Effect of Corporate Social Responsibility on Organizational Performance (A Case Study of Nestle Nigeria, Plc)
Chapter One
OBJECTIVES OF THE STUDY
The main objective of the study is to find out the Effect of Corporate Social Responsibility on Organisational performance. Specific objectives were as follows:
- To examine different aspects of Corporate Social Responsibility employed by the Organisation.
- To determine the influence of Corporate Social Responsibility on customer responses to Organisational products.
- To find out the effect of Corporate Social Responsibility on community development
- To determine the effect of Corporate Social Responsibility on organizational profitability and competitiveness.
- To make plausible recommendations on how Corporate Social Responsibility could be employed for improved Organisational and Community/National poverty.
CHAPTER TWO
REVIEW OF LITERATURE AND THEORETICAL FRAMEWORK
INTRODUCTION
This chapter shall seek to review the opinions of people who have to comment on roles of business vis a vis their corporate social responsibility. It shall also delves into books, journals and materials from the internet that concern themselves with the topic corporate social responsibility.
At the end, some opposing views are expected. On the one hand, there are those we can regard as idealist who would argue that corporations should shoulder most of the identifiable social responsibilities. While on the other hand some one might called the purist who would rather argue that business should concentrate on their traditional roles of providing goods and services at a profit.
In between these two opposing views are those who believe that corporations are doing their best given the hostile business environment they operate, but can be made to do more with some incentives give to them.
REVIEW OF LITERATURE AND THEORETICAL FRAMEWORK
Corporations around the world are struggling with a role, which is to meet the needs of the present generation without compromising the ability of the next generation to meet their own needs. Organizations are being called upon to take responsibility for the ways their operations impact societies and the natural environment. They are also being asked to apply sustainability principles to the ways in which they conduct their business. Sustainability refers to an organization’s activities, typically considered voluntary, that demonstrate the inclusion of social and environmental concerns in business operations and in interactions with stakeholders (Van Marrewijk & Verre, 2003).
To understand and enhance current efforts, the most socially responsible organizations continue to revise their short and long-term agendas, to stay ahead of rapidly hanging challenges.
In addition, a stark and complex shift has occurred in how organizations must understand themselves in relation to a wide variety of both local and global stakeholders. The quality of relationships that a company has with its employees and other key stakeholders – such as customers, investors, suppliers, public and governmental officials, activists, and communities is crucial to its success, as is it ability to respond to competitive conditions and corporate social responsibility (CSR).
Corporate responsibility or sustainability is therefore a prominent feature of the business and society literature, addressing topics of business ethics, corporate social performance, global corporate citizenship, and stakeholder management. Management education can be an important source of new ideas about shifting toward an integrated rather than fractured knowledge economy, but this means also that the role and meaning of socially responsible leadership needs to be updated.
The literature also reveals that although the aspiration of many corporations to contribute to a better world is great, translating that aspiration into reality proves to be somewhat of a challenge. A new framework for companies to embrace comes from the recognition that profit alone does not guarantee sustainable success but needs to be balanced with other factors: reputation, brand value, CSR, and retention of human capital.
The literature indicates that Corporate Social Responsibility is not just as a philosophy or a feel-good philanthropy but a methodology suitable for business purpose in the sense that a good application of Corporate Social responsibility techniques supports long term performance.
Making the connection between high performance and Corporate Social Responsibility, Arena (2007) who argued that a high performance company (or as she called it, a high-purpose company) is the one that demonstrates a true commitment to innovation, sustainability and corporate health. She pointed to the fact that corporate responsibility is about innovation, goes beyond “doing good” and indeed pays off. Arena argued that purpose and performance are intertwined in high-purpose companies, meaning that the company’s growth, stature, revenues and culture are driven by this purpose every single day. In this way, purpose becomes their main source of identity, stability and energy.
CHAPTER THREE
RESEARCH METHOD
INTRODUCTION
Research method is a very important aspect of a sound research project and as such must not be toiled with. It is the bedrock of any research work.
That is, the success of any research work is dependent on the methods adopted or techniques employed in data collection.
The Researcher must be very careful in choosing the population of study, sampling procedures and technique, method of data collection and analysis.
In this work, attempt would be made to describe in details the method employ in data collection, population of study, sampling procedures and technique and method of data analysis.
RESTATEMENT OF RESEACH QUESTIONS AND HYPOTHESES
Are Nigerian businesses/ organizations socially responsible?
What are the major implications of the methods of production of these Organisations in relation to the Corporate Social Responsibility agenda?
Are Customers/Stakeholders fully benefited from the Organisations practicing Corporate Social Responsibility?
Does Corporate Social Responsibility have a place in the organizational performance and effectiveness?
What role do Corporate Social Responsibility of organisation impact on the workforce/employees?
RESEARCH DESIGN
This research work will be carried out by using questionnaire, observation techniques, journals, textbooks and other relevant materials.
Simple percentage will be used to analyse respondents’ responses to the question asked in the questionnaire.
POPULATION OF STUDY
This study will be considering a total of (105) One Hundred and five randomly selected members of staff. Consisting of junior staff, senior staff and Management staff of the organization.
The questionnaire will contain a total of 20 questions which will be used to generate the findings of the research work.
CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
INTRODUCTION
This chapter gives in detail how the data collected were analysed, examined ad interpreted. More so, presentation of data according to the research questions and hypothesis were made and tested appropriately and the results were discussed extensively.
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
INTRODUCTION
This chapter presents the summary of findings, recommendation and conclusion drawn from the field survey. One was to determine whether there is a significant relationship between corporate social responsibility and method of production of an organisation. Second, if there significant relationship between corporate social responsibility and community development. Third, to determine if there is significant relationship between corporate social responsibility and customer retention. Finally, if there is significant relationship between corporate social responsibility and organizational competitiveness.
The procedure employed in this study include the following components
- Identification of the population of the study
- Development of an instrument for the study
- Distribution of the instrument for the study
- Presentation of an analysis of the data resulting from returns instrument
- Development of a report drawing conclusion from the data
- Development of recommendation drawn from the data and facts gathered from Nestle PLC.
SUMMARY
Organisations can achieve corporate social responsibility if they attempt to identify and solve these social problems in which they are immediately involved and then the possibility of profit is available as an incentive. They may also be able to prevent future social problems by careful goal setting in the areas of their broader responsibilities and by careful analysis of the consequences of their corporate social responsibility. The term corporate social responsibility means an intelligent and objective concern for the welfare of the society without being forced to do so. It represents organisations from destructive activities and encourages actions that are in the best interest of the society.
Modern business organisations that are desirous to make profit, grow and survive must redirect their focus, policies and efforts by anticipating corporate problems and try as much as possible to solve these problems.
The new concept of corporate social responsibilities no longer asks what the limitations on business are or what business should be done for those within its immediate environment. It demands that business take responsibility for corporate social problems. Corporate issues and political goals that are by-products of the organisations itself. However, in spite of the enormous benefits and opportunities provided by corporate social responsibility, quite a large number of businesses are still lagging behind in this regard, economic reasons, imposing additional responsibility as well as draining their defence. However, whatever stands business may take as to what corporate social responsibility is or what it ought to be or entails, the operational message for them is clear. Corporate social responsibility demand is an important environment at global level. In order to ensure that a proper focus and direction for the study is highly accomplished, purpose; objectives and research hypotheses were formulated as well as the significance of the concept was done. Data were generated via questionnaires and interviews and were extensively analysed to determine the effects of corporate social responsibility have a positive effect on organisational performance. The strength of the positive result was also tested to determine its validity reliability. This ultimately led to the rejection of the null hypothesis and the acceptance of the alternative hypothesis.
CONCLUSIONS DRAWN FROM THE FINDINGS
The conclusions drawn from this study are based on result of the tested hypothesis and analysis of the data resulting from the returns of the instruments of the study.
The conclusion drawn from the first hypothesis is that corporate social responsibility will positively affect method of production of an organisation. It then revealed that if there is an increase in corporate social responsibility of an organisation, the corporate image of a firm will also improve. The reverse would be the case if the corporate social responsibility diminishes. The conclusion drawn from the second hypothesis is that corporate social responsibility has positive impact on community development. The conclusion drawn from the third hypothesis is that corporate social responsibility will have impact on customer retention. It was revealed that if there is an increase in corporate social responsibility the customers would also increase. The reverse would be the case if corporate social responsibility diminishes. The conclusion drawn from the fourth hypothesis is that corporate social responsibility will lead to the organisation competitiveness/performance.
The following CONCLUSION WERE DRAWN FROM THE DATA ANALYSIS
- That if an organisation provides series of obligations to the community where it resides it will to a great extent serve as a means of building good image for the firm
- That it is very necessary for business to be involved in the solution to major corporate social problems, if society is to remain a good ground for meaningful business operation.
When corporate social responsibilities are discussed these days, the emphasis is however quite different. It is either what business should or might do to tackle and solve the corporate problems or the emphasis on the contribution business can make to such corporate social problems. Healthy business requires a healthy or at least a functioning society.
RECOMMENDATIONS
In view of the study, the following recommendations are therefore proffered
- Organisations should see responsibility as business opportunity that is profitable in the long run.
- Organisations should on a frequent basis identify with social problems by helping to solve these problems as much as they can.
- Government should implement policy proposals to match government expenditure with revenue projections, keep inflation rate at one digit as promised and take good care of decaying infrastructure.
- Business organisations should prevent future social problems by careful goal setting in the area of their broader responsibility to society and by carefully analysing the consequences of their corporate social responsibility goals
- Maintain the ten rules/recommendations of corporate responsibility
- Thou shall work with corrective actions before it is required
- Thou shall with affected constituents to resolve mutual problems
- Thou shall work to establish industry wide standard and self regulation
- Thou shall publicly admit your mistakes
- Thou shall help to correct environmental problems
- Thou shall get involved in appropriate social programmes
- Thou shall monitor the changing corporate social environment
- Thou shall establish and enforce a corporate code of conduct
REFERENCES
- Adeleke A. Ogundele. O.J.K and Oyenuga, O.O (2003), Business Policy and Strategy, Lagos: Concept Publications
- Anderson J., Frankle A. (1980), “Voluntary Social Report: An Iso-Beta Portfolio Analysis”, Accounting Review 55: 468-479
- Arena, C. (2007), The High-Purpose Company, Collins Business
- Aupperle K. E., Caroll A.B., Hatfield J.B. (1985), “An empirical examination of the relationship between corporate social responsibility and profitability”, Academy of Management Journal 28: 446-463
- Bello, J.A(1988) Social Responsibility of Management in Nigeria, in O. Iyauda
- J.A and Bello (Eds) Elements of Business in Nigeria PP 283-310 Lagos: University of Lagos.
- Bennett,R.(1988) Management,2ed.London: Pitman Publishing.
- Bowen, H.R(1953) Social Responsibility of Businessman, New York: Harper and Raw publishers Inc.
- Buchholz, R.(1991) Corporate Responsibility and Good Society, From Economy To Ecology, Business Horizon July- August,pp.19.
- Carroll A. B., (1979) “A Three-Dimensional Model of Corporate Performance”, Academy of Management Review, 4 (4): 497-505.
