The Impact Of Corporate Social Responsibility (CSR) Of Business Organization To Their Business Environment

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The Impact Of Corporate Social Responsibility (CSR) Of Business Organization To Their Business Environment


Social responsibility is an obligation of any organization to discharge to the area of operation. Every organization are bound to show interest on the issue of responsibility if is what determine organizations standard and also their effort towards improving their efficient. The need for social responsibility on business organization is over emphasized because it is what shows how interested an organization is and the part of area they are operating. Consequently this research work envisage and evaluate the effect of social responsibility on business organization and their environment, it suggested ways of improving and encouraging organization to discharge their responsibility. In the introductory chapter the background statement of the problem significance of the study purpose of the study research questions hypothesis and scope of the study were all toiled to suit their purpose as well as a guide towards a better comprehensive of the study. The second chapter an elaborate review of related literature is carried out various authors experts on certain components of research topic were reviewed and employed to throw more light on this present study.

Chapter One

1.0 Introduction

1.1 Background of the Study

Corporate social responsibility could be defined as the recognition that business activities have some impact on the entire society and the consideration of that impact in the business decision making. Therefore, most business sense of responsibility towards the communities in which they operate in new of the adverse effect of production operation on these communities. Some of social adverse effect range from health hazard, displacement human settlement to environment pollution. Shall petroleum development company for instance, has been grappling with the restive behaviour of youths in its area of operation occasioned by the activities of vil companies. Also output whether that of product and or service could have adverse effects consumers some common example are cigarettes and medical drugs. Business for have the responsibility of educating user of their products or service on their correct usage in order to avoid sizzle effects.

Business organization also snow that they are socially responsible to their host communities by complimenting the efforts of the government by providing infrastructure facilities like schools, hospitals, tarred road and even supporting sports and cultures. It is with the foreign in mind that the research carried out this work to identify the effects of social responsibility in Enugu state as well as proffer solutions t o the likely problems associated with discharging it.

1.2 Statement of the Problem

On discharging their social duties to their host communities business organizations encountered some problem that affect them negatively.

Such problems are as follows

  1. Some organization have insufficient managerial and financial resources to undertake social charges.
  2. Some organizations could not fit in because of legal protection form the government of the state.
  3. Social value of communities affect the operation activities of business organization

The contribution of social problem based on personal responsibility affect negatively a business organization,. Pollution normally affect the society around the business operation and the organization usually stop operation because of their disturbance in an area for all the above problem the researcher thought it country to go into the study.

1.3 Objective of the Study

The following objectives were used to explain or describe

  1. To identify the effect of social responsibility on business organization.
  2. To find out the benefits social responsibility to the organization and individuals
  3. To determine whether organizations should embark on social responsibility.

1.4 Significance of the Study

This research work will be use in the following ways

  1. It will enable business organization in Enugu state carry out function of social responsibility better.
  2. The work will identify and examine some areas where business organization in Enugu State would have to make adjustment.
  3. It is the hope of the research that this work be a reference point to the researcher.

1.5 Scope of the Study

This research is to identify and anbalyze the effects of social responsibility on business organizations in Enugu state. The study will be limited to just Nigerian Bottling Company Limited 9th mile Corner Enugu due to the easy accessibility.

This research work was constrained by limited finance unco-operative attitude of some.

1.6 Research Question

  1. How does the organizations benefits to social responsibility to the organization and individual.
  2. How does social responsibility effect the business organization.
  3. How does social responsibility determine the whether organizations, how organizations embark on social responsibility.

1.7 Research Hypothesis

The hypothesis for this research work are formulated after thorough and careful review of work that are directly or indirectly related to the subject matter.

  1. HO: Organization respond to social responsibility is not high.
    HI: Organization respond to social responsibility is high.
  2. HO: Communication among workers in organizations is not adequate.
    HI: Communication among workers in organizations is adequate.
  3. HO: Organizations in Nigeria do not lay adequate emphasis on public relation
    HI: Organizations in Nigeria lay adequate emphasis on public relation

1.8 Limitation of the Study

In carrying out this research work the researchers was faced with certain constraints which include define poor co-operation form the respondents of what can be describe as negative attitude of the respondents.

On the issue of time sontrainst the researcher due to lass activities and some other department actiovities that was being done along line with the research work.

Finance also stand as one of the major constraint in carrying out this research work because the capital to carrying out this research work properly respondents.

1.9 Definition of Terms


Communities area where a company operates or is located.

Chapter Five

Summary, Conclusion and Recommendations

5.1 Summary of Findings

The data obtained from the field indicated that all responses were given by married category of staff . Most of the respondents who majorly constituted both the top level and middle level management staff falls between the age distribution of thirty-five (35) and fifty (50) years.

It was also observed that most of the respondents have spent more than three (3) years in the industry. This it is believed would have made them gained experience and understanding of the companies’ policy relating to the key issue being investigated – Corporate Social Responsibility impact on their performances.

As earlier pointed out, the data gathered were majorly directed and gotten from both top level and middle level management constituting ninety-seven percent (97%) of the entire respondents by managerial level distribution. The harvest of the instrument after administered resulted in an almost even distribution from the four sample industries.

Furthermore, the educational qualification criterion for distribution showed that a high percentage of the respondents have had their highest qualification within HND/B.Sc. and M.Sc. / MBA, making the level of validity and reliability placed on the data so high.

The year of establishment of the industries that have been considered also characterized the benchmark for measuring the relevancy of the data to the research work.

Finally, responses to items in the operational section of the questionnaire was presented and interpreted and the three formulated research hypothesis were tested. The use Rank Order Correlation Coefficient were adopted for the test of these hypotheses.

5.2 Conclusion

There is no doubt given the findings of this study, that corporate social responsibility performance plays significant role in improving the performance of manufacturing companies as a whole. After subjecting the data collected to thorough test, the results showed that corporate social responsibility performance should be incorporated into every organization’s long-term goal/plan which invariably helps in ensuring growth, survival and continuity.

Also, from the findings of the study, conclusion can be reached that corporate financial performance, in greater dimension, will rest on a company’s perspective and attitude towards social responsibility programmes it intended and have been embarking upon. Data gathered suggested that manufacturing firms will enjoy good and healthy relationship with financial institutions and creditors given that they prioritize and implement, in the environment, worth-while social responsibility projects. Consequently, investment portfolio of manufacturing corporations will witness an upward movement as a result of the benefit that would be accruable to them when corporate social responsibility is observed. Growth and development would seem inevitable as constituting the long-term impact of the phenomenon studied. Summarily here, corporate social responsibility expenditure impact positively on the performance of manufacturing firms.

The manufacturing industries / companies, through their voluntary performance of social responsibility over the years, has proved that investment in social responsibility activities do not cause the demise of the business since it would make it to establish that social responsibility may not conflict with other business operations, neither does it impoverish the provider of fund. Instead, it is found to be supportive to business interest.

It should however be noted that for the company to be more responsive in assisting the society in the provision of viable social services, management must step up its more basic mission of maximizing profits. With social responsibility obligation in view, management team will step up their drive towards making better profit day-in-day-out with which other objectives can be met conveniently.

Finally, it can be concluded that since the greater portion of the populace, together with the government, places more importance and expectation on businesses to be responsible towards their immediate environment, corporations have no choice than to incorporate its exercise as a core programme of theirs in order to keep on existing; ensure customers’ retention; improve the industry image; create goodwill; and to attract potential investors.

5.3 Recommendations

Despite all efforts that may have been given by manufacturing industries in the performance or discharge of social responsible activities, certain steps still need to be taken to improve socially responsibility programmes and improving the operational performance of the manufacturing corporations indirectly. Some suggestions are therefore offered which, if followed, would improve the implementation of the programmes and enhance both the status and profitability of the company.

Since manufacturing industries considers investment in social responsibility as beneficial to the society and its own business operation, it will be necessary for the company/industry to earmark more funds as social responsibility investment fund so as to meet the increasing demands from members of the public for its social assistance. To meet these increasing public demands, the company should maintain a fixed percentage of its after tax profit which would be spent each year. For instance, the company should invest more in Education and Training centre in order to ensure a qualitative manpower base from which it can recruit its qualified employees.

To effectively and efficiently meet the companies’ social responsibility objectives, the determination of social needs should not be concentrated exclusively in the hands of management staff. Rather, this study suggests the inclusion of other employee in planning process of the company’s social responsibility programmes with probably an outside consultant.

The outside consultant, who should be an expert in social relations, will introduce valuable and workable ideas which together would help ensure a more objective analysis of social needs of its environment and at the same time, benefiting the industry.

Manufacturing industries all across the nation should be compelled to include among their long-term objectives, if not in the short-term, corporate social responsibility programmes. This will go a long way in guiding their decisions almost every time their objectives are examined. It should be documented with proper control put in place to ensure their attainment.

Government can and should also help at making social responsibility exercise competitive. This will be achieved by public commendation spelt out in recognition of any project executed by any manufacturing corporation. This will invariably improve the image of the organization and indirectly promote its product, metamorphosizing into increased productivity and improved profitability.

Additionally, other firm would be moved to discharge social responsive programme, hence ensuring continued growth and development of the community at large.

In term of embarking on project that requires huge capital investment and of which the funds earmarked are inadequate. The researcher recommends here that the company should collaborate with allied organizations, which engage in voluntary social responsibility activities. This will enable the company and one or two related organizations, to pool their capital and manpower resources together to embark on, say a Dam construction project which is highly capital intensive. When the dam is built, energy may be generated to solve part of acute energy shortage problem experienced by some communities in Nigeria, aside from using it for irrigation purposes.

In a bid to also create an enabling and secured environment for the industries to operate, so that they can carryout the social responsibility, financial institution, headed by the Central Bank of Nigeria, should initiate financial support to the manufacturing industries in form of soft loans with low interest. This will enable manufacturing companies to be able to carry out some social responsibility projects in their host communities.

Finally, business organizations should make periodic assessment of their performance in social responsibility functions. This entails the conduct of regular social audits. Some audit will help the company to know what it needs to do to help the society, and also to appraise performance in selected social responsibility areas. This will also help the organization to set its priorities right, to enable it to concentrate efforts and scarce resources on worthwhile projects that are of benefit to society and consequently beneficial to it.

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