research work was purposely evaluated the effects of the practice of ethics and
social responsibility of management on attainment of business with
consideration to the Promasidor Nigeria Limited and Nestle Nigeria Plc as the
reference points and areas.
definitions of business ethics and social responsibility of management by
various writers and scholars were considered. In all, business ethics is seen
as a predominantly responsibility in the business system where it enable
management to lead adequately while social
responsibility is all about a means to maintain and improve overall
society welfare for increases in the viability of the business system and
orderly legal society.
research further indicate how a business organization should be ethically and
socially responsible to whom to should be done and on what bases.
this end, the ambiguous conception and perception about ethics and social
responsibility in Nigeria
and related were addressed while despites its importance, many business firms
have not been to reap fill gains of practices of them due to their negative
perception. At the end, suggestions are therefore recommended to the government
and business organization for effectiveness.
TABLE OF CONTENT
1.0 Background of the Study
1.1 Statement of the Problem
1.2 Purpose of the Study
1.3 Research Questions
1.4 Statement of the Hypotheses
1.5 Scope of the Study
1.6 Significance of Study
1.7 Definition of Terms
Historical Background of Promasidor
Nestlé Nigeria Plc
2.1 Meaning of Ethics and Social Responsibility
2.2 The Concept of Ethics
2.3 Dimensions of Social Responsibility
3.1 Restatement of the Research Questions and
3.2 Research Design
3.3 Characteristics of the Study Population
3.4 Sample Design and Procedure
3.6 Question Design
3.7 Administration of Data Collection Instrument
3.8 Data Analysis Techniques and Procedures
3.9 Limitation of the Study
Analysis and Presentation
4.1 Respondents Group Characteristics and
4.2 Presentation and Analysis of Data
4.3 Testing of Hypotheses
4.4 Research Findings
5.2 Summary of findings
5.5 Suggestion for further studies
1.0 BACKGROUND OF THE STUDY
Business is being run by
management that needs to display ethical behaviour and forgo the unethical
activities but business is also part of the society and exerts considerable
impact on the society. Hence, management
must assist to maintain and improve overall society welfare for increases in the
viability of the business system and on orderly legal society. These concepts of ethics and social
responsibility of management in business are some of the determinants of
survivability of any well structured business organization.
Business ethics make
responsibility predominantly in the business system and management to lead
adequately with a consideration to either the classical view or socio-economic
view of social obligation to the society and environ.
Alka (2011) Stated that Business
ethics is a form of applied ethics that examined ethical principles and moral
or ethical problems that arise in a business environment.
Generally, behind the table of
every business is the profit motive and behind its continuity is profit. It is the profit motive that drives owners,
shareholders into buying shares and private capital owners into investing their
capital in business. It is the profit
motive that leads to goods and services being produced and it is the profit earning
that ensures the continuous existence and growth of the business. Meanwhile, this is not to say that immediate
profit should be responsible for the growth, survival of an organization cannot
be over emphasized.
Ibekwe, (1984) emphasized that an
ethics and a social responsibility neglected by a business at a particular
time, a poor quality good delivered to customer in the course of seeking
immediate profit could result in loss in product corporate image of the
business. In the present day of highly competitive
market of branded goods, a bad image could be very devastating. As sales may subsequently go down, profit
making could be seriously affected.
According to Daniel and Koontz
(1983), no question has received more attention by businessmen, government,
politician and people in general in the past few years except question in new
being addressed with an increasing frequency by government agencies and other
parastatals, universities, non-profit foundation, charitable organization and
so on. It is in view of this that businesses
are today much more ethical and socially responsible than before. Businesses are interested not just in the
quality of goods and services they produce but also in their business environment. They appreciate a good image and acceptability
of their products and services by the public could mean substantial enhancement
of long-run profit.
A loss in image could have a
negative effect on the business social responsibility, but as a result of
greater influence and pressure from groups like labour responsiveness to social
needs, could make the business more responsive.
However, Daniel and Koontz (1983)
referred to social responsibility as an idea that is appropriate and desirable
for business to consider and work with as it pursues its economic goals. In other words the business is contigent on
balancing the social responsibility with basic economic and social goals.
1.1 STATEMENT OF THE PROBLEM
Firstly, the existence of
business ethics; Business is an entity that needs to have norms, values and
attitudes within its environment. Thus,
to act in an ethical fashion is to conform to some standard of moral
behaviour. The management is in driver’s
sect in business but how do they work with business ethics necessary.
Secondly, how the management has
extreme power to influence societal conditions: Management is the decision
maker in business, determine position of business and organization but
management must assist to maintain and improve overall society welfare.
Thirdly, how effective practice
of ethical and social responsibility of an organization tend to have influence
on management activities, on business profitability and survivability. It results in the creation of loyal and
satisfied consumers while society gives business a chance to solve social
problems that government has failed to solve because business is part of the
Lastly, impact of social
responsibility on the business activities especially its effect on corporate
image and profit level of a firm: All goods and services produced by the
organization are mainly for the company’s return and for the use of the people
within the environment. The business
organization must take study and research of environment and market in which she
is operating to identify social needs in terms of education, scholarship,
infrastructure, sponsoring, health improvement, etc., to place her image
(corporate) on mast-head so as to make her products acceptable and profit level
PURPOSE OF THE STUDY
This study aims to know whether
social responsibility and ethics in business is related to corporate image of
an organization. It is to examine
practice of social responsibility and indicate whether it has relationship with
profitability of the company and customers’ patronage.
The result of the study will
assist business firms to know what they stand to gain or loose if they are
ethically and socially responsible. It
will help to correct the impression that business firm should not be socially
responsible due to the cost of engaging in such programmes.
The researcher will examine the
relationships and possible explanations.
Therefore, research question in the problem aforementioned are the
Nigerian firms behave ethically in business?
it competitive pressures that result in unethical behaviour of the management?
a business ethic bring about good and lasting product corporate images?
businesses much more ethical and socially responsible today than before?
quality and quantity only determine profitability of a product and business
companies and businesses recognise social responsibilities?
it socio-economic view of social responsibility that leads to attainment of
it ethical and moral for management to be socially responsible?
it result in the creation of loyal and satisfied consumers/customers?
it a negation of the main organization’s objective of profit maximization?
there any lack of broad public support for the involvement of management in
there any social audit effectiveness from the business firm?
an ethical concept change from time to time or between cultures?
ethics in business and social responsibility help in attaining business goal
STATEMENT OF THE HYPOTHESES
In order to ensure the
reliability of this study, it is based on some assumptions. The following assumptions will be tested and
determined by the means of the statistical method. However, the researcher will be guided by the
HO: Nigerian firms were not ethically in
HI: Nigerian firms were ethically in business
HO: Competitive pressures are not resulting to
unethical behaviour of the management
HI: Competitive pressures are resulting to
unethical behaviour of the management
HO: Business ethics and social responsibility do
not bring about good and lasting product corporate image
HI: Business ethics and social responsibility
bring about good and lasting product corporate image
HO: Business is not much more ethical and
socially responsible today than before
HI: Business is much more ethical and socially
responsible today than before
HO: Quality and quantity only do not determine
profitability of a product and business
HI: Quality and quantity only determine
profitability of a product and business
HO: Socio-economic view of social responsibility
does not lead to attainment of business goal
HI: Socio-economic view of social
responsibility leads to attainment of business goal
HO: Effectiveness of social audit of the
business firm cannot enhance goal attainment
HI: Effectiveness of social audit of the
business firm enhances goal attainment
HO: Ethics in business and social responsibility
do not help in attaining business goal viably.
HI: Ethics in business and social
responsibility help in attaining business goal viably.
SCOPE OF THE STUDY
This study will descriptively and
empirically examine the relationship between business ethics, social
responsibility and corporate image, emphasis on the effect of social
responsibility and ethical nature on the profit level and goal attainment of
Promasidor foods Nigeria Limited and Nestle Nigerian Plc.
SIGNIFICANCE OF STUDY
This study is poised to establish
an eagle-eye to the business ethics that could be major or minor in nations to
business system with management functional ability in respect of the social
obligation (responsibility) of an organization to its societal
environment. The problems, challenges
embedded in these concepts, activities and influences on profit attainment and
survivability of an organization.
The study will harmonize various
views of the stakeholders in business organization and society especially
focuses on Promasidor foods Nigeria Limited and Nestle Nigeria Plc. The views and the dispositions of the people
who will contribute will be evaluated and in the end, recommendation will be
proffered as the forward step on the generated issues or problems.
DEFINITION OF TERMS
It is highly significant to
clarify conceptually the key words in the study so that better understanding of
the topic shall be achieved.
As a social movement seeking to argue that right and power of buyers in
relation to seller. It is basically a
protest movement in which consumers are protesting against what they feel to be
unfair, normal or basic rate of profit earned by other business of similar type
A firm’s ability to earn a profit and its potential for future earnings
Responsibility: The expectation that companies should act in
the public interest and contribute to the solution of social and ecological
problem. It can as well be termed as obligation of decision makers, which
protects and improves the welfare of society as a whole, done with their own
Ethics: It is the proper conduct of the individual
and corporate entity in business situations.
in Management: It is the determination of what is right and
proper and fair or just in the behaviour of individuals or groups of management
These groups or individuals who are affected directly or indirectly by
organization’s pursuit of its goal.
M. (2011) Advanced Corporate Finances Group Project on Business: Group I Director BBA
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J. and Koontz, H. (1983) Management,
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B.U. (1984) Modern Business Management,
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S.O. (1999) Fundamentals of Business
Management and Strategy, 3rd Ed. Lagos: Walex printing Press