THE PROBLEMS AND PROSPECTS OF CORPORATE SOCIAL RESPONSIBILITY IN THE NIGERIAN MANUFACTURING INDUSTRY


THE PROBLEMS AND PROSPECTS OF CORPORATE SOCIAL RESPONSIBILITY IN THE NIGERIAN MANUFACTURING INDUSTRY  

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND TO THE STUDY

Academics and practitioners have been striving to establish and agreed upon definitions of the concept of corporate social responsibility for over 30 years. Davis (1960) suggested that social responsibility refers to businesses’ “decisions and actions taken for reasons at least partially beyond the firm’s direct economic or technical interest.”

Eells and Walton (1961) also argued that corporate social responsibility refers to the “problems that arise when corporate enterprise casts its shadow on the social scene, and the ethical principles that ought to govern the relationship between the corporation and the society” (p.5).

In today’s dynamic business environment, corporate organisations are faced with the needs to impact positively on the host communities, by taking upon themselves certain responsibilities in order to increase their societal and environment influence. Organisations also included social and environmental concerns in business operations rather than focusing on profit making only. Organisations have developed a variety of strategies for dealing with this intersection of societal needs, the natural environment, and corresponding business imperatives with respect to how deeply and how well they are integrating social responsibility approaches into both strategy and daily operations worldwide.

Many organisations such as banks and some manufacturing companies in Nigeria are driven by the need to make more and more profits and that is the sole aim of every business. In a bid to meet this target, some companies do not adequately respond to the needs of host communities, employees’ welfare (cheap labour often preferred), environmental protection and community development. Research has shown that corporate social responsibility can increase profitability, sustainability, integrity and reputation of any business that includes it in its policy

Nkanga (2007) posited that corporate social responsibility involves the commitment shown by companies to contribute to the economic development of a local community and the society at large. The adoption of corporate social responsibility policy should not be driven or motivated by increased profit. Rather, giving back to the society that gave to the business first should be the motivating factor. It is a common practice by Nigerian organisations to put as one of their mission statements the provision of corporate social responsibility. The organisations must have realised that stating corporate social responsibility as one of their mission statements hold special appeal to the stakeholders. Hence, there is an increasing awareness and recognition accorded corporate social responsibility by corporations.

Some critics according to Carpenter, et al. (2010) have argued that corporate social responsibility as implemented by some organisations is mere facade. It is widely believed by many that corporate social responsibility efforts are mere campaigns by organisations to promote corporate brands. Many Nigerians are ignorant of corporate social responsibility; hence, whenever an organisation does something ‘supposedly big’ for the society, such a company and its management are eulogized for being caring and philanthropic.Manufacturing companies in Nigeria are expected to manage the impacts of their operations by adopting corporate social responsibility (corporate social responsibility) programme.  Onwuegbuchi (2009) in his studies on corporate social responsibility among manufacturing firms reported that most manufacturing companies in Nigeria embarked on corporate social responsibility programme for the purpose philanthropic gesture and for government and public appraisal. He further stated that some manufacturing companies applied environmental and labour standards that suit them to satisfy basic requirements of the laws of the country

The Nigerian government should ensure that manufacturing companies’ corporate social responsibility policy entails self-regulation, adherence to rules and regulations, ethical standards, environmental responsibility and sustainability, consumers’ satisfaction, employee welfare, communities and stakeholders benefits.

The problems of the environment in which an organisation operates cannot be ignored. Therefore, there is a need to examine the problems and prospects of corporate social responsibility in Nigeria. In its stronger form, the concept of Corporate Social Responsibility (corporate social responsibility) asserts that corporations have an obligation to consider the interests of customers, employees, shareholders, communities, as well as the ecological ”footprint” in all aspects of their operations.

1.2       STATEMENT OF THE PROBLEM

Despite the huge attention recently given to corporate social responsibility (CSR) in Nigeria, anarea of concernstill remainorganisations in the manufacturing sector. Most manufacturing organisations still do not see any reason for corporate social responsibilitypolicy acceptability. Companies that reluctantly accepted and adopted the corporate social responsibility policy, do so for profit-making purpose.

Another lacking area on corporate social responsibility is that most of the studies on corporate social responsibility were conducted on nations with developed economies and their findings were found out not to be applicable to some developing nation’s economy like the Nigeria. Therefore, this study will examine the problems and prospects of corporate social responsibilities in Nigeria using the manufacturing industry as a case study. It is ironic that these organisations take resources from the external environment and it is only natural to give back what has been exploited. Unfortunately, this anomaly is a norm in this part of the globe and this cankerworm can only be ameliorated through research thesis such as this, publication, media publicity, campaigns and awareness emphasising the importance of corporate social responsibility in our society.

1.3       OBJECTIVES OF THE STUDY

The broad objective of this study is to examine the problems and prospects of corporate social responsibility in the Nigerian manufacturing industry. Specifically, the study is designed to:

1.                  Investigate how corporate social responsibility (corporate social responsibility) influences organisationalreputation in the Nigerian manufacturing industry.

2.                  Cross-examine the difference between level of perceived customers’ patronage and brand loyalty among companies that practices corporate social responsibility and organisations that donot practice corporate social responsibilityin the Nigerian manufacturing industry.

3.                  Analyse how corporate social responsibility adoption influences organisational performance and profitability.

4.                  Assess the economic, social and environmental factors influencing corporate social responsibility (corporate social responsibility) adoption among manufacturing companies in Nigeria

1.4              RESEARCH QUESTIONS

The manufacturing industry plays a significant role in the growth and development of the Nigerian economy, and corporate social responsibility ought to be a voluntary act by the manufacturing companies. It should not have to be forced on organisations by the law, government, and civil rights groups or by the communities. Social responsibility should be a deliberate inclusion of public interest into corporate decision-making and the honouring of a triple bottom line of people and profit making.

In this dissertation there are four specific research questions coined after the statement of the problem and they are listed below.

1.                  Are there differencesbetween level of perceived customers’ patronage and loyalty among companies that practices corporate social responsibility and those that do not practice corporate social responsibility in the Nigerian manufacturing industry?

2.                  What extent would corporate social responsibility adoption influence organisational performance and profitability?

3.                  Whatare the economic, social and environmental factors responsible for the poor performance of corporate social responsibility (corporate social responsibility) adoption among manufacturing companies in Nigeria?

1.5       RESEARCH HYPOTHESES

To provide empirical answers to the research questions above, the following research hypothesis were developed. They are as stated below;

Hypothesis I

H0:       Corporate social responsibility (corporate social responsibility) does not influence organisational reputation in the Nigerian manufacturing industry.

H1:       Corporate social responsibility (corporate social responsibility) influencesorganisational reputation in the Nigerian manufacturing industry.

Hypothesis II

H0:       There is no significant difference between level of perceived customers’ patronage and loyalty among companies that practices corporate social responsibility and those that doesn’t in the Nigerian manufacturing industry.

H1:       There is a significant difference between level of perceived customers’ patronage and loyalty among companies that practices corporate social responsibility and those that doesn’t in the Nigerian manufacturing industry.

Hypothesis III

H0:       Corporate social responsibility adoption does not influence organisational performance and profitability.

H1:       Corporate social responsibility adoption influences organisational performance and profitability.

Hypothesis IV

H0:       Economical, social and environmental factors do not influence the performance of corporate social responsibility.

H1:       Economical, social and environmental factors influence the performance of corporate social responsibility.

1.6       RESEARCH METHODS

This study adopts descriptive survey method. Therefore, a cross-sectional research design is used to design the methodology. The premise for this research method is because data are collected from the population for intensive study and analysis.

More often than not, the research cannot possibly study all subjects or items in the population. Hence, a selective random sample from or a subset of, the population was taken.

The reasons for random sampling are;

·         Among the elements (manufacturing companies in Lagos state) that make up the population of study there are similarities and therefore a study of few of these elements will give the researcher sufficient knowledge of what is obtainable in the entire population study.

·         It is cheaper to engage in the random study

·         It allowed for quicker results and more thorough research conduct.

·         It is practically impossible to consider all elements in this research considering the limited time frame

The target population for this study arethe manufacturing companies in Lagos State, but due to large number of manufacturing companies located in the State, some selected organisations will be considered for this study. Primary data will be gathered through questionnaire administered among randomly selected employees of the selected companies. The data will be analysed using frequency and percentage tables and a descriptive analysis will be carried out using a software package for statistical analysistool.

1.7       SCOPE AND LIMITATION OF THE STUDY

The focus of this research would encompass the problems and problems of corporate social responsibility and its impacts. The impacts of social services by corporation shall be examined in relations to financial performance, employee commitment, and community development. The study shall focus on the Nigerian manufacturing industry. The perceptions of some key players of the industry shall be sought for the purpose of this research work.

Due to limited time of the study and the choice of using questionnaire method, this research does not include an extensive benchmark of corporate social responsibility practices in the Nigerian manufacturing industry, but is restricted to a few organisations situated in Lagos, Nigeria. Though the study uses vital insider information from these organisations, confidentiality of names, data, facts and figures were treated with utmost secrecy and with a caveat. 

The reliability and validity of the data can also be verified and contested, but of course that will not be necessary.

1.8SIGNIFICANCE OF THE STUDY

The importance of this dissertation is not just to analyse the practice of corporate social responsibility but to understand the current practice, the level of understanding of corporate social responsibility by manufacturing organisations in Lagos state in relation to how it should be. It will explain how corporate social responsibilities affect the performance of these firms.

The research would also help to explore the impact of corporate social responsibility on employees’ commitment to the organisation.What part does the employee play in corporate social responsibility? Can he influence the decision making process?  What is their level of understanding of the concept?

1.9       ORGANISATION OF THE STUDY

Chapter one of the study provides background of the study, stating the problem of the study and the research questions and hypotheses to be tested in the study. It also highlights the significance of the study and scope of the study.

Chapter two reviews related literature on problems and prospects of corporate social responsibility of Nigerian manufacturing industry. Itlooks at different authors’ definitions of corporate social responsibility and its activities affects organizations’ reputation, customers’ patronage and brand loyalty. Chapter two examinescorporate social responsibility adoption influences organisational performance and profitability. How economic, social and environmental factors are responsible for the poor performance of corporate social responsibility (corporate social responsibility) adoption will also be extensively reviewed.

Chapter three discussed the research methods to be used in designing the study which will include research design, population, sample size and sampling technique, data collection and data analysis methods.

Chapter four presents the data gathered in frequency and percentage tables. The data will also be analysed and research hypotheses will be tested with chi-square statistical test.

Chapter five summarises the outcome of the study, draw conclusions based on the findings of the study and make necessary recommendations.

1.10     DEFINITION OF TERMS

Commitment: Commitment as defined in this study means when an employee pledges his loyalty to an organisation. It is an application, dedication or pledge to an engagement or obligation that restricts freedom of action.

Community: Community as used in this study means a group of people who live in an area where an organisation operates. They are a group of people having a religion, race, profession, or other particular characteristic in common.

Social Responsibility: Social responsibility as described in this study is a demonstration of certain responsible behaviour on the part of public and the private (government and business) sectors toward society and the environment.

Performance: Performance is the manner in which an organisation functions, operates, or behaves in the society.

Stakeholder: This study describes a stakeholder as a person or group with a direct interest, involvement, or investment in a business organisation e.g. the employees, stockholders, and customers of a business organisation.

Hypothesis:A hypothesis is a tentative statement about relationships that exist between two or among many variables. It is a conjectural statement about relationships and need to be tested and subsequently accepted or rejected.

Theories and laws: A hypothesis, if it is true, state a law. Therefore, the hypothesis is a law like statement. Law is defined as a statement of invariant relationship among observable or measurable properties.

.

THE PROBLEMS AND PROSPECTS OF CORPORATE SOCIAL RESPONSIBILITY IN THE NIGERIAN MANUFACTURING INDUSTRY



TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.NET

Researchwap.net is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.net guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.net is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.net" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.