Effects of Cooperate Social Responsibility on Profitability of Multinational Companies (a Case Study of Nestle Nigeria Plc, Agbara)
CHAPTER ONE
OBJECTIVE OF STUDY
The essence of this study is to know the extent at which corporate social responsibility is truly beneficial to an organization, employees shareholders, government, society and consumers as claimed by many business analysis.
CHAPTER TWO
INTRODUCTION
This chapter focuses on the depth analysis of subject giving in detail, what corporate social responsibility area of increasing the image of that organization.
THE CONCEPT OF CORPORATE SOCIAL RESPONSIBILTY
Corporate social responsibility (CRS) also called corporate conscience, corporate citizenship, social performance or sustainable responsible business.
According to D World (1991) it is a form of corporate regulation integrated into a business model. CRS policy functions as a built in self regulating machines whereby a business monitor and ensures its active compliance with the spirit of the law, ethical standard and international norms. In some models, a firm implementation of CRS goes beyond compliance and engage in actions that appear to further some social good beyond the interest of the firm and the which is required by law.
According to MC Williams Abigael and Slegoel Donald (2001) CRS is a process with the aim to embrace responsibilities for the company’s action and encourage a positive impact through its activities on the environment consumer employee communities stakeholders and all other members of the public sphere who may also be considered stakeholders.
Degeorge Richard (2010) says the term “corporate social responsibility” became popular in the 1960’s and has remained a term used indiscriminately by many to cover legal and moral responsibility more narrowly constructed.
Scholars argues that corporations make more long term profit by operating with a prefectures while critics argues that CRS distract from the economic role of business.
McWilliam and Slegel article (2000) published in strategies management journal compared existing econometric studies of the relationship between social and financial performance.
McWillliam and Slegel demonstrated that when the model is properly specified that I is when you control for investment research and development an important that is when you control for investment in research and development an important determinant of financial performance CRS has a neutral impact on financial outcomes.
Shamir Ronen (2011) a political sociologist became interested in DCRS in the context of theorist of globalization neoliberalism and CRS as a form of capitalist legitimacy and in particular point out that what has begin as a social movement against inhibited corporate power has been coped by and transformed by corporation into a business models and a risk management device, often with questionnaire result.
Some business analysis like Kim T and Ruth V (2008) have different view identified between Canadian Europeans and the Anglo Saxon approaches to CRS, it is said that for Chinese consumer, a socially responsible company makes safe, high quality product for Germans, it provide secure employment in South Africa, it make a positive contribution to social needs such as healthcare and education, and even in Europe the discussion about CRS is very heterogeneous.
According to Marguts C (2013) emphasizes that some organization do not like a philanthropy based approach as it might not help build on the skill of local populations whereas community based development generally leads to sustainable development.
CHAPTER THREE
INTRODUCTION
This chapter focuses in the way this research study was practically done and how the process involve in terms of structuring and recording how activities on the field was carried out by the researcher. It involves the reason the research was designed using survey research method how the sample size was gotten and moist importantly how the hypothesis are to be tested using chi-square (x2) statistic tool to measure each hypothesis.
RESTATEMENT IF RESEARCH QUESTION AND HYPOTHSIS.
The research question as stated previously in chapter one are as follows:
- Does corporate responsibility increase sale and customer loyalty?
- Does social responsibility helps in retaining and attracting employees?
- Does corporate social responsibility enhances product safe by and decrease liability?
The research hypotheses are as follows:
HYPOTHESIS ONE
H0: Corporate social responsibility does not enhance the image reputation of an organization.
H1: Corporate social responsibility enhances the image reputation of an organization.
HYPOTHESIS TWO
H0: Corporate social responsibility does not increase sales and customer’s satisfaction.
H1: Corporate social responsibility increase sales and customer’s satisfaction.
CHAPTER FOUR
DATA PRESENTATION ANALYSIS AND INTERPRETATION
INTRODUCTION
This chapter deals with presentations, analysis and interpretation precise details about the collected data, making it easier for the reader to have a good understanding about the collected data and the opinions of the employees and customers at Great Kings Hotel, Igbesa, Ogun State.
The research questions are presented in two ways due to the fact that there are distinct questions for both employees and customers. The number of employees that returned their questionnaire are all the five employees working at Great Kings Hotel and the number of customer who are mostly business administration students of the Ogun State Institute of Technology that return their questionnaire are 15 out of the 20 customers the researcher administered question on. The presentation was done by respondents who are employees and customers with much emphasis on the number of returned questionnaire which is twenty during test of hypothesis.
RESPONDENT CLASSIFICATION AND CHARACTERISTICS
The presentation in this section which happen to be the section A of the questionnaire was done without separating the classes of respondent i.e. data on both employees and customer attribute were combined and presented collectively without any attempt to separate the 5 employees attributed from the attribution of the 15 customer unlike what we did in Section B of the questionnaires.
CHAPTER FIVE
INTRODUCTION
This chapter focuses on the summary, conclusion and recommendation based on both the theoretical and empirical investigation carried out by the researchers in order o achieve the research objective and also to make the significance of this study established.
FINDINGS
This study has been to critically examine and analyzed the importance of corporate social responsibility being a business tool or function that assists promoting a good image or reputation in business. It has presented the benefits enjoyed in business by various stakeholders like employed customer, organization e.t.c when an effective corporate social responsibility is established.
The study has presented the constraints involve by the parties involve when carrying out a proper corporate social responsibility program. It has been argued by most scholars advances that business organization should focus on their primary motive of engaging in business and not embarking on what will require huge cost like corporate social responsibilities.
Again, it is said by scholars that corporate social responsibility does not have an impact on profit procurement since organization had made provision of good sense and also promoting a cordial relation which will in turn help to increase demand and also create a good image.
CONCLUSION
The increasing attention and popularity of social responsibility as an important business concept is no more in doubt as society calls on business organization to be responsive to the societal needs and exhibits more consciousness that portray higher managerial ethics which will turn out to improve organizational image. This is why most organizations particularly profit. It making firms have accepted social responsibility as the proper business philosophy, hence it has become a standard corporate policy. Although this does not mean it is always practiced as tip service is often paid to it in many quarters when the cost is weighted against the benefits.
RECOMMENDATION
After all the findings, both theoretical and empirical, the researcher come up with this recommendations:
- An organization must not damage or destroy its ability to discharge its first and main task in the name of social responsibility. Whatever the primary function of an organization may be whether healthcare, economic services and education etc that should be seen as the reason for its existence and its first responsibility.
- 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 organization who fail to perform or carryout corporate social responsibility.
- Management must embark on a very critical survey on the adapted corporate social responsibility concept by them.
- Organization should conduct self appraisal within and outside the organization to know their performance so far in their corporate social responsibility.
- Organization 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 programs in Nigeria. It must be more to the customers so as to have impact on the patronage and move the organization profitability.
- Corporate Social Responsibility must be targeted into a venture that will promote their product and expand their market penetration.
All this will assist and help them in knowing if cost to be incurred is more or greater than benefits to be divided.
REFERENCES
- Ajonbadi Hakeem (2000) applied business management theory, Lagos VitagePublishing Company.
- Asilca Nnamdi (2012) Research Methodology in Behavioural Science. Lagos Learn Africa Plc.
- Clement Williams (2007) Business Methods and Application, New York Harper and Row Publisher.
- De George Richard (2010) Business Ethics. Los Angeles. Macmillan Book Co.
- Hendeson David (2000), False Notion of Corporate Social Responsibility. Journal of Institute of Economic Affairs pg 171
- Hoessle Ulrike (2013), Ten Steps Towards a Sustainable Business, London, Heineman.
