Corporate Social Responsibility And Organization Image In United Bank For Africa

Project and Seminar Material for Business Administration and Management BAM

Corporate Social Responsibility And Organization Image In United Bank For Africa

Chapter One


1.1 Background To The Study

Nigeria has a long experience of managing cultural diversity and multiple stakeholders and its citizens and business leaders have to manage cross cultural dynamics on a daily basis. There ought to be lessons and experiences drawn from good practice in Nigeria that can contribute, not only to managing in Africa but to managing throughout the world.

Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business/ Responsible Business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. In some models, a firm’s implementation of CSR goes beyond compliance and engages in “actions that appear to further some social good, beyond the interests of the firm and that which is required by law. CSR is a process with the aim to embrace responsibility for the company’s actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered stakeholders.

Adopting a critical approach, sociologists emphasize CSR as a form of capitalist legitimacy and in particular point out that what has begun as a social movement against uninhibited corporate power has been co-opted by and transformed by corporations into a ‘business model’ and a ‘risk management’ device, often with questionable results
CSR is titled to aid an organization’s mission as well as a guide to what the company stands for and will uphold to its consumers. Development business ethics is one of the forms of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment.

Corporate Social Responsibility (CSR), the set of standards to which a company subscribes in order to make its impact on society, has the potential to make positive contributions to the development of society and businesses. More and more organizations are beginning to see the benefits from setting up strategic CSR agendas. The CSR movement is spreading over the world and in recent years a large number of methods and frameworks have been developed, the majority being developed in the West. This research, though, will take its focus on business organization. The purpose is to investigate and analyze the impact of Corporate Social Responsibility as a tool for enhancing business image in Nigeria with special references to United Bank for Africa (UBA).

1.2 Statement of the problem

Most business organization sits at a crossroads because of saturated business environment in Nigeria; thus, Nigeria is committed to redefine itself as a destination for investment, tourism and the African renaissance. In spite of the entrepreneurship of its citizens and sitting on immense oil reserves, it continues to be perceived as a source and destination for base business morals and corrupt behaviour.

The drivers for CSR are to be found within areas such as increased brand value, greater access to finance, a healthier and safer workforce, stronger risk management and corporate governance, motivated people, customer loyalty, enhanced confidence and trust of stakeholders as well as enhanced public and organizational image.

These drivers are lacking in most Nigerian companies. Most indigenous companies in Nigeria are privately held, family owned and operated. Even the multinational companies in Nigeria do not care about their environment. Local consumer and civil society pressures on business organization to enforce CSR in Nigeria are almost non-existent and law enforcement mechanisms for implementing CSR are weak. Therefore, this study tend to identified some aspects of corporate practice that matter most to the general public and as well enhance organizational image.

1.3 Objective of the Study:

For organizations to successfully survive in business, it must recognize the importance of social responsibility to the society.

The broad objective of the study is to –

  1. To examine the important of social responsibility in an organization?
  2. To analyze why organization are involvement in social responsibility activities and its effect on the company and host community?
  3. To identify some benefit of social responsibility activities to the host community?

1.4 Research Hypothesis:

In pursuit of the objective of identifying the effectiveness and workability of corporate social responsibility the following hypothesis have been formulated, which intend to test in the course of this study:

  • Ho: UBA involvement in social responsibility programme has no positive effect on the company performance and its host community.
  • Ho: UBA corporate social responsibility programme does not enhance organizational Image.

1.5 Significance of the Study:

The study of social responsibility of a business organization is hoped to be of benefits not only to student’s businessmen, government, customers, community, stockholders, academics, but the whole society. The study also hopes to highlight the problem associated with social responsibility and to make use of the analysis to improve the working situations thereby minimizing the problems social responsibility conflict in that organization and its environment as well.

Finally, the study will inform all at large, the need for corporate social responsibility not only to the firm, but to the society at large.

1.6 Scope and Limitation of the Study:

Since is not possible to study social responsibility programme of all business organization in Nigeria, This research work only focuses on the impact of Corporate Social Responsibility as a tool for enhancing business image in United Bank Africa PLC Abuja Zone office.

This research was faced with a lot of problems and limitations. The major problem acting as a limitation was a problem of Nigerians attitude to the supply of data to a researcher due to fear. Secondly, because of financial constraints, the scope and dimension of this study could not be extended beyond this limit.

1.7 Definition of Terms


United Bank for Africa (UBA).


Corporate Social Responsibility

Corporate Social Responsibility:

Corporate social responsibility is an umbrella term used to describe voluntary corporate initiatives concerned with community development, the environment and human rights. CSR policies and programs seek to benefit society while simultaneously improving a corporation’s public image and profitability. The term is often criticized for simply being a public relations buzzword

Organizational Image:

An organizational image is the “shared meanings, attitudes, knowledge, and opinions” of organizational stakeholders, influenced, at least in part, by strategic communications emanating from the organization

1.8 Organization of the Study

The bulk of this study is to evaluate the impact of Corporate Social Responsibility as a tool for enhancing business image in Nigeria with special references to United Bank for Africa (UBA).

To enable the researcher have a clear view on the impact of marketing strategy, the study is divided into five chapter ranging from chapter one to five.

Chapter one deals with the introduction, chapter two deals with review of literature, chapter three research methodology while chapter four deals with data presentation, analysis and interpretation of findings.

This chapter will deal with the summary of findings, conclusion and recommendations.

Chapter Five

Summary, Conclusion and Recommendations

5.1 Summary of Findings:

Social responsibility has been a hot topic in every business area, from corporate boardroom to the door of the classroom as to whether or not organizations should be socially responsible to its immediate environment.

Taking a critical look into the context of this research work, it is easy to say that an enlightened business is one that recognizes that it is in its own interest to be socially responsible, since an enhanced public image is more likely to be attractive to investors, employees, customers, suppliers, consumers and its host community and government.
It was discovered from the research conducted that Globacom Nigeria Limited has been involved in corporate social responsibility activities to its host community, since its establishment in Enugu state and the country at large. The company has seen the need to involve itself in its community affairs by providing sport activities and equipments and also providing entertainment services to its immediate environment.

But as beautiful as it may sound, a lot of factors are standing against a business performing what it owe its immediate environment.

  1. Political instability and various communal and inter-tribal clashes have been served as a factor that militates against a firm’s involvement in corporate social responsibility activities. In place where the political environment is not stable, organizations do not like to invest or sink their funds in performing social activities.
  2. Value system of the nation or community: The value system of this country is so eroded that finance budgeted for such quotas can be easily shared among the top ranking officers/executives of the company and the traditional rulers of such locality thereby, “closing” the mouth of those who may have the “voice” to speak for the community.
  3. The society is becoming ungrateful and unappreciative of the efforts of the company’s social responsibility roles. This always make the community to ask for more.
  4. Another militating factor is the State of the Economy: Instability in the economy such as, inflation, economic meltdown, recession, etc, will make the firm not to sink their funds into social responsibility activities.

Despite all these militating factors, it was discovered that many people in the community have benefited in one way or the other from Globacom apart from the facts that most of its employees are selected from its immediate environment. This shows that Globacom Nigeria Limited is not reluctant in rendering some social responsibility programmes to its immediate environment where she operates and to the entire nation as a whole.
From the fore-going, it can be deduced that in-spite of profit motives, Globacom Nigeria has demonstrated corporate social consciousness as she ought to do.

It was also discovered that and revealed that social responsibility is a legitimate action of the firm and that the firms involvement in social responsibility has a great positive impact on the firm and that the assessment of the community to the company’s social activities has been satisfactory.

The research also revealed that the quality of the company’s services is perfect which gives value to the sum of money spent for it and that the company’s social responsibility activities has enhanced organization – community relationship.


No business organization exists in a vacuum, but has among itself an interacting variable – The business environment – for which it is a part. Social responsibility is an aspect that organizations should not neglect as it has a great impact on the organization.

The case study focuses on the approach Globacom Nigeria Limited takes to social responsibilities. The company is proud that in addition to being among the world best telecommunication service providing company, it still takes an active responsibility interest in individuals and communities at a local level where ever it operates.

This research work reveals that, Globacom social responsibility focuses on two aspects – Sport and Entertainment.
Their sport sponsorship has helped this nation in so many ways, youth who ought to have been involved in armed robbery are now using the same strength in playing football and some cheering and encouraging the team playing (Supporter Club).

The entertainment sector has helped to easy to stress from people by making them feel relaxed, laugh, have much to eat and drink, listen to music and joke which due to their busy or tight work schedule will not permit them to listen to. Also it helped people meet lost friends or relations.

Furthermore, the entertainment aspect helps most especially young ones display their talent to the world, so that people can see that the youths are loaded and not just roaming about wasting their lives.

Nevertheless, Globacom has provided employment for people especially members of its host communities, which has help reduce the level of unemployment in the country.

Many times, the company involves active strategy to social responsibility activities in the community, but sometimes encounters pressure from the public.

Since all parties’ benefits from Globacom social responsibility activities, it can now be said with air of certainty that the force that moved Globacom to the top of the telecommunication industry is their leadership role in social responsibility. As far as they maintain this policy, they are bound to remain at the peak of the telecommunication industries.

However, in recent times and in particular with the indigenization decree, Nigerian businessmen and organizations are beginning to come into the practice of corporate social responsibility. It will be a tragedy if exploitation increase under our indigenous entrepreneurs, Social responsibility achieves greater meaning where corporate leaders have a stake in society and do not wait for the government to do everything.

The government has played some part in recent times. We can only hope that business will reciprocate just as Globacom Nigeria Limited has done by getting involved in corporate social responsibility activities to its host community and the country at large. Based, however as it is on voluntarism, the “social responsibility of business” is likely to satisfy all the needs of the society.

Since a greater percentage of Nigerians have benefited from the corporate social responsibility role of Globacom Nigeria, it can now be discussed with air of certainty, that one of major force that catapulted Globacom to the top of firms in the telecommunication industry is their role in corporate social responsibility programmes.
As far as they maintain this policy/strategy, they are bound to remain on top as the leading mobile telecommunication industry in Nigeria.

5.2 Conclusion

The survival of any organization is dependent upon series of exchange between the organization and its environment. The involvement of Globacom Nigeria Limited, Enugu, and participation in social responsibility practices shows that the company is socially responsible to its immediate environment.

For any organization to survive, it has to properly take part in social responsibility activity. Most organizations and government agencies agrees that social responsibility is well and truly on the agenda in the business world because businesses operate in an environment where her resources are sourced and for this citizens will be looking up to them with high expectations and if this expectations are dashed, it will not go well with both the organization and the citizens.

Where shareholders refuse the approval of social responsibility they may receive wrath from the government and its host community. Having said this, organizations should take up the issue of social responsibility seriously. If a company fails to meet stakeholders’ expectations, it can put its own future at risk.

In conclusion, corporate social responsibility can therefore be best described as a total approach to business. Corporate social responsibility creeps into all aspect of operations. Like quality it is something that you know when you see it. It is something that business today should genuinely and wholeheartedly be committed to. The dangers of ignoring social responsibility are too dangerous

When it is remembered how important brands are to the overall company’s value. Corporate social responsibility is therefore something that a company should try and get right in implementing.

5.3 Recommendation.

The idea that the only function of business organization is profit maximization for the shareholders should be erased and become obsolete and thus they should shift emphasis to a newer term “social responsibility”. To this effect Nigeria businessmen and women would protect their long-term interest by redefining their objectives to include those of the communities in which they carry out their business operations,

In view of the above, the following recommendations are made which will be based on the findings presented in the study.

  1. The company should expand their activities by going into other areas like health, education, charity giving, instead of focusing on only sport and entertainment.
  2. The organization should provide adequate amenities to it immediate environment.
  3. The company should improve on their service; most times the network reception is very poor.
  4. Despite the fact that Glo does not cover many rural areas in Nigeria, their social responsibility programme should not only center in the urban areas. Their social responsibility project should also be shifted to rural areas where there is no network coverage.
  5. A committee should be established to oversee their social responsibility activities.
  6. The company should partner with the government to ensure effectiveness in running their social responsibility programmes.

Without endangering corporate survival, businessmen should realize the advantages of giving grants to universities and other institutions and to its community, to mention a few. Businessmen or organizations should realize that an increase in the entrepreneur spirit of the populace can only be beneficial to the business sector and that the government cannot do this all alone.

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