The Impact of Corporate Social Responsibility on the Financial Performance of Multinational Companies in Nigeria
Chapter One
Objective of the study
The objectives of the study are;
- To investigate the impact of corporate social responsibility on financial performance of multinational companies in Nigeria
- To ascertain the impact of corporate social responsibility on the long term business success
- To ascertain the effect of corporate social responsibility on the image of the company
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Concept of Corporate Social Responsibility (CSR)
Arguments for and against CSR have persisted over the years. It is anchored on whether business is seen primarily as an economic system responsible only to satisfy their owners or a socio-economic system responsible to various interest groups such as employees, consumers, community and environment Okeudo, (2012). CSR as a concept has no consensus definition. Various scholars‟ definition is based on their background, interest, exposure as well as values embodied in their frame of reference. CSR is also called corporate conscience or corporate social performance and based on the duties performed by organizations to the society in which they operate such as, protection of the environment, provision of social amenities, donations to health organisations, charitable contributions to approved organisations and so on, Odetayo and Adeyemi (2017). Black (2009) classifies CSR into four categories which are; Enterprise (Supporting and developing initiatives to nurture budding enterprises and boost enterprise), Education (Helping to bring new horizons into the lives of young people), Arts and Culture (Providing assistance to a range of artistic activities and bringing communities together) and Environment (encouraging efforts to safeguard the environment and improve the quality of life). Onabanjo (2015) provides what he calls a partial list of CSR categories which includes being responsible for; product lines, marketing practices, employee service, corporate philanthropy, environmental activities and employee safety and health. CSR as posited by Olaroyeke and Nasieku (2015) encompasses a variety of issues revolving around companies‟ interactions with society. It refers to sets of actions that appear to further some social good, beyond the interests of the firm and that which is required by law (McWilliams & Siegel, 2018). As such it involves a wide range of activities such as being employee-friendly, environment-friendly, and respectful of communities where the firms‟ plants are located, and even investor-friendly (Bénabou & Tirole, 2017). According to Enahoro, Akinyomi, & Olutoye, (2018), CSR covers a wide range of issues such as plant closures, employee relations, human rights, corporate ethics, community relations and the environment. In essence, CSR may be described as an approach to decision making which encompasses both social and environmental factors. It can therefore be inferred that CSR is a deliberate inclusion of public interest into corporate decisions making and the honouring of a triple bottom line which are People, Planet and Profit (Harpreet, (op cit). The triple bottom line is considering that companies do not only have one objective; profitability, but that they also have objectives of adding environmental and social value to society (Mirfazli, 2018). Given the globalisation trend in all spheres of business organisations, attention of corporate entities are necessarily shifted from solely owners‟ interests and the satisfaction of customer needs to include other relevant stakeholders that can affect or are affected by companies‟ activities. Odetayo, Adeyemi and Sajuyigbe (op cit) holistically described CSR as the organisation responding positively to emerging societal priorities and expectations, conducting business in an ethical way and in the interests of other stakeholders in the society. In fact, the idea of CSR implies how organizations can manage its business process to produce an overall positive impact on economic development of society. It also means how organizations behave ethically and contribute to economic development of the society by improving the quality of life of the local community and society at large.
CHAPTER THREE
RESEARCH METHODS
This chapter examines the various methods and procedures that will be adopted in carrying out this study. These include the following: design of the Study, area of the study population of the Study, sample and sampling techniques, instrumentation, validation of the instrument, reliability of the instrument, method of data collection, method of data analysis and decision rule.
Design of the Study
The study adopted a descriptive survey research design in which questionnaire and other form of instrument for data collection was considered appropriate for data collection. This design was considered suitable for the study because of its ability to describe the behavior of a given group of people.
Population of the Study
The population of the study consist all staffs of shell company of Nigeria and Agip company in Portharcourt, Rivers state
CHAPTER FOUR
RESULTS AND DISCUSSION OF FINDINGS
This chapter presents the result and discussion of findings based on the following; answer to research question, test of hypotheses and discussion of findings.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was on the impact of corporate social responsibility on the financial performance of multinational companies in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of corporate social responsibility on the financial performance of multinational companies in Nigeria
Summary
This study was on the impact of corporate social responsibility on the financial performance of multinational companies in Nigeria. Three objectives were raised which included: To investigate the impact of corporate social responsibility on financial performance of multinational companies in Nigeria, to ascertain the impact of corporate social responsibility on the long term business success and to ascertain the effect of corporate social responsibility on the image of the company. In line with these objectives, three research questions and hypotheses were formulated and answered. The total population for the study is 260 staff of shell company of Nigeria and Agip company in Portharcourt. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study.
Conclusion
Since the inception of oil exploration in Nigeria several years ago, the international oil companies have grapple with the challenge of living up to the expectations of their host communities in terms of their corporate social responsibility. These have at one time or the other leads to series of protest from the host communities which have resulted in the shutdown of their operations. Corporate social responsibility had two meanings, first it is a general name for any theory of the corporation that emphasizes both the responsibility to make money and the responsibility to interact ethically with the surrounding community. Secondly corporate social responsibility is also a specific concept of that responsibility to profits while playing a role in the broader questions of community welfare. CSR is seen as a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on the voluntary basis.
Recommendation
Based on the findings of the study, the following recommendations were made
- The multinational companies should always seek for ways to ensure a cordial relationship with their host communities.
- The multinational Companies should carry out their operations in such a manner that will not endanger the environment.
- The multinational companies should always integrate corporate responsibility into their agenda.
References
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