Role Of Social Responsibility On The Survival Of Business Organization

(A Case Study Of Unilever Plc, Lagos)

5 Chapters
|
66 Pages
|
7,933 Words

The role of social responsibility in the survival and success of business organizations cannot be overstated. Engaging in socially responsible practices not only enhances a company’s reputation but also fosters goodwill among stakeholders, including customers, employees, and investors. By prioritizing initiatives such as environmental sustainability, community involvement, and ethical business practices, companies can build stronger relationships with their communities and mitigate risks associated with negative public perception or regulatory scrutiny. Moreover, in today’s competitive landscape where consumers are increasingly conscious of the societal impact of their purchasing decisions, businesses that demonstrate a commitment to social responsibility often enjoy a competitive advantage and greater customer loyalty. Furthermore, integrating social responsibility into business strategies can lead to long-term sustainability by addressing pressing social and environmental issues, thus ensuring the continued relevance and resilience of the organization in an ever-changing market environment.

ABSTRACT

This study on the role of social Responsibility on the survival of business organization in Nigeria.
Chapter one is concerned with introduction, background of the study, statement of problems, objectives of the study, research questions, significance of the study, scope of the study, limitation of the study and definition of terms. Chapter two talks about literature review, an overview of the concept of social Responsibility, areas of corporate social Responsibility, historical stages of social Responsibilities, Responsibilities towards various interest groups, evaluating social Responsibility, relevance of social Responsibility to economic and national development, challenges to the implementation of social Responsibility and the solutions to the challenges. Chapter three is based on research methodology, research design, sources and method of data collection, population and sample size, research instrument and methods of data analysis. Chapter four is concerned with the presentation of data, analysis of data and interpretation of data results. Jchapter five talks about the summary of findings, conclusion and recommendation.

TABLE OF CONTENT

Title page
Approval page
Dedication
Approval
Acknowledgment
Abstract
Table of contents

Chapter one
Introduction
1.1 Background of the study
1.2 Statement of the research
1.3 Objective of the study
1.4 Research questions
1.5 Significance of the study
1.6 Scope of the study
1.7 Limitation of the study
1.8 Definition of terms

Chapter Two
2.0 Literature review
2.1 An overview of the concept of social responsibility
2.2 Four areas of corporate social responsibility
2.3 Historical stages of social responsibility
2.4 Responsibilities towards various interest group
2.5 Evaluating social responsibility
2.6 Relevance of social responsibility to economic and national development
2.7 Challenges to the implementation of social responsibility
2.8 Ways through which the challenges of social responsibility can be solved

Chapter three
3.0 Research design and methodology
3.1 Introduction
3.2 Research design/methods
3.4 Method of data collection
3.5 Population of study and sample size determination
3.6 Sampling technique/procedure
3.7 validity and reliability of measuring instrument
3.8 Method of data/statistical analysis

Chapter four
4.0 Presentation, analysis and interpretation
4.1 Introduction
4.2 Presentation of data
4.3 Analysis of data with interpretation

Chapter five
5.0 Summary, conclusion and recommendation
5.1 Summary of findings
5.2 Conclusion
5.3 Recommendations
Bibliography
Appendix

CHAPTER ONE

1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In the early 1930s, the objective of businesses was primarily economic, but within t he past four decades, there have been pronounced changes in the view of the c many business managers and marketers about their social Responsibilities, which have paralleled and reflected the changing priories and expectations of society about business society functions, this is because business relies on the society for its existence. In view of this, the inter-relationship between organization and their environment has become interestingly important. As a result, organizations especially in the business sectors are no longer viewed as private endeavours that are free to pursue their own ends as long as they do not break ant law. Instead, their actions are seen as having public consequences that go beyond serving the customers and paying returns to owners.
All those claims have made the issue of social Responsibilities a great concern to business social Responsibilities are essentially concerned with public interest. It is the intelligent and objective concern for the welfare of the society which restraints individual and corporate bodies from ultimately destructively activities no matter how immediately profitable and which equally leads to direction of positive contributions towards human betterment.
The idea of social Responsibilities recognizes that person is attached to an extended social system in which he or she is part dependent.
Consequently, certain obligations or social Responsibility arise from this attachment, business owners should also consider the needs and interest of others that might be affected by the actions.
Public needs have changes likewise their expectations from firms. Society gave business its charter to exist and the charter can be amended or resolved at any time if business fails to live up to the society expectations and needs. The creation of better social environment benefits both society and business. The society gains through neighborhood and employment opportunities. Cleaner and safer neighborhoods on the other hand means a more stable community in which to operate fewer unemployed pensons reduce the chance of social unrest. Educated members of the community provide a more attractive labour pool from where to draw personnel. People live In societies because of they must be human being today who is part and parcel. Of the social organization and I s utterly dependent on it. Human social makes possible the production and distribution of a goods and service. Business can only exist with an organized society when people are totally self sufficient, the concept of business organization, of society than makes it possible for people of engage in the business activities. In return, those in business must make contribution in the society that sustains their existence, that is, business owners have obligation to the society in which they operate and Responsibilities to other who live in society with them.
Drucker (1970:10) suggests to major ways by which demand for social Responsibilities arise. In the first place, it arises from the social impacts of business organization. In other words, the negative consequence of business like rapid, urbanization and rural-urban drift, traffic hold-up environmental pollution, deceptive advertising, defective products offered for sale, tax evasion and avoidance, all create disenchantment and demand for more socially responsible behavior.
Secondly, social Responsibilities also arises from the problems of society itself including falling standard of living illiteracy, poor infrastructures facilities and social amenities and the growing disenchantment with government and its inability to solve maker social problems. Hence, the society has come to expect business with their successful operations to solve major part of these problems by developing effective social Responsibility objectives and strategies. The business system is made up of internal and external components communities, the schools the churches, customers, government, shareholders and suppliers are all of them for survival. Hence, they owe some obligations in the way of discharging certain social Responsibilities to them. Similarly within the internal components of the business system and found the employees, the management and other social organizations. They equally demand that they should reap from the surplus generated by the organization in which they have given their best.

1.2 STATEMENT OF THE RESEARCH PROBLEM
This study “the impact of social Responsibility on business attempt to determine how an organization such an unilever plc Lagos fulfills obligations to the necessary stakeholders can serve as a strategy for carrying out effective business activity peaceably. Most times, all the claims made by the various stakeholders are too much on the organizations, in that the organizations cannot solve all societal problems with their limited resources, yet the expected to get actively, involved in getting them solved. In trying to assuage the load, most organizations indulged in some unethical acts which most time back fine at them in the ease of organizations social Responsibilities to the government which include payment of taxes and other financial obligations.
Businesses considers expensive the bribe government officials in order to circumvent them and such movies cannot be accounted for but in the long run, when there accounts will be audited, those organization will still be seen as owing.
Furthermore, organizations site their companies in unapproved areas there by putting residential areas which are not meant for organization. Therefore, the researcher intends to find a solution to the above merited problems:

1.3 OBJECTIVES OF THE STUDY
The primary purpose of this study is to determine and identify the impact of social Responsibility on business such as the unilever plc Lagos.
In more specific terms, other purposes include:
1. To ascertain fulfillment of social Responsibility can contribute to business survival.
2. To determine the modalities adopted by Unilever to its environment
3. To ascertain advantages derived from the fulfillment of social Responsibilities to the environment.
4. To determine the various ways by which organization can carryout their social Responsibilities to the environment.
5. To ascertain the adverse effects on non-fulfillment/ of social Responsibilities.
6. To proffer solution to problem area where deficiency in the fulfillment of social Responsibilities dominates and also proffer ideas that will help unilever Plc in fulfilling its social Responsibilities to its various stakeholders.
1.4 research questions
1. to what extend does the fulfillment of social Responsibility contribute to business survival?
2. What are the advantages derived from the fulfillment of social Responsibility to the environment?
3. what are the adverse effects of non-fulfillment of social Responsibility?
4. what are the importance and advantages derived from the fulfillment of social Responsibilities to the environment?
5. what are the various by which organization can carryout their Responsibilities to the environment?
6. what is social Responsibilities regarded as a business survival strategy?

1.5 SIGNIFICANCE OF THE STUDY
The purpose of this wok has greatly been outdate. This work greatly shows that the role of social Responsibility on the survival of business organizations as the economic situation on the world has necessitated the need to explore the influence of business environment on the survival of business organization.
Consequently, upon this also is the proliferation of business without adequate feasibility studies which will guarantee uninitiated production and liquidity ratio and capital. This study will be beneficial to business organization as it gives numerous reasons why feasibility studies should be conducted In order to establish the organization to be sited to ensure survival of business in a competitive market.
The study will also assist potential business investors on the role of social Responsibility on the survival of business organization, its basic issues of how to effectively and efficiently utilize the in an organization.
Finally, students and potential investors.

1.7 SCOPE OF THE STUDY
This study titled the role of social Responsibility on the survival of business organization in Nigeria is restricted only to staff of unilever Nigeria Plc with a particular reference to Lagos branch.
Also, investigating the role of social Responsibility on the survival of business organization in Nigeria, the researcher shall limit herself to corporate organizations for knowledge acquirement also equipped good future business administration in any decisions.

1.6 LIMITATIONS OF THE STUDY
Notwithstanding the areas of the study covered during the research, the study was greatly affected by certain constraints which because unavailable within the time limit
(1) Time constraints: The researcher was constrained by the time limit. This posed a threat to the successful coverage intending In the course of this study
(2) Cost factor: It is unusual that the prevailing economic predicaments posed the great extent are problems in procuring the whole materials or information needed other than relevant statistical data. However, the researcher was above the scale through the hurdle in availing himself of the relevant data constraint herein.
In spite of the foregoing limitation associated with this study, the project was well conceived and concluded to serve the purpose for which is intended

1.7 DEFINITION OF TERMS
i. Social Responsibility: This is an obligation of decision makers such as marketers to take action which protect and improves the welfare of the society as a whole along with their sun own.
ii. Stakeholders: These are the various groups to which an organization is socially responsible
iii. Backfire: the organization later suffering the consequence of non-fulfillment of social Responsibilities.
iv. Unethical: Behhaviour that falls short on below the generally acceptable standard or expectations.
v. Hostile environment: An environment that is difficult for something to happen or be achieved.

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Role Of Social Responsibility On The Survival Of Business Organization

Social responsibility plays a significant role in the survival and success of a business organization. It refers to the ethical and moral obligations that a company has towards society, the environment, and its stakeholders beyond just generating profits. Here are several ways in which social responsibility contributes to the survival of a business organization:

Enhanced Reputation and Brand Image: Engaging in socially responsible practices can boost a company’s reputation and brand image. Customers are more likely to support and remain loyal to businesses that demonstrate a commitment to social and environmental issues. A positive reputation can help attract new customers and retain existing ones, which is crucial for long-term survival.

Customer Loyalty: Socially responsible businesses often create stronger emotional connections with their customers. When consumers see a company actively working to address societal issues, they are more likely to remain loyal and continue patronizing that business, even if it means paying a premium for its products or services.

Attracting Talent: In today’s competitive job market, many employees are looking for more than just a paycheck; they want to work for organizations that align with their values. A socially responsible company is better positioned to attract and retain top talent, which is essential for innovation and long-term success.

Risk Mitigation: By taking steps to address social and environmental issues, businesses can mitigate certain risks. For example, adopting sustainable practices can reduce the risk of regulatory penalties and legal liabilities related to environmental violations. Socially responsible practices can also help a company weather reputation-damaging events more effectively.

Access to Capital: Many investors and financial institutions are increasingly considering environmental, social, and governance (ESG) factors when making investment decisions. Companies with strong ESG performance may have better access to capital and financing options, which is critical for growth and survival.

Cost Reduction: Socially responsible practices often lead to more efficient resource management and cost savings. For example, adopting energy-efficient technologies not only reduces a company’s carbon footprint but also lowers energy bills, contributing to long-term financial sustainability.

Regulatory Compliance: Governments and regulatory bodies are increasingly imposing stricter environmental and social regulations. Businesses that proactively adhere to these regulations and demonstrate a commitment to compliance are less likely to face legal issues and fines that can threaten their survival.

Community Engagement: Being socially responsible involves actively engaging with the local community. Building strong community relationships can help businesses gain local support, navigate challenges, and secure necessary permits and licenses for operations.

Innovation and Adaptation: Embracing social responsibility can drive innovation. Businesses that prioritize sustainability and social impact are more likely to adapt to changing consumer preferences and market trends, ensuring their relevance and survival in evolving markets.

Long-term Sustainability: Ultimately, social responsibility contributes to the long-term sustainability of a business. By addressing social and environmental challenges, a company can help create a better world for future generations, ensuring its continued existence in a more stable and prosperous global environment.

In summary, social responsibility is not just a moral imperative; it is also a strategic business decision that can have a significant impact on a company’s survival and success. It helps businesses build trust, manage risks, attract resources, and adapt to changing market dynamics, ultimately contributing to their long-term viability.