Effect of Corporate Social Responsibility on Organisation Performance (a Case Study of Viju Industry Nigeria Limited)
CHAPTER ONE
OBJECTIVE OF THE STUDY
The main objective of this study is analyzed corporate social responsibility and its effect on organizational survival. Other objectives are
- To determine the impact of CSR on the performance of an organization
- To analyze the relationship between CSR and organizational profitability
- To examine the relationship between CSR and organizational productivity.
CHAPTER TWO
LITERATURE REVIEW
Introduction
Corporate Social Responsibility is a concept whereby organizations consider the interest of society by taking responsibility for the impact of their activities on customers, employees, shareholder, communities’ and the environment in all aspect of their operation (Fajoyonmi, 2008)
The oxford advance leaner dictionary defines social as being connected with the social society and the way it is organized, while responsibilities is a duty to deal with or take care of business was defined as an organized set to human activity which has the primary aim of creating customers grouping and group satisfaction by efficiently changing societal resources to desirable goods and service (Drucker 1981). Business and society at large to the extent relied on themselves; in as much as one cannot be on its own. The adoption of social responsibility practices therefore is expected to bring about complete relationship between individuals organization and the various sectors to which the business owe obligation. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the community and society at large.
Social responsibility is a theory when emits corporate responsibility to the society, so also ethics are rule and regulation among human and institution which is either negative or positive, as the roles are been ensure its right to the citizens, social responsibility means more than these examples.
As NGOS accepted their roles and the responsibility of members as citizens to improve society by taking societal responsibility and can also reciprocate to the society.
The Definition Of Corporate Social Responsibility
The European Union (EU) definition
The EU’s green paper on CSR defines CSR as a concept whereby companies’ integrate social and environmental concerns in their business operation and in their interaction with the stakeholders on a voluntary basic (green paper promoting a European framework for corporate social responsibility 2011)
The EFQM definition
The European foundation for quantity management (EFQM) is a membership based not for profit organization, created 1988 by fourteen leading business with a mission to be the driving force sustainable excellence. EFQM (2004) defines CSR as CRS refers to a whole range of fundamental that organization are expected to act acknowledge and to reflect in their action. It includes among either things respecting human rights in their actions, far treatment of the work force, customers and suppliers being good corporate citizens of the communities in which they operate and conversation of the natural environment these fundamentals are seen not only morally or ethically desirable ends in themselves as part of the organization philosophy but also as the key drivers in ensuring the society which allows the organization to survive in the long term as society benefits from the organization activity and behaviour.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This chapter focuses on the design of the research and the method which will be adopted in gathering the needed data. Areas also covered under this chapter include description of the research instrument, validity of the research instrument and sampling plans description of data analysis instrument, validity of the research instrument and sampling plans description of data analysis which will be pertinent in this research work.
Research Methodology
This chapter focuses on the design of the research and method which will be adopted in gathering the needed data. Areas also covered under this chapter include description of data analysis instrument, validity of the research Instrument and sampling plan description of data analysis which will be pertinent in this research work.
Research Design
In order to conduct a well planned and executed research work a research design is required. It is used by the researcher as a scheme of a blues print for data collection prior to the actual study. For the purpose of this research, the survey research is use which concerned with identifying real nature of problem and formulating relevant hypothesis to be used.
Population Size
Population: this refers to the entire groups of people, events or things of interest that the researcher wishes to investigate.
The size of the population is drawn from all employee of the organization. A careful look is taken in all sectors of the organization e.g. the employees and the directors. In order to get the accurate population size of the establishment. For the purpose of this research work, the researcher will base on 100.
CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION OF RESULT
Introduction
This chapter presents the description of the result of data collection and discussion of findings. According to the questionnaire administered the table below gives a clear picture of the view of respondents.
Testing Of Hypothesis One
H0: there is no relationship between social responsibility and organizational performance.
H1 : there is relationship between social responsibility and organizational performance
CHAPTER FIVE
Introduction
Corporate social responsibility (CSR) is a set of standards to which companies subscribe in other to make positive contribution to the development of the society and businesses. Gradually, organizations are beginning to see the benefits from setting strategic corporate social responsibility as agenda. As a result of corporate social responsibility the private sector of the economy have witness radical changes in their relationship with the state and the society.
Summary Of The Findings
The research work was done but limited to the analyses of corporate social responsibility and its organizational survival using Doyin Groups of company as a case study.
Based on the data collection and analysis in the previous chapters, the following findings discovered as summarized below.
- It is clear that social responsibility has significant impact on the standard of living in the community.
- Contribution to charitable programme in Nigeria has helped in bringing more customers for the organization.
- The research works shows that the organization has been assisting in reducing the deteriorating standard of living of its immediate community.
- The study also reveals that the organization effort has lead to increase in dividend paid on shares.
- The organizations in Lagos are socially responsible in areas of quality product and services, business ethics and morals, welfare of their employees and her environment and in the area of training and development of employees.
- It is discovered that organization’s brand becomes more popular in the course of involvement in charitable venture.
- It was also discovered that corporate social responsibility has helped the organization in penetration
- Corporate governance has influence on organizational profitability in Nigeria.
- The study reveals that because of involvement of organization in corporate social responsibility and creating good public image of the organization.
- The major findings show that organization’s involvement in corporate social responsibility has a positive effect on their performance in the area of profit, operating efficiency financial strength and stability objectives and social responsibility performance.
Conclusion
In conclusion the organization in Lagos are involved in carrying out social responsibility which has a positive effect on their performance and making them gain competitive advantage over their competitor in the organization industry and serving as treat to other sectors who are planning to diversify into the sector.
Druver (1994) had if that healthy business cannot exist in a sick society that is to say that healthy organization who operate in an unhealthy environment and are not involved in corporate social responsibility will not be able to survive in such environment. Therefore, significant businesses opportunities like in solving the social and environmental problems, which in turn improve the performance of the organization.
Recommendation
In view of this study, the following recommendation should be implemented to encourage other organizations and other sector of the economy to be socially responsible.
- Organization should take corporate social responsibility as one of their primary objectives.
- Government should formulate policies to compel the business organization to perform corporate social responsibility and also formulate policies of pearlier the organizations who fail to perform or carry out corporate social responsibility.
- Organization should conduct self-appraisal within and outside the organization to know their performance so far in their corporate social responsibility
- Organizations carrying out corporate social responsibility should be more concerned with environment and environmental problems.
- Social responsibility should be targeted at project that will have significant impact on the standard of living of people in the community.
- In as much as corporate social responsibility should be targeted to charitable programmes in Nigeria must be more to the customers so as to have impact on the patronage and move the organization profitability.
- Also corporate social responsibility should not neglect the owner of the business in form of the shareholders of the organization.
- Corporate social responsibility must be targeted into a venture that will promote their product and expand their market penetration.
REFERENCE
- Wood (1991) corporate social performance. Henderson, david (2001) false notion of corporate social responsibilities, institute of economic affairs.
- McWilliams Abigail ; seigel Donald ;Wright Patrick (6, April) corporate social responsibility and financial performance.
- McWilliams Abigail ; seigel Donald ;Wright Patrick M.(march 2006) ‘corporate social responsibility international persepective.
- Rosenberg,Mathew J.(1, April 2002) review of misguided virtue; false notion of corporate social responsibility .
- Saether , kim T Ruth V.Acynilera (2008) corporate social responsibility in a comparative persepective, Seigel ,Donald S. (2009) Green management matter only if it yield more green.
- Smith , Nicola (2013) “corporate social responsibility” Wieland , Andreas , hand field , Robert B (2013) the socially responsible supply clean.
