IMPACT OF CORPORATE SOCIAL RESPONSIBILITY OF ORGANIZATIONS IN THE MANUFACTURING SECTOR OF NIGERIA

CHAPTER ONE

INTRODUCTION

1.1   Background to the Study

According to Osemene O.F. (2012), many organizations in Nigeria are established for the purpose to make and increase profit to the neglence of all the stakeholders.

Some organizations do not respond to the need and interest of the host community.

There is a dier need for organizations to begins to incorporate public interest. Companies are struggling in finding the edge between responding to consumer pressure, employee demand and government mandates and at the same time satisfying their investors and shareholder (Pax S.2006)

 According to Onwuegbuchi (2009), corporate social Responsibility is the inclusion of public interest into corporate decision making and the honoring of a triple bottom line of people, plant and profits, corporate social responsibility policy is a self regulation assembles into rules and regulations, ethical standards, consumer satisfaction, employee welfare, environmental responsibility and sustainability, community and shareholders benefit.

Corporate social responsibility programmes according to Travis (2006) can help organization strengthen its brand reduce operation cost, attract and retain talents, boost employee morale, assures investors an d enhance a company’s image, the benefit and challenges of corporate social responsibility programmes should be understood by organization owners inorder to choose an initiative that benefits the company and community. Many organizations have been forced into corporate responsibility because they are part of the community and they are also a corporate citizen of the community; therefore it does not make good business sense to be seen as a company that is destroying the environment of the society.

The Guinness Nigeria Limited, in fulfillment of its corporate social responsibility as part of its commitment to development initiative has given scholarship and sponsored many youth to Ihu institute of Individual Technology the programme was designed to bridge the gap that exist in the Nigeria education system and as well as to impact knowledge and skills to help them become responsible and independent citizens of the country.

Corporate social responsibility has a huge impact on local communities and the world; it affects social economic and environment.

According to (Garry C.2003) who stresses that corporate social responsibility has even affect the air that we breath in further stated that investors are more likely to invest in a corporations that has shown corporate responsibility. Investors are aware of the customer’s strength of opinion regarding unethical companies. The customers are now in a better position to shape corporate responsibility than ever before. Good corporate social responsibility policy will attract good investors which will provide necessary resources to improve and sustain organizational performance.

1.2   Statement of the problem

The issue of corporate social responsibility has generated a lot of discuss and debate; some scholars argued for CSR while other scholars argued against CSR and its principles.

 Hence, the question is, how will organizations carryout their social responsibility? What area of the host community requires social responsibility? To what extent do corporate social responsibilities affect performance of a firm? How can performance of a firm been improve through social responsibility? It is to these that the following research questions are further asked which the research intends to investigate.

1.     Is the corporate social responsibility of Guinness Nigeria Limited acceptable to the host community?

2.     Does corporate social responsibility affects the performance of a firm?

3.     Does corporate social responsibility affects the profitability of a firm?

1.3   Objective of the study

The main objective of this study is to examine the impact of corporate social responsibility of Organizations in the manufacturing sector in Nigeria. Other objectives are as follows

1.     To determine whether the corporate social responsibility of Gunniess Nigeria Limited is acceptable to the host community.

2.     To determine if corporate social responsibility influence the performance of organizations.

3.     To know if corporate social responsibility has impact on profitability of an organization.

1.4   Research Questions

This research questions are as follows

1.     Is the corporate social responsibility of Guinness Nigeria Limited acceptable to the host community?

2.     Does corporate social responsibility affects the performance of a firm.

3.     Does corporate social responsibility affects the profitability of a firm.

 

1.5   Statement of Hypothesis

The hypothesis formulated are as follows

Hypothesis I

Ho    Corporate social responsibility of Guinness Nigeria Limited is not acceptable to the host community.

Hi     Corporate social responsibility of Guinness Nigeria limited is acceptable to the host community.

Hypothesis II

Ho    Corporate social responsibility has no effect on performance of a firm.

Hi     Corporate social responsibility has effect on performance of a firm.

Hypothesis III

Ho    Corporate social responsibility has negative influence on firms profitability.

Hi     Corporate social responsibility has positive influence on firms profitability.

 

1.6   Scope of the study

The study was drawn on the impact of corporate social responsibility on organizational performance; the Guinness Nigeria limited as an organization was under the view.

 

1.7   Significance of the study

The study will be beneficial to Guinness Nigeria Limited as it contain information that will help improve its corporate responsibility programme. The research will also benefit other organizations who have not been participating in corporate social responsibility activities. Also the research will help researchers of this field of study because its relevant literature will serve as a point.


 

1.8   Limitation of the study

Insufficient funds to obtain useful materials and information for the completion of the study, also with the stress to meet up academic duties and obligations as a student.

 

1.9   Definition of terms

1.     Corporate citizen:  An organization role towards society

2.     Corporate social responsibility: A concept whereby organizations consider the interest of society by taking responsibility for the impact of their activities on all the stakeholders including the environment

3.     Ethnics:  A moral principle that is applicable and acceptable

by the public which regulates the conduct of corporate organization

4.    Management perception:       Manager mental process of interpreting the programme of corporate social responsibility

5.    Organization:  A Group of people with a common purpose who work together to achieve shared goals

6.    Performance:  Actions carried out by an employee o organization.

7.    Social conscience:  The sense of right and wrong of an organization towards the public.

8.    Stakeholders: These are the employees, suppliers, competitors, environment, customers and the community.

9.    Unethical: An action or conduct that is not acceptable by the public.

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