The Practice Of Corporate Social Responsibilities In The Brewery Industry (A Case Study Of The Nigerian Breweries Ama Enugu)

The Practice Of Corporate Social Responsibilities In The Brewery Industry (A Case Study Of The Nigerian Breweries Ama Enugu)

Abstract

This study was carried out to examine the practice of corporate social responsibilities in the brewery industry using Nigerian breweries in Ama Enuguas a case study. The study was carried out to determine the whether brewery industry carry out corporate social responsibilities, ascertain the forms of the corporate social responsibilities practices in the brewery industry, determine the effectiveness of the brewery industry in carrying out corporate social responsibilities and investigate the factors influencing the practice of corporate social responsibilities in the brewery industry. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of employees of Nigerian breweries in Ama Enugu. In determining the sample size, the researcher conveniently selected 65 respondents and 50 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables and mean scores. While the hypotheses were tested using Chi-square statistical tool.The result of the findings reveals that the forms of the corporate social responsibilities practices in the brewery industry includes: Educational support, Public health support, Community development, Youth empowerment, Talent development, Road construction & reconstruction and Donations and sponsorship(s). The study also revealed that the factors influencing the practice of corporate social responsibilities in the brewery industry includes: unfavourable government economic policies, population explosion, high unemployment rate and competition. Therefore, it is recommended that brewery industries should endeavor to embark on corporate social responsibility within their environment irrespective of the age of their operations as it brings about development and long lasting relationship among the various stakeholders. To mention but a few.

Table of Content

• Title Page
• Certification
• Dedication
• Acknowledgement
• Table of Content
• List of Tables
• Abstract

Chapter One:

Introduction

• 1.1 Background of the Study
• 1.2 Statement of the Problem
• 1.3 Objective of the Study
• 1.4 Research Questions
• 1.5 Research Hypothesis
• 1.6 Significance of the Study
• 1.7 Scope of the Study
• 1.8 Limitation of the Study
• 1.9 Definition of Terms
• 1.10 Organisations of the Study

Chapter Two:

Review of Literature

• 2.1 Conceptual Framework
• 2.2 Theoretical Framework
• 2.3 Empirical Review

Chapter Three:

Research Methodology

• 3.1 Research Design
• 3.2 Population of the Study
• 3.3 Sample Size Determination
• 3.4 Sample Size Selection Technique and Procedure
• 3.5 Research Instrument and Administration
• 3.6 Method of Data Collection
• 3.7 Method of Data Analysis
• 3.8 Validity of the Study
• 3.9 Reliability of the Study
• 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

• 4.1 Data Presentation
• 4.2 Analysis of Data
• 4.3 Answering Research Questions
• 4.4 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

• 5.1 Summary
• 5.2 Conclusion
• 5.3 Recommendation
• References
• APPENDIX
• QUESTIONNAIRE

Chapter One

Introduction

1.1 Background of the Study

Since the institutions operate in an environment, produce and services for the environment and employ people to eradicate or resolve social problems posed to the society as a result of their operation. Social responsibility whether of a business, governmental or non-governmental may arise in two ways, it may arise out of the social impact of the institutions or it may arise as problems of the society itself (Holmes, 1977). Both are of great concern to management. The first deals with what an institutions does to the society while the second is concerned with what an institutions can do for society, for instance the purpose of textile industry established in a area is not to cause water pollution but to provide clothing to people but in the process of its production, its bye product may cause water pollution.

Also the purpose of power generator is not to make or release noxious fame, it is to bring out light but in order to do this, it produces noise; create heat and releases heat fumes to the environment thereby causing air pollution. Nobody in his right senses will want to create traffic jam, but if a lot of people are employed in the place it end result will not be desirable to the society.

In the recent year, globalization, increased influence of companies, retrenchment and repositioning, war for talent, growth of global civil society activities and increased importance of intangible assets have led to an explosion of interest in corporate social responsibility and the phrase ‘’being a responsible corporate citizen” has became a managerial clinic (Boston college for CR 2002). Top management organizations were ultimately involved in drawing up a new chapter of responsibility for its relations with stakeholders to demonstrate that the enlightened corporation is no longer prepared to tolerate long-run excessive external costs.

Most contemporary managers are looking for empathy with society rather than alienation. It is not surprising that many of them have decided that time is own ripe for a new interpretation of the duties and responsibilities of corporations. Professional managers have realized that profits are necessary but not sufficient condition for healthy corporate society. For instance, a large number of contemporary organizations have introduced employee ownership schemes. Such developments do not mean that these companies are becoming less profit Conscious. In facts, quite contrary, more and more companies are realizing that employees, who dedicate their lives to the company, deserve to benefit from the wealth crating potentials of the corporation.

To have a clearer picture of this study we will look at corporate social responsibility from two different perspectives. What does it mean for an organization to be socially responsible? Few concepts have been described in so many different ways. For instance, it is been called “ profit making only” going beyond profit making only “voluntary activities” “concern for the broader social system and social responsiveness” A great deal of attention has been focused on the extremes on one side, there is the classical or purely economic-view and on the other side is the social economic position.

The classical views are the opinion that managements only social responsibility is to maximize profit. The most outspoken advocate of this approach is economist and Nobel laureate Milton Friedman. He argues that manager’s primary responsibility is to operate the business in the set interest of the stockholders (the owners of the corporative).

What are those interests? Freidman contends that stockholders have a single concern. Financial return. He also argues that anytime managers decide to spend the organization’s resources for “social goods” they’re adding to the costs of doing business. These costs have to be passed on to customers either through higher prices or absorbed by stockholders through a smaller profit returned as divided.

The socioeconomic view on the other hand views that management’s social responsibility goes beyond making profit to include protecting and improving society’s welfare. This position is based on the belief that corporations are not independent entities responsible only to stockholders. They also have a responsibility to the large society that endorses their creation through various laws and regulations and supports them by purchasing their product and services. In addition proponents of this just merely economic institutions society expects and even encourages business to become involved in social, political and legal; issues. For example, proponent if socioeconomic view would say that Avon product inc. was being socially responsible when it initiated its breast Cancer Crusade to provide women with breast cancer education and early detection screening services and which after 10 years, has raised more than $250 million worldwide. And they would say that the educational program implemented by Brazilian cosmetics manufacturer of Natural cosmetics SA in public primary schools in Sao Paulo, to improve children’s literacy and decision making skills, were socially responsible. Why? Through this program, the managers were protecting and improving society’s welfare. More and more organizations around the world are taking their social responsibilities seriously especially in Europe, where the view that business need to focus on more than profits has stronger tradition than In the United States. The key differences between these two perspectives are easier to understand if we think in terms of the people to whom organizations are responsible. Classicists would say that the stockholders or owners are the only legitimate concern others would respond that managers are the responsible to any group affected by the organization’s decision and actions-that is the stakeholders shows a four stages model of progression of an organization’s social responsibility.

A Stage 1: Managers are following the classical view of social responsibility and pursue stakeholder’s interest while following all laws and regulations.

At stage 2: Managers expand their responsibilities to another important stakeholder’s group-employee. Because they’ll want to attract, keep and motivate good employees. At this stage managers will improve working conditions, expand employee rights, increase job security and focus on human resources concern.

At stage three, managers expand their responsibilities to other stakeholders in the specific environment. Primarily customers and suppliers. Social responsibility goals for these stakeholders might include fair prices, high-quality products and services, safe products, good supplier relationship, and similar actions. Their philosophy is that they can meet their responsibilities to stockholders only by meeting the needs of these other stakeholders.

Finally, stage 4 characterized the highest socio-economic commitment. At this stage, managers feel a responsibility to society as a whole. They view their business as a public entity and feel a responsibility to advance the public good. The acceptance of such responsibility means that managers actively promote social justice, preserve the environment and support social and cultural activities. They do these things even if such actions may negatively affect profits.

The Nigeria business environment has become complex and dynamic, hence contemporary business organizations operating in Nigeria are witnessing greater influence and enormous pressure from interest groups and increase government regulation have been put to socially responsible.Indeed, the business organizations of today are much more socially responsible than before. In fact a comparative study of organization effectiveness in Nigeria industries shows that public limited liability companies are performing better than public enterprises. Hence these papers seeks to evaluate the social responsibility of Nigeria businesses using Nigeria bottling company plc. as a case study.

1.2 Statement of Problem

Corporate social responsibility (CSR) is the deliberate and sustained system of ensuring mutual benefits or a win-win situation for an organisation and all its stakeholders as against focusing only on the shareholders interest. The stakeholders of an organisation include the community, interest groups, government, regulatory bodies, and international bodies such as the United Nations and its agencies. Corporate social responsibility is a concept that underlines the thrust of good corporate citizenship. Some scholars are of the view that the corporate social responsibility has transformed to sustainability. Sustainability to these scholars represents corporate social responsibility activities that will ensure the sustainable or continuous being of the society (Hawkins, 2006). In recent times, the Milton Friedman’s principle of business restricting its activities only to makingprofits for business owners has become contentious and the new thinking is that it is always in the best and enlightened interest of business to look beyond profits and seek the best interest of the society.

To Ogbemi (2020, p. 153-154), CSR “is the practice by which corporate organisations invest part of their profits to the development of their host communities for the benefits of those who bear the brunt of their operations.” He adds that CSR involves providing social amenities, building schools, constructing roads, protection of the environment of the communities, town halls, cottage hospitals and other projects towards improving the lives of the people of the host communities. Kolade (2005) submits that corporate social responsibility is the activities carried out by organisations to leave the society in a better state than that in which they found it. He adds that corporate social responsibility decision and actions of organisations should be driven by a desire to responds to the real needs of people and the society. Yahaya (2004) cited in Adamolekun and Ekundayo (2007) says corporate social responsibility is the commitment of business to contribute to sustainable economic development by working with employees, their families, local community and society at large in order to improve their quality of life, in ways that are good for business and development.

Corporate social responsibility is a concept of corporate citizenship that mandates an organisation to identify and respond to its social, political, and economic responsibilities as defined not only by law, but also, and, more importantly, by its stakeholders. Every activity that portrays an organisation as being a good corporate citizen must be voluntary and must derive from its core values and business objectives. It must also be a deliberate, sustainable, proactive initiative, and not a panic response to escape regulatory sanction or appease the society. The significance of this made Adamolekun and Ekundayo (2007) to submit that the success of business organisations is dependent on how positively they can influence the lives of the people within their environmentshareholder model (Ogbemi, 2020). This school according to a scholar believes that “the corporation should not fancy out ways of being more good. It should not seek to develop the qualities of a natural person, such as goodness as charity. Companies are not created to be charitable to their external community. They are created to do business, and through that process, to create wealth for their employees, shareholders, the taxman and through him, the community” (Kolade, 2005).

The second school of thought is the direct opposite of the first school. The school says businesses must be active in the society by contributing to the totality of its well-being as businesses acquire economic power and social power to be successful. This, according to Wisdom (2012) cited in Ogbemi (2020), is the stakeholder model. Buttressing this school, Kolade (2005) says the line of thinking of the shareholder model gave way when it became acceptable to see the development of a society as the responsibility of its citizens, and people also began to accept the concept of a business firm as a corporate citizen. Corporate social responsibility has now come to be thought of as the response of the responsible firm to the needs of its community which underlines the stakeholder model. In buttressing this model, Oshionebo and Adamolekun (2011) say “corporate social responsibility attempts to ameliorate decrepit socio-economic development (challenges) in areas such as poverty alleviation, health care, infrastructural development and education.”

1.2 Statement of the Problem

Organisations usually publish their corporate social responsibility activities that are aimed at bequeathing a better and improved well-being of their host communities and society at large. Despite this claim, however, the people have always accused the business organisations of poor treatment and concern especially with regards to their corporate social responsibility activities (Ogbemi (2020). This disagreement is a problem which queries the adequacy or otherwise of the corporate social responsibility activities of the concerned organisations. Consequently, the problem of this study is the disagreement in the claims of the organisations and the society in assessing the corporate social responsibility activities of the organisations. In view of the above, this study seek to examine the practice of corporate social responsibilities in the brewery industry using The Nigerian Breweries Ama Enugu as a case study.

1.3 Objectives of the Study

Generally, the purpose of the study is to examinethe practice of corporate social responsibilities in the brewery industry.

Specifically it seeks to:

1. Determine the whether brewery industry carry out corporate social responsibilities.
2. Ascertain the forms of the corporate social responsibilities practices in the brewery industry.
3. Determine the effectiveness of the brewery industry in carrying out corporate social responsibilities.
4. Investigate the factors influencing the practice of corporate social responsibilities in the brewery industry.

1.4 Research Questions

The following research questions will guide and help the researcher to achieve the specified objective of this study:

1. Does the brewery industry carry out corporate social responsibilities?
2. What are the forms of the corporate social responsibilities practices in the brewery industry?
3. How effective is the brewery industry in carrying out corporate social responsibilities?
4. What are the factors influencing the practice of corporate social responsibilities in the brewery industry?

1.5 Research Hypothesis

• Ho: The brewery industry is not effective in carrying out corporate social responsibilities.
• Ha: The brewery industry is effective in carrying out corporate social responsibilities.

1.6 Significance of the Study

The results of this study would be significant in a variety of respects. Firstly, on the basis of the findings of the study, the report is try some conclusions and identifies certain problems with in industry CSR practices. Second, it’s a piece of contribution to the current knowledge in the area of CSR for many breweries industries particularly for beer industry by reporting the finding to the stakeholders specially the company’s managers.

1.7 Scope of the Study

The study generally focus on assessing the practice of corporate social responsibilities in the brewery industry. The study will be carried out in Nigeria, particularly he Nigerian Breweries Ama Enugu where the respondents will be obtained.

1.8 Limitations of the Study

Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. The significant constraint was the scanty literature on the subject owing to the nature of the discourse thus the researcher incurred more financial expenses and much time was required in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size. Additionally, the researcher will simultaneously engage in this study with other academic work. More so, the choice of the sample size was limited as few respondent were selected to answer the research instrument hence cannot be generalize to other secondary schools. However, despite the constraint encountered during the research, all factors were downplayed in other to give the best and make the research successful.

1.9 Definition of Terms

Corporate Social Responsibility: In this study, corporate social responsibility is refers to all activities, projects, programmes and supports offers by the MTN to an individual, group, community, state and Nigeria at large such as sponsoring of games, festival, building of water, building of schools etc Corporate Social Responsibility is often shorten as CSR.

1.10 Organization of the Study

The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, abnd selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.

Chapter Five

Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on the practice of corporate social responsibilities in the brewery industry using Nigerian breweries in Ama Enuguas a casestudy. The chapter consists of summary of the study, conclusions, and recommendations.

5.2 Summary of the Study

In this study, our focus was to examine the practice of corporate social responsibilities in the brewery industry using Nigerian breweries in Ama Enugu as a case study. The study was specifically focused to determine the whether brewery industry carry out corporate social responsibilities, ascertain the forms of the corporate social responsibilities practices in the brewery industry, determine the effectiveness of the brewery industry in carrying out corporate social responsibilities and investigate the factors influencing the practice of corporate social responsibilities in the brewery industry.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent areemployees of Nigerian breweries in Ama Enugu.

5.3 Conclusions

In the light of the analysis carried out, the following conclusions were drawn.

1. The brewery industry carry out corporate social responsibilities.
2. The forms of the corporate social responsibilities practices in the brewery industry includes: Educational support, Public health support, Community development, Youth empowerment, Talent development, Road construction & reconstruction and Donations and sponsorship(s).
3. The brewery industry is somewhat effective in carrying out corporate social responsibilities.
4. The factors influencing the practice of corporate social responsibilities in the brewery industry includes: unfavourable government economic policies, population explosion, high unemployment rate and competition.

5.4 Recommendation

Based on the findings the researcher recommends that;

1. Brewery industries should endeavor to embark on corporate social responsibility within their environment irrespective of the age of their operations as it brings about development and long lasting relationship among the various stakeholders.
2. Relevant authorities in the aforementioned brewery industries should not make effort to increase their leverage level since it has no positive impact on the corporate social responsibility.
3. The promoters of the breweries must ensure that they do not unduly interfere with the management of the firms as this may lead to inaccurate disclosure of their corporate social responsibility.

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