ABSTRACT
This study focuses on Impact of Corporate social responsibility on organizational performance and limited to Nigeria Breweries Plc and Master Energy Industry. The specific objectives include, to examine the effect of corporate social responsibility organizational performance, to determine the extent Nigeria Breweries Plc and Masters Energy Industry have been involved on their corporate social responsibilities to their host communities. Descriptive survey design was adopted. The researcher used both primary and secondary sources of data in the course of study. The population of the study was 1,200 comprising the staff of Nigeria Breweries Plc and Masters Energy Industry. The sample size was 300 determined using Tara Yamane formula. The researcher findings discovered that, all organizations domiciled in any community should provide basic amenities which will impact effectively in their immediate environment to help them thrive. There is urgent need for organizations to positively fashion out more CSR programme and projects within their host communities to help better them and their children. Also that they should incorporate environmental sustainability and best practices mechanism in order to maintain environmental friendly or change. Moreso, they should support the need to establish government or public private partnership who should enforce adequate CSR stride in their host communities.
TABLE OF
CONTENTS
Title page i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Table of contents vi
Abstract ix
CHAPTER 1
INTRODUCTION
1.1 Background of
the Study 1
1.2 Statement of
the Problem 3
1.3 Objectives of
the Study 4
1.4 Research
Questions 5
1.5 Research
Hypotheses 5
1.6 Significance of the Study 6
1.7 Scope of the
Study 6
1.8 Limitations
of the Study 6
1.9 Profile of
the Organizations 7
1.10 Operational
Definition of Terms 9
CHAPTER 2
REVIEW OF RELATED LITERATURE
2.1 Conceptual
Framework 11
2.1.1 Corporate social responsibility 11
2.1.2 CSR – Historical and definitional evolution 16
2.1.3 Characteristics of effective corporate responsibility 17
2.1.4 Approaches to corporate social responsibility 19
2.1.5
Perspective on corporate social responsibility 24
2.1.6 The CSR activities
of a leading organizations - business in the communities (2007) 29
2.1.7 The opposing view
CSR 30
2.1.8
Argument against corporate social responsibility 33
2.1.9 Planning and corporate social responsibility 36
2.1.10 Factors motivating the adoption of corporate social
responsibility: 38
2.1.11 The benefits of corporate social responsibility:- 41
2.2 Theoretical
Framework 43
2.3 Empirical
Review 49
2.4 Summary of
Reviewed Related Literature 52
2.5 Gap in the
Literature 52
CHAPTER 3
METHODOLOGY
INTRODUCTION
3.1 Research
Design 54
3.2 Sources of Data 54
3.3 Population of
the Study 54
3.4 Sample Size
Determination 55
3.5 Description
of Research Instruments 56
3.6 Sampling
Techniques 56
3.7 Validity of
the Instrument 56
3.8 Reliability
of the Instrument 57
3.9 Methods of
Data Analysis 57
CHAPTER 4
DATA PRESENTATION AND ANALYSIS
4.1.
Data presentation 58
4.2.
Hypotheses Test 68
4.3.
Discussion of result 78
CHAPTER 5
SUMMARY OF FINDING, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of
Findings 80
5.2 Conclusion 80
5.3 Recommendations 81
5.4 Suggestion
for Further Studies 82
References 83
Appendices
89
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
The idea of corporate social responsibility began in the
early part of the twentieth century. Interestingly enough, it came from
business executives who believed that corporations have an obligation to use
their resources in ways that would benefit the entire society. This include
reducing pollution, education problems, public health, employees welfare,
environmental protection and in calculating more safety and reliability into
the process. Corporations around the world are struggling with a new role, which
is to meet the needs of the present generation without compromising the ability
of the next generations to meet their own needs. Organizations are being called
upon to take responsibility for the ways their operations impact on societies
and the natural environment. They are also being asked to demonstrate the
inclusion of social and environmental concerns in business operations and in
interactions with stakeholders (Van Marrewijk and Verre, 2003).
Corporate social responsibility is the continuing commitment
by business to behave ethically and to contribute to economic development while
improving the quality of life of the workforce and their families as well as
the local communities and society at large” (World Business Council for
Sustainable Development, (2000). Corporate social responsibility often
abbreviated as (CRS) is essentially a concept whereby organizations decide
voluntarily to contribute to a better society and a cleaner environment
(Commission of the European Communities, 2001). Organizations are beginning to
realize the fact that in order to gain strategic initiative and to ensure
continued existence, business practices may have to be moulded from the normal
practice of solely focusing on profits to factor in public goodwill and
responsible business etiquettes. Corporate social responsibility is a form of
self-regulation integrated into a business model. CSR policy functions is a
built in, self-regulating mechanism whereby an organization monitors and
ensures its active compliance with the spirit of the law, ethical standards and
international norms. The goal of CSR is to embrace responsibility for the
organization’s actions and encourage a positive impact on the environment,
consumers, employees, communities, stakeholders and all other members of the
public sphere who may also be considered as stakeholders (free wiki 2016). CSR
is a corporation’s initiative to assess and take responsibility for the
Organization’s effects on environmental and social wellbeing. The term
generally applies to efforts that go beyond what may be required by regulators
or environmental protection group (Investopedia, 2016). In other words, an
organization’s sense of responsibility towards the communities and environment
(both ecologically and socially) in which it operates is of paramount
importance. Organizations express this citizenship.
(a)
Through their waste and pollution reduction
processes.
(b)
By contributing to educational and social
programs and
(c)
By earning adequate returns on the employed
resources (Free Wiki, 2016).
Organizations have developed a variety of strategies for
dealing with this intersection of societal needs, the natural environment, and
corresponding business imperatives with respect to how deeply and how well they
are integrating social responsibility approaches into both strategy and daily
operations worldwide. An organization cannot ignore the problems of the
environment in which it operates. The need for corporate social responsibility
in the management of our environment remains a pertinent issue more than ever
before. In fact it remains an essential instrument of civil social
responsibility for the development and transformation of our cities, slums and
the provision of necessary amenities, jobs and infrastructural facilities. And
again the pervasive influence of business enterprises especially the large
corporations in the society makes the subject matter of corporate social responsibility a pertinent one, not
only to modern corporations but also nations the world over.
Yet the traditional role of corporations has been profit
maximization with little or no corporate obligation to its shareholders,
employee’s consumers or even the communities and the state in which they
operate. Proponents of the traditional view stand on the premise that the
primary responsibility of organization is to engage in the efficient allocation
of resources to produce goods and services commensurate to the needs of
consumers. This was the view of corporate organizations, that the only way,
profit could be maximized in accordance within the corporate purpose in its
stronger form, the concept of corporate social responsibility (CSR) asserts
that corporations have an obligation to consider the interests of customers,
employees, shareholders, communities, as well as the ecological “foot
print” in all aspects of their
operations. One of the objectives of this study is to investigate the extent
the current debate on CSR and its conclusion has trickled down to the periphery
of Nigeria in particular.
1.2 STATEMENT
OF THE PROBLEM
For business organizations to achieve optimum profit and
growth in the economy, the need for continuous corporate social responsibility
is essential. Today’s organization pays more attention to milking the resources
of the host communities without thinking of giving back to them. This neglect
had caused a lot of hostility and trouble among the parties and their cordial
relationship has become so abysmal. However most organizations have extreme
difficulty and in most cases found it impossible to conveniently exercise their
corporate responsibility to the society in which they operate and these have
caused a lot of acrimonies between the two parties, communities and the
organization. These problems can be identified as why should organizations be
socially responsible to their environment, what benefits do organizations get
from performing their corporate socially responsibility, why is socially
responsibility considered as a wash drain in business resources. Are
organizations in Nigeria socially responsible? Frequent complaints from members
of the society can lead to the winding up of the organizations.
In view of the above, the researcher has taken up the issue
of social responsibility in the manufacturing company in Nigeria and used
Nigeria Breweries Plc and Masters Energy Industry as a case study to examine
the organizations involvement in CSR.
1.3
OBJECTIVES OF THE STUDY
The broad objective
of the study is to determine the impact of corporate social responsibility on
organizational performance, while the specific objectives include: to:
1.
examine the effect of corporate social
responsibility on organizational performance.
2.
determine the extent Nigeria Breweries Plc and
Master Energy Industry have been involved in their corporate social
responsibilities to their host communities.
3.
determine the degree to which the immediate
environments are taken into cognizance during planning and implementation of
social responsibilities.
4.
examine the relationship between corporate
social responsibility and organizational performance.
1.4 RESEARCH
QUESTIONS
The researcher also formulated the following research
questions to collaborate with the above objectives.
1.
What is the effect of corporate social
responsibility on organizational performance?
2.
To what extent do Nigeria Breweries Plc and
Master Energy Industry get involved in corporate social responsibilities in
their host communities?
3.
To what degree are the immediate environments
taken into cognizance during planning and implementation of social
responsibilities?
4.
What is the relationship between corporate
social responsibility and organizations performance?
1.5 RESEARCH HYPOTHESES
The following hypotheses were formulated to aid the study:
1.
Ho: Corporate
social responsibility has no significant on organizational performance.
2.
Ho: Nigeria
Breweries Plc and Master Energy Industry have not significant corporate social
responsibility involvement in their host community.
3.
Ho: Immediate
environments has not significantly taken into cognizance during planning and
implementation of social responsibilities.
4.
Ho: There is no
significant relationship between corporate social responsibility and
organization performance.
1.6 SIGNIFICANCE
OF THE STUDY
The study of corporate social responsibility of an
organization is hoped to be of benefit not only to students, businessmen,
government, customers, communities, stockholders, academics, but the whole
society. The study also hopes to highlight the problems associated with
corporate social responsibility and to make use of the analyses to improve the
working situations thereby minimizing the problems of corporate social
responsibility conflicts in organizations and their environments as well.
Finally the study will inform at large, the need for corporate social
responsibility not only to the firm, but to the society.
1.7 SCOPE
OF THE STUDY
The study focuses on the impact of corporate social
responsibility on organizational performance. The study conceptually looks
into, the concept of corporate social responsibility and the, importance of
corporate social responsibility. The effect of corporate social responsibility
on organizations performance would be reviewed. The study is narrowed to
Nigeria Breweries Plc and Master Energy Industry in Abia State.
1.8 LIMITATIONS
OF THE STUDY
This researcher was faced with a lot of problems and
limitations. The major problem acting as a limitation was the problem of
Nigerian attitude to the supply of data to researchers due to fear. Secondly,
the scope and dimension of this study could not be extended beyond this limit.
Thirdly, the research work is a big task and to gather information needed is a
herculean one. Nigerians are highly secretive. Nigerians dislike activities that
tend to probe them. They tend to avoid researchers because they feel that some
of their activities which are not meant for the public consumption would be
exposed through research work. The study is constrained on the methodologies
adopted which can be relatively and statistically for descriptive survey.
1.9 PROFILE
OF THE ORGANIZATIONS
Profile of Nigeria Breweries Plc
(NB)
Nigeria Breweries Plc as a brewing company was incorporated
in 1946 and June 1949 which recorded a landmark in modern brewing when the
first bottle of star larger rolled off the headquarter factory at Lagos. Aba
branch was commissioned in 1957 and has been contributing effectively in
satisfying its customers and shareholders. The company primarily is engaged in
brewing, marketing and selling of alcoholic and non-alcoholic drinks.
Nigeria Breweries Plc has a growing export business which
covers global sales and marketing of their brands and dated back to 1986.
Nigeria Breweries Plc offers sales, logistics and marketing support to make
their brands shelf-ready international markets, including world-class outlets
such as TESCO and ASDA stores in United Kingdom. Their brands are available in
thirteen countries, across the United Kingdom, South Africa, Middle-East, West
Africa and the United States of America.
Nigeria Breweries Plc mission statement is to be leading
beverage company in Nigeria, to market high quality brands, to deliver superior
customer satisfaction in an environmentally friendly way and their vision is to
be a world class company, not just for their products but also in everything
they do, to bring enjoyment to the people through high quality products,
respect communications and sponsorships activities. The researcher observes the
following programme.
ETF: The Nigeria Breweries Alex Oniwerei
Education Trust fund established in 1994 to play an active education in
research development to improve excellence. Nigeria Breweries is that
organization that gives back to the host community.
Education: From 2010-2015, the following
schools were given a block of 6 classrooms, library, work station, chairs and
supply of textbooks and were renovated
Health: The Nigeria Breweries Plc through
its Henieken foundation established,
Aba North – the renovated Eziama health centre with modern equipment along with
provision 33 KVN generating plant. 2015 at Eluama-Isuikwuato. Provision of
solar power bore hole.
Profile of Master Energy Industry in
Abia State
An integrated energy firm, Master Energy commenced works on
its multi-billion naira industrial city located in Onuaku, Uturu, Abia State
Nigeria. It also has an integrated plastic making factory, noodles production
and the organic fertilizer plant in the first phase. The industrial city will
also have lubricant blending plant, storage facility, aluminum profile factory
and pipeline manufacturing plant among others, when fully completed.
The manager Mr. Iheanacho expressed the organizational
commitment to local content, adding that the managing director and Chief
Executive officer of the organization, Uchechukwu Sampson Ogah is passionate
about growing local economy. According to him, the industrial city will create
about 14,000 jobs (direct and indirect) when fully completed, adding that it
has already employed about 200 staff and 800 contract workers, totaling of 1000
workers.
Master Energy, believes that there is need to empower people
and grow the domestic economy because creation of jobs will reduce crime rate
and raise the local capacity. Mr. Iheanacho notes that the project would also
save the nation huge capital flight and have direct impact on the livelihood of
indigenes of Abia, Enugu and Ebonyi states. Other facilities expected in the
industrial city include; an Information Communication Technology, (ICT) centre,
high-tech laboratory facility, a well-equipped hospital, police security base,
fire fighting station and residential quarters for workers.
The researcher observed that adequate programmes have been
extended to the communities as part of its corporate social responsibility
(CSR). These include
●
The donation of an auditorium for Abia State
University in 2014, filled with high-tech projector and sound system
●
Electricity supply network
●
Health care centre
Partnered with Hopeville Rehabilitation centre, centre for
fabrication of prosthesis (artificial limbs) and orthotics (calipers) for
disabled persons.
●
In December, 2011, Ogah raised his level of
philanthropy by setting Uche Ogah foundation toward scholarships for primary,
secondary and University students to more than 200 students. (The Guardian
Newspaper, 2017).
1.10 OPERATIONAL
DEFINITION OF TERMS
Organization: An organization is the
co-ordination of the activities of a number of people for the achievement of
common goals through division of labour and function and also through the
hierarchy of authority.
Organizational Performance: This is the general
effort of an organization in
achieving the organizational objective. In other words; Organization’s
performance is in the aggregate result of the effort in achieving the goals of
the organization. It can be measured by accessing the overall results of the
organizational goals
Corporate social responsibility: Corporate social responsibility is a corporation's initiatives to assess
and take responsibility for the company's effects on environmental and social wellbeing of the people in
its operational communities.
Organizational business environment:
Business
environment includes the
external and internal factors that influence a business, this the domain where a business is situated and its
relative relationship and interactions with the environment.
Policies: Procedures provide specific
guidelines for completing a task, such as filling out and submitting a form.
The procedures are normally based on organizational policy, which deals with
broad issues, roles and functions relating to the specific area, such as corporate
social responsibility.
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