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Effect Of Corporate Social Responsibility On Organizational Performance: A Study Of Man-Chuks Aluminium Products Nigeria Ltd

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ABSTRACT

 The study examined the effect of corporate social responsibility on organizational performance, a study of MAN-CHUKS Aluminium Products Nigeria Ltd  Owerri, Imo State. Population of the study consist of total number of sixty (60) members of the staff of MAN-CHUKS Aluminium Products Nigeria Ltd. in Owerri, Imo State. The source of data used for the study is primary data. Questionnaires were used to collect data. The researcher adopted 5-point Likert scale for rating the opinions of the respondents toward the questions asked. This study used a simple random sampling method to get the respondents needed to collect the data. The method of data presentation and analyses employed was descriptive statistics, percentage and frequency. The ANOVA statistical test was used to test the stated hypotheses. The findings shows that  analysis indicated that there is no significant relationship between corporate social responsibility and performance of the company. It was also evident that analysis of responses showed that 40% of the respondents agreed that corporate social responsibility adoption influence organisational performance and profitability. It was recommended that employees should be properly trained and educated, in order to maximize benefits of corporate social responsibility to enhance rapid improvement of corporate reputation and business delivery system. Organisations must put in place market parameters that will enable them to be informed about being socially responsible to make corporate social responsibility adoption successful.

CHAPTER ONE

BACKGROUND TO THE STUDY

1.1 Introduction

As a field of study in management, Corporate Social Responsibility (CSR) probably emerged in the 1950s in the United States. Business practices in the 1900s that could be termed socially responsible took different forms: philanthropic donations to charity, service to the community, enhancing employee welfare and promoting religious conduct (Banerjee, 2009). Before the twenty-first century, there was a common perception within and outside the business world that the company’s sole social responsibility was to make as much profit as possible, while community building and public services are the sole responsibility of the government (Visser, Matten and Pohl. 2010).

Therefore, maximization of profit meant the maximization of the taxes paid by the company to the government. This, in turn, could be spent on welfare, improving the society’s wellbeing. With this traditional understanding, involving the company in CSR would be seen as detrimental to both the company and society in general. None of the parties considered CSR in any way related to their respective business or social activities (Visser et al. 2010). Early proponents were CEOs and business leaders from the big oil and energy companies, telecommunication corporations and automobile manufactures of the 1920s (Banerjee, 2009).

The ideology of CSR in the 1950s was primarily based on an assumption of the obligation of business to society. This obligation arose because some scholars and practitioners saw business as an instrument of society and managers as public trustees whose main job was to balance often-competing demands of employees, customers, suppliers, communities and shareholders. The philosophy driving CSR discourses from the 1950s onwards was an attempt to cultivate civic virtue in corporations. In the 1980s, the focus of CSR shifted from CSR as obligation (“doing good to do good”) to CSR as strategy (“doing good to do well”) (Banerjee. 2009).

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Academics and practitioners have been striving to establish and agreed upon definitions of the concept of corporate social responsibility for over 30 years. The concept of 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 (Abiodun, 2012).

Because of the need to impact positively on the host communities, corporate organisations are taking upon themselves certain responsibilities in order to increase their societal and environment influence (Soana, 2011). 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, employee’s welfare, 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. 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 (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. Organizations 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 of 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 problems of the environment in which an organisation operates cannot be ignored.

Environmental problems have become major headlines of political, economic and corporate discussion due to the negative effects they bring to the stability of the ecosystem (Uwuigbe, 2011), as organizations are being called upon to take responsibility for the ways their operations impact societies and the natural environment (Babalola, 2013). In its stronger form, the concept of Corporate Social Responsibility (CSR) 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. These uncontrolled impacts of industrial activities on the environment have created critical ecological challenges on the planet; which has aggravated phenomena like climate change, ozone depletion, over-exploitation of natural resources, air pollution & increase in radioactive water pollution that has resulted to the continues destruction of the water marines thereby disrupting the sustainable development of such environment (Uwuigbe, 2011).

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1.2 Statement of the Problem

Despite the huge attention recently given to corporate social responsibility (CSR), an area of concern still, remain in some organisations. Most organizations still do not see any reason for corporate social responsibility policy acceptability. Organizations that reluctantly accepted and adopted the corporate social responsibility policy do so for profit-making purpose (Mordi, 2012).

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 assess the effect of corporate social responsibility on organizational performance. It is ironic that this organisation 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 project such as this, publication, media publicity, campaigns and awareness emphasising the importance of corporate social responsibility in our society.

1.3 Purpose of the Study

The broad objective of this study is to assess the effect of corporate social responsibility on organizational performance. The specific objectives derived from the major objective are to-

  1. Analyse how corporate social responsibility adoption influences the performance of MAN-CHUKS Aluminium Products Nigeria Ltd.
  2. Determine the relationship between Corporate Social Responsibility and performance of MAN-CHUKS Aluminium Products Nigeria Ltd.

iii. Determine the impact Corporate Social Responsibility has on organization performance of MAN-CHUKS  Aluminium Products Nigeria Ltd.

1.4 Research Questions

The study attempts to provide answers to the following questions:

  1. To what extent would corporate social responsibility adoption influence the performance of MAN-CHUKS Aluminium Products Nigeria Ltd?
  2. To what extent is the relationship between Corporate Social Responsibility and performance of MAN-CHUKS Aluminium Products Nigeria Ltd?

iii. To what extent is the impact of Corporate Social Responsibility on the performance of MAN-CHUKS  Aluminium Products Nigeria Ltd?

1.5 Research Hypotheses

In other to provide empirical answers to the research questions above, the following null hypothesis were developed.

H01:  Corporate social responsibility adoption does not influence the performance of MAN-CHUKS  Aluminium Products Nigeria Ltd.

H02: There is no significant relationship between Corporate Social Responsibility and performance of MAN-CHUKS Aluminium Products Nigeria Ltd.

H03: Corporate Social Responsibility has no significant impact on the performance of MAN-CHUKS  Aluminium Products Nigeria Ltd.

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1.6 Scope of the Study

The focus of this research would encompass the 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 of MAN-CHUKS Aluminium Products Nigeria Ltd. The perceptions of some key players of the company 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 MAN-CHUKS Aluminium Products Nigeria Ltd. in Owerri, Imo State. Though the study uses vital insider information from the organisation, confidentiality of names, data, facts and figures were treated with utmost secrecy and with a caveat.

1.7 Significance of the Study

This research will increase the understanding of the relationship between corporate social responsibility and the financial profitability of firms. The results should be of interest to managers who contemplate engaging in corporate social responsibility activities, investors and financial analysts who assess firm performance and policy makers who design and implement guidelines on corporate social responsibility.

The findings of this research will be used to improve information available to relevant actors regarding the current situation concerning corporate social responsibility practices organizations and how this is related to the company’s profitability. This research will also seek to produce recommendations for other firms willing to incorporate corporate social responsibility practices in their various business operations.

Finally, this study will help the further studies of future researchers regarding the effect of Corporate Social Responsibility on organizational performance. This can serve as a reference for further improvements to be done in their study.

1.8 Definition of Term

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.

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.

Profitability: Profitability is the degree to which a business or activity yields profit or financial gain. It is the ability of a business to earn profit.


Pages:  73

Category: Project

Format:  Word & PDF         

Chapters: 1-5                                 

Material contains Table of Content, Abstract and References.

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