An Appraisal of Social Responsibility on Corporate Organization in Enugu. (A Case Study of Anambra Motor Manufacturing Company (Anammco) Emene, Enugu)
Chapter One
OBJECTIVES OF THE STUDY
Corporate organizations naturally have their mix and different emphases. The overall objectives of every organization are survival growth, profit, economic contribution, and social obligation. It is a known fact that firms in Nigeria usually place more emphasis on profit maximization. The objective of this research work includes the following:
- To examine the general attitude of ANAMMCO towards social responsibility.
- To examine the consequences of the company ignoring its social responsibilities.
- To evaluate the problems which hinder the performance of social responsibility practice by
- To recommend possible solutions for the identified problems
CHAPTER TWO
REVIEW OF RELATED LITERATURE
THEORETICAL FRAMEWORK OF THESTUDY
The theories of corporate social responsibility according to Professor Domenec Mele in the book “Oxford Handbook of corporate social Responsibility’’, can be distinguished into four (4) theories which include the following:
Corporate Social Performance: Business has power and power requires responsibility. Society allows companies to operate and in return they must serve society not only by creating wealth, but also by contributing to social needs and satisfying social expectations towards business. In a positive sense, corporate reputation is related to the acceptance by the community in which a company is operating.
According to Mele, however, this model has several weaknesses. Most notably the greater attention given to social demands than to corporate social responsibility becomes merely a social control of business, giving a human face to capitalism.
- Shareholder Value: here, a company’s sole responsibility is to generate profit and in6crease the value of its stock. Social activities are only carried out if stipulated by law or if the activity contributes to increasing share value. Mele further stressed that compliance with the law is limited, according to him; companies can follow the letter of the law yet still exploit workers, consumers and resources. Thus, to achieve sustainable economic success, executive need to take account of the interests of their employees, customers, distributors, and other stakeholders says Mele.
- Stakeholder Theory: This theory recognizes that a firm has interdependent interest groups-employees, customers, suppliers, he local community draft from shareholders, and it is the satisfaction of all these legitimate interests that leads to long-term However, detractor’s claim that this can lead to opportunism, since self-serving executives justify any decision or action by arguing that it favours stakeholders. Another objective is that it treats all interest equally, when in fact; each one has different rights and competing claims.
- Corporate citizenship: with corporate citizens the key concept is participation in society, going beyond fulfilling legal duties as occurs with citizenship, to actively contributing to the good of society or the whole, as in the case of “global corporate citizenship”, which has been talked about more
This theory recovers the position of the company in society and suggests that the company stands shoulder to shoulder with citizens who together form a community. It expands the functionalist vision that would reduce business to an economic purpose. Moreover, it has a global scope. Critics to this theory however, argued that the concept is too diffuse, and it is difficult to define global standards for corporate citizenship. Nonetheless, a growing number of companies, particular translational firms, are adopting this approach. Mele concluded by saying that “no single theory has all the answers”. He therefore advise companies to release the arguments as that is the only way to justify or reject certain practices and inspire new ones.
HISTORICAL BACKGROUND OF THE STUDY
ANAMMCO is a major joint venture between government of Nigeria and Daimler Chrysler A. G, Germany. The company manufactures commercial vehicles and leads in the commercial vehicles from five tone payload and above in Nigeria.
The plant which occupies a sprawling 300,000 square meter at Emene, in Enugu State is a shining example of a profitable and viable economic and
technological co-operation between the government and the people of Nigeria and Daimler Chrysler. ANAMMCO was incorporated in 17th Jan, 1977 and the plant was commissioned on July 8, 1980 by the first executive president of Nigeria Alhaji Shelu Shagari. It started official production in Jan, 1981 and has up tile date made an enviable mark on the nation’s industrial growth, adding over 25,000 vehicles to the nations transport sector backup effectively with a network of over 36 after sales services points and spare parts supply depots.
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
RESEARCH DESIGN
The research method employed in any research is determined by the nature of the research problem and by the objectives of the study. Since this research is aimed at appraising social responsibility practice by corporate organisation with Anambra Motor Manufacturing Company located in Emene, Enugu as the case study, the research method that was appropriate is the survey approach.
Survey research, according to Onah and Ovute (1998:8), is the one in which a group of people or thing is studied by collecting and analyzing data from people or items (samples) considered being representation of the entire population. Since the survey method aims at studying the entire population using the sample, it does appear that the survey approach is appropriate for the research work.
SOURCES OF DATA
Primary and secondary data sources were used in conducting the research work. However, primary sources of data accounted for the lion’s share of the data used for the research work.
PRIMARY DATA
According to John Orijh (2009:45) primary data includes direct accounts of events or phenomena which are obtainable form observation, direct participations, questionnaires, interviews etc. it is called raw or original data. The data collected from this source are usually fresh, not stable or outdated and satisfy the requirements of this research work. Different sources of primary data were used.
ORAL INTERVIEW
The research applied the oral interview method of data collection where the researcher met some of the respondents and asked them necessary questions. The responses from these respondents were recorded instantly.
The researcher considered the oral interview necessary as respondents who did not quite understand the objectives of the study tried to avoid answering some of the question in the questionnaire.
Questionnaire Administration
A well-structured questionnaire was designed by the researcher for service or an intermediate staff in ANAMMCO. The questionnaire was personally presented to the respondents by the researcher. The questionnaire consisted of printed questions in which the respondents have to fill in the answers. They researcher made use of multiple choices in the questionnaire.
SECONDARY SOURCE OF DATA
The researcher also generated data from literature review from text books, and journals including newspaper prints from library.
POPULATION OF THE STUDY
According to Uzoagulu (1998:63) “the population is the target of the study”. The population of the study is the number of subjects that are concerned with the matter under discussion. It defines the limit within which the research study findings are applicable. The researcher found out that the populations of ANAMMCO work force were graded as follows.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
QUESTIONNAIRE DISTRIBUTION AND COLLECTION
In this chapter, efforts will be directed towards the presentation, analysis and interpretation of data, which were collected from the field survey. In doing this, tables and percentages were used at appropriate places to make the analysis very simple and understandable.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS.
After statistically analyzing the appraisal of social responsibility practice by Anambra Motor Manufacturing Company Emene, Enugu, the following comprise the major findings of the study.
SUMMARY OF FINDINGS
First of all, the study showed that business organisation scan significantly carryout a successful social responsibility practice. This is shown by the 84.59, response rate, among the three (3) categories of staff as clearly indicated in table 4.2.
Secondly, the study revealed that social responsibility programmes should be significantly legalized so as to compel corporate organisation into rendering social services to the environment in which they operate. This is shown by the 73.6% of the respondents supporting the idea in table 4.4.
Also, the study further revealed in table 4.5 that social responsibility practice by organisation can reasonably be achieved in different firms, particularly in provision of cheap and quality goods and services which attracted the highest response rate of 66.4% of the respondents. Other areas where business social responsibility can be charity and pollution control which gained the support of 8.2%, 2.7% and 9% of the respondents respectively. Profit making is not equally left out as 13.2% of the respondents, are of the view that profit making also counts among social responsibility practice.
As for where should funds be sourced for financing social responsibility programmes should be obtained, 75% of the respondents opined that funds for carrying out social responsibility can be researching be obtained from retained earning after tax as shown in table 4.6.
On when should business organisation be society responsible, 84.1% of the respondents in table 4.7 stated that business organisation should be socially responsible at all times.
Finally, the study further revealed that all incorporated firms no matter their size should execute social responsibility programme. In table 4.8, 36.4% of the respondents supported this assertions when they disagreed that business should not only focus its attention on only profit making but should extent its activities to solving social problems.
CONCLUSION
Nigeria Corporate Organisation have to a large extent been involved in execution of social responsibility programme is a bid to be socially responsible.
In this regard, corporate organizations have generally satisfied social expectations. Programmes undertaken consist meanly of providing cheap goods and services and profit meaning. Very few organizations have involved themselves in activities as moral issues anti corruption and anticrime crusades. Instead they concentrated on the provision of cheap quality goods and services and profit making.
This however, is not sufficient corporate organisation should as a matter of importance began to engage more in pollution control emanating from industrial toxic wastes of all kinds. Carrying out research studies especially into economic matters is not left out. This is important because it is a means of exposing business opportunities. It is necessary also because of the increasing awareness and sophistication of the Nigerian population. Business organization must be ready to more than ever to be able to gauge society expectations. Corporate organisation should not, however, get carried away by the virtue of being socially responsible. It is a truism that business can play an important role in the non-economic sphere but, this can be better achieved if business organisation do not forget the primes and original aim of business performance should equally extend it’s tentacles to solving social problems.
RECOMMENDATIONS
In view of the findings of the study, the following recommendations are made.
- Nigeria firms especially the smaller one should change their present attitude and become are involved in social issues, because times are changing and opinions are equally changing especially as more people get educated, demand for them to get involve will also increase.
- In getting involved in social issues, the firms should not forget the original and major aim of the business by ensuring its growth and prosperity. In making decision on social responsibility, economic efficiency should be the watch
- Business has to develop a code of ethics. This becomes essential when one considers what respondents say in the affirmative about the decision of business pertaining the issues of social responsibility.
- Business organizations are creatures of society; therefore, they should reciprocate by being socially responsible to the society because, it is normal and right thing to
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