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Practice Of Corporate Social Responsibilities In The Brewery Industry

(A Case Study Of The Nigerian Breweries Ama Enugu)

5 Chapters
|
80 Pages
|
8,871 Words

In the brewery industry, the implementation of corporate social responsibility (CSR) initiatives is integral to fostering sustainable business practices and addressing various societal and environmental concerns. Breweries often engage in CSR activities such as promoting responsible alcohol consumption through educational campaigns and partnerships with advocacy groups, investing in eco-friendly production methods to reduce carbon footprint and water usage, supporting local communities through philanthropic efforts including donations to charities and sponsoring community events, and ensuring ethical supply chain management by sourcing ingredients from fair trade suppliers. By actively participating in CSR practices, breweries not only contribute to the betterment of society and the environment but also enhance their reputation, build consumer trust, and differentiate themselves in a competitive market landscape.

ABSTRACT

The research is on the practices of corporate social responsibilities in the Brewery industry. (A case study of the Nigerian Breweries Plc Ama Enugu).
Primary and secondary data were collected to solve the research problem. Questionnaires were used as research instrument. The population of the study comprised the customers, management and relevant staff of Nigerian Breweries Plc in Enugu metropolis.
In order to carry out the work effectively the following objectives were formulated.
1) To determine whether Nigerian Breweries Plc Ama socially responsible in its operation.
2) To identify whether Nigerian Breweries Plc contribute to social causes.
3) To determine whether Nigerian Breweries Plc came about the environment which it operates.
In organizing and presenting the data collected, tables, frequencies and percentages were used while the hypotheses tested with chi – square. Based on this, the researcher recorded the following findings.
Customers in Enugu metropolis indicated that Nigerian Breweries Plc contributes to social causes.

TABLE OF CONTENT

Title page
Certification page
Dedication
Acknowledgement
Abstract

CHAPTER ONE:
1.0 INTRODUCTION
1.1 Statement of the problem
1.2 Objectives of the study
1.3 Significance of the study
1.4 Scope of the study
1.5 Research hypothesis
1.6 Definition of terms

CHAPTER TWO
2.0 THE PRACTICE OF SOCIAL RESPONSIBILITIES IN NIGERIA
2.1 Criticisms of social responsibilities
2.2 What is social responsibility and ethic purchasing
2.3 Areas of social responsibility
2.4 Factors affecting social ethical standard
2.5 Consumerism
2.6 Company’s profile

CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Source of data collection
3.2 Population of the study
3.3 Determination of sample size
3.4 Sampling techniques
3.5 Research instrument used
3.6 Method of data collection
3.7 Method of analysis
3.8 Limitation of the study

CHAPTER FOUR
4.0 Data presentation and
4.1 Analysis of data
4.2 Test of hypothesis

CHAPTER FIVE
5.0 Summary of findings
5.1 Recommendation
5.2 Conclusion
5.3 Bibliography

CHAPTER ONE

1.0 INTRODUCTION
Marketers should not only think of customers satisfaction as the key to profitability. The marketer operates in an environment. Where several forces are in a state of dynamic tension and these forces must never be under estimated by the marketer. Socially responsible purchasing recognizes that the organization is part of a larger society and as a result should be accountable to that larger society for its actions.
Okonkwo (2000:128) noted that social possibilities is the concerted efforts of business operators to initiate, formulate and implement policies and decision concerning the well being of the society by studying how their business actions and inactions affect the numbers of the society and taking corrective measures.
In the view of Adirika, Ebue and Nnolim (2001:29 – 292) some scholars argue that the responsibility of business is to make profit. By doing so, the society benefits and peoples material needs are met. However, other scholars are the opinion that the responsibility of a business is to satisfy the society. Te firm belongs to the people and thus has an obligation to the different section of the society, suppliers, consumers, stock brokers, employees, local community, government and the general public. The social responsibility of business is a logical extension of the societal purchasing concept and social purchasing.
Marketers social responsibilities flow out of their conception of business ethic. Ethics is the study of right or wrong. The conduct of most business people are highly unethical. There are practices such as false or misleading advertisements, overpriced, shoddy goods, bribes to win business, industrial pollution and defective, dangerous and harmful products.
Berkowitz et al (1997:110) are of the opinion that social responsibility as meaning that organizations are part of a larger society and are accountable to that society for their actions even though like ethics agreement on the nature and scope of social responsibility is difficult to come by, given the diversity of values present in different societal business and organizational culture.
To Berkowitz et al there are three vasic concept of social responsibility.
1) Profit responsibility: It holds that companies have a single responsibility and that is to maximize fit provided they operate within the rules of the game.
Those companies which charge very high prices for new HIV drugs believe so much on this
2) Stakeholders responsibility; This is a fallout of criticisms of the profit responsibility. It focuses on the obligation an organization has to those who can affect achievement of its objectives, viz. customers, employees, suppliers and distributor. Many companies have recalled products which they found defective, industrious or harmful, because they felt that inspite or the high cost of such recall, it was in the best interest of the stakeholder to do so and that doing otherwise would have negatively impacted on the image of the product and the companies concerned.
3) Societal responsibility: this is a much broader concept of social responsibility and refers to the obligation that organizations have to the preservation of the ecological environment and interest of master marketers (Enligned self interest) to be societally responsible, such companies win the trust, patronage and support of the larger public welfare have led to the formation such international organizations like coreen peace (Berkowitz et al 1997:111 0 112).
The role of business including brewery industry is to act within the frame work established by ethics and by government to satisfy the demands of the public. Guided by this framework, more and more business are becoming increasingly more socially responsible. It is because of the importance of social responsibility in business that the researcher takes a critical look at the practice of corporate social responsibilities in brewery industry with reference to Nigerian brewery industry Ana Enugu.

1.1 STATEMENT OF PROBLEM
Many organization including brewery industry pursue the profit objective relentlessly. Some take cognizance of the needs of the customers but most do not as they operate under an environment to their customers.
Many brewery industries are only interested on only those that can help them make profit even at the erthlement the concept of social responsibility require companies to consider the implication of their action within the whole social system and the system hold the company responsible for any damage the company’s action will have any where in that system.
Social responsibility is the responsiveness of a business to the problem and interest of the society. It is carrying out the moral obligation of business to the society most of this brewery companies. It is because of the importance of social responsibility improving customers welfare and improve company’s performance that there searcher take in critical look at the practice of corporate social responsibilities in the brewery industry.

1.2 OBJECTIVES OF THE STUDY:
In this study, the following objective are formed.
1) To determine if brewery industry are social responsible
2) To find out whether corporate social responsibility practice of brewery industries use to increase customer patronage.
3) To determine the impact of social responsibilities on profit of brewery industry.
4) To find out the feelings of consumers
5) To find out the problems encountered by brewery industries in carrying out social responsibilities
6) To offer solution on how to use corporate social responsibilities for improving customers patronage.

1.3 SIGNIFICANCE OF THE STUDY;
The study is not only an academic exercise, it will have a substantial benefit to the researcher. It will widen the researcher’s knowledge in research writing and pricing adopted by corporate social responsibility.
It will be of eminence benefit to researchers who will find the study as a sources of literature review.

1.4 SCOPE OF THE STUDY:
This research was undertaken to examine the practice of corporate social responsibilities in the brewery industry.

1.5 RESEARCH HYPOTHESIS:
Ho: Brewery industries in Nigeria are not socially responsible
Hi: Brewery industries in Nigeria are socially responsible
Ho: Brewery industries do not care for environment in which they operate
Hi: Brewery industries care for environment in which they operate
Ho: Brewery industries in Nigeria do not offers product safety
Hi: Brewery industries in Nigeria offers product safety
Ho: The practice of corporate social responsibility by brewery industries impacts negative on the profit of the organization.
Hi: The practice of corporate social responsibility by brewery industries impacts positively on the profit of the organization.

1.6 DEFINITION OF TERMS:
More value: Moral or professional standards of behaviour; principles. Attributes concerning principles of right and wrong behaviour; attributes based on peoples sense of what is right and just, not on legal rights and obligation; following standards of right behaviour, good or virtuous; able to understand the different between right and wrong, teaching or illustration good behaviour.
Ethics: system of moral principles, rules of conduct, science of moral conducts – more correctness.
Strategy: art of planning and directing an operation in a campaign, skill in planning or managing any affair well, plan or design for a particular purpose.
Public good: a thing of high quality, of an acceptable standard, satisfactory concerning people in general.
Responsibilities: Commitment or duties for which a person or persons responsible or accountable.
Environment of business: Conditions, circumstances affecting the life of the business, natural conditions, eg. Economic environment, cultural and technological environment.
Stakeholders: Person or persons that invested money etc, in an enterprise or business so that he has interest or share in it. Individuals that have stake in the future success of a business.
Opportunity: Favourable time, occasion or service of circumstances.
Decorum: Dignified and socially accepted behaviour a moral of good and exemplary life, worthy of emulation.

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Corporate Social Responsibility (CSR) refers to a company’s commitment to operating in an economically, socially, and environmentally responsible manner. The brewery industry, like any other sector, has been increasingly focusing on Corporate Social Responsibility initiatives to address various issues and concerns related to sustainability, community engagement, and responsible business practices. Here are some common practices of Corporate Social Responsibility in the brewery industry:

  1. Sustainable Sourcing: Breweries can focus on sourcing ingredients like barley, hops, and other raw materials from sustainable and environmentally responsible suppliers. This can involve practices such as promoting organic farming, supporting local farmers, and reducing the carbon footprint of transportation.
  2. Water Conservation: Brewing requires a significant amount of water. Breweries can implement water-saving technologies, efficient water use practices, and wastewater treatment systems to minimize their impact on local water resources.
  3. Energy Efficiency: Breweries can invest in energy-efficient technologies to reduce their energy consumption and carbon emissions. This includes using renewable energy sources like solar or wind power, optimizing brewing processes, and upgrading equipment to be more energy-efficient.
  4. Waste Reduction and Recycling: Breweries can implement waste reduction strategies by recycling packaging materials like glass, cans, and cardboard. Additionally, they can explore ways to repurpose spent grains and other brewing byproducts, such as using them for animal feed or compost.
  5. Community Engagement: Breweries often have a strong presence in their local communities. Engaging in community outreach programs, supporting local events, and contributing to charitable causes can foster positive relationships and enhance the brewery’s reputation.
  6. Responsible Marketing: Breweries can promote responsible alcohol consumption in their marketing campaigns by emphasizing moderation and safety. They can also support initiatives aimed at preventing underage drinking and drunk driving.
  7. Employee Welfare: Prioritizing the well-being of employees through fair wages, benefits, and a safe working environment is a crucial aspect of CSR. Breweries can also provide training and development opportunities for their staff.
  8. Transparent Reporting: Transparently reporting on Corporate Social Responsibility initiatives, progress, and goals helps build trust with stakeholders, including consumers, investors, and regulatory bodies.
  9. Environmental Stewardship: Breweries can participate in or organize environmental conservation programs such as tree planting, river cleanup, or habitat restoration projects.
  10. Support for Responsible Drinking: Breweries can partner with organizations and campaigns that promote responsible alcohol consumption, addiction recovery, and support for individuals and families affected by alcohol-related issues.
  11. Reducing Packaging Waste: Breweries can explore alternatives to traditional packaging materials, such as using lighter materials, adopting biodegradable packaging, or encouraging customers to return packaging for reuse.
  12. Carbon Offsetting: Some breweries invest in carbon offset projects to counterbalance their emissions, demonstrating their commitment to addressing climate change.

It’s important to note that the effectiveness of Corporate Social Responsibility practices can vary based on the specific brewery, its size, location, and target audience. While many breweries are actively incorporating Corporate Social Responsibility into their business strategies, ongoing evaluation and adaptation are essential to ensure that these initiatives have a meaningful and positive impact.