CHAPTER ONE: INTRODUCTION
Corporate social responsibility came into common use in the late 1960’s and early 1970’s. According to Smith (2000), if we were to turn the pages of history, we would know that the history of social and environmental concern about business is as old as trade and business itself. For example, laws to protect forest can be traced back to almost 5000 years. In ancient Mesopotamia around 1,700 BC, King Hammurabi introduced a code in which builders or farmers were put to death if their negligence caused the deaths of others, or major inconvenience to local citizens.
With industrialization, the impacts of business on society and the environment assumed an entirely new dimension. The “corporate paternalists” of the late nineteenth and early twentieth centuries used some of their wealth to support philanthropic ventures. By the 1920s discussions about the social responsibilities of business had evolved into what we recognize as the beginnings of the “modern” corporate social responsibility movement. It was in 1929, that the Dean of Harvard business school Mr. Wallace B. Donham commented in his speech delivered at north western university.
“Business started long centuries before the dawn of history, But business as are now known is new-new in its broadening scope, new in its social significance. Business has not learned how to these changes, nor does it recognize the magnitude of it’s responsibilities for the future civilization”
Almost seventy five years later, these words ring just as true. Today also, there are so many talks going about the same in this regards (Morsella 2009).
As discussed above, corporate social responsibility is not a new concept in the business world. Ever since inception, corporate firms have been involved in serving the community. In the pre-industrialization period, which lasted till 1850, wealthy merchants shared a part of their wealth with the wider society by way of setting up temples for a religious cause. Moreover, these merchants helped the society in getting over phases of famine and epidemics by providing food from their God’s own and money and thus securing an integral position in the society. From the 1850’s onwards, the approach towards corporate social responsibility changed. The industrial families of the 19th century were strongly inclined towards economic as well as social considerations.
Background to the study
The study of business and society has been in the air for decades. More discussion has been the relationship of business and society where the business operates. Philosophers such as Kank, Plato, Marx, Freud, Sartre, skinner and Lorenz got concerned with what role man could play in the emancipation and development of society, in the same vein, concerned with the possible ameliorations to bolster economic growth of particular importance was the social condition of human life, the greed in society, especially of man, prompted much debate about human conditions. The debate gave birth to different schools of thought, where we had the Confucius I and II, the Judeo-Christian tradition, etc.
Today, more than ever, organizations are focused on environmental and social responsibility as a strategic objective. The survey of senior executives’ worldwide shows that sixty percent (60%) believe that corporate social responsibility has increased in importance over the past years. To be sustainable, businesses are now embracing a relatively new objective, optimizing their operations to improve environmental and social outcomes in a manner that maximize overall performance.
Somerville (2013) observes that consumers are loyal and willing to spend more on retailers that supports charity. Smith (2013) in the same vein says corporate social responsibility enhances harmony among the host communities and the organizations. Accordingly, Udoka (2009) defined as the voluntary commitment of business to include in their corporate practices economic, social, and environmental criteria and actions, which are above and beyond legislative requirements and related to a broader range of stakeholder everyone influenced by their activities. The main focus of this research work shall be to examine how corporate social responsibility could help in organizational performance. It is pertinent to note however that corporate social responsibility more than anything, is all about commitment and that can be a difficult thing to cultivate in a business.
1.2 STATEMENT OF THE PROBLEM
The idea of corporate social responsibility has come to be accepted as one of the major components of growth and sustainability in an organization. The success in the new economy comes with various challenges. These challenges require organizations and their managers to think beyond traditional way of looking for short term goals. It requires organizations to embrace a much perspective that is also inclusive of stakeholders.
Corporate social responsibility has become increasingly important because today’s heightened interest in the proper role of business in society has been promoted by increased sensitivity to and awareness of environmental and ethical issues. Issues such as environmental damages, improper treatment of workers, and faulty production leading to customers inconvenience or danger, have made investors began to take account of some firms corporate social responsibility policy in making investment decisions, some consumers have become increasingly sensitive to corporate social responsibility programmes of the firms from which they buy their goods and services.
These trends have contributed to the pressure on companies to operate in an economically, socially and environmentally sustainable way especially in the face of the business itself. Haven seen this disharmonies existing among the stakeholders and the business, as a result of conflicting interest, this research work therefore intend to examine how effective corporate social responsibility could help in organizational performance.
LIST OF TABLES
CONTENTS PAGES
Table 3.1 Sample Selection – – – – – 31
Table 4.1.1 Responses to Research Question One – 32 – – 34
Table 4.1.2 Responses to Research Question Two – – 35
Table 4.1.3 Responses to Research Question Three – – 36
Table 4.1.4 Responses to Research Question Four – – 37
Table 4.1.2a Observed frequency for hypothesis one – – 38
Table 4.2.1b Expected frequency for hypothesis one – – 39
Table 4.2.2 A: Observed frequency for hypothesis two – – 42
Table 4.2.2 B Expected frequency for hypothesis two – – 43
Table 4.2.3 A: Observed frequency for hypothesis Three – – 45
Table 4.2.3 B Expected frequency for hypothesis three – – – 46
Table 4.2.3 c: Comparison expected frequency – – –
for hypothesis three. – – – – – – 47
Table 4.2.4 A: Observed frequency for hypothesis four – – 49
Table 4.2.4 B Expected frequency for hypothesis four – – 50
Table 4.2.4 c: Comparison expected frequency – – –
for hypothesis four. – – – – 51
TABLE OF CONTENTS
CONTENTS PAGES
Title page – – – – – – – – i
Approval Page – – – – – – – – ii
Certification – – – – – – – – iii
Dedication – – – – – – – – iv
Acknowledgements – – – – – – – v-vi
Abstract – – – – – – – – vii
List of Tables – – – – – – – – viii
Table of Contents – – – – – – – x-xiii
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study – – – – – – 1
1.2 Statement of the Problem – – – – – – 3
1.3 Objectives of the Study – – – – – – 3
1.4 Research Questions – – – – – – 4
1.5 Statement of hypothesis – – – – – – 4
1.6 Significance of the Study – – – – – – 5
1.7 Scope of the Study – – – – – – 5
1.8 Limitations of the Study – – – – – – 5
PAGES
1.9 Organization of the Study – – – – – – 6
1.10 Definition of Terms – – – – – – – 7
CHAPTER TWO
REVIEW OF THE RELATED LITERATURE
2.1 Conceptual Framework – – – – – 8
2.1.1 Conceptual Meaning of Corporate Social Responsibility – 8
2.1.2 Conceptual Evolution of Corporate Social Responsibility – 9
2.1.3 Importance of Corporate Social Responsibility – – 11
2.1.4 Drivers of Corporate Social Responsibility – – – 14
2.1.5 Strategies for Improving Corporate Social Responsibilities – 14
2.1.6 The Role of Corporate Social Responsibility in an Organization 15
2.17 Problems of Corporate Social Responsibility – – – 20
2.1.8 Various Factors that affects organizational Performance – 24
2.12 Theoretical Framework – – – – – 30
2.3 Empirical Review – – – – – – 34
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Research design – – – – – – – 37
3.2 Population of the study – – – – – – 37
3.3 Sample size determination technique – – – 37
3.4 Sample Size – – – – – – – 38
3.5 Instrumentation – – – – – – 39
3.6 Plan/Method of Data Analysis – – – – 39
3.7 Problems of Data Collection – – – – – 40
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Analysis of research questions – – – – – 42
4.2 Test of hypothesis – – – – – – – 45
4.3 Discussion of findings – – – – – – 58
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings – – – – – 60
5.2 Conclusion – – – – – 60
5.3 Recommendations – – – – – 61
References
Appendix