This 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.
Different 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.
The research further indicate how a
business organization should be ethically and socially responsible to
whom to should be done and on what bases.
To 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
2.0 Historical Background of Promasidor Nigeria Limited
and Nestlé Nigeria Plc
2.1 Meaning of Ethics and Social Responsibility
2.2 The Concept of Ethics
2.3 Dimensions of Social Responsibility Involvement
3.1 Restatement of the Research Questions and Research
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
Results-Data 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 whom
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 is one of determinants
in 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 the either 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 lead to goods and services being produced
and it is the profit earning that ensures the continue existence and
growth of the business. Meanwhile, this is not to say that immediate
profit should be responsible in the growth, survived adaptation 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 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 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 continue their business environment. They
appreciate but a good image and acceptability of their products and
services by the public could mean substantial enhancement of long-run
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)
reformed 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 need 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 works with business ethics
Secondly, how is 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
Thirdly, how effective practice of
ethical and social responsibility of an organization tend to have
influence or 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 is operating to
identify social needs in terms of education, scholarship,
infrastructure, sponsoring, health improvement, etc., to place its image
(corporate) on mast-head so as to make its products acceptable and
profit level maximize.
1.2 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 and 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.
1.3 RESEARCH QUESTIONS
The researcher will examine the
relationships and possible explanations. Therefore, research question
in the problem aforementioned are the following:
- Does Nigerian firms ethically in business?
- Is it competitive pressures resulting in unethical behaviour of the management?
- Does a business ethic bring about good and lasting product corporate images?
- Does businesses are much more ethical and socially responsible today than before?
- Does quality and quantity only determine profitability of a product and business
- Does this company and business is social responsible
- Is it socio-economic view of social responsibility lead to attainment of business goal?
- Is it ethical and moral for management to be socially responsible?
- Does it results in the creation of loyal and satisfied consumers/customers?
- Is it a negation of the main organization’s objective of profit maximization?
- Is there any lack of broad public support for the involvement of management in social issues?
- Is there any social audit effectiveness from the business firm?
- Does an ethical concept change from time to time or between cultures?
- Does ethics in business and social responsibility helps in attaining business goal viably.
1.4 STATEMENT OF THE HYPOTHESES
In order to ensure the reliability of
this study, it 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 following hypotheses.
HO: Nigerian firms were not ethically in business
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 does not bring about good and lasting product corporate image
HI: Business ethics and social responsibility brings 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 are not only 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 enhances goal attainment
HI: Effectiveness of social audit of the business firm enhances goal attainment
HO: Ethics in business and social responsibility does not help in attaining business goal viably.
HI: Ethics in business and social responsibility helps in attaining business goal viably.
1.5 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.
1.6 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
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.
1.7 DEFINITION OF TERMS
It is highly significant to clarify
conceptually the key word in the study so that better understanding of
the topic shall be achieved.
Consumerism: 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
Profitability: A firm’s ability to earn a profit and its potential for future earnings
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
Business Ethics: It is the proper conduct of the individual and corporate entity in business situations.
Ethics 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 practitioners
Stakeholder: These groups or individuals who are affected directly or indirectly by organization’s pursuit of its goal.