Abstract
This dissertation is to know the impact of Corporate Social
Responsibility on organization performance. More so, it led
us to know how CSR is related to company performance and
high public image.
This study is descriptive and data used for description were
collected through survey method. A number of findings were
made in the study and they are as follows:- the analysis
indicated that most business organization have positive
perception about CSR issues. Most corporate managers
believe that business should go beyond the single prospect of
making money, thus then willingness to ‘be good both from
philanthropic and profit making view point is often present’.
The research also reveals that different areas of CSR
contribute differently to organization public image.
The major conclusion of this study is that organizations
growth, visibility, sustainability and survival on the long run
depends on how social responsible the organization is to the
stakeholders. Based on the ma
1.1 Conceptual Framework (Theoretical Background)
There have been pronounced changes in the views of
business managers about their corporate social
responsibility, which tend to reflect changing priorities and
expectations of society about business social functions.
Different philosophers have been advanced to guide business
spending for social purposes and limitations that may serve
as boundaries for business activities.
Miner (1978) opined that even when the aim of any
business is to maximize profit for the share holders which is
the law ,also the organization should face morals that is
meeting the requirement of the social responsibility, a
response to morality emanating from societal pressures.
Akpalla (1990) explains that social responsibility
entails, not only the imparting of knowledge and develop of
academic excellence, but to tell its public that it is a good
personality to deal with. It’s pubic according to him may
include creditors, debtors and suppliers. It also has
responsibility to its customers, the students, workers,
community and society. Therefore all actions and activities
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carried out with the aim of creation of a good image in the
organization is socially responsibility.
Following the clause set by Friedman (1962) on the
operation of business activities within the scope of the law,
there is a negation. That is, organizations not only obey the
law but responds to the dictates of morality.
Onwuchekwa (2000) opined that corporate social
responsibility is not obligatory but if provide business
organizations with good public image. This study will
investigate the perception of business organization about
social responsibility and if they will deliberately involve
themselves in social responsibility issues.
McWilliams and Siegel (2001:) see Corporate Social
Responsibility as “… actions that appear to further some
social good, beyond the interests of the firm and that which
is required by law”. While the
Corporate Social Responsibility construct is a new coinage, it
is not a new practice. A common strand that runs through
most of these studies, suggests that meaning and practice
of CSR is socio-culturally embedded. O’Brien, 2000;
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Maignan (2001); Kusku and Zarkada-Fraser (2004); Chapple
and Moon, (2005)
1.2. Background of the Study
The consciousness of corporate social responsibility came
into focus when public started asking questions of what
actually was the role of businesses, especially large
multinational companies. . It could be traced back to such
examples as the Quakers in 17th and 18th centuries whose
business philosophy was not primarily driven by profit
maximization but by the need to add value to the society at
large – business was framed as part of the society and not
separate from it. Even before Christ was born, people
understood the importance of ethical behaviour. This can be
demonstrated with Plato (427-347 BC) saying;
“Only people with the good of the nation in mind can be
allowed to rule the just state” (Plato through Larsson, 2003)
The resurgent interest in the practice provides a fertile
ground for different discourses and actors, which lends it to
multiple and contested constructions (Moon, 2002).
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Corporate Social Responsibility is the obligation of
businessmen to pursue those policies to make those
decisions or to follow such lines of action that are desirable
in term of the objective and values of the society by Hodgets
(1976). A firm is not socially responsible if it merely complies
with the minimum requirements of law because this is what
any good citizen will do, social responsibility however goes
one step further, it is a firms acceptance of social obligation
beyond the requirement of law.
Given the dominance of the West in shaping the
corporate social responsibility agenda, the contemporary
corporate social responsibility movement could be, arguably,
said to be largely founded on Anglo-American priorities,
philosophies and values Kemp (2001), Chapple and
Moon(2005).
In Nigeria, the origin of the concept of the CRS can be
traced back to concern for the fundamental right of human
beings. This era was filled with legislation designed to
regulate business and industries in Nigeria and it was that
business would have to accommodate the public interest if
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free enterprise was to survive (Onwuchekwa, Nsiegbunam
and Amobi (1999)
In view of the amount of money those companies make
compared with the extent of their participation to elevate the
standard of living of those people in whole areas or
communities (or country) they operate, they have fallen short
of expectations. For instance taking the normal example of
the activities of certain companies in Nigeria, some of the
companies operate successfully at the direct expense of their
most communities. These communities often experience, very
hazardous ecological disasters. The reactions of these
companies to such disasters are considered highly
unsatisfactory. Again, these companies are not doing enough
to improve the economic condition of a lot of the people in
their areas of operations.
It is the responsibility of a manager to see that a
business carries out its legal, primary productive and
economic activities to the satisfaction of the ultimate owners
and also to assess the environmental demands on the
business and then make adjustments needed for stability of
the business organization in carrying out their productive
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activities, the business social responsibility issues are
environmental issues.
The major social responsibility issues identified in
Nigeria include: poverty issues, equal rights in employment,
ecology issues, consumerism issues, mass transit,
transportation, fuel scarcity and distribution issues.
1.3. Statement of Problems
The statement of problem in this study is to investigate and
find out if any relationship exists between Corporate Social
Responsibility and Organizational Performance. Specifically
does corporate social responsibility of any business improve
her organizational performance in the basis of knowledge
gained from this investigation, some recommendation will be
made for improvement.
1.4. Objectives of the Study
The following are the major objectives of the study:
i. To find out if organizations deliberately formulate social
responsibility strategies.
ii. To find out in what societal areas do organizations
formulate their social responsibility goals.
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iii. To find out if the formulation of social responsibility
programme improve organizational performance.
iv. To find out if the formulation of social responsibility
improves the public image of an organization.
1.5. Hypothesis for this Study
1. Ho: There is no significant relationship between
corporate social Responsibility formulation and
organizational performance.
H1: There is significant relationship between corporate
social responsibility between formulation and
organizational performance.
2. Ho: There is no significant relationship between
corporate social responsibility formulation and financial
performance of a business.
HI: There is significant relationship between corporate
social responsibility formulation and financial
performance of a business.
3. Ho: There is no significant relationship between
corporate social Relationship formulation and public
performance of an organization.
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HI: There is significant relationship between corporate
social responsibility formulation and public image
performance of an organization.
1.6. Significance of the Study
Any social responsibility matter should be of
interest to a number of people. As a result, the necessity for
the study is quite obvious, as it will offer the following
contributions.
1. The study is intended to analyze and assess the action
being taken by these companies to ameliorate the
negative effect of their operations and also the action
being taken by these companies to strengthen the
positive effects.
2. The result of this study will be of immense help to the
companies who are probably unaware of the enormous
rewards that would accrue to them ever changing social
obligation to the communities whose natural resources
keep them in business.
3. The result of the study will be of immense use to the
multinational companies as to what social responsibility
really means and it’s many areas.
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4. The study will also be of great assistance to the Federal
Government. It will help the government direct the
activities of these companies into meeting the current
and future needs and aspirations of the indigenous
communities in their areas of operations.
5. Apart from these, this study would enlighten the
general public and the companies host on the
benevolence and malevolence of the industries.
1.7. Motivation for this Study
The Nigerian social environment has changed since
1983 when the military took over government. The inability
of many companies and organizations to live to their social
responsibility tenets leaves much to be desired. Government
business operations regulations came up with changes from
time to time and these changes effects the operations of
business in Nigeria, making some organization to operate at
their individual pace and making long lists promises of plans
to their host communities thus living the social responsibility
to the background.
These according to the words of Rev. Mathew Kuka
“that the Niger delta youths are tired of hearing that
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the plans to develop their areas are in the pipe line thus
they had to break the pipes to get the plans.”
In the light of the above, the researcher wants to know
the impact of corporate social responsibility on organizational
performance. How the corporate social responsibility
operations have improved their performance and also give
recommendations on ways to improve performance through
the adherence to the corporate social responsibility
functions.
1.8. Format of the Study
This study will be divided into six chapters thus:-
Chapter 1: Introduction
Chapter 2: Review of related literate.
Chapter 3: Research design and methodology
Chapter 4: Data presentation
Chapter 5: Discussions on findings
Chapter 6: Conclusions and Recommendations.
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1.9. Terms of Reference
Business Policy – It is the active process of guiding and
directing the course of an organization toward the attainment
of objective.
Environment – The environments of an organization are
those elements, institutions, organization and system whose
activities and services are essential for the effective
performance of the organization but are not subject to its
control.
Organizations – This is a system of coordinated
activities of a group of people working co-operatively towards
a common goal, under authority and leadership.
Performance – Refers to the quality and quantity of
work produced.
Productivity – A measure of production efficiency, a
ratio between output and input.
Social Responsibility – This is the reactive
responsiveness to an organization’s obligatory operational,
activities like economic, productive and legal requirement to
it’s stockholders and stakeholders.