The Relevant Of Corporate Social Responsibility On Organizational Performance

Project and Seminar Material for Business Administration and Management BAM

The Relevant Of Corporate Social Responsibility On Organizational Performance


This research study was based on the relevant of corporate social responsibility (CSR) on organizational performance. The research work concentrated on the background of the study, which showed that there was a need for an economic of responsibility embedded in the business ethics of corporation which restrains individuals and organization from destructive activities on humanity and help redress societal problems, and the objective of the study which was to determine the impact of public social responsibility on organizational performance as well as determine the extent to which CSR promote social and economic development in communities. More so, it considers the concept of corporate social responsibility and it benefits to the organization, community and government.

The survey research design and simple random sampling techniques was used and data collected were derived from questionnaires designed and administered on a sample of eighty three (83) management and staff of first bank of Nigeria plc, which were analyzed using simple percentage and chi-square. The test revealed that corporate social responsibility has a significant impact on organization performance.

In conclusion, the relevant of corporate social responsibility on organizational performance is positive. From the presentation and analysis of data, it was established by the respondents that First Bank of Nigeria Plc has always attached importance to corporate social responsibility and at the same time its managements and staff has adhered strictly to guidelines.

Therefore it is recommended that:

· Conduct regular meetings to discuss how to handle ethical issues and improve business and social responsibility in the community. By including diverse interests and perspectives, organizations tend to make effective decisions. Assign roles and responsibilities to specific individuals. This makes them accountable for putting ideas into practice. In this way, corporations contribute to society by both maximizing profit and contributing to social programs, such as donating time and money to charitable organizations.

Chapter One


1.1 Background of the Study

Corporate social responsibility which is also known as corporate citizenship. Corporate responsibility or corporate social performance is a form of corporate self – regulation which is integrated into a business model

Corporate social responsibility trends to operate as built-in, self-regulating mechanisms under which a business will monitor and ensure it compliance with law, international norms and ethical prescription. A business or company assumes responsibility for the impact of activities on the environment, employees, consumer communities and other members of the public. In addition, a business has to proactively promote the interest of the public through voluntarily avoiding activities which are harmful, regardless of legality.

Furthermore, business exercises extensive influence on our social and economic life styles. As social institution it is responsible to deliver a standard of living and maximizes life quality. Today, life quality means not only quality and quantity of consumer goods and services but also enriched quality of the life in the society and the environment.

There is also the demand for the social responsiveness of corporate organization, which means the ability and preparedness of the organization to relate they plan and policies to the social environment in mutually beneficial ways to eth organization and the society.

Business are expected to behave in socially beneficial ways particularly in relation to the physical environment, product, quality, of employee’s working life and removal of unfair discrimination in living and firing staff.

1.2 Statement of the Problem

This research work is carried out to understand the relevant of corporate social responsibility on organization performance; the problem that triggered this study includes:

Inadequate enlightenment on the need for and purpose of corporate social responsibility on organization performance.

1.3 Research Questions

  1. Of what importance is corporate social responsibility
  2. What are the statutory duties of management in relation to corporate social responsibility?
  3. Does a corporate organization activity have impact on communities, the environment and society as a whole?
  4. Does corporate social responsibility help corporate organization to succeed?
  5. Does corporate social responsibility increase profit?
  6. Does corporate organization have to be force to be socially responsible?

1.4 Purpose of the Study

  1. To identify the factors that weakens the corporate social responsibility of an corporate organization.
  2. To find out if corporate organization has to be social responsible after paying tax.
  3. Is it compulsory for corporate organization to be corporate socially responsible?
  4. To examine the effect of corporate social responsibility on the organization performance.
  5. To examine critically the corporate social responsibility perform by First Bank of Nigeria Plc.

1.5 Significance of the Study

This study is of great importance to students, business organizations, consultants and the entire society. It will educate the in management of First Bank of Nigeria plc on the importance of corporate social responsibility and it role in achieving a better organizational image.

Furthermore, it will establish the various ways of ensuring effectiveness of corporate social responsibility.

1.6 Research Hypothesis

Ho: Corporate social responsibility does not have a significant impact on organization performance.

Hi: Corporate social responsibilities have a significant impact on organization performance.

1.7 Scope of the Study

The scope of study is limited to the case study, though the result will be generalized. The questionnaire will be administered to the members of staff of First Bank of Nigerian Plc.

1.8 Limitations of the Study

The availability of fund and time is very limited in carrying out this research work to a standard that will put a final pay on the issue.

Just to mention, that in this country of ours money companies are reluctant to divulge information about their for the fear of intrusion, insecurity and the unhealthy competition they may pace.

1.9 Definition of Term


The state, pact or position of being accountable to somebody or for something.


Standard pattern of behaviour


We means activities outside business firm which hinder or facilitate the achievement of the objective of such a business venture.

Chapter Five

Summary, Conclusions and Recommendations

5.1 Summary

The study is aimed to look at the relevant of corporate social responsibility on the organizational performance in Nigeria. In an effort to achieve that three independent variables were used against one dependent variable. The independent variables are employee relations (ER), company performance to community (CP) and environmental management system (EMS). The dependent variable used by the model to represent profitability is return on assets (ROA). By means of regression analysis the study found that two of the independent variables have a positive impacts and other one negative impact. The p-value of EMS appeared significant at 5% but all the others appeared to be significant only at 10%.

5.2 Conclusions

In line with the findings of the study that show statistical significance of the variables under study, we conclude that corporate social responsibility plays a significant role on the profitability of conglomerates in Nigeria.

5.3 Recommendations

Based on summary and conclusion, the study recommends the following to the various stakeholders.


Given the fact that corporate responsibility leads to profit realization management of conglomerate should ensure that the responsibility is inbuilt into their policy statements and back it up with effective budget.


Sometimes conflicts happened between companies and the immediate environments, based on numerous studies conducted on environmental conflict resolutions one of the factors causing that is the failure of the companies to impact positively to the environments. The study recommends that at the annual general meeting shareholders should compel the management of their companies to have well structured corporate social responsibility structure.


As corporate social responsibility has cost implications linked up with it, there is the need for the employees to become more effective and efficient in discharging their functions. By being effective and efficient the companies can be able to produce products at less cost which by extension means part of the money saved could be used in attaining responsibility issues. Government

The government should come up with clearly defined regulation on how to go about social responsibility issues of the companies and should ensure its full implementations.

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