attract student on Industrial attachment and a lot of citizens in their
neighbourhood under its apprenticeship training scheme. Not only does the
company train the above mentioned, rather, allowances and other welfare
packages were paid. The company does this as its own CSR initiative by bearing
the training cost and brought itself to people's
minds as a training ground. Hence, it enjoys additional effort these trainees put into
its overall productivity and performance.
However, these are the two ways in which management of
any company can use ethical behaviour or decision making to strengthen their
business and they serve as the scope to cover when embarking on the
implementation of CSR initiative.
The Importance of CSR to Human Resources Management
CSR needs to be embedded in an organisation's culture to
effect a change to action, attitude and gain the support of the top level
management which is critical to its success. Hence, the need for HR to ensure
proper communication and implementation of ideas and policies in order· to
enhance behavioral changes towards the ethics and culture of both the
organisation and society at large. It is the role of HR Manager to influence
attitudes and link line managers with the top level management which mean that
it is ideally placed to play the same
role with CSR.
HR is also responsible for the key systems and processes
assisting effective delivery. Through HR, CSR can be given credibility and
aligned with how businesses are run. CSR could be integrated into HR process
through employer brand, recruitment, appraisal, retention, motivation, reward,
internal communications, diversity, coaching and training.
HR has a key role in making CSR work. CSR without HR runs
the risk of being dismissed as PR or mere "window dressing". Hence,
effective CSR initiative gives HR Practitioner better opportunity of having
good strategic focus and act as a business partner.
The way a company treat its employees contribute directly
to its being seen as willing to accept wider responsibilities, build
credibility and having trust in them. This is increasingly seen as important by
employees, especially when they choose who they want to work for. People,
especially younger generation, don't want to work where there is a clash with
their personal values. Present and future employees are placing increasing
value on the credibility of an organisation's brand. Employers are using the
positive aspects of their brand in recruiting, motivating and retaining highly-skilled
Finally, companies need
to co-ordinate their CSR activities and demonstrate their commitment to it.
Effective CSR depends on being seen as important throughout service delivery
and not rhetoric, which is required by the stakeholders in developing trust in
The Risk of HR's Involvement in Implementing CSR Initiative
As good as it is necessary that the HR department in an
organisation should be involved in implementing CSR initiative, an extensive
caution should be ensure as a result of the risk involved in the process.
The trust built through successful CSR is hard to regain
if lost. HR needs to ensure that their organisation's social responsibility can
stand up to the inevitable scrutiny by stakeholders, and that Training and
Effective Communication with regards to the best ethical behaviours expected,
are embedded in the organisation's culture.
HR need to be an active business partner working with
other function for example, finance, sales &
marketing and so on. It will need to look beyond the boundaries of usual
practice and arguable work on its own PR. CSR is a strategic opportunity which
is market-led and is restrained by bureaucracy. It must be dynamic creative,
imaginative and even create better opportunity.
Corporate social responsibility has become a subject of
debate in virtually all organisations among members of management. While, some view it as a cost and a diversion
from the corporate goals, others view it as a tool to organisational
effectiveness and corporate survival.
As a result, two schools of thought with divergent views
of social responsibility of management have emerged. They are the Classical and the Socio-economic school of thoughts.
The Classical school
of thought is of the view that the only social responsibility of Management is
to maximize profit since the only concern of
owners is the financial return. Milton Friedman is an advocate of this school
of thought. The believe of the advocate of this school of thought is that they
see Corporate Social Responsibility (CSR) as a cost which could hinder the accomplishment
of any organisation's main objective - Profit Maximization. Thus, the proponent
of this school of thought against i vestment in CSR.
The Socio-economic school of thought is of the opinion
that the responsibility of Management is both to make profits and to protect and improve the welfare of the society.
Although, this school agrees that there are some cost associated with CSR,
hence, he proponent of this school are of the view that management must accept
not only some social obligations, but also, the cost that goes with them so as
to maximize their financial returns in the long run.
It is in the light of the aforementioned problem drawn
from an extensive study and in an
effort towards achieving organisation effectiveness, in terms of increasing
productivity and corporate survival, through CSR that this research will be
The Research tries
to investigate if CSR could really serve as a tool of achieving organizational effectiveness, using Academy Press Plc
as a case study.
The study shall deal extensively in validating whether
CSR is a cost or benefit to an organisation.
1.3 PURPOSE OF STUDY
The m n purpose of this study is to determine if an
organisation's Social Responsibility initiative could serve as a tool to achieve
organisational effectiveness. However, the following could also serve as the
purpose of this study, viz;
1. To examine
the benefits derivable from investing in CSR.
2. To examine if the fair treatment of
stakeholders in organisation is compatible with increasing productivity and corporate
3. To examine
if CSR serves as a proactive strategy to societal demands or complaints.
4. To make
1.4 RESEARCH QUESTIONS
The research study
shall provide answer to the following questions
1. Is Social
responsibility a tool for Organisational effectiveness?
2. Can CSR give any long-run benefit to an
3. Is CSR
capable of keeping an organisation on-going?
4. Can CSR help an organisation to attract and
retain competent staff?
5. CSR help an
organisation to improve its productivity level?
1.5 RESEARCH HYPOTHESES
The hypotheses to be tested in this study are;
is no relationship between social responsibility and Corporate Survival
Hi: There is relationship between Social responsibility and
is no relationship between Social Responsibility and Workers' Commitment in an
There is relationship between Social Responsibility and Workers' Commitment
in an organisation
is no inverse relationship between CSR and the Hostility of the people.
Hi: There is
inverse relationship between CSR and the Hostility of the people.
1.6 SIGNIFICANCE OF THE STUDY
This res arch work will be beneficial in many respects to
all organizations - Academy Press Plc in particular. It will help the organisation to know that, embarking on Social
responsibility initiative among other factors will enhance organisational
effectiveness, corporate survival and reduce the rate at which stakeholders
become hostile to an Organisation.
The study, will also gear up the HRM department of the
need to advise Management accordingly on the issue of social responsibility and
to whom Management should be socially responsible to. Also, it will enhance
other researchers in similar field.
1.7 SCOPE AND LIMITATIONS OF THE STUDY
This study is about the effect of Corporate Social
Responsibility on organisational effectiveness.
It thus, focuses on the importance of ethical behaviour, if imbibed in them,
which often times brings about employees' commitment, reduces stakeholders'
hostility, develop best social initiative and finally enhance organisational
The limitation of this research study will be subjected
to financial constraint, time insufficiency, inaccessibility to foreign
materials among others.
Also, the extent to which the organisation in which
reference will be made in this study is
secretive and the numerous numbers of people the research study will cover, in
terms of organisation's stakeholders, serve
as limitations of the study.
1.8 DEFINITION OF TERMS
1. SOCIAL RESPONSIBILITY: - It is a social
obligation beyond legal and economic obligation, for an organisation to pursue
long term goals that are for the benefit
of the society. It is an obligation put up by organisation in order to give
back to the society from which it sources its inputs.
OBLIGATION: - This is the obligation of management directed to meet its
economic and legal responsibility.
EFFECTIVENESS:- This as to do with harassing the available resources to
achieve the best result which leads to increased productivity, faster decision
making, less internal conflict.
PERFORMANCE:- This refers to the effectiveness of the organisation in
fulfilling its purpose.
SURVIVAL: - This is a process of coping with the strength and exploiting the
opportunities open to an organisation by defining its vision and mission and
devising strategies towards their accomplishment.
6. PR:- This simply means Public Relations as used in
the context of this research work.
- As used in this research work, it means Human Resources
Management as a profession.
1.9 ORGANISATION OF THE STUDY
The study begins from chapter one in which the background
to the topic in question is being dealt
with states clearly some of the objective significance purpose and likely
problem of the study and the rest of this study proceeds as follows; chapter
two briefly reviews the pertinent Literature and Theoretical framework for this
study; chapter three encompasses the Methodology of the study, while chapter
four is the Data Analysis using Chi-square. Finally, in chapter five, the
Summary of the Findings as well as Recommendation for further research and
conclusion will be examine.
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