Corporate Social Responsibility A Necessity To Business Organizations
In contemporary business landscapes, Corporate Social Responsibility (CSR) has evolved into an indispensable aspect for organizations, aligning profit-driven endeavors with ethical, environmental, and societal responsibilities. Integrating Corporate Social Responsibility practices into business operations is no longer merely optional; rather, it has become imperative for fostering sustainable development, enhancing brand reputation, and maintaining stakeholder trust. Businesses recognize the significance of engaging in philanthropic initiatives, implementing environmentally sustainable practices, and prioritizing social welfare to mitigate negative impacts and contribute positively to the communities they operate in. Embracing Corporate Social Responsibility not only demonstrates ethical leadership but also cultivates long-term viability and resilience in a competitive marketplace, where consumers, investors, and employees increasingly demand ethical accountability and social consciousness from corporations. Thus, CSR emerges not only as a moral obligation but also as a strategic imperative for modern business entities striving for holistic success and societal relevance.
The concept f corporate social responsibility has generated a lot of controversy over the years. While some executives and economists argue that the business of business is business alone, some strongly believe that business should become more involved with public interest.
This study is thus an attempt to have insight into the extent do which Guinness Nigeria Plc has been socially responsible to the needs of the different interest groups in the community in which it operates.
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of content
CHAPTER ONE
Introduction
1.1 Background of the study
1.2 Statement of study
1.3 Purpose of study
1.4 The scope of study
1.5 Research questions
1.6 Significance of the study
1.7 Limitations of the study
1.8 Definition of terms
CHAPTER TWO
Review of Relevant Literatures
2.1 The Issue of corporate social responsibility
2.2 The extent of social responsibility in Nigeria
2.3 The corporate social responsibility controversy
2.4 The power-responsibility equation
2.5 Business hazard on environment
2.6 Ethics and morality in relative to social responsibility
2.7 Effects of failure to be socially responsibility
CHAPTER THREE
Research Design and Methodology
3.1 Research design
3.2 Area of the study
3.3 Population of the study
3.4 Sample and sampling procedure
3.5 Instrument for data collection
3.6 Validation of the instrument
3.7 Reliability of the instrument
3.8 Method of data collection
CHAPTER FOUR
Data presentation and analysis
4.1 Presentation and analysis of data
4.2 Testing of hypothesis
4.3 Summary of results
CHAPTER FIVE
Discussion, Recommendations and Conclusions
5.1 Discussion of results and findings
5.2 Conclusions
5.3 Implications of the research findings
5.4 Recommendations
5.5 Suggestions for further research
References
Bibliography
Appendix
Questionnaire
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The concept of business social responsibility has continued to evolve and expand. Currently, the adequate and efficient use of resources to make profit is still seen as the primary social responsibility of business organizations.
The idea of corporate social responsibility started in the early stage of the twentieth century. Interestingly and good enough, it began from business executives who believed that corporations have an obligation to use their resources in ways that would benefit the entire society.
Nevertheless, the role of business firms is that of producing good sand services at a profit social expectations of business have increased so well that there is a need for social attention in order to narrow the gap between expectations and response and keep business in tune with the society. While an organization is concentrated in establishing its goals, objective developing and executing strategies for achieving its stated purpose, it should also recognized the fact that it operates within an environment which expects it to operate in such a manner that would not harm the particular environment.
Furthermore, this issue is so important to business organization in that if adequately maintained, it brings about good relationship between the organization and the society. In view of these, study which is narrowed down to Guinness Nigeria Plc can approximately be described as one of the most prominent and well-known company in the country. The company celebrated its 50th year (Golden Jubilee) in the year 2002. now, it is obvious that it has been in existence since the past 53 years in Nigeria and the demand for its product, no doubt has continued to grow and it has indeed remained consistently high all through the years.
This company majors in the production of small and big Guinness stout beer, harp, gulder, spasrk, malta Guinness, it also produced satzenbrau beer. This company has brouches in various pasrts of the country since early seventies, precisely 1974. its first production plant was established at Ikpoba scope in Benin city. Till today, the company has continued to grow and it remains of the most dominant and prominent companies in the brewery industry.
1.2 STATEMENT OF THE PROBLEM
A majority of Nigerian business organization have not shown sufficient interest to social responsibility. At present, many Nigerian businessmen’s attitude to social responsibility is that of non-challancy, they don’t see it as their responsibility. Nowadays this belief has resulted in conflicts especially in this era where greater number of people now believe that corporation should actively exist between the people and the organization. For this enhances the smooth running of business by the organization and maximum support by the society. In order to the maximum support by the society, the organization has to employ the following strategies reducing population, plans to educate the people, institute as public health care, employ the people of the area, it should also engage herself in environmental protection prgramme, see to the welfare of the people at large.
The issue of corporate social responsibility is treated within the context of this research work in relation with Guinness Nigeria Plc Aba activities with respect to consumers, employees and the public (community) perception to the issue by both community members and management of Guinness Nigeria seem to differ based on each group preferential needs, motives, valves, goals and aspirations. Guinness Nigeria is constantly maximizing profit but not much attempt have been made in balancing ethics with economics. A balance has to be struck between the actions of Guinness Nigeria which is profit maximization and the community wants. In the light of the above, this study attempts to determine the extent at which Guinness Nigeria Plc Aba has been socially responsible to the needs of the country.
1.3 PURPOSE OF STUDY
Social involvement has not replaced the basic economic role of business in society, but it does not introduce new goal for business to pursue and new constraints on how business will operate. Thus, this study has to highlight on these goals and constraints.
The following aims and objectives of this study came to mind in the choice of this topic:
(1) To evaluate the extent of Guinness Nigeria Plc Aba city involvement in social affairs.
(2) To identify the role it is expected to play in the area of corporate social responsibility.
(3) To know the impact of social responsibility an a company and the society
(4) To ascertain public impression, opinion and perception on the company.
1.4 SCOPE OF STUDY
In order to be able to effectively evaluate the activities of business corporations and the community in which they operate in terms of their social responsibility, this study will narrow down to determine how socially responsibility (Guinness Nigeria Plc Aba and the inhabitants of the environ.
1.5 RESEARCH QUESTION
The following questions have been raised in order to emphatically test the result from the questions in my questionnaire. The result of these questions in will form the basis for my conclusions and recommendations:
(1) Is the company concerned about the welfare of the people
(2) Does Guinness Aba contribute positively to the standard of living of the country.
(3) Does the community derive any benefit from the company at all.
(4) What is the perception of the public on the company about its involvement in social responsibility.
Answers to these questions would be a immense benefit in making meaningful recommendations which will aid the business corporate and government in its policy formulations.
1.6 SIGNIFICANCE OF THE STUDY
“A healthy business and a sick society are hardly compatible”, noted Peter Drucker (1980: 10). Business corporations constantly exercising responsibility is a way to reduce or avoid public criticism that leads to government regulations and which is made do make business corporations respond to the societal demands. This is because the long run self interest of business are served by energetic social responsibility.
Since Guinness Nigeria Plc is part of a major multinational corporation operating in Nigeria, becomes necessary to embark on a study of a multinational; corporation and its social responsibility with special attention on Guinness Plc’s actions Aba.
It is expected that finding would be useful to the organization in decision making and will help government in policy formulation. Furthermore, this study will serve to broaden the frontiers of knowledge and drop the attention of business corporations in the role they are expected to play in the society in which they operate. The emphasis of this study is on business society relation.
1.7 LIMITATION OF STUDY
The limitations of the study are associated with the diverse nature, attitude and perception of managers, most of whom did not consider it worthwhile offering their assistance in providing answers to the questionnaire. Majority were skeptical in providing required information.
There were problems of generating information from respondents as most of them were illiterates. There was also the problem of financial restraints which did not enable me travel far and wide and as frequent as necessary. These problems invariably lead to time and constraints.
1.8 DEFINITION OF TERMS
Corporate social responsibility:
This is what business should do to tackle and solve the problem of the society.
Corporate social responsiveness:
This means knowing how to manage a company’s relationship with external social political and government forces
Ethics:
This means the principle of conduct used to govern decision making.
Corporate Social Responsibility A Necessity To Business Organizations:
Corporate Social Responsibility (CSR) refers to the voluntary actions and initiatives that a business organization takes to address social, environmental, and ethical issues beyond its legal obligations and economic interests. While Corporate Social Responsibility is not legally mandated in many cases, it has become increasingly recognized as a necessity for business organizations for several reasons:
- Enhanced Reputation and Brand Image: Adopting Corporate Social Responsibility practices helps businesses build a positive reputation and strong brand image. Consumers are more likely to support companies that demonstrate a commitment to social and environmental issues, which can lead to increased customer loyalty and improved market positioning.
- Stakeholder Engagement: Corporate Social Responsibility initiatives engage various stakeholders, including customers, employees, investors, communities, and regulators. By addressing their concerns and interests, companies can foster stronger relationships and gain support from these groups.
- Risk Management: Corporate Social Responsibility can help mitigate potential risks associated with negative social or environmental impacts of business operations. Proactive measures to address these issues can prevent reputational damage, regulatory fines, and legal liabilities.
- Attracting and Retaining Talent: Employees are increasingly drawn to companies that align with their personal values and contribute positively to society. Corporate Social Responsibility initiatives demonstrate a company’s commitment to social causes, making it easier to attract and retain top talent.
- Innovation and Competitive Advantage: Corporate Social Responsibility encourages companies to innovate by finding more sustainable and efficient ways of doing business. This drive for innovation can lead to cost savings, improved operational efficiency, and a competitive edge in the market.
- Long-Term Sustainability: Businesses that consider the long-term impacts of their operations on the environment and society are more likely to remain viable in the face of changing regulations and consumer preferences.
- Social and Environmental Impact: Corporate Social Responsibility allows businesses to contribute positively to the communities in which they operate. By investing in education, healthcare, environmental conservation, and other social initiatives, companies can make a meaningful difference.
- Regulatory and Investor Expectations: While many Corporate Social Responsibility initiatives are voluntary, regulatory bodies are increasingly focusing on environmental and social compliance. Investors are also factoring in a company’s Corporate Social Responsibility performance when making investment decisions.
- Consumer Preferences: Consumers are becoming more conscious of the products they purchase and the companies they support. Businesses that demonstrate responsible practices are likely to attract a growing segment of socially aware consumers.
- Global Standards: Many international frameworks and guidelines, such as the United Nations Global Compact, provide principles for responsible business conduct. Adhering to these standards can enhance a company’s credibility on a global scale.
In conclusion, Corporate Social Responsibility has evolved from a nice-to-have to a necessity for business organizations. It not only brings about positive social and environmental impacts but also contributes to the long-term success and sustainability of companies in an increasingly socially conscious world.