Many social critics have noted the
failure of organization to behave in socially responsible ways and to
also observe why the organization should operate ethically, this
enormous pressure from various interest groups has been put on business
organization to identify and solve those social problems in which they
are intimately involved.
This project identifies and analyzes the
relationship of corporate social responsibility on organizational
performance. Since most business of today now use social responsibility
to improve image, make profit and survive. A broad explanation on what
social responsibility is, its mode, school of thought, its dimensional
involvement, limitation, how it can be improved as well as relevance to
individual, organization and the society at large were given. To be able
to effectively and efficiently carryout this study, one hypothesis was
formulated to provide focus and direction for the views of other writers
and authors on the subject. Data were collected and analyzed via
statistical techniques, which provide the result, that social
responsibility has a positive effect on organizational performance.
TABLE OF CONTENTS
CHAPTERS ONE: Introduction
1.1 Background of the Study
1.2 Statement of problem
1.3 Purpose of the Study
1.4 Research questions & Hypothesis
1.5 Significant of the Study
1.6 Scopes and limitation of the Study
1.7 Definition of Technical Terms
1.8 Brief History of the Company
CHAPTER TWO: Literature Review
2.0 Introduction of the Concept
2.1 The Concept of Social Responsibility
2.2 Causes for Social Responsibility
2.3 Social Responsibility Schools of Thought
2.4 To Whom Business be socially Responsible
2.5 Discharging Social Responsibility
2.6 Corporate Social Responsibility
2.7 Social issues Affecting Organizational Performance
2.8 Limitation of Social Responsibility
2.9 Ways of Improving Corporate Social Responsibility
CHAPTER THREE: Research Methodology
3.2 Characteristics of the Study Population
3.3 Research Design
3.4 Sampling Plan
3.5 Description of Data Collection Instrument
3.6 Setting of the Study
3.7 Limitation of Methodology
3.8 Coding Procedure
3.9 Description of Statistical Tools
3.10 Decision Rule
3.11 Administration of Data Collection Instrument
CHAPTER FOUR: Presentation and Analysis of Data
Presentation and Analysis of Data
5.0 Summary, Conclusion and Recommendation
5.1 Summary of Findings
5.4 Suggestion for Further Studies
1.1 BACKGROUNG OF THE STUDY
Since the institutions operate in an
environment, produce and services for the environment and employ People
to eradicate or resolve social problems posed to the society as a result
of their operation.
Social responsibility whether of a
business, governmental or non-governmental may arise in two ways, it may
arise out of the social impact of the institutions or it may arise as
problems of the society itself (Holmes, 1977). Both are of great concern
to management. The first deals with what an institutions does to the
society while the second is concerned with what an institutions can do
for society, for instance the purpose of textile industry established in
a area is not to cause water pollution but to provide clothing to
people but in the process of its production, its bye product may cause
Also the purpose of power generator is
not to make or release noxious fame, it is to bring out light but in
order to do this, it produces noise; create heat and releases heat fumes
to the environment thereby causing air pollution. Nobody in his right
senses will want to create traffic jam, but if a lot of people are
employed in the place it end result will not be desirable to the
In the recent year, globalization,
increased influence of companies, retrenchment and repositioning, war
for talent, growth of global civil society activities and increased
importance of intangible assets have led to an explosion of interest in
corporate social responsibility and the phrase ‘’being a responsible
corporate citizen” has became a managerial clinic (Boston college for CR
2002). Top management organizations were ultimately involved in drawing
up a new chater of responsibility for its relations with stakeholders
to demonstrate that the enlightened corporation is no longer prepared to
tolerate long-run excessive external costs.
Most contemporary managers are looking
for empathy with society rather than alienation. It is not surprising
that many of them have decided that time is own ripe for a new
interpretation of the duties and responsibilities of corporations.
Professional managers have realized that profits are necessary but not
sufficient condition for healthy corporate society. For instance, a
large number of contemporary organizations have introduced employee
ownership schemes. Such developments do not mean that these companies
are becoming less profit Conscious. In facts, quite contrary, more and
more companies are realizing that employees, who dedicate their lives to
the company, deserve to benefit from the wealth crating potentials of
To have a clearer picture of this study
we will look at corporate social responsibility from two different
perspectives. What does it mean for an organization to be socially
responsible? Few concepts have been described in so many different ways.
For instance, it is been called “ profit making only” going beyond
profit making only “voluntary activities” “concern for the broader
social system and social responsiveness” A great deal of attention has
been focused on the extremes on one side, there is the classical or
purely economic-view and on the other side is the social economic
The classical views are the opinion that
managements only social responsibility is to maximize profit. The most
outspoken advocate of this approach is economist and Nobel laureate
Milton Friedman. He argues that manager’s primary responsibility is to
operate the business in the set interest of the stockholders (the owners
of the corporative).
What are those interests? Freidman
contends that stockholders have a single concern. Financial return. He
also argues that anytime managers decide to spend the organization’s
resources for “social goods” they’re adding to the costs of doing
business. These costs have to be passed on to customers either through
higher prices or absorbed by stockholders through a smaller profit
returned as divided.
The socio economic view on the other
hand views that management’s social responsibility goes beyond making
profit to include protecting and improving society’s welfare. This
position is based on the belief that corporations are not independent
entities responsible only to stockholders. They also have a
responsibility to the large society that endorses their creation through
various laws and regulations and supports them by purchasing their
product and services. In addition proponents of this just merely
economic institutions society expects and even encourages business to
become involved in social, political and legal; issues. For example,
proponent if socioeconomic view would say that Avon product inc. was
being socially responsible when it initiated its breast Cancer Crusade
to provide women with breast cancer education and early detection
screening services and which after 10 years, has raised more than $250
million worldwide. And they would say that the educational program
implemented by Brazilian cosmetics manufacturer of Natural cosmetics SA
in public primary schools in Sao Paulo, to improve children’s literacy
and decision making skills, were socially responsible. Why? Through this
program, the managers were protecting and improving society’s welfare.
More and more organizations around the world are taking their social
responsibilities seriously especially in Europe, where the view that
business need to focus on more than profits has stronger tradition than
In the United States. The key differences between these two perspectives
are easier to understand if we think in terms of the people to whom
organizations are responsible. Classicists would say that the
stockholders or owners are the only legitimate concern others would
respond that managers are the responsible to any group affected by the
organization’s decision and actions-that is the stakeholders shows a
four stages model of progression of an organization’s social
A Stage 1: Managers are following the
classical view of social responsibility and pursue stakeholder’s
interest while following all laws and regulations.
At stage 2: Managers expand their
responsibilities to another important stakeholder’s group-employee.
Because they’ll want to attract, keep and motivate good employees. At
this stage managers will improve working conditions, expand employee
rights, increase job security and focus on human resources concern.
At stage three, managers expand their
responsibilities to other stakeholders in the specific environment.
Primarily customers and suppliers. Social responsibility goals for these
stakeholders might include fair prices, high-quality products and
services, safe products, good supplier relationship, and similar
actions. Their philosophy is that they can meet their responsibilities
to stockholders only by meeting the needs of these other stakeholders.
Finally, stage 4 characterized the
highest socio-economic commitment. At this stage, managers feel a
responsibility to society as a whole. They view their business as a
public entity and feel a responsibility to advance the public good. The
acceptance of such responsibility means that managers actively promote
social justice, preserve the environment and support social and cultural
activities. They do these things even if such actions may negatively
The Nigeria business environment has
become complex and dynamic, hence contemporary business organizations
operating in Nigeria are witnessing greater influence and enormous
pressure from interest groups and increase government regulation have
been put to socially responsible.
Indeed, the business organizations of
today are much more socially responsible than before. In fact a
comparative study of organization effectiveness in Nigeria industries
shows that public limited liability companies are performing better than
Hence these papers seeks to evaluate the
impact of corporate social responsibility of one of the public limited
liability companies with sole objective of determining whether the
concept has impacts on modern business organization performance.
1.2 STATEMNET OF PROBLEM
Many researches and literatures has been
conducted and studies in the area of social responsibility but no
particular reference effect organizational performance. It was noted
that some organizations considered social responsibility as a waste and
drain on business resources and believe that organizational and rather
ignore the outcome of social responsiveness to organizational
performance. The problem of this study is to determine the impact of
social responsibilities on organizational performance.
The study shall discuss how Nigeria
business organizations are socially responses and how it is a benefit to
the society and also how social responsibilities affect the performance
of an organization.
1.3 PURPOSE OF THE STUDY
The main purpose of this is to examine
empirically the relationship between corporate social responsibility and
organizational performance. Social responsibility has been neglected
overtime, organization have forgotten that they operate in an
environment and the environment also expect the organization to assist
in tacking its socio-economic problem.
This study seeks to:
- Determine the effect of social responsibility on organization
- Discuss why some organizations are socially responsible than others
- Identify and evaluate the various forms of social responsibility
companies will achieve their set objectives and attain their goals.
- Above all, the purpose of this study is to partially fulfill the
requirement for the award of higher national Diploma in Business
1.4 RESEARCH QUESTION AND HYPOTHESIS
To evaluate the impact of corporate
social responsibility on organizational performance, the following
statement and question shall be tested.
i. Are Nigerian business enterprises socially responsible?
ii. Does the impact of social responsibility favourable or is a wasteful spending?
iii. Does social responsibility has relevant to organization profitability?
iv. In what areas is your organization socially responsible?
v. What are the aims of social responsibility?
vi. Does social responsibility of an enterprise have impact on its performance?
From the above research questions, the
thesis of this project shall focus on the stated hypothesis
relationship. The test of the hypothesis is formulated below:
Null Hypothesis (Ho): There is no relationship between social responsibility and organizational performance.
Alternative Hypothesis (Hi): There is a relationship between social responsibility and organizational performance.
1.5 SIGNIFICANCE OF THE STUDY
Their study on corporate social
responsibility is significant to organization in particular and the
society in general. The organization would benefit by knowing the
different areas where they be socially responsible, measure their impact
on the society, thus improving their corporate image and on the long
run to make more profit. The research work also intend to assist
immensely other corporate organization and general public to know the
significance of social responsibilities and to relate their roles as a
stakeholder in the wheel of progress, if adequate studied. More so, the
general public will became aware and informed about the various kinds of
social performances which corporate bodies can extend them. It will
create awareness that environmental degradation.
It also enable corporate bodies to
benefit greatly as various form of social responsibilities and area they
can readily assist the public and other stakeholders. This will be of
tremendous significant to them, as it will increase their goodwill.
Finally, the researchers are not to be
left out of the benefits, as the research project will allow them to
discover more about this crucial and ever controversial concept of our
1.6 SCOPES AND LIMITATION OF THE STUDY
The scope of this study is in the areas
of social responsibility and involvement of soft drinks industry. The
scope covers soft drinks industry in Lagos using Nigeria Bottling
Company Plc as a case study.
The limitation of the study arises from
the fact that most business organization hardily gives out their
information to outsiders for fear of competitors however the little
information gathered will be used as a generalization of the performance
of others. This study is also limited by the time coupled with cost
involved in conducting this research.
1.7 DEFINITION OF TECHNICAL TERMS
In a study like this, it’s important to
clarify some technical words used in the study, so that better
understanding of the topic shall be achieved.
Some of the key words used and their definitions are given below.
Social Responsibility: It
is the intelligent and objective concern, which restrains individual or
corporate behavior from ultimately destructive activities no matter how
immediately, profitable and leads to the direction of the contributing
to human betterment. (Andrew, 1977). It also means not only fulfilling
legal expectations but also going beyond compliance and investing more
into human capital, the environment and relations with stakeholders (the
European economic commission, 2011).
Corporate Image: The intangible possession that distinguishes and enables a business organization of similar type and capability.
Organization: It can be define as any structured system of rules and functional relationship designed to carry out a firm’s policies.
it can be defined as a function of profitability, survival, market
share and efficiency and growth achievement of the organizations.
1.8 BRIEF HISTORY OF THE COMPANY
Nigeria Bottling Company Plc, a single
largest bottling company in the world renewed for its top product such
as (Coca-Cola, Sprite, Fanta, Orange Fanta Lemon, Fanta Giger-ale, Eva
water and Diet Coke) to mention few, out of all these product coca-cola
was first produced in Atlanta Georgia USA on 8th May, 1886 by Dr. John Styth Pemberton, a Pharmacist.
Coca-cola came into Nigeria in 1963,
when Nigeria Bottling Company opened its first plant in Lagos and has
today grown to twenty plants nationwide. It was publicly quoted company
listed since 1978 on the Nigerian stock exchange with 235,037,889
Nigeria citizen shareholders participating in approximately 48.595,
south Africa 199,347, 341 of 41.21% other foreign shareholders
49,355,210 of 10%.
The major objectives are to satisfy the
requirement of customers with high quality product and to reach
everybody that is why special considerations are made. Other objectives
are to maintain the leading production soft drink, and to reach every
individual both urban and rural areas. That is why they have plants and
depots almost in every state and capital in Nigeria and mini depots in
every local area.
To improve the social and economic life
people living within the areas of its operation in particular and
generally of the people of Nigeria through the provision of employment
and infrastructural facilities when necessary. To ensure a reasonable
return on investment of the shareholders. Concerning the raw material
sourcing, most of the Nigeria Bottling Company raw materials are ordered
from abroad, through coca-cola international, this is another separate
company that supervises all the activities of Nigeria Bottling Company.
It serves as intermediary between
Nigerian Bottling Company and the entire bottling company in the world.
Such raw materials include concentrate and sugar; other materials are
locally produced by other sisters company such as better industries,
this comprises of Delta Glass Plc, producing bottles of different sizes,
Benin Plastics produces plastic tray for the bottles while perfumes and
cap for eva water, crown products Limited at Ijebu Ode manufactures
Andrews, K. (1977) key of Social
Responsibility as Cited by Adeleke in ``Managing Nigeria’s Economic
System” 1985, Nigeria Heineman Educational Books.
Holmes, L. Sandra (1977) ``corporate Social Performance” Academy of Management Journal, Vol. 20
James A.F, Edward, R.F. Daniel A.G. (1996) Management Prentice-Hall of India Private Ltd. New Dehil.
Lawal, A.A (1993) Management ion Focus Lagos Abdul Industry Enterprises.