THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON ORGANISATIONAL PERFORMANCE (MTN NIGERIA COMMUNICATION LIMITED IN LAGOS)

ABSTRACT

The aim of the study is to examine the effect of corporate social responsibility on organizational performance. The population comprises of two thousand seven hundred (2700) workforces. The questionnaires were issued to one hundred and thirty five (135) respondents which formed the sample size. The samples were drawn using stratified and simple random sampling technique. Data were analyzed using frequency tables and percentages method. The formulated hypotheses were tested using chi­-square (x²) analysis based on 0.05 levels of significance.

It was revealed that effective corporate social responsibility enhances organizational performance.lt was discovered in the study that corporate social responsibility breeds cordial relationship between the organisation and members of the community. The study also shows that corporate social responsibility helps in retaining customers' patronage toward company's products.lt was also revealed in the study that the organization assists in enhancing health services in the host community. The company does not engage in awarding scholarship to members of the community. Corporate social responsibility creates a good image and reputation for the organization. Members of the community were satisfied with the services rendered by the company.

It was recommended that management should try to be effective in the rendering of social responsibility. The organization should be a good corporate citizen in the discharge of duties. This would go a long way to create a good cordial relationship with members of the community. Management of organizations should be strategic when it comes to corporate social responsibility. They should involve in activities that will enriched the lives of the people in the community. Organization operating in an environment should try as much as possible to give something tangible to the community for it to survive. Management of business organization should endeavour to make provision for members of the community to avoid conflicting issues from occurring.

TABLE OF CONTENT

Title page

Certificate

Dedication

Acknowledgement

Abstract

Table of content

CHAPTER ONE: Introduction

1.1            Background to the study

1.2            Statement of the problem

1.3            Objectives of the study

1.4            Research questions

1.5            Research hypotheses

1.6            Significance of the study

1.7            Scope of the study

1.8            Profile of MTN Nigeria

1.9            Definition of terms

CHAPTER TWO: Literature Review

2.1      Introduction

2.2      Concept of corporate social responsibility

2.3      Conflicting views on social responsibility and ethics

2.4      Social responsibility model

2.5      Approaches to corporate social responsibility

2.6      Importance of corporate social responsibility

2.7      Views of corporate social responsibility

2.8      Drivers of corporate social responsibility

2.9      Dimensions of CSR and relevance for emerging markets

2.10   Violation of CSR principles – case of coca cola in India

2.11   Why has corporate social responsibility become important?

2.12   Organization defined

2.13   What is organizational effectiveness?

2.14   Corporate social responsibility and organizational performance

CHAPTER THREE:   Research Methodology

3.1      Research Design

3.2      Population of the study

3.3      Sample and sampling technique

3.4      Research instrument

3.5      Validity of the instrument

3.6      Reliability of the instrument

3.7      Sources of data collection

3.8      Methods of data analysis

CHAPTER FOUR: Data Analysis and Results

4.1      Analysis of respondent’s responses

4.2      Analysis of respondents’ bio-data

4.3      Presentation and analysis of data according to research question

4.4      Presentation and analysis of data according to test of hypotheses

CHAPTER FIVE: Summary, Recommendations and Conclusion

5.1      Summary of Findings

5.2      Recommendations

5.3      Conclusions

            Bibliography

            Appendix 1

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND TO THE STUDY

In the last twenty years, there has been a sea of change in the nature of the triangular relationship between companies, the state and the society. No longer can firms continue to act as independent entities regardless of the interest of the general public (Crane et al, 2009). The evolution of the relationship between companies and society has been one of slow transformation from a philanthropic coexistence to one where the mutual interest of all the stakeholders is gaining paramount importance (Anao, 2009).

Companies 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 (Oghojafor, 2001). An examination of some of the factors which have led to the development of the concept of corporate social responsibility (CSR) would be ideal starting ground for the conceptual development of suitable corporate business practices for emerging markets.

Corporate social responsibility (CSR) also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business is a form of corporate self­-regulation integrated into a business model. Corporate social responsibility policy functions as a built-in, self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms (Blowfield and Murray, 2008).

According to Montiel (2006), the goal of corporate social responsibility is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, corporate social responsibility-focused businesses would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. Corporate social responsibility is the deliberate inclusion of public interest into corporate decision-making that is the core business of the company or firm, and the honouring of a triple bottom line: people, planet, profit.

Business organizations taking responsibility for its impact on society means first and foremost that a company must account for its actions. Social accounting, a concept describing the communication of social and environmental effects of a company's economic actions to particular interest groups within society and to society at large, is thus an important element of CSR.

1.2      STATEMENT OF THE PROBLEM

The role corporate social responsibility play in business organization growth needs not be over-emphasized. Acceptably, for business organization to achieve optimum profit and growth in the economy, the need for continuous corporate social responsibility is essential.

However, most organizations have extreme difficulty and in most cases impossible to conveniently exercise its corporate responsibility to the society in which they operate. The minimal level of customers' satisfaction and frequent winding up of some telecommunication organizations are testimonies of this, precisely, many of these fold-ups happen because some telecommunication companies disregard corporate social responsibility.

Some telecommunication organizations experience sales decline, slow growth and changing buying pattern. These problems are generated as a result of not embarking on corporate social responsibility. Many organizations are unable to operate effectively due to the fact that they have not being able to play their role as a corporate responsible body. This has generated the following problems:

        i.            Low market shares resulting from low customers and employees commitment;

      ii.            Frequent complaints from member of the society can lead to the winding up of the company;

    iii.            Members of the community would not patronize the company products/services thereby leading to low performance and profitability levels.

   iv.            Inability of the company to achieve sustainable competitive advantage over its rivals.

Thus, in order for telecommunication companies to be able to achieve sustainable competitive advantage, they have to embark on corporate social responsibility.

1.3      OBJECTIVES OF THE STUDY

The main objective of the study is to examine effects of corporate social responsibility on organizational performance. Other specific objectives of the study are:

        i.            To examine involvement in Corporate Social Responsibility breeds cordial relationship between organization and members of the community.

      ii.            To examine whether continuous corporate social responsibility promote organizational performance in the society.

    iii.            To assess various ways management of MTN Nigeria Communications Limited carry out corporate social responsibility.

1.4      RESEARCH QUESTIONS

The following research questions are generated for the study:-

        i.            Does involvement in Corporate Social Responsibility breeds cordial relationship between organization and members of the community?

      ii.            Does continuous corporate social responsibility improve organizational performance in the society?

    iii.            In what ways do management of MTN Nigeria Communications Limited carried out corporate social responsibility?

1.5      RESEARCH HYPOTHESES

The following hypotheses were formulated for the study:

Hypothesis 1

H_O:      Corporate Social Responsibility does not breeds cordial relationship between organization and members of the community.

H_I:       Corporate Social Responsibility breeds cordial relationship between organization and members of the community.

Hypothesis 2

H_O:      Effective Corporate Social Responsibility does not enhance organizational effectiveness.

H_I:       Effective Corporate Social Responsibility enhances organizational effectiveness.

1.6      SIGNIFICANCE OF THE STUDY

The research study is of great importance to individuals, firms and government. The study would be of benefit to management of communication organizations, for it would enable them to know the importance of corporate social responsibility to organizational effectiveness.

The research study would be of relevance to management of business organizations by revealing some of the likely problems communication organizations may encounter if they do not embark on corporate social responsibility. Furthermore, it would contribute to knowledge by serving as a guide for further research work.

Finally, the study would also aid scholars, professionals and individuals that would be researching into a similar area of study in the nearest future.

1.7      SCOPE OF THE STUDY

The research study focuses on the impact of corporate social responsibility on organizational performance. The concept of corporate social responsibility, importance of corporate social responsibility, effect of corporate social responsibility on firms' performance would be reviewed. The study is narrowed to MTN Nigeria Communications Limited at Apapa area of Lagos.

1.8      PROFILE OF MTN NIGERIA

MTN Nigeria is part of the MTN Group, Africa's leading cellular telecommunications company. On May 16, 2001, MTN became the first GSM network to make a call following the globally lauded Nigerian GSM auction conducted by the Nigerian Communications Commission earlier in the year. Thereafter the company launched full commercial operations beginning with Lagos, Abuja and Port Harcourt.

MTN paid $285m for one of four GSM licenses in Nigeria in January 2001. To date, in excess of US$1.8 billion has been invested building mobile telecommunications infrastructure in Nigeria. Since launch in August 2001, MTN has steadily deployed its services across Nigeria. It now provides services in 223 cities and towns, more than 10,000 villages and communities and a growing number of highways across the country, spanning the 36 states of the Nigeria and the Federal Capital Territory, Abuja. Many of these villages and communities are being connected to the world of telecommunications for the first time ever.

The company's digital microwave transmission backbone, the 3,400 Kilometer Y'elloBahn was commissioned by President Olusegun Obasanjo in January 2003 and is reputed to be the most extensive digital microwave transmission infrastructure in all of Africa. The Y'elloBahn has significantly helped to enhance call quality on MTN network.

The company subsists on the core brand values of leadership, relationship, integrity, innovation and "can-do". It prides itself on its ability to make the impossible possible, connecting people with friends, family and opportunities. MTN is the first GSM network in Nigeria to have adopted more numbering system, having exhausted its initial subscriber numbering range - 0803. its network capacity includes numbering range with the prefixes 0806,0703,0706,0813,0816.

1.9      DEFINITION OF TERMS

The following concepts are used in the study:

Management: this is the process of planning, organizing, coordinating and controlling organizational resources towards the realization of set goals and objectives.

Corporate Social Responsibility: This has to do with business organization promoting the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality.

Organizational Performance: This IS the ability of the organization to achieve its goals being effective and efficient in the discharge of its responsibility in the society in which it’s operate.