ABSTRACT
This study focuses on the impact of
social responsibility on organizational image. A case study of Cadbury Nig.
Plc. The main objective of the research work was to determine the real impact
of social responsibility as a tool for organizational image in other to make
profitability and maximize shareholder wealth, to make the interest of
shareholders such as owners, employees, customers, community government and
society at large. The survey method was used, the size of the entire population
is too large for the study but in this study a sample size of sixty (60) staffs
were selected out of the total, number of seventy (70). Questionnaires were
distributed to sample size of sixty (60) respondent randomly selected. The
research instrument employed in this study were questionnaire and interview.
Data were presented in tabular form for easy understanding. In analysis of
data, simple percentage (%) method was used for easy understanding while
chi-square statistical technique was employed to test the hypothesis. The findings
revealed that, business organisation in Nigeria are socially responsible to
some extent but not adequately responsible to employees and society at large.
The corporate social responsibility has not been effective in the country due
to: Reduced profitability, Excessive government taxation, lack of corporate and
public awareness, Government policy, High cost of production, management
principle and policy etc There is positive correlation between social
responsibility and achievement of business goals. Recommendations in this
research study is that the Government should grant tax concessions to corporate
bodies so as to reduce financial pressure on the business units. The outcome of
the study has revealed that corporate organizations should be socially
responsible for their direct impacts on the community.
Basically, the five (5) key words from
the project are deal with the following: Impact, Social responsibility,
society, organisation and image.
TABLE OF CONTENTS
Pages
Title of page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of Contents vii
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 6
1.3 Research Questions 7
1.4 Objectives of the Study 7
1.5 Significance of the Study 8
1.6 Research
Hypotheses 8
1.7 Research
Methodology 9
1.7.1 Scope
of the Study 9
1.7.2 Limitations
of the Study 10
1.7.3 Sources
of Data 10
1.7.4 Analysis
of Data 11
1.7.5 Area
of Study 12
1.8 Definition
of the Terms 12
References 15
CHAPTER
TWO
LITERATURE
REVIEW AND THEORETICAL FRAMEWORK
2.1. The
Concept of Social Responsibility 16
2.2 Definition
Of Social Responsibility 17
2.3
Historical
Background Of Cadbury Nigeria Plc 20
2.4 Current
Review 23
2.5
Classification
Of Social Responsibility 30
2.6
Should
Organisation Be Socially Responsible (View Points
of Different Scholars) 32
2.7 Organisation
Objective and Mission 34
2.8. Argument
in Favour of Social Responsibility 36
2.9.
Factors
Affecting Corporate Social Responsibility 38
2.10 Summary 39
References 41
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.0 Introduction 43
3.1. Research
Design 43
3.2. Data
Sources and Method of Collections 43
3.3. The
Study Population 44
3.4. Sample
Size and Sampling Technique 44
3.5. Research
Instrument 44
3.6. Method
Of Data Presentation And Analysis 45
CHAPTER
FOUR
DATA
PRESENTATION AND ANALYSIS
4.1. Analysis
of Questionnaire Administration 46
4.2
Analysis
of Respondents 46
4.3. Analysis
of Respondents Bio-Data 46
4.4 Analysis
of Research Questions 50
4.5 Test
of Hypotheses 59
CHAPTER
FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1 Summary
of Findings 62
5.2 Conclusions 64
5.3 Recommendations 65
5.4 Suggestion
for Further Studies 69
Bibliography 71
Appendix Questionnaire 74
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The impact of social responsibility is
a concept whereby an organisation considers the interest of society by taking
responsibility for the impact of their activities on customer's suppliers,
shareholders in the environments. Social responsibility of management is the
ethical and moral responsibility of the organizational image to the total
society. It refers to social obligation beyond legal and economic obligation
for an organisation to pursue long term goals that are for the benefit of the
society.
The social obligation of management is the
obligation of the organisation to meet its economics and legal responsibility.
Social responsibility is seen as obligation beyond the statutory obligation to
comply with legislation and sees organisation voluntary taking a steps further
to implore the quality of life of the employees and their families as well as
the local community. and the societies at large. All organizations have an
impact on society and environment through their operations, products or services
and through their interactions with the key stakeholders group including
employment, customers, suppliers, investors and local community. While
traditional business models primary emphasize on the economic aspects of
organizational activities (e.g profitability and growth) more modern conception
of organizational behaviour lay equal stress on social, ethical, and
environmental impact as exemplified by the notion of corporate social responsibility.
It is in view of this that business are today much more socially responsible
than before. Business are interested not just in the quality of goods
and services they produce but also in
their business environment. They appreciate good image and acceptability of
their product and services by the public. This could means substantial
improvement of long run profits. A less image could have a negative effect on
the business social responsibility. But a result of greater influence and
pressure from groups like labour responsiveness to social needs, this could
make the business more responsive. Social responsibilities whether of a
business, government, non-government or any organisation may arise in two ways. They may arise out of the social impact of the
institution, or arise as problems of the society itself. Both are concern to management because the institutions, which
the managers oversee, exist within the society. The first deals with what an
institution can do for the society. Based on the fact that business relies on
society for existence. For example, business depends on society for high
quality of goods and services at affordable prices. In view of these, the
interrelationship between organization servicing the interest of everyone
effected by or connected to it. Like the government, shareholder, employees,
consumers and the society.
Corporate social responsibility is
defined as the serious attempts to solve social problems caused wholly or in
part by the corporation or the obligation of a business to assist the society
within which it operates, to solve some of the social problems affecting the
welfare of the society. It is a truism that companies whether local or
international corporations (ICH's) have certain corporate social
responsibilities to perform. The area of controversy is whether companies is
the performance of these corporate social responsibilities should adopt a
strict and technical approach or a liberal and broad approach. The technical is
to the effect that a company owes responsibilities only to its shareholders.
Advocates of this approach base there arguments on the long laid down company
law and rules a company owes responsibility only to the shareholders who invest
their money in the company and appoint directors to manage the affairs of the
company in their interest.
The liberal approach is a contemporary
approach adopted by some legal scholars. The thesis of this approach is that a
company owes responsibility not only to its shareholders but also to its
employees, customers as the case may be the community and the state within
which it operates. Despite the above, ascertaining the call for corporate
social responsibilities has not been effectively overblown. The problems
however are where this or such responsibility does begins and where does it
end, what rules of conduct should govern the exercise of executive authority?
Should a firm plan shareholders interest before those of society or
environment? Should a firm be held responsible for social consequence of this
operation? When is this relationship necessary and when is it an excessive
burden? What even is corporate social responsibility? Drucker (2004) came out
with two ways through which the demand for social impact of business
organisation is required.
The negative consequence on business
activities like rural-urban drift traffic jams, environment pollution,
deception and advertising defective products offered for sales in seller
markets, tax aversion and avoidance etc. It may arise from problem of the
society itself, which includes falling standards of living, illiteracy, poor
infrastructural facilities, inadequate social amenities and the growing dis-enhancement
with government and its ability to solve major social problems. Hence, society
has come to expect business with successful operations of this task to solve
major parts of their problems by developing social responsibility objectives
and processes. Conclusively, business cannot run away from the problems of the
society.
According to Luthans and Hodgets
(2006), social responsibilities are the obligation of businessmen to provide
those policies, to make those decisions or to follow lines of action which are
the desirable in terms of the objectives and values of our society. Bedetin
(2007) defined social responsibility of the business as including the reactive
responsiveness to its obligatory operational legal requirement to its
stockholders and also its shareholders. The stockholders of the business are
society, the government customers, employees and the community at large. From
the above, it can be stated that impact of social responsibility is obligation
of business to assist the society within which it operates to solve some of its
social problems resulting directly or indirectly from the functioning or
activities of the business. A business is a subset of the society, within which
it operates, it imports its human and material resources which it operates, it
process into output of goods and services from the society and subsequently
exports back to output to the society, it therefore means that society
responsibility is the need for the corporate bodies to give back from it.
Should a business be socially responsible? "Yes".
A business operation causes
environmental pollution and sanitation hazards to the society in which it
exist. One is responsible for one's impact whether they are intended or not.
Therefore, the social impact of the business organisation is the management
business, because one is responsible for one's impact. One minimize them.
Impacts are at times a nuisance e.g. sanitation -hazards and at worst harm e.g.
environmental pollution. They are never beneficial as they carry within
themselves a cost and a threat. Furthermore, a business is a meeting place of
interest for shareholders such as owners, employees and customers etc
reconciled before it can achieve its desired objectives and there some interest
groups who contribute to business performances, and build good image for the
organisation. Impact of social responsibility is the actions that protects and
improve the welfare of the society along with its own interest. It is
frequently said that companies ought not merely to sense only the interest of
their customers but the interest of all the people who have a stake in the
organisation social responsibility focus on some three key areas. The fist was
the extent to which a manager should compromise his loyalty to the society in
general in the interest of his loyalty and responsibility to his organisation.
The second relates to the manner in which the employers exercise his authority
and use his wealth in meeting not only the economy but also the human need of
employers. The third concept concerns expectation of business enterprise (e.g
Banks) to serve as patrons and financial benefactors. Social responsibility is
viewed as those investment in, and contributions to the wider community
designed in creating the healthy environment or good environment that the
company requires to survive and operate efficiently. It involves upholding
shareholders interest in a venture by ensuring good return on invested capital.
It involves creating good will and good public image for the company by
rendering efficient services and maintaining a satisfy work force to the
society. It involves maintaining customers satisfaction by reducing customer
complains, it involves cooperating and working hand in globe with government by
helping them to set national objective and creating the framework
infrastructure that will help individual component in the economy to promote
growth and development. From the above, it can be seen that business has
various groups to whom it should be socially responsible and in different
forms. The researcher will further bring out or highlighted more important
areas of impact of social responsibility in subsequent chapter.
1.2 STATEMENT OF THE PROBLEM
If problems can be define as conditions
that are affecting the majority of people as affecting the majority of business
organisation adversely about which something should and can be done. Then, some
problems which this study is attempting to look into could be profit
maximization, Government policies in the area of high tax rate, revenue,
'levies and rate. Lack of good will, poor customers satisfaction, poor economic
infrastructural - framework in the societies i.e bad road, water, power
supplies, administrative systems and unemployment. The main objective of many
organizations is profit maximization.
Experience has shown that many
organisation has failed to achieve this objective (i.e profitability and
growth) because of their inability Ito perform the impact of social
responsibility on the organisation.
1.3 RESEARCH QUESTIONS
The research work on the impact of
social responsibility is a mechanism for creating a positive organizational
image. To evaluate this study, some tentative statements and questions shall be
tested. Some of the question are includes:
(1) What
impact does social responsibility have on the corporate image of the
organisation?
(2) What
impact does social responsibility have on customers' patronage?
(3) Should
government policies affect corporate bodies in the discharge of their social
responsibilities?
(4) What
impact does image of the organisation have , on their performance?
1.4 OBJECTIVES OF THE STUDY
The major objectives is of this study
is to examine the impact of social responsibility on organizational image. Other
specific objectives are;
1. To examine the organization policy,
image and the activities on the society.
2. To examine the effect of social
responsibility on organizational image
3. To determine how government policies
affect company in the discharge of their duties.
1.5 SIGNIFICANCE OF THE STUDY
This study will evaluate the impact of
social responsibility on organizational image towards organizational survival
with special reference to Cadbury Nig. Plc. The study on social responsibility
is important to organisation and society at large. The organisation would
benefit by knowing the fact and different area whereby they can be socially
responsible measure their impact on the society and be able to convert this
opportunity hence improve their corporate image and maximize reasonable profit.
It also assists the organisation to understand the opinion of the public and
their reactions to society responsible organisation. The study on social
responsible organisation.
The study of social responsibility will
be useful to scholars especially those in the field of social sciences.
1.6 RESEARCH HYPOTHESIS
The research hypothesis show the
relationship between the explain variable that relatively important to determine
the correlation between organizational image and social responsibility. In order to achieve the aims and
objectives of this study, the following hypothesis have been formulated:
1. Ho: There
is no impact of social responsibility on an organizational image.
Hl: There
is impact of social responsibility on an organizational image.
2. Ho: Business
organisations are not socially responsible in the cause of making profit and maximization shareholder
wealth.
H1: Business
organisations are socially responsible in the cause of making profit and
maximization shareholder wealth.
3. Ho: Social
responsibility is not waste of resources.
H1: Social
responsibility is a waste of resources.
1.7 RESEARCH METHODOLOGY
Research methodology is the operational
blue print which the researcher plans to employ in accomplishing the objective
of the study. It adequacy will determine the success or failure of the study. It deal with ‘how’ and not the ‘what’
and ‘why’ aspect of the study.
1.7.1 SCOPE OF THE STUDY
The study focuses on the impact of
social responsibility on organizational image. The scope of this study is also
centre on Cadbury Nigeria Plc especially in the performance of their moral and
ethical content of managerial and corporate decision and the resultant effect
it has on the organizational profit. It has been established earlier that business
contributes more to the equality of life than only producing. This research
work focused on areas where organisation failed to respond to the need of Nigeria
population and to introduce new dimension of responsibility to organization
thereby strengthen and faith which the customers have in the organisation.
1.7.2 LIMITATIONS OF THE STUDY
In the course of conducting this research
work it is expected that the following will constitute impediments to the
effective conduct of the study
a) Time
constraint within which the study must be completed.
b) Financial
constraint
c) Inaccessible
and inadequate data
Nevertheless, I believe the above
limitations will in no way affect the reliability and validity of the research
study.
1.7.3 SOURCES OF DATA
Data were sourced from both primary and
secondary sources. For primary sources, interviews and questionnaires were
administered to allow for proper and direct responses. For the questionnaires,
the questions were mostly of the open ended type. This was to enable the
respondents to:
·
Give
answers in a complete form to all areas needed for the research study
·
To
enhance quick and timely response to the questionnaire
·
To
facilitate easy understanding of the needs of the research and
·
To
increase the response rate of the questionnaire administered.
Also, to consolidate the reliability of
the primary collection of data, in addition to the interview and questionnaire
earlier mentioned, a critical observation of activities was also done, and this
also added to collection of more facts on the research study.
Secondary sources of data are sources
outsides the direct site of study, and these include published annual reports,
journal, unpublished work of courses and seminar, library and desk research
literatures and other related articles and manuals.
1.7.4 ANALYSIS OF DATA
The study used both descriptive and inferential statistics
in analyzing the data. Also, simple frequency counts, percentages and the
chi-square were used in the data analysis.
Questionnaires
would be used to gather data. In analyzing the data and information made
available through questionnaire, tables would construct and the percentage
distribution of the information supplied would be determined.
Chi-square
would be used to test the relationship between the variables. The hypothesis
are formulated from a negative and positive position i.e. a Null and
alternative hypothesis (Ho and H1 ) respectively.
A
procedure that enables a decision to be reached as to whether to accept or
reject a hypothesis will be carried out they are called test of significance.
Once
the chi-square value is calculated at 5% confidence interval shall be used to
determine whether he hypothecs sis true.
1.7.5 AREA OF STUDY
The research covers Lagos State,
specifically Cadbury Plc. Located at Ogba area of Lagos State.
1.8 DEFINITION OF THE TERMS
For the study of magnitude the keyword
used in the research study shall be defined for better understanding of the
topic. The following terms are defined as they are used in the context of this
research work.
BUSINESS
ENVIRONMENT: This
comprise of those forces or factors that may effect the continues existence of
the firm and also the strength and weakness of these firms in coping with the
environment.
CORPORATE
IMAGE: This includes an
intangible possession that enable a firm to continue gaining profit by other
business or similar type.
PROFIT: This is a financial benefit or gain,
which a firm realizes from the transactions and business dealings.
ETHICS: This is a set if rules, conduct and
standard governing the conduct of members of a profession which includes both
self imposed duties of profession
existing value and the expectation of
the social environment. It engage in good,
right and moral business practice.
GOOD
WILL: This is privilege
of trading as the successor to a well established business.
IMPACT: Forced exercised by one object when
striking another.
MAXIMIZATION: Greater possible size.
MANAGER: An individual, who plans, organizes,
leads and controls other individuals in the process of pursuing organisational
goals.
SHAREHOLDER: Owner or those that contribute their
resources into business organisation.
SHAKEHOLDER: These are groups or individuals who
are affected directly or indirectly by organisation in pursuit of its goals.
OPTIMUM
QUALITY: Best or most
favourable degree of goodness and opportunities that available for the
organisation.
CONINIUNITY: A group of people living together and
united by shared interest in the same environment.
ORGANISATION: It is an entity comprising of human
and non-human resources with a distinct purpose in the form of goal or set of
goals.
ENTLOYEES: These are the people that are employed
by the owner(s) of a company and who are paid in a specified amount as salaries
and wages for the service rendered to the company towards achieving the aims
and objectives for setting up such a business organisation.
CONTANY: A group of peoples combine for a
business or trade.
PROFITABILITY: It is an information monitoring system
in which data relating to actual performance may be empowered to data relating
to planned performance so that any kighificant variance maybe spotted rapidly
and possibly corrected by management action so that to achieve objective goal
of profit.
LOCALLY
OWNED SUBSIDY:
Through its equity investment in subsidiary the company establishes and
controls a firm in a foreign land.
SOCIAL
RESPONSIBILITY: It
may be defined as action that protects, and improves the welfare of the society
along with its own interest.
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