CORPORTE SOCIAL RESPONSIBILITY AND ORGANISATION PERFORMANCE (A STUDY OF NIGERIA BREWERIES PLC)

CHAPTER ONE

1.1   Introduction

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

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;

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).

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

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

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.

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.