CORPORATE SOCIAL RESPONSIBILITY AND ITS EFFECT ON ORGANIZATIONAL PERFORMANCE CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY Corporate engagement with society was termed corporate Social responsibility (CRS) has become a commonly used term In contemporary society and refers to one process by which An organization expresses its corporate culture and society consciousness. (Rupp, Deborah E, Ganapathi, Iyoti (2006) and Calderon, Mario (2011) CSR has been receiving lots of attention from various backgrounds of researchers worldwide. (Isamail 2011). Clark (1916) emphasized the importance of transparency bin business dealings, he said if men are responsible for the known results of their actions, business responsibility must include the known results of business dealings weather these have been recognized by law or not. (CSR QUEST, 2009). In Nigeria the origin of the concept can be traced to concerns for the fundamental rights of Human beings (Onwuchekwa 1999:59). This era was filled with legislation designed to regulate business and industry in Nigeria and it was clear that business would have to accommodate public interest if free enterprise was to survive( Onwuchekwa 1999:59). Over the years, one issue that has frequently been addressed is, for what and whom companies are responsible to when pursing business? This is because many believe that the only responsibility of a business is to ensure maximum profit to its shareholders who in turn will determine how to use resources (Andriof and McIntosh, 2001:12). This is line with Friedman’s statement that “the business of business is2business”. Friedman stated that “companies should not take on any additional responsibilities since that will diminish the profit making focus and maybe most importantly, companies lack both the democratic and legal base to pursue such societal activities (Andriof and McIntosh, 2001:15). Others argue that Corporate Social Responsibility (CSR) is a “fashionable nonsense” (Overall, 2002:2). It is not good for companies to start weighing the merits of competing social, economic and environmental goals that is the job for elected governments. Instead, managers should serve the people, who pay their salaries, (Overall, 2002:3). A radically different view, is that of those who argue that, a company is responsible for all its stakeholders and should therefore take greater responsibility for the society at large and seek to solve social and environmental problems in its market (Deresky, 2005:12) . 1.2 STATEMENT OF RESEARCH PROBLEMS Like many of management and social science concepts, Corporate Social Responsibility (CSR) is fraught with definitional problems, which makes it difficult for a uniform platform to asses firm’s responsibilities to it. Musa (2008:540) conceives a firm as nothing other than an instrument to achieving economic efficiency, cost reduction, and thus wealth Maximization which is the view of the classical economists. Since a lot of companies see Corporate Social Responsibility as a financial burden, this study investigated the benefits accruable from the adoption Corporate Social Responsibility strategy by companies using Dufil Prima foods plc Indomie Nigeria as a case study. The basic questions this study hopes to answer are as follows The basic questions had been what relationship exist between corporate social responsibility and corporate performance. In which key area of operations should the organization formulate corporate social responsibility strategy What specific ways has the organization adopted in integrating the corporate social responsibility strategy with its operations How can corporate social responsibility strategy improved upon in other to improve the organizations performance 1.3 OBEJECTIVE OF THE STUDY The broad objective of this study is to evaluate the relationship between Corporate Social Responsibility and Organizational Performance in Prima foods plc Indomie Nigeria and using it to draw a relationship between Corporate Social Responsibility and the growth and development of companies. Derived from the above broad objective are the following specific objectives: To identify the relationship between Corporate Social Responsibility and organizational performance.. To identify the key areas in which Dufil Prima foods plc formulate their Corporate Social Responsibility strategy. To examine the specific ways that Dufil Prima foods plc has adopted in integrating the Corporate Social Responsibility strategy with the organizations operations. To identify how the Corporate Social Responsibility strategy can be improve upon in order to improve organizational performance. 1.4 RESEARCH HYPOTHESIS The following hypotheses have been formulated to test the research questions. HO1: There is a significant relationship between the performance of Corporate Social Responsibility and organizational productivity. HO2: The non-integration of Corporate Social Responsibility strategy does not result to poor organizational performance. HO3: Improvement on the Corporate Social Responsibility strategy does not lead to improved organizational performance. 1.5 SIGNIFICANCE OF THE STUDY Corporate social responsibility is a fundamental issue that needs to be addressed in order to ensure any organizations long term success. This study will be of immense benefit to students, privately owned businesses and public corporations. 9Specifically, this study will be of great significance to directors, managers and executive officers in all business organizations. The study will also be beneficial to government agencies, students and research fellows. For directors, mangers and executive officers in business organizations, the study will help them to discover the true essence of Corporate Social Responsibility, its working principles and how it can be used to enhance organizational performance both on short and long tern basis. The study will help them determine how to work in harmony and to operate their businesses within ethical standards. For government agencies, the study will help them apply the existing policies relating to Corporate Social Responsibility and organizational activities, thereby, determining areas requiring improvement .Finally, students, including research fellows will find the study very beneficial in the area of future studies and referral reports. 1.6 SCOPE OF THE STUDY The study focuses on corporate social responsibility and corporate performance in Dufil prima foods Indomie Nigeria It addresses the effect corporate social responsibility has on the performance of the organization. The researcher investigates the key areas in which Indomie Nigeria formulates its Corporate Social Responsibility strategy, ways in which the strategy could be integrated with organization’s operations and how the Corporate Social Responsibility strategy could be improved upon, believing that its findings could also be applied to other Organization. 1.7 LIMITATIONS OF THE STUDY The researcher was constrained by factors as time, finance, lack of sufficient reference materials on the subject matter and reluctance on the part of some respondents to give out information relevant to study. 1.8 DEFINITION OF TERMS SOCIAL RESPONSIBILITY: Social responsibility as used in this styudyis a demonstration of certain behavior on the part of the public and private sector toward society and environment. STAKEHOLDER: This study describe stakeholder as a person or group of persons with direct intrest, involvement or investment in a business organization e.g the employee, shareholders, customers, suppliers etc. HYPOTHESES: A hypotheses is a tentative statement about relationship that exist between two or among variables. It is a conjectural statement about a relationship that need to be tested and subsequently accepted or rejected. THEORIES AND LAWS: A hypothesis if it is true state a law, therefore hypothesis is a law lijke statement. Law is defined as a statement of invariant relationship among observable or measurable properties.
CORPORATE SOCIAL RESPONSIBILITY AND ITS EFFECT ON ORGANIZATIONAL PERFORMANCE
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CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Over the years companies (Business Organizations) as corporate bodies have not exercised their obligations. They have failed to impact positively on their immediate environments let alone... Continue Reading
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ABSTRACT The aim of the study is to examine the effect of corporate social responsibility on organizational performance. The population comprises of two thousand seven hundred (2700) workforces. The questionnaires were issued to one hundred and thirty five (135) respondents which formed the sample size. The samples were drawn using stratified and... Continue Reading
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