TABLE OF CONTENTS
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Research Questions
1.4 Objectives of the Study
1.5 Significance of the Study
1.6 Research Hypotheses
1.7 Research Methodology
1.7.1 Scope of the Study
1.7.2 Limitations of the Study
1.7.3 Sources of Data
1.7.4 Analysis of Data
1.7.5 Area of Study
1.8 Definition of the Terms
LITERATURE REVIEW AND THEORETICAL FRAMEWORK
2.1. The Concept of Social Responsibility
2.2 Definition Of Social Responsibility
2.3 Historical Background Of Cadbury Nigeria Plc
2.4 Current Review
2.5 Classification Of Social Responsibility
2.6 Should Organisation Be Socially Responsible (View Points of Different
2.7 Organisation Objective and Mission
2.8. Argument in Favour of Social Responsibility
2.9. Factors Affecting Corporate Social Responsibility
3.1. Research Design
3.2. Data Sources and Method of Collections
3.3. The Study Population
3.4. Sample Size and Sampling Technique
3.5. Research Instrument
3.6. Method Of Data Presentation And Analysis
DATA PRESENTATION AND ANALYSIS
4.1. Analysis of Questionnaire Administration
4.2 Analysis of Respondents
4.3. Analysis of Respondents Bio-Data
4.4 Analysis of Research Questions
4.5 Test of Hypotheses
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings
5.4 Suggestion for Further Studies
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
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
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
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;
- To examine the organization policy, image and the activities on the society.
- To examine the effect of social responsibility on organizational image
- 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
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
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
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.
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
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.