Corporate Social Responsibility and Organization
Performance
Abstract
This dissertation is to know the impact
of Corporate Social Responsibility on organization performance. More so, it led
us to know how CSR is related to company performance and high public image. This
study is descriptive and data used for description were collected through
survey method. A number of findings were made in the study and they are as follows:
- the analysis indicated that most business organization have positive
perception about CSR issues. Most corporate managers believe that business
should go beyond the single prospect of making money, thus then willingness to
‘be good both from philanthropic and profit making view point is often
present’. The research also reveals that different areas of CSR contribute
differently to organization public image. The major conclusion of this study is
that organizations growth, visibility, sustainability and survival on the long
run depends on how social responsible the organization is to the stakeholders.
Based on the major conclusion, the following recommendation were made: That
organization should see social responsibility issue as task to be committed on
and not as a waste of the organization resources. That other organization
should emulate the gestures of CSR issue that leads to corporate image
improvement, protection and as a way of selling their corporate existence. That organization should appropriate part of
their annual budget to take care of CSR issues. That organization should see
their involvement in social responsibility as a way giving back to the host
community what they had received (cordiality) and not see it as a waste of
resources, even when these host communities see their existence in their domain
as a boast to improvement and development of their areas.
Chapter One
1.1 Conceptual Framework (Theoretical
Background)
There have been pronounced changes in
the views of business managers about their corporate social responsibility,
which tend to reflect changing priorities and expectations of society about
business social functions. Different philosophers have been advanced to guide
business spending for social purposes and limitations that may serve as
boundaries for business activities.
Miner (1978) opined that even when the aim of any business is to
maximize profit for the shareholders which is the law, also the organization
should face morals that is meeting the
requirement of the social responsibility, a response to morality emanating from
societal pressures.
Akpalla (1990) explains that social
responsibility entails, not only the imparting of knowledge and develop of
academic excellence, but to tell its public that it is a good personality to
deal with. It’s pubic according to him may include creditors, debtors and
suppliers. It also has responsibility to its customers, the students, workers,
community and society. Therefore, all actions and activities carried out with
the aim of creation of a good image in the organization is socially
responsibility. Following the clause set by Friedman (1962) on the operation of
business activities within the scope of the law, there is a negation. That is,
organizations not only obey the law but responds to the dictates of morality.
Onwuchekwa (2000) opined that corporate social responsibility is not obligatory
but if provide business organizations with good public image. This study will
investigate the perception of business organization about social responsibility
and if they will deliberately involve themselves in social responsibility
issues. McWilliams and Siegel (2001:) see Corporate Social Responsibility as “…
actions that appear to further some social good, beyond the interests of the firm and that which is required by law”.
While the Corporate Social
Responsibility construct is a new coinage, it is
not a new practice. A common strand that runs through most of these studies, suggests that meaning and practice of CSR is socio-culturally embedded. O’Brien, 2000; Maignan (2001); Kusku and Zarkada-Fraser
(2004); Chapple and Moon, (2005)
1.2. Background of the Study
The consciousness of corporate social
responsibility came into focus when public started asking questions of what
actually was the role of businesses, especially large multinational companies.
. It could be traced back to such examples as the Quakers in 17th and 18th
centuries whose business philosophy was
not primarily driven by profit maximization but by the need to add value to the
society at large – business was framed as part of the society and not separate
from it. Even before Christ was born, people understood the importance of
ethical behaviour. This can be demonstrated with Plato (427-347 BC) saying; “Only
people with the good of the nation in mind can be allowed to rule the just
state” (Plato through Larsson, 2003) The resurgent interest in the practice
provides a fertile ground for different discourses and actors, which lends it
to multiple and contested constructions
(Moon, 2002). Corporate Social Responsibility is the obligation of businessmen
to pursue those policies to make those decisions or to follow such lines of
action that are desirable in term of the objective and values of the society by
Hodgets (1976). A firm is not socially responsible if it merely complies with
the minimum requirements of law because this is what any good citizen will do,
social responsibility however goes one step further, it is a firms acceptance
of social obligation beyond the requirement of law. Given the dominance of the
West in shaping the corporate social responsibility agenda, the contemporary corporate
social responsibility movement could be, arguably, said to be largely founded
on Anglo-American priorities, philosophies and values Kemp (2001), Chapple and Moon
(2005).
In Nigeria, the origin of the concept of
the CRS can be traced back to concern for the fundamental right of human
beings. This era was filled with legislation designed to regulate business and
industries in Nigeria and it was that business would have to accommodate the
public interest if free enterprise was to survive (Onwuchekwa, Nsiegbunam and
Amobi (1999) In view of the amount of money those companies make compared with
the extent of their participation to elevate the standard of living of those
people in whole areas or communities (or country) they operate, they have
fallen short of expectations. For instance taking the normal example of the
activities of certain companies in Nigeria, some of the companies operate
successfully at the direct expense of their most communities. These communities
often experience, very hazardous ecological disasters. The reactions of these
companies to such disasters are considered highly unsatisfactory. Again, these
companies are not doing enough to improve the economic condition of a lot of
the people in their areas of operations. It is the responsibility of a manager
to see that a business carries out its legal, primary productive and economic
activities to the satisfaction of the ultimate owners and also to assess the
environmental demands on the business and then make adjustments needed for
stability of the business organization in carrying out their productive
activities, the business social responsibility issues are environmental issues.
The major social responsibility issues identified in Nigeria include: poverty
issues, equal rights in employment, ecology issues, consumerism issues, mass
transit, transportation, fuel scarcity and distribution issues.
1.3. Statement of Problems
The statement of problem in this study
is to investigate and find out if any relationship exists between Corporate
Social Responsibility and Organizational Performance. Specifically does
corporate social responsibility of any business improve her organizational
performance in the basis of knowledge gained from this investigation, some
recommendation will be made for improvement.
Corporate Social Responsibility and Organization Performance
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