Impact Of Social Responsibility On Organisational Goal (A Case Study Of Unilever Plc Lagos)

Project and Seminar Material for Business Administration and Management (BAM)

Impact Of Social Responsibility On Organisational Goal (A Case Study Of Unilever Plc Lagos)


Abstract


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, limitations 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 responsibility, responsibilities towards various interest groups, evaluating social responsibility, relevance of social responsibility to economic and national development, challenges to the implantation 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 method of data analysis.

Chapter four is concerned with the presentation of data, analysis of data and interpretation of data results.

Chapter five talks about the summary of findings, conclusion and recommendation.


Table Of Contents


Preliminary Page(s)

  • Title page
  • Approval page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of contents

Chapter One

1.0 Introduction

  • 1.1 Background of the study
  • 1.2 Statement of problems
  • 1.3 Objectives 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
  • 3.3 Sources of data
  • 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
  • Bibliographies
  • Appendix.

Chapter One


1.0 Introduction

1.1 Background Of The Study

In the early 1930s, the mission of business was primary economic. But within the past four decades, here have been pronounced. Changes in the view of the 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 the view of this, the inter-relationship between organizations and their environment has become interestingly important. As a result, organizations especially in the business sectors are no longer viewed as private endeavors 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.

The outcome of this notion is raising public damour for social responsibilities on the part of the business as well as other social organizations. But the decision makers have the task of knowing what to do to meet the demands of various dormant of social responsibilities. All these 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 destructive activities no matter how immediately profitable and which equally leads to direction of possible 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 better neighborhoods and employment opportunities. Cleaner and safer neighborhoods on the other hand means a more stable community in which to operate fewer unemployed persons 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 society organization and is utterly dependent on it. Human social makes possible the production and distribution of a goods and services. Business can only exist within an organized society when people are totally self sufficient, the concept of business organization of society than makes it possible for people to 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 the 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-ups, environmental pollutions, 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 arise from the problems of society itself including failing standard of living, illiteracy, poor infrastructures facilities and social amenities and the growing disenchantment with government and its inability to solve major 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, share holders and suppliers are all members of the external components and the business organization depends on 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 Problem

This study entitled “impact of social responsibility on business” attempts to determine how an organization such as Unilever Plc Lagos fulfils its 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 society’s problems with their limited resources, yet they are expected to get actively involved in getting them solved. In trying to assuage the load, not most organizations indulged in some unethical acts which most times back fire at them. In the ease of organization’s social responsibilities to the government which include payment of taxes and other financial obligations, which seem to be costly to business and its flexibility in decision making. In trying to avoid the wrath of the regulations on them, most organizations give part of the accumulated financial obligations to some set of people as bribe which of curse, will not be recorded any where.

But in the long run, when there cords will be reviewed, those organization will still be seen as owing likewise in the community, most times organizations are given a particular areas or zone where they can site their organizations or firms. But most times, some organizations bribe their ways and site their firms in residential areas. Their waste products pollute the environment which can cause hostile actions from the community and which will of course affect the organization because the organization needs a conducive environment for its activities.


1.3 Objectives Of The Study

The primary purpose of this study is to determine and identify the impact of social responsibility on organizational goals such as the Unilever Plc Lagos.

In more specific terms, other purposes include:

  1. To find out whether fulfillment of social responsibility can contribute to organisational goal.
  2. To find out or study the modalities adopted by Unilever to its environment.
  3. To find out importance and advantages derived from the fulfillment of social responsibilities to the environment. Determine the various ways by which organization can carryout their social responsibilities to the environment.
  4. To find our adverse effects on non-fulfillment of social responsibilities.
  5. To proffer solution to problem area where efficiently 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

Impact of social responsibility has really contributed greatly to the business survival of organizations especially for organization with long term plan. This is so because if an organization wind-up before the long or medium run because of a hostile environment caused by non-fulfillment of social responsibilities, all the efforts geared towards survival and the long run become fruitless. The research questions are:

  1. How does the organization utilize the usefulness of the impact of social responsibilities?
  2. To whom is the organization socially responsible?
  3. How does the organization and its environment expect from each others?
  4. How does the environment define social responsibilities?
  5. What particular responsibility should be given priority?
  6. What is the need of social responsibility in an organization?
  7. Why is social responsibilities regarded as a business survival strategy.

1.5 Significance Of The Study

In essence, research work is aimed at serving certain significance in relation to individual group of people or a particular event.

The significance lies in the fact that the success of an organization business survival in its environment is dependent to a large extent and organizations are conscious of the spirit of give and take existing between the business and its environment and demand strangely that the role of business should not only concentrate on rendering services to customers and paying dividends to shareholders. But also should focus attention to the needs and aspiration of factors within its environment as a result of the above, fulfillment of social responsibilities is very significant towards the business survival. UNILEVER PLC should be socially responsible to its stakeholders in order to enjoy business survival.

It will enable the organization after carrying out its social responsibility to boldly demand and enjoy the obligations of the environment to the organizations.


1.6 Scope Of The Study

The main intention of the study is to focus on the implementation of social responsibility in business organizations.

The focus is to check the social responsibility of the organization to the customers and to the public and economy as well.


1.7 Limitations Of The Study

Notwithstanding the areas of the study covered during the research, the study was greatly affected by certain constraints which because unavoidable within the time limit.

I) Time Constraint:

The researcher was constrained by the time limit. This posed a threat to the successful coverage intending in the course of this study.

Ii) Cost Factor:

It is not unusual that the prevailing economic predicaments posed to 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.


1.8 Definition Of Terms

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 own.

Stakeholders:

These are the various groups to which an organization is socially responsible.

Back Fire:

The organization later suffering the consequence of non-fulfillment of social responsibilities.

Unethical:

Behavior that falls short or below the generally acceptable standard or expectations.

Hostile Environment:

An environment that is difficult for something to happen or be achieved.


Chapter Five


5.0 Summary, Conclusion And Recommendation

5.1 Introduction

This chapter talks about the discussion of findings from the previous chapters. It also includes results and recommendations to the company towards the impact of social responsibility in their organization. The general purpose of this study is to provide answers to the research questions posed in chapter one.


5.2 Summary Of Finding

Summary of finding involves giving a short statement that gives only the main point of the impact of social responsibility not the details. Business relies on the society for its continuous existence.

Social responsibilities are essentially concerned with public interest. The idea of social responsibility recognized that each person is attached to an extended social system in which he or she is partly dependent. The creation of social responsibility benefits both society and business.

Table 4:1 – 4:4 treaded its customers. The company regards the customer as kink and considers customers reactions and feeling before taking any action concerning its products. The company also tries the strategy of after sales services to its customers through which they moves towards motivating customers to maintain their loyalty and continue patronage.

Table 4:5 has to do with social responsibilities of the company towards its employees. This was vividly seen in the areas of motivation, provision of basic infrastructural facilities like health clinic, transportation and good working condition, payment of benefits and high regard for employees by the company. All these will make the workers to be working happily and one is working with relaxed mind, also high productivity.


5.3 Conclusion

Social responsibilities have really helped the business to grow and survive in an environment by making the business to have good reputation and good will.

A business or organization that does not perform their social responsibilities to the environment will find it difficult or hard to have good public image. Thereby reducing the number of the customers or consumers for their product and services.

The various interest group or segments of the society which include shareholders (owners) customers, employees, suppliers and distributors, government, community, competitors, investors and society are expected to have equal benefit of the social responsibilities.

The most concerned aspect of the study has been to establish the existence of social responsibilities and how it impacts on the business. From all indications, fulfillment of these responsibilities has been a catalyst for business continual existence and it’s inescapable for any business environment. Government provides enabling environment while surrounding communities provides protection. These sectors need some benefits in return for providing success to business.

In conclusion, the company should always see the customers or consumers as an important factor that will help the business (organization) to succeed and also consider the taste and feelings of the customers towards their product in order to take the next necessary step needed. The company should also pay the employees as and when due in order to motivate them towards high productivity.


5.4 Recommendations

It is based on the findings of the study, that it was discovered that they are many factors that affect the fulfillment of social responsibilities of the company to its environment. Based on that, the following recommendations were made:

  1. The government should be more strict in the area of collecting taxes and other financial obligation of the company. This will help to check the company that gives bribe to cover their debts instead of paying the debt.
  2. The community should pass a rule to every member of the community that none of them should compromise the welfare of the community to anything the organization will offer.
  3. UNILEVER PLC should try to fulfill their social responsibilities to all groups around them. In the area of paying tax, they should pay it as at when dew. They should not pile hem to become difficulty.
  4. UNILEVER PLC should know the consequences of not fulfilling their social responsibilities would disrupt their aim of setting up the organization when mapping out goals and objectives to achieve, social responsibilities should be included so that it will not be odd and difficult for them to fulfill.
  5. UNILEVER PLC should not only stop at providing safety gadget for the employees, they should as well supervise them to make sure that they use the gadget as at when stipulated.
  6. UNILEVER PLC should not involve itself in anything that will spoil the image of the organization because any impression created on people and customers cannot be easily erased.

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Frequently Asked Questions


Is corporate social responsibility a goal or an objective?

See how corporate social responsibility, like other goals and objectives, can be incorporated using the Balanced Scorecard. Understand that corporate social responsibility, like any other goal and objective, helps the firm only when aligned with its strategy, vision, and mission.

What is social responsibility of organizational management?

Social Responsibility of Organizational Management is the responsibility of every manager. Because, Organizational Social Responsibility (OSR) functions as a built-in, self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms.

Does corporate social responsibility help or hurt the firm?

Understand that corporate social responsibility, like any other goal and objective, helps the firm only when aligned with its strategy, vision, and mission.

What is the role of corporate stakeholders in corporate social responsibility?

The role among corporate stakeholders is to work collectively to pressure corporations that are changing. Shareholders and investors themselves, through socially responsible investing are exerting pressure on corporations to behave responsibly. 

What is organisational responsibility?

Organizational responsibility covers a range of closely related—even virtually synonymous—areas of research and practice, including social responsibility, organizational citizenship, sustainable business, and social performance.

What are the social responsibilities of managers?

Social Responsibilities of Managers Social responsibility is defined as the obligation and commitment of managers to take steps for protecting and improving society’s welfare along with protecting their own interest. The managers must have social responsibility because of the following reasons:

What are the social responsibilities of an organization?

It is the moral responsibility of the organization to assist solving or removing the social problems 4. Efficient and Effective Employees – Recruiting employees becomes easier for socially responsible organization.

What is the difference between organizational social responsibility and managerial social responsibility?

In Organizational Social Responsibility Approach (OSRA), corporations work with local communities to better themselves. In addition, Managerial Social Responsibility (MSR) is the responsibility of every manager for his/her actions.

Who are stakeholders and how do they affect your company?

Stakeholders are the people or groups who have an interest, claim, or stake in the organization. Hence, stakeholders usually focus on the performance of the organization and ensure that it remains at an acceptable level. Stakeholders do not have any role in the management of the organization, but they do influence the organizational management.

Why do corporations have a social responsibility?

Why Should Corporations Have Social Responsibilities. There are three broad types of arguments for situating businesses, at least large and developed ones, inside an ethical framework of expansive social and environmental responsibilities: Corporations are morally required to accept those responsibilities.

Why is social responsibility important to some businesses?

Why is social responsibility important to some businesses? When social responsibility is recognized as part of a company’s business model, it can attract positive publicity, help attract and retain top talent, and improve relationships with customers and their communities. The benefits can be far and wide, including client retention, improved … 

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