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University of Nigeria Research Publications
NWAKOBI, Michael Ejimofor
Aut
hor
PG/MBA/00/ 31796
Title
The Effectiveness of Social Responsibility in the promotion of Corporate Image of Organisations : A Study of Nigerian Breweries Plc and Nigerian Bottling
Company Plc
Facu
lty
Business Administration
Dep
artm
ent
Management
Dat
e
November, 2002
Sign
atur
e
UNIVERSITY OF NIGERIA
I
TITLE PAGE
THE EFFECTIVENESS OF SOCIAL RESPONSIBILITY
ORGANISATIONS. A STUDY OF NIGERIAN BREWERIES
PLC AND NIGERIAN BOTTLING COMPANY PLC.
BY
NWAKOBI, MICHAEL EYIMOFOR
REG NO: PG/MBA/00/31796
PRESENTED TO THE DEPARTMENT OF MANAGEMENT, b
FACULTY OF BUSINESS ADMINISTRATION, SCHOOL OF
POST GRADUATE STUDIES, UNIVERSITY OF NIGERIA,
lENUC3U CAMPUS. I N PARTIAL FULFILMEIQT OF THE
REQUIREMENTS FOR THE AWARD OF MASTER OF
BUSINESS ~ ~ I V ~ ~ ~ T I O N . . DEGREE IN MANAGEMENT ;
SUPERVISOR: CHIEF J.A. EZE
NOVEMBER 2002.
CERTIFICATION
Nwakobi, Michael Ejimofor a Master of Business
Administration Degree Student of the Department of
Management with Registration number PG/ MBA/3 1796 has
satisfactorily completed the requirements for the course and
research work for the award of Master of Business
Administration in Management. b
The work embodied in this report is original and has not been
submitted in part or h11 for m y other Diploma or Degree of
this or any other University.
G?ii?- .A. EZE
Supervisor
Date. . . . . . . . . . . . . . . . . . . . . .
MR C.O. CHUKWU
Head of Department
Date. . . . . . . . . . . . . . . . . . . .
DEDICATION
To God Almighty, my Late Mother MRS ROSELINE ANAYO
NWAKOBI (NEE IKPALI) and all Lovers of Truth.
iv
ACKNOWLEDGEMENT *
A research of this nature does not always come to a
completion solely on the effort of the researcher. Because of
the fact that many people were helpful in one way or the other
as the research was carried out, the researcher here by
acknowledge their support.
First, my thanks go to my supervisor Chief J.A. Eze fbr taking
his time to supervise every bit of this write up and to have
equipped me with a great knowledge base in the lectures he
gave us in class. b
Second, I owe much thanks to all friends who helped in one
way or the other throughout my period of study in UNEC.
Also I show my gratitude to the staff of UNEC and
Department of Management Library for their assistance in the
course of this study. I also thank the management of Nigerian
Breweries (Enugu) and Nigerian Bottling Company (Enugu)
for their cooperation with me while I was carrying out the
study.
Finally, I say a big thank you to God Almighty for giving me
the grace to live up till this moment to bring my programme
to a successful end.
v
ABSTRACT
Social responsibility of Business Organisations ~ g h t to be
one of the major tasks any serious minded organization
should embark upon. In the light of this, the researcher has
looked into how effective this social responsibility, as
practiced by organizations, can promote the corporate image
of the organizations. Two organization5were studied and they
include: Nigerian Breweries PLC and Nigerian Bottling
Company PLC all located in Enugu (9th mile).
Among the objectives of the study were to ascertain'whether
the two organizations embark on social responsibility; to
establish the extent at which their host communities have
been satisfied by the social responsibility as practiced by the
organizations and to assess how the corporate existence of
the companies have been promoted through social
responsibility .
The researcher gathered information through questionnaire
and interview and made elaborate analyses of these data.
Three hypotheses were equally tasked to establish a fact
based on the objectives of the study. The results of the
hypotheses were interpreted and discussed.
vi
Among the findings of the research include the following: the
organizations have it as a policy to carry out socid
responsibility. The communities where these firms operate
expect them to do more in education and support to charity
due to the differences in the areas of preference of both
parties. But it was established that social responsibility has
helped to promote the corporate image of the two
organizations.
All the analysis and findings helped the researcher to suggest
some workable tips in recommendations necessary to make
social responsibility as practiced by the two firms achieve
more results. These include the following. The firms should
target their activities to cover the areas where the
communities lay their preference and not where the
organizations have immediate economic interest. Again, there
should be a balance between economic motives of the firms
social responsibility and that of social favour. Finally, it was
suggested that the two firms under study should use their
strong capital base advantage to improve the well being of the
community so as to inspire other firms to borrow a leaf.
vii
TABLE OF CONTENTS
TITLE PAGE.. ..................................................................... .i . . CERTIFICATION. ............................................................... .ii
. a .
DEDICATION.. ................................................................. .ill
ACKNOWLEDGEMENT.. .................................................... iv
ABSTRACT ...................................................................... .v
. . TABLE OF CONTENT.. ..................................................... .vii
CHAPTER ONE
.... INTRODUCTION.. ............................................. .?. .1
STATEMENT OF PROBLEM.. .............. .: ................... .7
OBJECTIVES OF THE STUDY .................................. ..8
FORMULATION OF HYPOTHESIS.. .......................... .10
SIGNIFICANCE OF STUDY.. .................................... . l l
DEFINITION OF TERMS.. ........................................ -12
SCOPE AND LIMITATIONS OF STUDY ...................... 14
BACKGROUND INFORMATION ON THE FIRMS
UNDER STUDY ....................................................... 16
REFERENCES
viii
CHAPTER TWO
LITERATURE REVIEW
2.1 CORPORATE SOCIAL RESPONSIBILITY DEFINED.. .22
2.2 REQUIREMENTS OF A SOCIALLY RESPONSIBLE
COMPANY.. ............................................................ .27
2.3 THE CONCEPT OF BUSINESS ENVIRONEMNT ......... 32
2.4 ISSUES IN THE CHANGING PUBLIC ATTITUDES
AND BUSINESS RESPONISIBIITY ...................... .33
2.5 THE CASE FOR BUSINESS SOCIAL RESPONSIBILIiT'Y39
2.6 THE ARGUMENT AGAINST BUSINESS ,
SOCIAL RESPONSIBILITY.. ..................................... .45
2.7 GENERAL CONCEPT OF BUSINESS
SOCIAL RESPONSIBILITY.. ...................................... -54
2.8 THE NIGERIAN CONCEPT OF SOCIAL
RESPONSIBILITY.. .................................................. .6 1
2.9 BENEFITS DERIVED FROM BUSINESS
SOCIAL RESPONSIBILITY.. ................................... .72
2.10 SUMMARY OF THE LITERATURE REVIEW.. ........... .76
REFERENCES
ix
CHAPTER THREE
RESEARCH METHODOLOGY ........................................... -85
3.1 RESEARCH DESIGN ............................................... -85
3.2 SOURCE OF DATA .................................................. 86
3.3 INTERVIEW QUESTIONS .......................................... 87
3.4 TARGETPOPULATION ............................................. 89
3.5 DETERMINATION OF SAMPLE SIZE ......................... 89
3.6 RELIABILITY AND VALIDITY TEST ........................... 90
3.7 DATA ANALYSIS TECHNIQUES ........................... r ... 90
REFERENCES
CHAPTER FOUR
DATA PRESENATION AND ANALYSIS .............................. 95
CHAPTER FIVE
HYPOTHESIS TESTING AND INTERPRETATION OF
FINDINGS .................................................................... -127
REFERENCES
CHAPTER SIX
... SUMMARY. RECOMMENDATIONS AND CONCLUSION 15E
6.1 SUMMARY ........................................................... 151
6.2 RECOMMENDATIONS ........................................... 153
.................................... AREA FOR FURTHER STUDIES.. .I55
BIBLIOGRAPHY
APPENDIX.
CHAPTER ONE
1.1 INTRODUCTION
According to Drucker (1977;26), all organizations, business
and non-business alike, are organs of society and exist not for
their own sake, but to fulfill a specific social purpose and
need of society. Going by this assertion, it is pertinent that all
organizations should contribute to the welfare and
development of society within the limits of their available
resources and institutional purpose and missions.
Organizations do not exist in a vacuum, they exist in an
environment that is seen as the aggregate of the demographic,
climatic and ecological conditions that influence an
organization. The environment to every organization is made
up of internal as well as external elements. Components of
the organizations environment include persons, physical
resources, market conditions and government laws. The
environment provides resources and limitations to business
organizations. I t determines opportunities open to and threat
that can be faced by busincss csiablishments. Hence,
organizations have to adapt to their environment if they must
remain prosperous.
The environment will continue to contribute valuable
resources to the organization only if the organization returns
desired goods and services to the environment. If the
environment is sick, then business must also be sick. The
pre-determined, attainable and visionary objects of business
can only be achieved if the environment is healthy. Business
organizations therefore, have an obligation to the society in
which they operate. Jus t like the farmer who must put back
into the soil nutrients he takes out in crops through
manuring, the organizations must replenish the society if
they expect it to remain fertile ground for business
transactions.
Social responsibility according to Drucker (1977: 26)2
demands that business take responsibility for social
problems, issues, social and political goals and that it
society's problems. Management therefore should manage a
firm with recognition that therc are two sets of groups that
are associated with the firm. The inside (interna1)group which
consists of the owners of capital, managers and employees as
well as the outside (external) group comprising customers and
consumers, suppliers, creditors. Government and the society b
within which the fiim operates.
Managing social responsibility i s a major task of business
which must be accorded the same seriousness, analysis and
careful attention which is regularly given to other tasks of
business management. In line with being a good corporalc
citizen, all business organizations must ensure that they
maintain the confidence of the Nigerian public and regulatorv
authorities so as to maintain their corporate existence. A good
lmsiness image requires an enterprise to show it self as a
good place to work in, to buy from, to sell to, in short to deal
with. Such demonstration is part of what is referred to a s the
cu 1-erpriscs social obligation (Ak pala: 1 989: 162)3.
Organiml kms arc 1 1 0 longcr scc:~, in the business sector, as
totally private endeavours that are free to pursue their own
cnds as long as they break no law. Instead their actions arc
seen as having public consequences that. go beyond serving
customers and paying returns to owners (Hicks and Gullet b
1981:75)4. This explains why most local governments and
states make frantic efforts to attract industrialist to establish
in their areas. They see in it an avenue to benefit in terms of
development from the social responsibilities of these business
organizations.
Many org;mizatioris and cooperate bodies have positively
responded to the social needs of their host communities in
the areas of education, health, sports and other spheres of
human endeavors. They have built schools, supplied walcr,
built roads, hospitals, awarded scholarships and added more
colour to sports within the community they exist. To a great
extent, environment pollution has been controlled while
compensations have been paid to affected citizens due to the
activities of these firms.
Contrary to the expectations of many, some organizations and
fwms show little or no concern about their social
responsibilities to the society where they operate. Societal 4
consensus seems to be demanding that business
organizations with their managerial skills and financial
resources, live up to their expectations in delivering social
succor that transcend the traditional economic realm and the
balancing of competing demands.
However, observations have showed that we are experiencing
an innovation in managerial orientation about the concept of
social responsibilities among firms. This is evidenced in their
increased discharge of their social obligations voluntarily to b
the socicty. This is seen as being capable of earning them the
understanding <and acceptance of the public.
In all, the fullillment of the mentioned components of social
responsibility is necessary and will help to promote the
corporate image of these firms. The society will have a positive
perception and impression about the firms and operate dm
open system which allows for free inflow and. out flow of
resources and services between it and the firms so a s to
promote a symbiotic relationship between them.
1.2 STATEMENT OF PROBLEM
Most business organizations are battling between survival
and decline due to adverse economic conditions of the nation
while some have tried to keep their head above water with
strong capital base. Those in the first category have been
forced to believe that social responsibility is for the
organizations that make huge profits and have strong capital
base. On the other hand, those who make fortune out 01 their
business operations are tempted to believe that they can
survive only by developing a better product or rendering
superior service provided that the products or service were
effectively advertised and attractively and competitively
priced.
The period is gone when the business manager's fxst
obligation is to manage a business to see that it is productive
and profitable. Today, the emphasis is on social awareness,
social concern and social involvement. Business organizations
have to recognize that their prosperity is inseparably linked
with the public good and that business improves as the
welfare of the society and the attitudes of the public improve.
If business organizations should live up to their expectation
by improving the social well being of their host communities,
it will enhance the positive perception and impression which
would yield on enduring positive image about the organization
amongst it's host community, neigbours and society a&large.
The two companies under study will have their activities
analyzed to ascertain whether they embark on the discharge
of social responsibilities to their host communities. Efforts
will also be made to establish how the discharge of social
responsibility if practiced by the organizations, has helped to
promote their corporate existence in their area of operation.
1.3 OBJECTIVES OF THE STUDY
This study is intended to establish some salient facts on the
operation of the two companies under study. Among these
facts include the following.
1. To ascertain whether the two organizations adopt
the practice of social responsibility i* their
operations
2. to establish the extent at which the communities
where they operate have been satisfied by the
organizations in the discharge of their social
responsibilities.
3. to assess how the cooperate existence of these
companies have been promoted through mutual
coexistence between the companies and their host
communities which stems from adequate discharge
of social responsibility.
1.4 FORMULATION OF HYPOTHESIS
The following hypotheses served as a guide into the collection
of data in the field. Subsequently these hypothesis will be
tested to be either accepted or rejected.
Social responsibility if discharged in the preferred area b
human existence of the host communities will lead to a great
level of cooperation between the communitiek and the firms.
HYPOTHESIS I1
Host communicates are satisfied if the firms in their area are
not discriminatory in the discharge of their social
responsibility and this leads to a satisfactory and peaceful
coexistence between the communities and firms.
HYPOTHESIS I11
Social responsibility of business organizations if effectively
carried out leads to a promotion of co-operate image of the
organizations. ,
1.5 SIGNIFICANCE OF THE STUDY b
This study will be beneficial to mangers and the general
public. I t will provide information on how the two companies
under study have so far carried out their social
responsibilities in their host communities. With this, the
general public will be well informed on how these business
organizations have improved the general well being of their
host communities.
The study will also help the managers of the two companies
under study and others to have an insight into the benefits
they stand to derive through a properly directed social
responsibility. This will inspire them to map out a well
articulated social responsibility programme that is not
discriminatory so a s to promote their cooperate image.
1.6 DEFINITION OF TERMS
Some of the terms used in this write up are here by defined.
The reason behind this is because words have meanings and
their meanings tend to differ directly or indirectly depending
on the context and usage.
ORGANIZATION: This is an association of two or more
people who agree to cooperate in their work to achieve a
common goal within the limits of a set down rules and
regulations.
BUSINESS ORGANIZATION: This is an incorporated
company that is a limited liability company. I t does not
include partnership or sole proprietor.
MANAGEMENT: Management is seen a s a body that
coordinates all the resources available to an organization in
terms of men, material and money. This body ensures the
produclion of goods or services that are in accordance with
customers and societies needs so a s to accomplish the
objectives of the organization.
b
BUSINESS SOCIAL RESPONSIBILITY: This is the burden
upon business organizations, firms or managers to discharge
social obligations towards the society to improve on their
general well being and compensate them for the
inconvcniences caused by the operations of the organization.
ENVIRONMENT: This consists of the people and conditions
internal and external to the business organization. This
include the social, economic, political, technological and
demographic environment of business organizations.
SOCIAL ENVIRONMENT: This is used to denote the totality
of interactions that take place between the society and the
business organizations existing and functioning within it.
EFFECTIVENESS: This is the extent to which the desired
result is realized.
b
CORPERATE IMAGE: This is the legal existence of a business
organization that presents it as a body that can sue in its
name and also can be sued in its name. This concept
presents the business organization as a group of people
working together and existing as one and not as individuals.
1.7 SCOPE AND LIMITATION OF THE STUDY SCOPE OF
THE STUDY
This work studies organization social responsibility as it is
practiced by the two organizations under study. I t looks into
the extent to which business social responsibility of these two
companies has helped to promote their cooperate images.
Although the organizations under study havc offices in other
areas, efforts were directed at their Enugu ( 9 t h mile) offices for
data collection. Only the managers who are at home with the
<:ompanies policies were targeted in the two organizations.
While some members of the host communities were randomly
selected for responses to questions.
LIMITATION OF THE STUDY
'I'hc limilations of this study mostly, are the financial cost
involved and the time limit given Sor the complct.io11 of the
study. The financial cost covers that of materials as well a s
transportation in the course of information gathering.
1.8 BACKGROUNDINFORMATION
ORGNAIZATION UNDER STUDY
Nigerian Bottling company
16
ON THE
Coca-cola is the world's leading soft drink sold in more than
145 countries. A total of 250 million servings are consumed
every day in all parts of the globe from Canada in the North to
Argentina and Newzealand in the south from Alaska to China b
from Mexico to Nigeria.
Coca-cola came into Nigeria in 1953 when Nigerian Bottling P
Company set up its first plant in Lagos., it was to be the
beginning of an exciting stoiy of growth and development
particularly during the past century.
Nigerian Bottling company is today Nigeria's number one
bottler of soft drinks selling more than 6 million bottles per
day, a figure which is still growing with the continuing
expansion of the existing plants and with the opening of
brand new plants in various parts of the federation. Fanta is
by far the number one best seller in the orange segment and
sprite the most widely sold lemon-lime drink in Nigeria. Other
products bottled by N.B.C. include Fanta Ginger Ale, Fanta
Tonic, Fanta Soda and Crest Bitter Lemon. Nigerian Bottling
Company employs over 6,000 Nigerians in all fields of
operatioils.
b
The success of coca-cola h a s brought with it the development
of a number of sister industries all contributing to the growth
of the Nigerian economy. The largest N.B.C. plant with
bottling and canning facilities is at Ikeja, Lagos. The main
offices and head quarter of N.B.C. also situated at the plant at
Ikeja.
Nigerian Bottling Company PLC Enugu (9th mile) plant is one
of the twenty-four plants in Nigeria and was established in
the early 1970's. At present, it has a staff strength of five
hundred and sixty personnel. This figure excludes the casual
workers in the plant. The Nigerian Bottling Company PLC
Enugu (9 th mile) plant is headed by a plant manager who
ensures that policies are implemented even to improve on the
wclf:u-c of their host community.
NIGERIAN BREWERIES PLC
Nigerian Breweries PLC (NBPLC) was incorporated on the 6th
of November, 1946 and it established it's fust Bre~e ry in
Lagos. The original founders of the company were the United
African Company (UAC) and the international Trading
Companies. UAC and Heineken have till date acted as
technical and commercial advisers to NBPLC providing a
source of international technical and commercial innovations
as well as training facilities.
011 June 2, 1949, the Brewery Produced the first bottle of star
Beer to mark the beginning of the brewing industry in Nigeria
and has ever since, held its place in the fore front of the
industry.
In line with its distribution policy of extensive geography
spread, the company built breweries in various parts of
Nigeria to ensure that its products are available in all nooks
and crannies of the country. This explains why the Enugu (9th
niilc) plant was established. The company has four divisions
operating jointly for the purpose of achieving its corporate
objectives. These divisions are technical, finance, marketing b
and personnel each of which is headed by an executive
director.
Nigerian Breweries PLC has a wide variety of products. It
produces Star lager beer, Gulder Beer, Legend Extra stout,
and Maltina. Star Beer is the fnst Beer to be produced by
N.B. PLC in 1949 and has gained international recognition. In
1972 Gulder was produced to be the f ~ s t Nigerian larger to be
packaged in brown bottle. Maltina, the first non-alcoholic
malt drink was produced in 1976.
'l'hc distribution of N.B. PLC producLs is mainly in the hands
of Nigerian entrepreneurs numbering several hundreds and
located in all parts of the country. The philosophy behind
N.B. PLC distribution arrangement is that the business will
thrive if the company can help its customers to build a
successful business for themselves by selling fast moving
products at a uniform price anywhere in the country. Their
mission among others is to be a good corporate citizen by
affecting the lives of people in the community they operate
positively.
REFERENCES
1. Drucker, (1977), Management: Tasks, Responsibilities
<and Practice. New York : Harper's Collage
P.26.
2. Druckcr, Ibid
3. Agwu A. Akpala, (1988), Industrial Relations Models for
Developing Countries: The Nigeria System.
Enugu: Fourth Dimension p.. 162
4. H.C. Hicks and Ray Gullet, (1981), Management 4 th
Edition. New York: McGraw Hill p. 75.
CHAPTER TWO
LITERATURE REVIEW
2.1 DEFINITIONS OF CORPORATE SOCIAL
RESPONSBILITY
Thc concept of corporate social responsibility according to
Agwu Akpala (1986)' is an image which a corporate b
organization demonstrates by its management system
showing to its suppliers, customers, creditors, debtors etc
that it is a viable organization and to the immediate
community and society at large that it is a good corporate
citizen.
Miner (1978;32)2 defined corporate image as the total of all
impression of a company in the consciousness of the various
publics- customers, suppliers, stockholders, bankers
potential investors, competitors, government officials and the
general public. He further stated that social responsibility
may not benefit the organization in the short run, but in the
long run, will cnhance its corporate image. Shilt, everard and
Johns (1973:32)3 refers to it as the obligation of business to
contribute to the good of the society in a meaningful way.
These include; donation to charity, contribution to
development ,of sports and such related activities that would
generated benefits to the organization undertaking the
responsibility. 4
"Business corporate responsibility means interest in and
commitment to the aims, objective and aspiration of the wider
society in which business function" (Ornolayole, 1978)4. I t
refers to the philosophy that people in business must not only
mind their business but help to mind the business of their
wider society. C.C. Nwachukwu(1988,272)5 argued that
business social responsibilities could be seen as "The
intelligent and objective concern for the welfare of society
which restrains individuals and corporate behaviour from
ultimately destructive activities, no matter how immediately
profitable and which leads in the direction positive
contribution to human betterment. "Therefore economic
abundance in the midst of declining social and physical
environment does not make any sense, business should focus
more on the "quality of life".
Keith Davis (1973) defined social responsibilitv of business as
a f ~ m ' s obligation to evaluate in its decision making process,
the effects of its decisions on the external social terrain in a
manner that will accomplish social benefits along with the
traditional economic gains which the firm seeks:. He further
said that social responsibility is a firm's acceptance of social
obligations beyond the requirement of the law.
Harold Bowen (1953;6)7 defmed it as "the obligation of
business man to pursue those policies, to make those
decisions, to follow those values of our society. Ronald pitfkld
(1982; 7-818 is of the view that social responsibility devolves
upon a firm beyond the financial objectives of the business.
He elaborated that it is brought into being by the constantly
developing attitudes of society generally and may be enforced
by legislation resulting a s an expression of public opinion . he
said that such responsibility will include: wages standards,
working condition, staff welfare, trade union co-operation, the
environment, fair dealing, code of conduct and consumer
protection.
In the words of Olakunle Iyanda (1978)Q "social responsibility b
is the extent to which a manager (or business organization)
should compromise his loyalty to the society in general in the
interest of his loyalty and responsibilities as an organization
man. "Furthermore, this calls for an ability to 'blow the
whistle" when the demands of an organization man dictates
what Fitch etal (1975)lO called "social destructive obedience.
Social reconcilability may also refer to a "liability social
consciousness, corporate legitimacy, charitable contributions,
"do goodism" Managerial enlightenment and so on" (Dow
votaw, 1973: 12)"
Social responsibility means something deferent, depending
upon how one looks at the concept and the corporate role in
the society. As George Steiner (1975: 159112 puts it most
businessmen prefer words other than social responsibility
because these words to them connotes affiied obligation with
unclear commitments. They prefer such with public problem:
"Kenneth Andrew defmed social responsibility of business to b
mean voluntary restraints of profit maximization, sensitivity
to social costs of economic activities and to the opportunity to
focus corporate power on objectives that are less economically
attractive than socially desirable.
A n evolution of all the definition depict common variables:
obligation placed on business organization by virtue of their
existence in the society. Practically social responsibility is
defmed as those activities which business organization
carryout which promote the welfare and aspirations of the
society through eradication of industrial nuisance and
upliftment of social justice as well as economic development.
27
Such activit ies include pollution abatement, providing of
recreational facilities, employment provision and meeting the
necd or the populace socially, etc.
2.2 REQUIREMENTS OF A SOCIALLY RESPONSIBLE
COMPANY
The requirements of a socially responsible Nigerian Company
should include interalia: 4
Responsibility to the consumer/Customers
Responsibility to the industry
responsibility to the employee
responsibility to the community
responsibility to the shareholders
Responsibility to the society/government.
Responsibility to the consumers/ customers: many
companies in Nigeria do not appreciate the fact that they owe
their continued existence to the consuming Nigerian public.
The products and services of the company to a large extent
determine7 the relevant customer group. I t is the duty of a
socially rcsponsibility company in Nigeria to use its available
resources in the most efficient and effective manner so as to
meet the nccd of the customer /customer.
Unfortunately, many companies look at the needs of the
consumers from a very narrow perspective of how much
money they can squeeze from them. In this regard, they,often
ignore the equal important aspect of the value which the
customer/consumer is likely to obtain from the transaction. A
good socially responsible corporate citizen of Nigeria takes its
responsibilities to the customer / consumer seriously.
(ii) Responsibility to the industry: this centers on the
responsibility Nigerian citizen should have on biding interest
in the fortunes of the industry to which he/she belongs. A
company has responsibility to contribute to the acceptance of
ethical standards in its particular profession and the world of
business generally. It should contribute to the objective of its
industry (Ewurum UJF. 1995) '3
(iii) Responsibility to the Employee: The task here is on
company's ability to fulfil its objectives which is largely
dependent on the quality of its resources such as men, money
and material. For many organizations, the most crucial factor
for success or failure is the quality of their human resources.
They need better educated managers and more skilled
employees since advancement in science and technology has
continued to increase the complexities of industrial
organizations and consequently the need for well trained
person who would be able to learn from and absorb new ideas
Employees must be well trained, remunerated and highly
motivated. They must be given a sense of belonging and
encouraged as much as possible participate in discussing
matters that effect them and their future.
(iv) Responsibility to the community; in corporate
management there is a general consensus that the most
determining factor in the measurement of any company's
effectiveness to the community is its ability to fulfill socio-
economic functions. Can the business survive by being
exclusively wrapped up in the profit motive in oblivion to the
need of the time? Should it not participate directly and
profitably too on activities connected with national
development?. I s it enough to provide some employment and
to pay taxes? However, this does not suggest that they should
take more than they can "chew"
Happily, some of our companies have helped to set up Blood b
banks in hospital, others have established clinics and allowed
members of the community to use the facilities and few
others have constructed community roads, provided pipe-
borne water and awarded scholarship to persons living round
the geographical locations of corporate their plants. Yet, not
enough is being shown for the environmental hazards arising
from the industrial operations of some companies. In most
urban centers of Nigeria, some communities still complain
about the pollution of their streams and rivers with the
operations of some oil companies and other business
establishments.
(v) Responsibility to the shareholders: there is the need
for management stczff of our firms to protect and increase the
property and resources of the companies they manage and to
use all the facilities at their disposal for the betterment of the
shareholders. Company directors owe judicial duties of loyalty
and good faith in addition to the duty of care to their
companies. Shareholder expect, apart from a good return oOn b
their investment, a good quality products, efficient services
and above all, good public image of their company.
(vi) Responsibility to the society/ government. In this
case a society or nation is defined as the aggregate of
people or unit bound together by some common
principles and objective. I t is an undisputable fact that
in Nigeria, it is the society that grants our company
executives the power to exploit our economic and social
resources. Our companies must display responsibility in
planning, organizing, directing and controlling and be in
a continuous responsible decision making process
based on research and vertical fiats.
2.3 THE CONCEPTS OF BUSINESS ENVIRONMENT
Business organizations operate within an environment. This
means that business cannot operate in a vacuum. According
to Keith Davis (19830):
'. . . . . . . A single organization dose not
exist alone. I t is part of a
larger system that contains
thousands of other elements. All
these mutually influence each other
in a complex system that becomes
the life style of the people."l4
In any classification of environmental elements impacting on
a manager it is extremely difficult to separate even for
discussion purposes the social, political and the ethnical
environments. Conceptually however, it is possible. The social
environment is made up of the attitudes, desires,
expectations, degrees of intelligence and education, belief and
customs of thc people in a given society. The political
environment is primarily that complex of laws, regulations
and government agencies and their actions which affect all
kinds of enterprises, often to varying degrees. The ethical
environment which could well be included as an element in
the social environment includes sets of general accepted and
practiced standard of personal conduct. b
The environment of business also encompasses the
technological aspect. The technological environment of
businc:ss. It has far reaching impact on the sum total of
knowledge we have of ways of doing things, on how we design,
produce, distribute and sell our goods as well as services.
Technology has both positive and negative impacts on society.
2.4 ISSUES IN THE CHANGING PUBLIC ATTITUDES AND
BUSINESS RESPONSIBILITY
The dynamic environment of business is essentially
characterized by the changing expectations and of courgp 0
changing responsibilities on the part of business. These
changes are not initiated from a vacuum neither are hey
evaporated into a vacuum. The changes are occasioned by
the environment and they exert their impact on business and
those that deal with business-the publics. Perhaps it is better
to put it that the change is taking place in the publics itself.
Specifically the publics of business in this context sbould
include all those that have a common dealing directly or
indirectly with the business institution such as the stock
holders, the customers, the workers, the suppliers and of
course the community neighbors. Agwu Akapala referred to
the 'public' of the corporation and included these groups
when he pointed out that the corporate responsibility is to the
publics.
THE PUBLICS OF BUSINESS
STOCK HOLDERS - Many business organizations have
hundreds of thousands of stock holders who are dependent
on the company in varying degrees for heir income. The
understanding and allegiance of these stock holders is very
important because by virtue of their contributions the
financial and general reputation of the organization is
recognized and of course by virtue of their ownership position
they can influence management decisions.
THE CIJSTOMERS - Most business organizations, especidly
well established ones, also have millions of customefs and
ultimate consumers who look to the business'organization for
the services and goods they want. Customers u s u d y are not
dependent on a single source an their allegiance must
continually be counted. At the same time the business
organization can affect their patronage habit through
advertising merchandising or other social attractions.
THE WORKERS - These are the group that have a contractual
undertaking with he business organization for service to the
organizations based on conditions of salary payment and
security of job. Employers are usually dependent on the
corporation for their Livelihood, work satisfaction and career
development, and often for much of their social life.
COMMUNITY NEIGHBOURS - Large business organizations
operate their business in numerous communities. Many
manufacturing companies have their operations within some
rural communities. Oil companies in Nigeria have mining B
wells in communities well known to be the ancestral homes of
a people. Examples is found in the Cross River areas and
some parts of rivers state in Nigeria. Many of these operations
are on a large scale enough in these communities that they
have considerable effect on the hundreds of thousands of
people who live in or near such corporate business
operations. The very appearance and tone of a small or
medium size community, as well as its well being, is often
greatly influenced by its dominant industry.
OTHER PUBLICS - Apart from these elaborated elements in
the public of business there are also others such as &
corn pet itors, the labour unions, the press, the government
etc. all these groups are involved in the changing environment
of business which has a potential generation of changing
responsibilities on business.
New expectations may be generated in the stock-holders
because the economic circle may have changed ,from
depression to boom and business management may be
expected to increase earnings per share. In the same token,
the workers might expect a general wage-rise else an
industrial strike might result. The customers cannot be left
out. They would demand reduced prices for the goods and
services they purchase from the business organization.
The general impact of this rising expectations is that business
is looked upon to shoulder the responsibility of meeting up
with these expectations.
I t is one thing for business to know the fact of these social
expectations and it is another thing for business to analyse
the consequences of a failure on its part to respond positively
to those expectations. The effect due to attitudinal changes in
the business environment could be fa r reaching on a business
organization. A technological change in the business
environment could impose a change of taste on the 4
consumers and a subsequent generation of expectations from
business organizations to respond to the consumer taste.
Failure on the part of a business organization in this
environment to respond positively to this new expectation
could result in loss of public patronage. This development
could check a business unit out of the competitive market.
In conclusion, it is this interface of business and its
environment that has generated a whole theory and body of
concept called the business social responsibility.
2.5 THE CASE FOR BUSINESS SOCIAL RESPONSIBILITY
The argument in favour of business social responsibility has
been carried forward in light of certain reasonable view
points. There are opinions which hold that social
responsibility* of business is a pre-requisite for business
existence. In fact, it would seem that the question is no longer
whether business should be socially responsible but., what
direction and scope should it take.
To continue a debate that has stormed various quarters in
recent times Olaniyi (1986) had an opinion that is very
fundamental and in line with the basic thesis of those who
see business social responsibility as a legitimate function of
business. In his article "The relevance of business social role
in Nigeria, "he asserts:
". . . . . .a business organisation or an
enterprise is not worth the name if it seeks
to grow without considerable sacrifice to its
society of origin. Thus the socio- economic
motive of business came into vogue out of
the need for the firm to make beneficial
impacts on both the constituents of its
primary and secondary physical
surroundings. ." l 6
He went further to contend that the modern uniyersal
business trends emphasis has since shifted towards what
should be called the pure social motive approach.
The point may be clear that business social responsibility
could possibly not have come into issue if business
institutions could operate without social threat. The role of
business in the violation of the environmental conditions that
keep society in peace is enough cause to arouse the threat of
society on business. The imposition by business on society, of
the hazards of environmental pollution, technological
unemployment and so forth only serves to make society
develop 'bad eyes' on business if business does not become
socially responsible. I t h a s been noted that Henry Ford 11 felt
4 1
constrained to explain to stock holders of the ford motor
company in America that his earnest and socially aware effort
to recruit works from Detroit hard core unemployed was a
preventive measure against the recurrence of ghetto riots
carrying a threat to the company.
The justification for business social responsibility could also
be found in the business need for market. In America when a b
number of life insurance companies agreed to invest money in
slum reconstruction at interest rates somewhat below the
market, their stock holders supported it by pointing out that
they were opening up failure markets for life insurance.
Apart from these points already raised in favour of business
social responsibility it falls within the confines of good
judgment and reason that the economic and social power
which big business organizations command should be made
to be useful in the service of society. Of course, some people
have had the opinions that social problems have their
solution in business social responsibility and nowhere else.
The apostles of this opinion maintained that in an industrial
society, corporate power vast in potential strength must be
brought to bear on certain social problems if the latter are to
be solved at all. They argue that corporate executives of the
integrity, intelligence and humanity required to run
companies whose revenues often exceed the gross national 4
product of whole nations cannot be expected to confine
themselves to economic activities and ignore its
consequences, and that hence forth able young men and
women coming into business will be sensitive to the social
worth of the corporate activities.
In his contention, David Rockefeller (1964)17 said that if a
business enterprise is to achieve long range profitability, it
must take account of certain corporate citizenship
responsibilities that have no direct bearing on profits.
Kcit11 Davis opposed the theory of those who hold that
business is wholly on economic institution and therefore its
responsibilities are limited only to economic aspect of general
public welfare with his contention that continue vitality of
business depends upon its vigorous acceptance of socio-
human responsibilities along with socio-economic
responsibilities. l8 He argued that men at work as cus&omers
and a s citizens of a plant community do expect more than
straight economic considerations in dealing with business.
Laurence I. Wood an American also stated a s follows for more
we must sense and be responsive to the social demands of the
public as well as the market place and recognize the social
consequences of economic decision making.
It can therefore be concluded that since business decisions do
have social consequences, that business cannot make
decisions that are solely economic because they are inter-
,related with the whole social system, business institutions
should not avoid being socially responsible. Social
responsibility implies that a business in the process of
serving his own business interests is obliged to take actions
that also protect and enhance society's interest. The net effect
is to improve the quality of life in the broadest possible way.
However quality of life is defined by society. In this manner
harmony is achieved between business actions and the larger
social system. Moreover as a conclusive note, the wqning is
prescribed by Keith Davis and Robert C. Blomstrom that
'business institutions that ignore responsibility for their social
power are threatened by the iron law of responsibility which
stipulates that in the long run those who do not use power in
a manner which society considers responsible will tend to
loose it. The activities of some oil companies operating in
parts of the country has impacted on the living conditions of
whole villages especially in the eastern region. In these areas
also aquatic life has almost been eliminated due to oil
spillage. In the light of all these incidents, it is only
reasonable that business institutions undertake to solve
those problems it creates in society.
2.6 THE ARGUMENT AGAINST BUSINESS SOCIAL
RESPONSIBILITY
Perhaps the first basic contention against the issue of
business social responsibility is the argument that the
purpose of business is to make profit. Proponents of this idea
capitalized on the theory which early econompt have
propounded. Some of them refer to the market economy, the
price system and resource allocation system as the essential
elements whose interaction contribute to the economic
welfare of the community and concludes that business must
not look beyond these elements to take up social
responsibilities. Eugene Rostov. In his views, has warned
against the eminent danger posed by the pursuit of social
programmes at the expense of profit.He noted that -
...........if as is widely thought the
essence of corporate statesmanship is
to seek less than maximum profit, post
war experience is eloquent evidence
that such statesmanship leads to
serious malfunctioning of the economy
as a whole. '9
Rostov was afraid that emphasis on business social
responsibility may sabotage the profit motives of business
units and fears that his society might be force to have a
second experience of economic hardship as they had before b
the war. Another apostle of the profit motive of business,
Milton Friedman contends that "few trends could so
thoroughly undermine the very foundation of our free society
as the acceptance of corporate officials of social responsibility,
other than to make as much money for their stockholders as
An important dimension in this case is the issue of defmition
of social responsibility. There has not been a generally or
universally accepted definition for this all important subject.
Stone (1975) remarked that
".......only after we have considered
what being socially responsible calls for
in general does it make sense to
develop the notion of a corporation
being responsible.. . .2 ' .
Arnold Maremont (1964) introduced the issue of conscience
into the debate in his opposition to the issue of bminess
social responsibility. He put his case this way .-
... lets not confuse the company managers in
their role a s managers with their role as
individuals. A company man in a social
responsibility sense is not a man at all. He is
just two dimensions and he is not human.
Since a corporation has no conscience and is
not a person it cannot be charitable, it
cannot take shareholder's profit to help
mankind woman kind or even the animal
world.
Friedman identified with this basic aspect of the oppositionist
view point when he remarked that "there is no such thing as
corporate social responsibility because only individuals can
have responsibility."23 Koontz and 0. Dennel in their own
definition have implied that only individuals can be socially
responsible. They went further to add - 4
........ social obligation is owed by
individuals and not by organization. A
corporation does not discharge a
responsibility, it can act only by means
of the persons who invoke its name.
Social responsibility is a personal
attribute. There is no action without
personal action.24
Ikpeze wrote on the artificiality of the business personality as
it regards social responsibility and observes that there is a
confusion as to whether it is the owners of business or the
business themselves should take up social responsibility. He
concludes this view by noting that unless this basic
theoretical confusion is banished from the business social
responsibility discussions, further debate instead of clearing
tlie fog will generate fruitless controversy, acrimony and
understanding.25 Me went further to observe that
practicability of this idea of business social responsibility is
constrained by problems and categorized the problems as
follows: -
i. Problem of enforcement
. . 11. Problem of establishing criteria for selecting social cause
iii. Problem of measurement."
The issue that lkpeze raised about measurement of cost has
to do with the philosophy of social audit defmed as an
independent appraisal of corporate performance in the social
sphere with a view to testify the correctness of published
statements or reports regarding social activities. Khamdelwal
(1977) dealt on this concept and remarked that the idea of
social audit will become a practical proposition only when
the following conditions are satisfied.
1. The m,magement of a business realizes its social
responsibility and defines the goals of its social
prograqme
ii. Plans for social activities as an integral part of its
business planning. b
... 111. The accounting profession strives to define social cost
and social benefits, develops a suitable technique for
measurement of social performance.. . . , develp suitable
appraisal techniques.. . . ."26
Paul Balchin and Kieve (1977) seemed to buttress further the
case of measurement which Ikpeze raised against the
philosophy of business social responsibility when thev
illustrated the difficulty of measuring social cost with
reference to pollution and tax imposition. In their statement
they observed that-
While over all pollution of a particular
kind may be quantifiable, it may be difficult to measure the
contribution of the individual polluter. Yet this would be
essential if a pollution tax was to be introduced. .. .s7
The case that Balchin and Kieve raised about measurement of
social cost is suggestive of the fact that the idea of a company
being socially responsible for a pollution zone con th ing a
number of companies would seem difficult in terms of
ascertaining the proportion of the total pollution cost each
comp~any would bcar. this problem in itsclf is a weakness to
the whole philosophy known as business social responsibility.
Kelso and Adler crtisized the doctrine of social responsibility
by their contention that management has no justification for
using what belongs to shareholders in benevolent acts. They
saw it as despotism for management of a corporate enterprise
to dispose of what rightly belongs to its stocks holders
without their free, present and affumatively expressed
consent. and they observed that it remains despotism no how
benevolent or wise management is in acting for what it thinks
to be in the best interest of the stock holders. 28
Perhaps profitability of the corporation stands in the center of
the whole argument. A school of though saw profitability a s
the only social responsibility of business. This school holds b
the view point that shareholders would not have invested
their money were it not for profitability. ~ h & ~ argued that
business has a responsibility to make profit according to the
rules of the game and suggested penal consequences for any
breakage of the rules.29 This school therefore saw the doctrine
of business social responsibility as standing in the way of
profitability and therefore unacceptable.
In conclusion, the issues raised for or against the doctrine of
business social responsibility presents each on its own a food
for taught. Every issue has its merits and demerits. However,
the point must not be lost sight of that profitability is a
53
central and most attractive point of view in any business
venture. Perhaps it is better to borrow the ideas of George
Steiner towards a reconciliatory stance in the opposing view
points that have characterized the issue of business social
responsibility. According to Steiner as cited by Hicks and
Gullet in their book management, the following are the
criteria to follow for socially responsible decisions.
4 There is no ready-made formula for socially
responsible decisions.
no action should be taken to erode the profit motive
of business.
business should be willing to take social action that
are in the interests of its long run profits even if short
run profits are reduced.
business should exercise social responsibility in
proportion to its social power.
a business should not be expected to voluntarily take
actions that will make it difficult to attract stock
holder investment
G . social problems should be solved by those
institutions best fitted to deal with them.30
2.7 GENERAL CONCEPT OF BUSINESS SOCIAL
RESPONSIBILITY
The concept argues that social performance by business is
necessary to save the larger society from impending perils. b
Stressing this point, Donham (1972:406) warns that:
Unless more of our business leaders learn to
exercise their powers and responsibilities with a definitely
increased sense of responsibility towards other groups in the
community, unless without great lapse of time, there is
through the initiative of such men an important socializing of
business, our civilization may well head for one of its periods
of decline. 31.
It is vital that business leaders develop a sense of obligation
towards all its constituents and not just to its owners and
shareholders. This is necessary to ensure order and harmony
in society. Furthermore, Rockefeller (1964) expressed that:
If a business enterprise is to achieve long
range profitability, it must take account of
certain corporate citizenship responsibilities
that have no direct bearing on profit ...
community problems will never be solved by
experts alone, and they should nob be
relegated exclusively to government.3lb.
Effective social performance is usually mutually beneficial to
all parties concerned. I t is in the long-run interest of business
to be socially responsible and society in turn benefits from the
social order that prevails as a result of social performance by
business. Therefore, the proper management of social impact
and social responsibility is an integral task of business
management.
Greater burden is imposed on the business community
because, the concept argues, it has the necessary resources
and the ability at its disposal to solve some of society's
problem. Donhan (19727)32 argues that apart from the fact
that business has the required ability and resources to help
alleviate societd problems, that business also has more
frequent contact with society than any other organization. #
Business organizations lie at the pivot of all human activities.
The average citizen interacts more frequently' with business
enterprise than any other organization in society and as such
is more directly influenced by business decisions.
Furthermore, Miller, (1969) proclaims that Albeit, societal
problems are complex and grave, they are still within the
technical capacity of business to solve and that business
possess the knowledge to make intelligent choice and the
means to execute it. 33 In agreement, Drucker (1977) added
that business commands the resources of society, and also
competence, therefore it is only logical that they be expected
to take leadership responsibility for major social problems
and issues.34 In other words, the concept asserts that those
who can solve technical and cconomic problems are more
than capable of working out an effective relationship with the
karger society .
Concept also ' points out that solving of societal problems
should not be relegated exclusively to government but that
business with all its might ought to lend a helping' hand.
According to miller (1969), societal problems are bigger and
are inexorably linked to one another and affect everyone,
therefore; effective solutions are beyond the reach of
government alone.35 The potential of all organizations outside
government are greater than that of all government (federal,
state and local) combined, and the coordinated efforts of the
whole potential of society is required to combat these massive
problems of society. Consequently, Bowen (1953)36 suggested
that business should practice corporate giving by way of
reducing the burden on government as well as promoting
social progress in society. Mccal ( 1973) suggested further that
tmsiness should channel part of its profits towards solvirrig
societal problems.
The concept also argues that it is in the self-interest of
business to concern itself with the welfCare and development of
society. According to the committee for Economic
Development (C.E.D.) (1977:28) -
The corporate interest broadly defmkd by
management can support 'involvement in
helping to solve virtually any problem,
because people who have a good
environment education, and opportunity
make better employees, customers and
neigbour ibr business than those who are
poor, ignorant and oppressed.37-
I t is obviously in the interest of business to enlarge its market
and to improve its workforce by helping disadvantaged
people to develop and employ their economic potentials to the
fullest. Drucker (1977) added that social problems represent
challenges and are major sources of opportunities for
business management. The function of business, therefore, is
to satisfy a social need as well a s serve their institutions by
making resolution of a social problem into business
opportunity. The C.E.D (19778:3 1) further observed that:
A s new opportunities develop, corporations
wi th the entrepreneurial goal to anticipate b
what the public is going to want, instead of
merely supplying what it has wanted in the
past, are apt to improve their profit ability by
discharging their social responsibility.38
Therefore, innovation and seriousness in the performance of
social responsibility can complement and strengthen the
profit objectives of business. Social performance is in the
interest of business because it depends on the goodwill of
society which provides it with opportunities and resources.
Where business fails to accept its fair measure of the
problems of society, society can retaliate by withdrawing
privileges and rights granted to it..
However, the concept proposes that business should perform
its social 'responsibility voluntarily rathcr than relying on the
compulsion of' government regulations. In addition C.E.D
(1977:44) observed that:
By exercising greater initiative) and
leadership, business can be more effective in
shaping the future development of is social
environment. In this way, business can
guide change and enhance its operational
scope and flexibility rather than lapse into
the constricting role of a rear-guard defender
of the status
Voluntary actions would demonstrate business' willingness to
accept and act on its social responsibilities to the fullest
possible extent. However, where business fails to perform its
social responsibility voluntarily, government will be pressured
to promulgate laws and decree that will ensure that business,
performs its social obligations to society.
Finally, the . General concept presents an overriding view on
the social respopsibility of business as perceived by most
developed and developing countries. Indeed, business do have
responsibilities which extend beyond those of the immediate b
needs of its shareholders. Business is expected to goncern
itself with the socio economic needs and aspirations of the
society, since the business community is a potent instrument
for influencing socio-economic development. Therefore, it is
expected that a business performs its social obligation with
all seriousness and dedication which is characteristic of
intelligent management.
2.8 THE NIGERIAN CONCEPT OF SOCIAL
RESPONSBILITY
The general concept of social responsibility of business is
increasingly being accepted as the appropriate view on social
responsibility in the Nigerian society. This concept modified to
take into account of social, political and economic
environment is therefore referred to as the Nigerian concept.
This concept contends that Nigerian business should assist to
its utmost ability in promoting the socio-economic objectives
of the nations.
4 Apart from business' direct line of operations, the corporate
citizens in this country need to focus more attention on the
concept m d practice of social responsibility. For example, he
went on to say that companies should assist government in
the war against inflation and also in the struggle for a more
honest society because business organizations by the nature
of their activities, touch and influence the lives of many
citizens. All organizations exist in an environment which
consists of many publics - namely: present and potential
employees, customers, suppliers of raw materials,
distributors, government and in fact the wider society.
Therefore, for greater effectiveness and success, an
organization must establish, maintain and promote a co-
operative and productive relationship with it's various
publics. Unamka (1995:88) suggested that the -
Profits of large corporations operating in
Nigeria can aid the general desire for improved economic
social and technological development, however, free
entreprenuership as well as corporate initiative should be 4
encouraged to help solve society's problems.40+
The purpose of business in Nigeria is not only to maximize
shareholder's wealth but also to contribute toward
accelerating the rate of social progress in our society.
I t is evident in our society that businesses are fast realizing
and fulfilling their social obligations to society. Social
responsibility neglected by business at a particular time in
course of seeking immediate profit could result in loss of
product and corporate image of the business. Business is no
longer just interested in the quality of its goods and services,
but also in its contribution to the quality of life in the society.
The complete services it renders to society, not only promote
its individuals well being but also spill-over into many other
areas that are of benefit to the entire society. Therefore
sufficient naira profit and net maximum naira profit should
be the watch-word in the shot-run for business.
b
Davis (1980)"' outlined four factors that have conditioned the
development of the general concept of social'responsibility.
Given that the Nigerian concept draws heavily from the
general concept, these factors will be examined with reference
to the Nigerian society.
I. THE CHANGING NEEDS OF PEOPLE-
The needs of the average Nigerian has grown in number and
complexity. In the 60's our needs were primarily that of
learning to govern and be governed by Nigerians. In the 70's
attention shifted to fmding ways to spend our surplus wealth
accruing from the exportation of crude oil. From then up till
date our needs have once again shifted to finding avenues
towarcis recovery from our economic depression.The present
economic squeeze has brought about the ill-being of a
growing sector of society. The average Nigerian is increasingly
becoming incapable of improving his welfare or that of his
immediate family not to talk of his extended family. As a
result, greater emphasis is being placed on the availabfity of
public goods and services and their proper functioning. The
present needs of the citizenry has influenced the formulation
of socio-economic objectives which include:-
i. Rapid economic development
ii. Full employment
iii. A diversified national economy enhancing self
reliance and national security
iv. Equal opportunities for all
v. A high per capita income
vi. A strong based currency etc.
Given that the government alone is incapable of
accomplishing these objectives, growing attention is therefore,
being focused on business and other organization of society
with capacity <and resources to help realize the set objectives.
Nigerians are turning more and more to large businesses to
contribute their quota to the betterment of societal welfare.
This is evident in the fact that a growing number of business
executives are being called upon to chairman the launching of
several development or fund raising projects. Indeed there is a
growing demand for social responsibility by business, and
business is fast realizing its role as an instrument of social
progress in our society.
2. THE CHANGING ROLE OF MANAGEMENT
Nigerian business has continued to grow, since
independence, in various ways that are visible to the naked
eye. The skyline of most major cities has been beautified by
architectural edifices of numerous large corporations. Several
goods and services are now more readily available to
consumers at different parts of the country as a result of
extensive business expansion and branching. On the same
6 7
hand, business has grown considerably internally. As
business operations have increased in both size anti
complexity more and more managers who are not owners or
even shareholders are being recruited to man the affairs of
the enterprise. These managers are usually professionals that
have acquired the required knowledge and competence as
well a s a good attitude of service to others and the
organization. This has accounted for growing acquisition of
the MBA degree by practicing and potential mangers. The
managerial skill of good attitude of service to organization and
the larger society is increasingly becoming important and
sought after by most corporations. Thus the role of
management is gradually changing from that of ownership of
the means of production to that of trusteeship. Management
no longer sees its shareholders or owners as the only group,
but one of the groups it must serve. As an organization grows,
it develops a sizeable constituency of people whose interest
and welfare are inexorably linked with that of the organization
and whose support is vital to its success. These constituency
includc cmployccs, shareholders, consumers, customers,
competitors, labour unions, interest groups, masses,
government and the society. This change has led to an
increasing consideration on the part of business of its proper
role in the pursuit of social progress in our society.
Another important change is that managers are increasingly 4
regarding and operating their corporations as permanent
intuition much more enduring than himself and a place
where he is a significant but transient member. Therefore
management is more poised to consider a trade-off of short
run profits to achieve qualitative social improvements which
can contribute to the long-run profitable growth of the
business. These changes in management has tended to make
business more responsive to the concerns of the larger
society. Business, therefore, is increasingly perceiving itself as
both an economic and social organization functioning in the
whole of society rather than just in the market place.
3. 'SIIE CHANGING BUSINES A N D ECONOMIC SYSTEM -
The Nigerian economic system has changed from a boom in
the 70's to its present state of depressed economy which has
brought about numerous social problems that have
undermined the welfare and development of our society. This
change in the state of the economy has necessitated the
demand by society that business and other organizations help b
improve the quality of societal life. Furthermore, the change
has enhanced the realization by business that it is in, its long
run best interest to be socially responsible.
Changes in the business system is notably the demise,
survival and growth of many fams as a result of the
depressed economy. Many firms have been weeded out of the
systcrn because they have ccascd to be socially viable as
independent organizations, while others have witnessed
substantial success and growth in their operation. The
successful f rms are usually dominant in the industry where
they operate and their influence are felt throughout the
system and the larger society. For the successful ones, the
growth in their economic power and size has brought about
equal growth in their social power in society. And social power
sooner or later, begets equivalent social responsibility. This is
in line ~ t h the proverbial saying; to whom much is given,
much is also expected. Successful firms are expected to give
back something to society which has helped them attain their
b business objectives successfully. Therefore, the changes in
the business and economic system have been.instrumental in
conditioning the development of the prevailing concept of
social responsibility in our society.
4. THE CHANGING SOCEITY-
the relationship between business and society is extremely
complex that none can expect to exist without the support of
the other. In other words, they are interdependent on one
another. This interdependency is such that society supplies to
the system needed resources and opportunities and in turn
expects certain desired outputs, obligations and
responsibilities from business. Subsequently, an
organization's viability depends on the continued support and
goodwill it rcccivcs from socicty, and socicty will only support
an organization that will satisfactorily fufill its obligations
and responsibilities to it. The growing knowledge and
realization that a viable organization is one that relates
successfully with its environment has also nurtured the
growth of the general concept of social responsibilitybin our
society.
Finally, Nigerians now expects business to utilize part of its
enormous resources to make life a little more conducive for
the masses. I t is also expected that government will create
the right atmosphere that will enable business to make
meaningful contribution towards the well-being of society.
Nigerian business organizations have also come to realize that
it is part of their duty to identlfv with the needs and
aspirations of the society in which they exist.
2.9 BENEFITS DERIVED FROM BUSINESS SOCIAL
SRESPONSIBILITY
According to Drucker (1974)42 the most significant
opportunities for converting social problems into business
opportunities may therefore, not be in new technologies, new
products, and new services. They may be in solving the social
problem, that is, in social innovation which then directly and b
indirectly benefits and strengthens the company or the
industry and its publics.
I t has been said that business organizations while helping the
society, equally helps themselves. Among the benefits to be
derived by firms that carry out their social responsibility
include the following: -
1. BUILDING OF POTENTIAL MANPOWER
Company's contribution to education can increase the quality
and quantity of trained personnel available to the business in
the future for employment. This is so because some people
might be talented but might lack the resources to develop
them. This invariably reduces the quantity of trained
personnel in the society. This has its effect on the fmms who
will look outwczrds, may bc aboard, to search for trained
manpower at a great cost.
Generally, any contribution to education will be of great
benefit to both the firm and the community. 4
IMPROVEMENT OF BUSINESS IMAGE
Business organizations that carries out social responsibility
through the sponsorships of non-profit organizations can
have their image promoted. For example, in America,
TEXACO has sponsored the metro political opera Radio
Broadcasting for well over 30 years. Kerryn King a Texaco
senior Vice President was reported as saying that Texaco was
better known for the sponsorship of metropolitan opera Radio
Broadcast than the company's commercial (Barness; 1977)43
In Nigeria, some business e.g. are sponsoring some
programmes on television and radio stations. Sponsorship of
these programmes is helping a lot in improving the images of
those organizations. it popularizes the firms and makes them
appear more responsible and committed.
MEANS OF ADVERTISING b
There is hardly any programme being sponsored on radio or
t.elevision station without a message from the sponsor. The
cities are decorated with materials from business
organizations. It has been observed that there has been
favourable publicity from a gift or sponsorship than
advertising which is solely meant to publicize business goods
and services (sturdivant 1977)44. In the same vain, (Bowen
1971)45 stated that a donation is comparable to institutional
advertising if it is expected to create good will.
PIiOMOTION OF' A COPERKI'IVE ENVIRONMENT
Community improvement brings with it a cooperative
environment. I t has been argued that corporate giving
attracts new industry, encourages tourism, lowers taxes and
enhances employee health and welfare (sturdivant 1977)49.
When people utilize facilities provided by firms free of charge
and observe a great wave of improvement in their social b
existence, they will always be committed in the protection of
such facilities and equally will have their leisure time
occupied with such facilities
occasioned by idleness.
so as to reduce crime
Enhancement of employees health and welfare i s achieved
through good working environment, provision of canteen,
clinic, training, and other social responsibilities provided by
business organizations to their employees should motivate
them for better performance (Olaniyi 1986)47.
In conclusion, this chapter has reviewed the relevant
literature on business social responsibility. First, it defined
business social responsibility and examined the concept of
the business environment and identified certain factors that
have conditioned the growth o this concept a s the changing
business technology, changing public attitudes of the b
different publics of business constituting of stockholders,
customers, the workers and community neighbours with
varying demands on the institute of business. Secondly, the
case for business social responsibility was based on the fact
that reproduction is a collective endeavour, the ownership of
the means of production should also be collective. This is to
ensure that the whole of society that will contribute towards
the whole production process will also reap the full benefits of
their labour. In other words, societal problems will be
eradicated when all organs of the society are held collectively
responsible for the attainment of the socio-economic
objectives of society. Thirdly, the case against social
responsibility of business as capitalist concept was anchored
on the ideology that the fundamental drive of business is to
maximize profits.
In short, the concept contends that only the invisible hands of
the market forces should direct the affairs of business and as
such there is no justification of social responsibility of
b business. The ultimate responsibility of business is to
produce economic wealth and not engaging in philanthropic
activities which will divert surplus capital from productive
use.
Fourthly, the general concept contends that business has
economic as well as social responsibility which requires it to
contribute to the improvement of the quality of societal life.
Government is no longer capable of redressing society's
problems alone and as such, businesses with their enormous
resources and potential are expected to assume part of the
responsibility for these problems.
Furthermore, the concept compels business to assert greater
initiative and leadership to ensure effective performance of its
social obligations to society. Fifthly, the concept of social
responsibility that prevails in the Nigerian society draws
heavily on the general concept. Nigerian businesses are
striving to assist government in accomplishing the socio- b
economic objectives of the nation. I t is evident that the
objectives of business in our society can' no longer be
effectively accomplished solely by concentrating on the
demand and supply curves of production and cost estimates.
The four factors that have conditioned the growth of this
concept in the Nigerian society has been identified as the
changing role of management, the changing business and
economic system and the business can no longer operate in
an environment favorably to the maintenance of its mission
with satisfactory earnings, unless some solutions can be
found to the basic problems of society.
REFERENCES
1 .Agwu Akpala, ( 1990) Management: introduction and the
Nigerian perspective Enugu.: Faculty of Business
Adminiistration UNEC. P 26.
2.Miner Ti., . "Share holders social proposals viewed by an
opponent". Stanfor law review (February) 1978. p
b
3.Shilk, Everard and John, (1973) Business Principles and
Management. 5 t h ed. Cincinatti: South West -
Publication coy. P 32.
4.M .O. Omoloye, "Social Responsibility and Stewardship of
the Private Sector" Business Times. July 11 1978.
5.C.C. Nwachukwu, (1988) Management: Theorv and Practice
Enugu: African FEP Publishers P. 272
G.Davis Keith (1973) "The case for and against business
assumptions of social responsibility" Academy of
Management Journal, Baston: June 1974 p. 40
7.1 l,arold Bowen, ( 1953) Social responsibilities of the
businessman. New York: Harper and Row inc. p6
8. Pitfield Ronald, ( 1982) Business organization Estover:
Mcdonal and Evans ltd p.p. 7-8
9. Olakunle Iyanda, ( 1978) "Social Responsibility in marketing
management in Nigeria". Journal of Business
Studies August p 52. b
lO.Fitch, Gordon and Charles, "Blowing t,he whistle the limits
of organizational obedience in Arthur Bedian etal
(eds) Academy of management proceeding (1975)
p.40
11.Dow Votaw, "Genius Becomes Rare: A comment on the
doctrine of social responsibility, California
Management Review (Summer 1973) p. 12
12.George stainer, (1975), Business and societv New York
London House inc) p. 159.
13.U.J.F Ewurum and P.C. Unamka. (1995) Business
Administration Enugu, Precision Printers and
Publishers. P 120.
14.Keith Davis, (1983) IIuman Behaviour at work au
or~anizational bcahaviour. New Delhi: Mcrawhill
Publishing co ltd p.5
15.Akpala, (1990) Opcit
16.0laniyi Opanuga, "The relevance of Business social role in
Nigeria". Business times Feb. 10. 1986 p.7
17. John Rockefeller; ( 1964) The second American revolution. b
New York:: Haper and Row p. 68.
18. Keith Davis, "Can Business afford to' ignore social
responsibilities" in W.T. Green wood, Issues in
Business and Society 211d edition. P 434.
19.Eugene Rostov, (1981) Modern Business administration,
London, Pitman press p.48.
20.Milton Friedman ( 1962) Capitalism and Freedom, Chicago:
University of Chicago Press P.63.
21.Christopher Stone, (1975) Where the law ends. New York:
Harper and Row inc. p. 259.
82
22.Arnold Maremont, Inpursuit of Profit Cited in G.E.
Gilliland Jr, Readings in Business responsibility.
Chicago: University Chicago press. 1988. p 56.
d3.Freedman Opcit p. 52
24.Koontz and 0. Dannek (19761, Management: A system
and contingency Analysis of managerial functions
6th ed. New York: Mc Graw Hill Inc. p 72. b
25.Nnaemeka Ikpeze, "Business Responsibility: its conceptual
and practical difficulties in Management in
Nigeria, January 198 1. p 12.
26.N. M. Khandelwal, "Social Audit: A new challenge at
Accounting Profession" Chartered Accountant
India Vol25, February - December 1977 p. 16
27.Balchin and kieve (1977) Urban land Economics Mc
Milliam press ltd p. 174.
28. Kelso and Adler ( 19 58) The capitalist management New
York: Londom House. P 2 1 1.
2 9. Kelso and Adler Ibid
30.Steiner in Hicks and Gullet, Management. 4th ed. McGraw
l till intl. Book coy. 1988.p 78
3 1a.Donham H .O. (1927), Corporate Citizenship N.Y. Harper
and Row P. 40
3lb.Rockefeller (1964) OPCIT p G 8 .
31.Dohrncm (1927) OPCIT
33.Miller Arjay "New roles of the Campus and the b
corporation " Michigan Business Review
(November, 1969) p. GO
34.P. F. Drucker, ( l979), Management: Tasks, responsibilities
and practice, N.Y. Harper College. p 98.
35.Miller, OPCIT PGO
3G. Bowen, ( 1953) Social Responsibilities of the Business man
OPCIT
37.Committee For Economic Development (C.E.0) 1977) p.
40.P.C. Unamka and U.J.F Ewurum, (1995) Business
Administration, OI'CIT P.88.
41.Davis Keith, and Blomstrom H.C. Business Society and
Environment New York McGraw Hill 1980, p. 126
42.Peter F. Drucker, (1974) OPCIT.
43.Barnes. "Thinking Corporate Charity" p. 182 in K.D.
Sturdivant Business and Society Homewood. 4
Illinois: Richard D. Irwin Inc. p. 452.
44.F.D. Studivant (1977) Business and Society Homewood
Illinois: Richard D. Irwin Inc. P. 456
45.H.R. Bowen "Charity and the Corporation" in Issues in
Business and Society edited by W.T. Green wood.
Boston: Houghton Mifflin Co. ( 197 1). P. 1 14
46 .Sturdivant, ( 1977) OPCIT
47.01ani.yi Opanuga, (1986) OPCIT p.7
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 RESIGN DESIGN
The research is designed to enable the researcher determine
the effectiveness of social responsibility in the promotion of
corporate image of the two companies under study: Nigerian b
Breweries PLC and Nigerian Bottling Company PLC. The two
companies under study are in the beverage industry. While
one specializes in the production of soft drinks the other
produces a combination of soft drink and alcoholic drinks.
These companies were selected for study because they are
counted among the highest employers of labour in Nigeria.
Again, the companies were seen as affecting the lives of their
external environment in many ways which include the
following: employment, pollution as well as product
consumption. Efforts are here by made to know how social
responsibilities of these firms have helped to promote their
corporate image.
3.2 SOURCES OF DATA
Information for this study was sourced from both primary
and secondary sources. Descriptive and analytical methods of
analysis were employed in this study to determine the
response of the managers of the two companies u n d e ~ study
as well as that of some community members. ,
PRIMARY SOURCE
Primary data were collected by the researcher himself for the
purpose of statistical analysis for this research work. The
data were collected through the following ways: oral
interviews and survey method (questionnaires) directed at the
managers of these companies and some members of the
public.
'lhc oral intcrvicw was dcsigncd to allow the respondents to
answer every question in detail. Questions asked were similar
to those containcd in the questionnaire.
In designing the questionnaire, the researcher structured
both open ended and close ended questions for use in
collecting information from the management of the two
b companies and the public. Also some open ended questions
enabled the respondents to air their views without any
restriction.
SECONDARY SOURCES
These are sources that are already made. The information
under this source were gathered from books and journals
found in libraries.
3.2 INTERVIEW QUESTIONS
A s already pointed out, the researcher engage the
management of the two companies understudy in oral
interview some of the questions asked during the interview
are as follows:
What is your position in this company?
Do you embark on any form of activity that promotes
the total well being of your has community or the
public?
What areas of human existence do you direct the b
discharge of your social responsibility?
Does your firm have it a s a policy to embark on social
responsibility or do you embark upon it as the
public ask for it?
Why do you embark on the discharge of social
responsibility?
In what ways has the discharges of social
responsibility helped to promote your corporate
image in the community you operate?
Do you see this social responsibility as carried out by
your firm as being effective in promoting your
corporate image.
h. What arc the problems that surround your social
responsibility programme.
3.4 TARGET POPULATION
The target population included the management of the two
firms under study represented by their departmental
managers and 50 members of the community randomly b
selected. On the whole the researcher targct to use 60
respondents.
3.5 DETERMINATION OF SAMPLE SIZE
The specified aggregation of survey element for the study was
chosen not through any calculation means but by a good
sense of judgment. The departmental mangers and the Chief
Executive officers of both firms represents the organizations
because they stand between the organizations and the public
and are well informed about the policies of the organizations.
On the other hand, some informed members of the public
who understand the concept of social responsibility and
corporate image of business organizations were chosen to
represent the public. 50 of them were chosen. On the whole,
they are 60 respondents.
3.6 RELIABILITY AND VALIDITY TEST
In order to ensure reliability and validity on the responses
elicited, a number of techniques were incorporated into the 4
questionnaires distributed. The lack of consistency was
regarded as an indication of the unreliability of the whole
individud responses. In order to detect tmy inconstancy there
on, the question was deliberately redefined and repeated to
test how reliable the first answer to the question is. The
numbering of the question differ a t times to give room for
individual independent responses.
3.7 DATA ANALYSIS TECHNIQUES
The information and data collected from the interview and
questionnaires were analysed using percentage analysis,
tables, chi-square distribution test (x2) and contingcricy
tablcs.
3 .7 .1 PERCENTAGE ANALYSIS
The use of percentage analysis enables the figures of most
information in the research work which were in absolute
terms to be converted to real terms. The statistical tool b
facilitates, the comparism of figures and standardizes data,
thereby reducing the difficulty of comparing non standardized
figures. It uses 100% as its base.
3.7.2CHI-SQUARE DISTRIBUTION (X2)
The use of chi-square distribution according to Croft (1967)l
is applicable to discrete variables and concerns the questions
of whether the difference between the observed set of
frequencies of accuracy of an event and theoretically expected
set of frcquencics are significant or not.
'l'he forin ula in usc is: x2 = [Oi-Ei)"
Where, 0 = observed set of frequencies of occurrence.
E = the theoretical expected frequencies
?he procedures to be used includc:
a. Adoption of a null hypothesis that is the diffserence
between an observed and theoretically expected
frequencies (Oi-Ei) was not due to chance event.
b. Adoption of a significant level
c. Calculation of theoretically expected frequencies, E 1,
E2, E3 ....... En .
The conditions for adopting x2 distribution are that the
observation must be independent of other observations. The
size of the population must be very large so that (Oi-Ei) must
be approximately normal. The expected frequency must not
be less than five or else an addition for continuity will be
incorporated. The decision rule is to accept null hypothesis if
the calculated x2 is less than the x2 table value and reject
otherwise.
CONTINGENCY ANALYSIS
The contingency analysis is a test of independence and the
chi-square distribution is used. The degree of freedom is given
by (C-1) (R-1). Where R and C we the rows and columns 4
respectively.
The test of independence is used to test the null hypothesis
that there is no relationship between the attributes in the
vertical and horizontal cross tabulation as against the
alternative hypothesis that is otherwise at a selected level of
significance. Onyeka ( 199 1)2.
A contingency table is constructed to enable the researcher
carry out easy computation of the test data using the chi-
square distribution test (x2)
REFERENCES
1.D. Croft (1979) &plied Statistics for Management
Studies. London: Mc Donald and Evans ltd
P. 150.
2.C.A. Onyeka (1988) A n Introduction to Applied Statistical
Methods in Sciences, Enugu: Novan
Avocation Publishing Company P. 285 b
CHAPTER FOUR
DATA PRESENATION AND ANALYSIS
4.1 INTERVIEW ANALYSIS
A s stated earlier on concerning data gathering techniques, the
researcher interviewed the management of the two
organizations under study as well as some members of the D
public. This was intended to get first hand information
necessary to put the study in the right perspective. Bellow are
the analysis of he interview held.
The management of both Nigerian Bottling Company (NB
PLC) and Nigerian Breweries PLC. Stated that they embark on
the discharge of social responsibility to improve on the well
being of their host communities. The areas of social
responsibility they engage in include the following: education,
rural development, donation to charity, and sports promotion.
A s gathered from the management of both organizations, they
have made cash donations to communities in cases of natural
disasters, helped to rehabilitate rural roads and equally have
provided their communities with potable drinking water.
Nigerian Bottling Company has done a lot in the area of
health by 'providing free medial service to its employees <and
their relations. On the other hand Nigerian Breweries has
supported the effort of the government in improving health
conditions of the citizens by donating drugs to health cknters
in their community of operations.
Charitable organizations have received donations from the
two organizations both in form of cash and in the provision of
facilities
Nigerian Bottling Company, has participated in the
sponsorship of football and table tennis in its neigbour hood
while Nigerian Breweries has donated towards the provision
of recreational facilities and has donated trophies and other
sports equipment to educational institutions in its locality.
Commercial enterprises within the areas where the product of
these two organizations are consumed have benefited through
hc advertisement promotion programme of the two forms.
Nigerian Bottlhg Company (NRC) has provided their major
distributors with advert posters and facilities to decorate their
premises; Nigerian Breweries on its part has responded to the
b call of consumers by providing them with gifts which is
intermittently issued out and equally issued out advert and
decoration materials.
The two firms under study have it as a policy to improve the
living condition of people living within and around their area
of operation. They have so carried out their social
responsibility to help promote a mutual cooperation between
then and their host communities. Although this social
responsibility costs the two organization a lot they have their
corporate images promoted through this.
O n the p a t of the community members where these firms
operate, they agreed that the two communities have actually
carried out their social responsibilities. However, there exist a
great variance between the areas of priorities of these firms
and that of the community. Many of the interviews expect
more attention to be given to rural development through the
provision of infrastructure. Others still want the companies to b
do more on education and donation to charity.
In all, it was gathered that the community will appreciate the
efforts of the two organizations at social responsibility if they
provide services in the priority areas where much is expected
from them.
4.2 QUESTIONNAIRE ANALYSIS
TABLE 4.2.1
GENERAL DISTRIBUTOIN O F RESPONDENTS
The table above shows that out of the 54 respondents, 4 of
them were from the management of the two firms under study
and represent 7.41 of the total population being all male.
None of them was a female. On the part of the general public,
35 of the respondents were male and represent 64.8 1% of the
total population while 15 were female and represent 27.78%
of the whole population. This reveals that the male
respondents out numbered the female respondents.
Group
Nig. Bre/Nig
Bottling coy - Gen . Public
- 'rot al
Male
4
35
39
%
-
27.78
%
7.4 1
64.81 -
Female
0
15 -- - ~
15
TABLE 4.2.2
OCCUPATIONAL DISTRIBUTION OF RESPONDENTS
1 OCCUPATION 1 RESPONDENT
Civil servants ,
I Academics I
15
Artisans 20
The table above shows that out of the respondents, 15 of
them were civil servants and represent 27.78% of the
population. 20 of the respondents representing 37.04 O h of the
respondents were artisans while 5 academics representing
9.26% of the population responded to the questionnaire.
Traders were 10 and represent 18.52% of the population. On
Traders 10
the other hand, 8 managers who were the representatives of
the two firms and two Chief Executive Officers equally
representing the two firms responded to the questionnaire
and , they represent 14.84% and 3.7% each of the total
population.
TABLE4.2.3 b
FORMS IN WHICH THE CORPORATE IMAGE OF THE TWO
FIRMS HAVE BEEN REPRESENTED BY THE COMMUNITY
Responses
a firm that is
sensitive to the
plight of the
people
A firm that exists
only to make profit
A firm that will
Brew.
15
Total
The table shows that 15 respondents from the public said
that Nigerian Breweries is seen to be sensitive to the plight of
the people. They represent 30 % of the public population. 25
of them said that Nigerian Bottling Company is sensitive to
the plight of the people and ~ e s e n t 50% of the public
pbpulation. noth her 5 of the public respondents representing
10% of the public population sElid that Nigerian Breweries
exists only 40 make profit. The $Arne 5 p a p l e said the same of
Nigerian Bottling Company . 3 respondents on each side
4
40
b
100
only in future look
into the welfare of
the people
A nuisance to the
community
A good corporate
citizen
Total
2
25
50
4%
50
%
2
15
50
4%
30
YO
representing 6% said that thee two firms will only in the
future look into the welfare of the people. It is their view that
at present, the two firms have not started to look into the
welfare of the people. Another 2 respondents on each side
said that the two firms are nuisance to the community and
have not seen anything good in their existence. They
represent 4% of the population. b
Finally, 25 respondents representing 50% .of the public
population said that Nigerian Breweries is a good corporate
citizen while 15 of them representing 30% of the public
population said that Nigerian Bottling Company is a good
corporate citizen.
TABLE 4.2.4
EXPECTATION OF THE PUBLIC ON THE CONTRIBUTION
OF MANUFACTURING FIRMS TOWARDS THE
IMPROVEMENT OF THEIR WELL BEING
RESPONSES FREQUENCY Yo
I I don't. know - ~. .. . - . . . .- I Total
The table shows that out of the 50 respondents from the
public, 40 of them representing 80% affirmed that they b
expect the manufacturing forms to contribute towards their
well being. 5 of the respondents which represent 10% of the
public respondents said they did not expect the firms to
wnt l - ihtc towards thc impi-ovcmc:nt of thcir well being. This
might be the class of people who believe that organizations
exist only to make profit most of those who said no to this
question were mainly traders. On the other hand, 5
respontlents from the public representing 10% of the public
population said they don't actually know whether
manufacturing firms should spend their resources in
improving the well being of the public. Those respondents
TABLE 4.2.5 sd' .' * ~- * z 3
* +*.,' ? n - 7 -
AREAS WHERE THE COMMUNITY EXPECT THE FIRMS TO
INVEST MUCH IN THERIR SOCIAL RESPONSIBILITYY IN
ORDER OF PREFERENCE.
AREAS RICSONSES/I;REQUENCY
Total
Education
- - - - -- - - - Sports
Charity
Rural Dcvpt. / Infr,.istructure
Development
The table above reveals the areas where the community wants
thc firms to invest more in social responsibility. It shows that
they want the firms to vote 40% of their resources meant for
social responsibility in education. This is followed by charity
where they expect the firms to invest 30% of the social
responsibility fund. The community expect the firms to invest
40 - . . --- ---- --------------- - 15
30
I 5
15% each to sports and infrastructure development. This
shows that thcir areas of preference are education followed by
chcwity.
TABLE 4.2.6
COMPANY LIVING UP TO THE EXPECTATATIONS OF THE
PUBLIC IN THEIR
RESPONSIBILITY
Responses . - 1 Firms
1 Big. notti. 35 70 I I
4 DISCHARGE OF SOCIAL
I don't know 1 %
The table above shows that out of the 50 respondents from
thc puldic 40 of them representing 80% of the public
admitted that Nigerian Breweries has lived up to their
expectation in the discharge of their social responsibility.
Anothcr 8 respondents said that Nigerian Breweries has not
lived up to their expectation in the discharge of their social
responsibility and represent 16 % of the public respopdents.
2 out of the 50 respondents said they don't know if they have
lived up to their expectation or not. This might be those who
had earlier on stated that they don't know whether the firms
should spend their money to improve the well being of the
public .
On Nigerian Bottling Company, 35 of the respondents said
that they have lived up to their expectation in the discharge of
their social responsibility, they represent 7O0/o of the public
respondents. 10 of the respondents said that Nigerian
Bottling Company has not lived up to their expectation and
represent 20% of the respondents. Another five respondents
lo8
rcprcscnting lo0! of the population said thcy don't know if
Nigerian Bottling Company has livcd up to their expectation.
This might be because they don't expect m y social
responsibility from them or because they don't know how to
asscss thcir pcrrormancc.
NIGERIAN BREWERIES AND NIGERIAN BOTTLING 4
COMPANY BEING DISCRIMINATORY IN THE DISCHARGE
OF THEIR SOCIAL RESPONSBILITY
RESPONSES
- Firms Yes % No
Nig. Brew. 15 110 142
Nig.
Co.
- %%Zt know / I total
The table above shows that 5 respondents of the 50
respondents representing 10% of the population said that
Nigeria breweries is discriminatory in the discharge of their
social responsibility. This may be because these group might
l w t lmvc bcncfitcd directly from the social responsibility as
practiced by Nigerian Breweries. 42 of the respondents
representing 84% of the respondents said that Nigerian
Breweries is not discriminatory in the discharge of its social
responsibility. While 3 respondents representing 6% of the b
population said they don't know if Nigerian breweries is
discriminatory in the discharge of their social responsibility.
On the part of Nigeria Bottling Company, 4 respondents said
they are discl-iminatoi-y in the discharge of their social
responsibility and they represent 8% of the respondents.
Another 44 respondents representing 88% said they are not
discriminatory in the discharge of their social responsibility
while 2 respondent representing 4% said they don't know
whether Nigeria Breweries Company's discriminatory in the
discharge of their social responsibilities.
TABLE 4.2.8
ASSESSMENT OF THE TWO FIRMS IN THE
PERFORMANCE OF THEIR SOCIAL RESPONSIBILITY
Responses
Firms / Yes
Nig. Brew. 7 - -- -
Total
In assessing the
% I don't know % total %T-
performancc of the two firms in the
discliargc of their social responsibility, 20 respondents
representing 40% of the respondents said that Nigeria
Breweries performance is good while 25 respondent said that
their performance is on the average and they represent 50%
of the respondents. 5 respondents representing 10% of the
population said their performance is bellow average.
On tllc part of Nigerian Bottling Company 10 respondents
rcpi-cscnting 2O0A of the respol-dcnts said their performanu:
is good in the discharge of social responsibility. 30 of the
respondent m,aking up 60% said Nigeria Bottling Company
performance is on the average in terms of social responsibility
while 10 respondents representing 20% of the respondents
said their performance is bellow average. This q o u p of
respondents expects Nigerian Bottling Company to improve
upon the discharge of their social responsibility.
TABLE 4.2.9
THE PERFORMANCE OF THE TWO FIRMS SO FAR IN
SOCIAL RESPONSIBILITY KEEPING THEM IN GOOD
RELATIONSHIP WITH THE COMMUNITY
RESPONSES/ FREQUENCIES
% - ~ . ~ - ~
Firms
Nig. Brew.
Big. Rottl.
Co.
total '
50
50
. L - _ L - J
.- -~
%
80
70
--I
Yes
40
35
~ *
No
10
15
--..-_
%
20
30
I don't know
-
-
~L ---- 1
The table above shows that 40 respondents representing 80%
of the respondents said that Nig. Breweries is in good
relationship with the community due to the social
responsibility it discharges to the society. 10 of the 4
respondents representing 20% of the respondents said that
the social responsibility as practiced by Nigeria Breweries is
not enough to keep them in good relationship with the public.
Hence it is their view that if there is any good relationship it
has with the public, it might not be due to its social
responsibility .
On the part of Nigerian Bottling Company 35 of the
respondents said that Nigerian Breweries has maintained
good relationship with the public through the discharge of its
social responsibility. This group represent 70% of the
respondents. Another 15 respondents representing 30% of the
respondents said that the performance of social responsibility
by Nigerian Bottling Company has not kept them in good
relationship with the community. This group equally might
expect Nigeria Bottling Company to do more in social
responsibility before they will attract a good relationship with
t3lc community.
TABLE 4.2 10 4
GREAT LEVEL OF COPERATION BETWEEN THE
COMMUNITY AND THE FIRMS IF THEY DISCHARGE
THEIR SOCIAL RESPONSIBILITY IN THE PREFERED
AREA OF HUMAN EXISTENCE OF THE COMMUNITY
Responses ( M g t of I
the two
firms
Yes i lo
No --
I
know
Total
( Total 1 lo 1 16.66 ) 50 ) 83.34
The above table shows that out of the 54 respondents to the
questionnaire comprising both the management of the two
firms and the general public, a11 the 4 representatives of both
firms accepted that there will be a great level of cooperation
between the community and the firms if they discharg~their
social rcsponsibility in the preferred areas of human existence
of the community. This group represent 10O0/0 of the
management respondents but 7.4 1% of the total population.
25 respondents representing 146.30% of the total population
also stated in the affimative in support of the stance of the
management respondents for the two firms.
On the contrary, 15 respondents representing 27.77% of the
population said that there will not be a great level of
cooperation between the community and the firms if they
discharge their social responsibility in the preferred areas of
existence of the community. Another 10 respondents
representing 18.52% of the population said they don't know
if the firms will attract a great level of cooperation from the
p~tblic if they provide social responsibility in the preferred
area of human existence in the community.
TABLE 4.2. 11
THE COMMUNITY BEING SATISFIED IF THE FIRMS ARE 4
NOT DISCRIMINATORY IN THE DISCHARGE OF THEIR
SOCIAL RESPONSIBILITY THEREBY LEADING TO A
SATISFCTORY AND PEACEFUL COEXISTENCE BETWEEN
THE FIRMS AND THE COMMUNITY
Responses
the two
firms - - - - -
Yes . -- - -
No
( Total L
The table above reveals that 4 respondents representing the
management of other firms and representing 7.41% of the
total population agree that the community will be satisfied if
the firms are not discriminatory in the discharge of their
social responsibility thereby leading to a satisfactory and
pcaceful coexistence between thc firms and the community.
Another 30 respondents representing 55.55 % of the
population are in agreement that the community will be
satisfied if the firms are not discriminatory in their social
responsibility leading to a satisfactory and peaceful co-
existence between them and the community.
On the contrary, 20 respondents representing 37.04 % of the
population said that the community will not be satisfied even
if the firms are not discriminatory in the discharge of their
social responsibility and might not be peacefully coexisting
with the firms. This group of respondent might be suggesting
tlmt 1 I\(: pulAic: ;~rc ~ ~ c v c r sat isfic:O 110 J I M ttcr what lllc firms
do for them in terms of social responsibility. Another 5
respondents saki they don't know if there will be sat-isfaction
among the community and a peaceful as well as satisfactory
coexistence between the firms and he community if they are
not discriminaiory in their social responsibility.
TABLE 4.2.12
SOCIAL RESPONSIBILITY OF BUSINESS ORGANISATIONS
IF EFFECTIVELY CARRIED OUT LEADING TO A
PROMOTION OF
ORGANISATIONS
CORPORATE IMAGE OF THE
Responses
+ don't
I
Mgt of
the two
firms
The above table shows that out of the 4 representing the
management of both flrnls, 3 of them strongly agree whilc I of
them agree ordinarily that social responsibility of business
organization if effectively carried out will lead to a promotion 4
of corporate image of the organizations. They represent 5.56%
and 1.85% of the total population respectively and also 75%
and 25% of the management population respectively. 20
respondents from the public representing 37.04% of the
population strongly agree while 20 representing 37.03% of the
population agrec ordinarily that social responsibility of
business organisations if effectively carried out will lead to a
promotion of their corporate image. Another 10 respondents
representing 18.52% of the respondents disagree with the
other respondents sating that. the corporate image of the firms
might not be promoted even if their social responsibility is
effectively carried out. They might be suggesting that the
promotion of companies corporate image is dependent on
other factors other than social rcsponsibility.
TABLE 4.2 .13
THE TWO FIRMS EMBARKING ON ANY FORM OF
ACTIVITY THAT PROMOTES THE WELL BEING OF THEIR
HOST COMMUNITIES.
( Responses / Mgt of I
1
Total 15
(YO Public YO Total
The table above shows that the 5 representatives of Nigerian
Breweries as well as the 5 representatives of Nigeria Bottling
company representing 50% each of the management
population said that they engage in social responsibility in
their area of operation.
TABLE 4.2 .14
THE TWO FIRMS HAVING IT AS A POLICY TO EMBARK
ON SOCIAL RESPONSIBILTY
Responses
Yes
Total
Nigerian
Brewerie
S
Nigerian
bottling
company
Y o 1 Total
The table above shows that the 5 representatives of Nigerian
Breweries as well as the 5 representatives of Nigerian Bottling
Co. representing 50% each of the management population of
the firms said their firms have it as a policy to embark on the
social responsibility for the well being of their host
communities. This means that the two firms do not wait until
the community agitate for them to embark on social
responsibility.
TABLE 4.2 .15
REASONS WHY THE FIRMS EMBARK
DISCHARGE OF SOCIAL RESPONSIBILITY
Reponses. Nig.Brew. % Nig.Bott.Co %
Corporate
self interest - - - - - - - . -- Compliance
with govt.
reglllal ion
agitation by
the
community
ON THE
Total
In the table above all the respondents representing the two
firms stated that they embark on social responsibility in the
intercst of the corporate cxistcnce of thcir firms. It was
gathered during interview with the management of the two
firms that although the government expects them to embark
on the discharge of social responsibility in their communities,
it is not the major factor that drives them into social
responsibility .
TABLE 4.2 .I6 b
AREAS OF HUMAN EXISTENCE WHERE THE FIRMS GIVE
PREFERENCE IN SOCIAL RESPONSBILITY ACCORDING
TO PERCENTAGE OF VOTE.
Areas
Education
Sports
Charity
Rural
Total
Niger Brew. Nigeria Bott. I Total
The table above shows that Nigerian Breweries give more
preference to sports and charity where they allocate 80% of
their vote making it 40% in each. Nigerian Bottling Company
also allocates 75% of their vote on social responsibi1it.y to
sports and charity making it 3% to sports and 45% to charity.
Nigerian Breweries give equal vote of 10°/o each to edusation
and rural development accounting for 20% of their total vote
on social responsibility. This differs from the 20% which
Nigcrian I3ottling Co. allocates to education and 5% to rural
clevelopmcr 1 L.
In all these it is seen that Nigerian Bottling Company
allocates much to education and charity than Nigerian
Breweries does while Nigerian Breweries allocates more to
sports and rural development than Nigerian Bottling
Company does. This gives clear indication on where their area
of preference lies.
TABLE 4.2.17
DISTRIBUTION OF ACTUAL AND EXPECTED SOCIAL
RESPONSIBILITY
Areas
Education
Sports
Charity
Rural /
infrastructure
development
Expected
performance
Nigerian
Breweries
Nigerian
Bottling
company
The table above shows that while the community expects
40% investment in education, Nigerian Breweries invests only
10% while Nigerian Bottling Company invests only 20%
thereby falling short of 30% and 20% respectively. In sports,
the community expects 15% investment while Nig. Breweries
invests 40% and Nigerian Bottling Company 30% thereby
having excess of 25% a n 15% respectively. On charity, the
community cxpects 30% investmcnt while Nigerian Brewerics
invests 4O0/e and Premier Breweries 45% having an excess
investment of 10% and 15% respectivqly. Finally the
community expects 150h investment on rural and
infrastructure development. I iere Nigerian Brewerics invests
.0 10 10% whi
b le Nigerian Bottling Company invests 5% . this gives a short
fall of1 5% anti 10°/o respectively from the two firms.
This reveals that the two perform more than expected in areas
of charity and sports. The most preferred area of education
was given little attention while the less preferred area of sport
was given much attention.
CHAPTER FIVE
HYPOTHESES TESTING AND INTERPRETATION OF
FINDINGS
5.1 INTRODUCTION.
'I'he researcher will use chi-square (x2) to test the hypotheses.
This is because the questions in the questionnaires
administrated have variable responses associated with t h h
To use the chi-square test, goodness of fit tables are used.
Only one-sided test called the right-tailed test is used.
The expected frequency (oi) will be gotten by using the
form ~ 1 % .
ei = (row total) (column total)
overall total
The chi-square (x2)will be gotten by using the formular:
Where
Oi = observed frequency of the respondents to the questions.
ci = cxpcctcd frcqucncy of thc rcsponscs to thc questions
x2 = observed chi-square value the sings used in this
techniques ares :
> grater than
& gratcr orcclual to
< less than
=: less than or equal to
= equalto
DECISION CRITERIA
Accepts the null hypothesis (Ho) where
/Y2 < U, othcrwisc rcjcct thc null liypothcsis and acccpts thc
alternative hypothesis (Hi) where x2 > U.
Where:
U = critical chi-square (X2) value
Got from the chi-square table. To get the critical chi-square
value "nl" under "x" haw bccn uscd from the table (ic chi-
square table)
Where:
M = 11- 1 = degree of freedom
V - I\ - 7 = the lcvcl of significancc
Thc assumcd lcvcl of significance ( T) is
0.5
5.2 TESTING THE HYPOTHESES
HYPOTHESIS 1
Ho : Social Responsibility if discharged in the preferred
area sf human existenee sf the host communities will not
lead to a great level of cooperation between the
communities and the firms
Hi: Social responsibility if discharged in the preferred areas
or human an cxist.cncc of t hc lmst comrnunitics will lcad to a
great level of cooperation between the communities and the
firms.
'I'o test this hypothesis, table 4.2.10 will be used. This table
has alrcady bccn explained , it will now bc reproduced for
c1,arity
TABLE 4.2 10 (a)
THE TWO FIRMS I 1
/ MANAGEMENT OF PUBLIC /
The table above shows the observed frequency of the
respondents (Ci). The expected frequency (ei) of the
responses will be computed using the formular.
TOTAL I
50 60
ei = (row total) (column total]
Ovcrall total
132
TABLE 4 .2 .10 (b)
CONTINGENCY TABLE FOR CHI-SQUARE TEST ON THE
LEVEL OF COOPERATION BETWEEN THE FIRMS AND
THE COMMUNITY DUE TO SOCIAL RESPONSIBILITY
DISCHARGED IN THE PREFERRED IN THEIR PREFERRED
AREA OF HUMAN EXISTENCE
The observed chi-square (X2) = 8.574 to get the critical chi-
squarc (u) using lcvcl of sigilificancc (- ) or 0.05 and dcgrcc
133
of free(1onl ((If), m-1 = (3-2) =2 from the table therefore, 0.05
untlcr 2 = 5. 99 1.
U = 5.991
Applying the decision criterion.
Accept I Io , if X2 -= U otherwise reject I lo and accept I I i
is here rejected since x2 > U (8.574 > 5. 991). It can be said that b
under ( d. ) = 0.05 a~fdf) =2, tlo is rejected and Hi accepted. We
tllcrcfore assert that social responsibility if discharged in the
preferred areas of human existence o
Host communities are not satisfied if the firms in their
area are not cliscriminat.ory in the discharge of their
social responsibility and this does not lead to a
satisfactory and peaceful coexistence between the
communities and the firms.
Host communities are satisfied if the firms in their
area are not discriminatory in the discharge of their social
responsibility and this leads to a satisfactory and peaceful
coexistencc betwccn the communities and the firms
'1'0 test this hypothesis; table 4.2.1 1 will be used, the table
has dready'been explained and will now be reproduced .
TABLE 4..2.11 (a)
MANAGEMENT
OF
THE TWO FIRMS
PUBLIC TOTAL '
'I'he table above shows the observed frequency of the
responses (oi) the expected frequency (ei) of the responses will
be gotten with the formular
ei = (row total) (column total)
overall total
TABLE 4.2.11 (b)
Contingency Table for chi-square test on the level of
cooperation between the firms and the community due to
social responsibility discharged in the preferred.
'I'he observed chi-square (xa) = 8.574 to get the critical chi-
square (u) using level of significance (&) or 0.05 and degree of
freedom (df), m-1 = (3-2) = 2. From the table therefore, 10.05
under 2 = 5.991 u = 5.991.
110 is here rejected since xz>u (8.574>5.901). it can be said
that under (&) - 8.05 and (df) = 2 Ho is rejected and HI
accepted . We therefore assert that social responsibility if
discharged in the preferred areas of human existence of the
community leads to a great deal of cooperation between the
communities ~nlnd L\e firms.
Hypothesis 2
1 : Host communities are not satisfied if the firms in their area are not
discrirriinatory in the discharge of their social responsibility and this
does not lead to a satisfactory and peaceful coexistence between the
cornrnunities and the films.
Hi: Host cornrnunities are satistied if' the finns in their area are not
discrin?inatory in the discharge of their social responsibility and this
leads to a satisfactory and peaceful coexistence between the
communities arid the firms.
To test this liypotliesis; table 4.2.1 1 will be used. The table has already seen
explained and will now be reproduced.
OF THE TWO
FIRMS
TOTAL 1 lo
PUBLIC / TOTAL
The table above shows the observed frequency of the responses (Oi), the
cxpectcd Crequency (ci) of tlic responses will be gotten with the folmular.
ei (row total) (column total)
overall total
Table 4.2 11 (b)
CONTINGENCY TABLE FOR (2111-SQUARE TEST ON TI IE
S.4TlSFACTlON OF THE HOST COMMLlNlTlES DUE TO NON
DISCRIMINA'I'OKY SOCIAL RESI'ONSIBILITY OF FIRMS LE.ADING
TO A GREAT DEAL OF COOPERATION BETWEEN TI1E
COMMIJNITIES AND THE FIRM.
The observed chi-square (x2) = 5.999. To get the critical chi-square (u)
using level of significance (A) or 0.05 and degree of freedom (df), m-l =
(3-2) = 2. From the table 0.05 under 2 = 5.991
U = 5.991
Applying the decision criterion, accept Ho, if x2 c u otherwise reject Ho
aiid accept H i .
IIo is here rejected since x2 > u (5.999M.991). It can be said that under (d)
= 0.05 and (df) = 2, 110 is rejected and I I i accepted. We then say that host
communities are satisfied if the firms in their area are not discriminatory in
the discharge of their social responsibility and this leads to a satisfactory
and peaceful coexistence between the communities and the firms.
b
Hypothesis 3
1-10: Social responsibility of business organizations if effectively carried
out does not leads to a promotion of corporate image of the
organizations.
Hi: Social responsibility business organizations if effectively carried out
leads to a promotion of corporate image of the organizations..
To test this hypothesis, table 4.2.12 will be used. The table has been
explained and will now be reproduced.
'Ihc tahle abovc shows the ohservccl frcqucncy of the respondents (oi). The
cxjxxtcti frequency (ei) of the responses will bc cotnputcd using the
fir ~ I K l ' o r~~wlx-
overall total
60
Table 4.2 12 (b)
Contingency table for chi-square test on the promotion of
corporate image of organizations if social responsibility of
organizations are effectively carried out.
oi ei oi-ei (oi-ei)a
The observed chi-square (x2) = 8.271 .To get the critical chi-
square (u) using level of significance (&) or 0.05 and degree
of freedom (df), m- 1 = (3-2) = 2. From the table, 0.05 under 2
= 5 991 u = 5.991.
Applying the decision criteria, accept Ho, if x2 < u otherwise
reject Ho and accept Hi
Ho, is here rejected since X ~ > U (8.271 >5.991). it can be said
that under (d) = 0.05 and (df) = 2, Ho is rejected and Hi
accepted. We therefore assert that social responsibility of
business organization, if effectively carried out leads to a
promotion of corporate image of the organizations.
5.3 INTERPRETATION OF FINDINGS
The researcher in the course of the research exercise gathered
relevant data to test the hypothesis earlier stated. The
hypothesis were tested and the decision criteria as earlier b
stated were applied to arrive at a generalistation.
Among the accepted alternative hypotheses include the
following:
1 . Social responsibility if discharged in the preferred areas
of human existence of the host communities will lead to
a great level of cooperation between the communities
and the firms
2 host communities are satisfied if the firms in their area
are not discriminating in the discharge of their social
responsibility and this leads to a satisfactory and
peaceful coexistence between the communities and the
firms.
3 Social responsibility of business organizations if
effectively arrived out lead the promotion of corporate
image of the organizations.
These findings are to a great extent in line with the findings of
authorities who have written on social responsibhty to
contribute to knowledge. In corporate management, there is a
general consensus that the most determining factor in the
measurement of any company's effectiveness to the
community is its ability to fulfill socio-economic functions.
No body expects business organizations that are exclusively
wrapped up in the profit Motive in oblivion to the need of the
time to go far in terms of cooperation with its external
environment.
Organizations ought to participate directly and profitably too
on activities connected with national development and
improvement of the welfare of the community. Although
these firms are not expected to bite more than they can chew,
it is not just enough for them to provide employment and pay
tax. They need to positively add value to human existence to
cushion t h e effects of hazards, pollution's and
inconveniences occasioned by their production operations.
In agreement with these, Keith Davis (1993) maintairfed that
part of a firm's obligation is to evaluate in its decision making
process, the effects of its decisions on the external social
terrain in a manner that will accomplish social benefits along
with the traditional economic gains which the firm seeks.
On the satisfaction to be derived by the community from non
discriminatory social responsibility of organizations, Harold
Bowen (1953) maintained that the business has it as an
obligation to pursue those policies to, make those decisions,
to follow those lines of actions that are desirable in terms of
the objectives and value of our society. This explains why
there will be a great level of cooperation between the
communities and the firms if social responsibility is
discharged in the preferred area of human existence and not
in the organization's preferred area of convenience.
There is bound to be cooperation between the community
and the firms if the firms respond to the felt needs of the b
society. Social responsibility implies that a business in the
process of serving it's own business interests is obliged to
take actions that also protect and enhance society's
interests. The net effect is to improve the quality of life in the
broadest possible way. However, quality of life is defined by
the society. In this way harmony is achieved between
business actions and the larger social system..
In support of the finding that social responsibility, if
effectively carried out will lead to a promotion of corporate
image of business organizations, Keith Davis (1980) affirmed
that business installations that ignore responsibility for their
social power are threatened by the iron law of responsibility
which stipulates that in the long run, those who do not use
power in a manner which society considers responsible will
tend to
It is stil
oose it.
in the same vain promoting corporate image that
Olaniyi (1986) averred that a business organization or an b
enterprise is not worth the name if it seeks to grow without
considerable sacrifice to its society of origin. Thus, the socio-
economic motives of business came into vogue out of the need
for the firm to make beneficial impacts on both the
constituents of its primary and secondary physical
surroundings.
It can therefore be concluded that since business decisions do
have social consequences, that business cannot make
decisions that are solely economic because they are inter-
related with the whole social system. Business institutions
should always direct their social responsibility to improve the
well being of the community in the preferred areas of human
cxistcncc.
The responses gotten from both the management of the two
firms under study and the public reveals that the firms
actually carry out their socia1 responsibility to partially fulfill
the yearnings of the public who expect them to improve on
their well being. There is much difference betweed the
preference attached by both the firms and the community to
some areas of human existence where social responsibility
should focus the more. This calls for a harmonization of
interest between the two groups: the firms and the
community so that the efforts of the firms at social
responsibility will be much and better appreciated.
REFERENCES
I Keith Davis, (1983) Human Behaviour a t work and
organizational behaviour. New Delhi: McGraw hill
publishing co. ltd. p5.
2. Harold Bowen ( 1 953) New York: social responsibility of the
business man Harper and Row inc. p6.
3. Keith Davis and Blomstrom P.C. (1980) Business society b
and environment New York: McGraw Hill P. 126
4. OLANIYI Opanuga (1986) "The relevance of business social
role in Nigeria "Business Times Feb. 10. p. 7.
CHAPTER SIX
SUMMARY, RCCOMMENDATIONS AND CONCLUSION
6.1 SUMMARY
This work on social responsibility of business organizations
was done to verify how effective it is in the promotion of
corporate existence of business organizations using Nigerian
Breweries PLC and Nigerian Bottling Company PLC as a
study. Relevant literature was reviewed to put the study in
the right perspective. It was then established that there are
divergent views on the part of intellectuals, firms and the
society about the appropriateness of social responsibility
being practiced by business organizations.
The data gathered through questionnaire and interview
revealed that the community really expect the firms operating
in their locality to invest their resources in education,
infrastructure development, donation to charity as well as
sports. On the part of the firms, it is a part of their mission to
make meaningful impact on the community where they exist
in terms of social responsibility . The difference in the
expectation of the public and the actual performance by the
firms lies in the level of importance and preference the two
groups attach to the various areas of human existence. While
the community prefers investment in education and donation
to charity more than others, the firms on the other hand,
invest much in the area of sports promotion and donation to b
charity. This does not mean that the firms ignore all other
areas of human existence, but that the resources they invest
in sports and charity is more than that invested in other
areas.
The assessment made by the community on the performance
of the firms in social responsibility suggest a great need for
improvement. In all, both the firms and the community agree
that if social responsibility is effectively carried out to touch
the preferred areas of human existence of the society, there
will be promotion of the corporate existence of the firms in the
society.
6.2 RECOMMENDATIONS
The analysis made of the data gathered in the course of this
study has pointed out some conditions that are inevitable to
ensure a healthy relationship between the firms and the
community where they operate. The researcher therefore,
make the following recommendations in the light of the b
findings.
1 . The firms should target their activities to cover
the areas where the communities lay their
preference. Social responsibility should not be
restricted to areas where organizations have
immediate economic interest, rather, it should
be designed to meet one or more of the basic
needs of the society.
thcrc should be a balance between economic
motives of organizations social responsibility
and that of social favor in the organizations
effort to become corporate citizens.
the two firms under study should use their
strong capital base advantage to increasingly
improve the well being of their host community
so as to inspire other firms within and outside
that locality to borrow a leaf from them and
become socially responsible.
6.3 CONCLUSION b
So far, the study has established the effectiveness of social
responsibility in the promotion of corporate image of business
organizations using Nigerian Breweries PLC and Nigerian
Bottling Company PLC as a study. It can rightly be said that
the efforts of these two firms in the area of social
responsibility is commendable but a lot is still expected from
them by the generality of the public in areas of education and
donation to charity.
It is therefore assumed that if the firms will redirect their , '- .
activities of social responsibility to take care of the felt needs
of the community, there will be an elevation of their rating in
terms of being socially responsible among the community
members. If on the hand, the firms refuse to make a shift
towards the preferred direction of the community in their
social responsibility, the general rating, acceptance as well as
the co-operation that exist between them and the community
will start to dwindle. If that be the case, the corporate
existence of the two firms will be less regarded.
b
Since the business organizations cannot exist in isolation
without the cooperation and patronage of the community,
they have to encourage the society and compensate them for
the inconvenience occasioned by their production operations.
This can only be done if they perform their social
responsibility in the preferred areas of the community.
AREA FOR FURTHER STUDIES
It has so far been established that social responsibility of
business organizations is effective in the promotion of their
corporate existence only if it is directed at the areas where . ,
the community has its felt needs. It is suggested that other
researchers on social responsibility should look into this area.
The cost implications of social responsibility and i ts effect on
the financial performance of business organization.
BIBLIGRAPHY
Akpala, Agwu. (1990) Management an introduction and
the Nigerian Perspective. Enugu: UNEC
(1988), Industrial Relations Model for developing
counties: The Nigerian system. Enugu: fourth
dimen sion. b
Bowen, Harold. ( 1953). Social Responsibilities of Business
man. New York: Harper and Row inc.
Croft, D. (1979) Applied Statistics for Manapement Studies
London: Mc Donald and Evans ltd.
Davis, Keith (1993) Human Behaviour at work and
organizational Behaviour New Deihi: Mr Graw Hill
Publishing Co. ltd.
Davis k. and Blomstrom R.C. (1980) Business Society and
Environment New York: Mc Graw Hill.
Donham, H. 0. (1 927) Corporate Citizenship New York:
Harper and Row
Drucker, P.F. (1974) Management: Task, Responsibilities
and Practice. New York Harper college.
BTBLIC*RAPHY
Akpala, Agwu. ( 1 990) Manancincnt an introduction and the Nigerian
Perspective. Enugu: UNEC
. (1988), Industrial Relations Model for developing counties:
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of Chicago press.
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[Jniversity of Chicago press b
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York Harper and Row Inc
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JOURNALS AND PAPERS
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Committee for Economic Development Keport (1 977)
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Obedience Academy of Management Proceedings (1975)
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and practical Difficulties"
Mana~ement in Nigeria (January 198 1)
Iyanda , Olakunle . " Social Kesponsibility in Marketing.
Management in Nigeria" Journal of Business Studies
August 1978)
Khandelwal , N.M "Social Audit' A new challenge to
Accountancy Profession" Chartered Accountant India Vol25
{February - Decembcr 1977)
Miner, 11 " Shareholders social proposal viewed by an
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Opanuga, Olaniyi, "'l'hc relevance of busincss social role in
Nigeria" Business times (Feb 10 1986)
APPENDIX [A]
QUESTlONNAIRE FOR THE PUBLIC
FACULTY OF BUSINESS
ADMINISTRATION
DEPARTMENT OF MANAGEMENT
UNIVERSITY OF NIGERIA
ENUGU CAMPUS
Dear Sir or Madam:
THE EFFECTIVENESS OF SOCIAL RESPONSIBILITY IN THE
PROMOTION OF CORPORATE IMAGE OF BWSINES
ORGANISATION: A STUDY OF NIGERIAN BREWERIES PLC
AND NIGERIAN BOTTLING COMPANY ENUGU.
I am a post graduate student of the above institution carrying
out a research on the above stated topic leading to the award
of a Masters Degree in Business Administration.
All information gathered will therefore be treated with strict
confidence. Please help me by filling in appropriate response
in the boxes provided.
Thank you for your anticipated co-operation
Your faithfully
Nwakobi M.E.
INSTRUCTION: tick (4) in the space provided against each
option of our choice or fill in the gap provided.
1. Sex (a )Ma le [ ] (b) female { I 2. Occupation
3. what is your own perception of the corporate existence
of the two organizations
1 A firm that is sensitive to the I [ ]
plight of the people
2.. A firm that exist only to make
future try to look into the welfare
[ ] profit
3. A firm that will only in the
of the people I
[ ]
5. A good corporate citizen I [ I
I
I
4. Do you expect manufacturing firms to
4. A nuisance to the community
contribute
[ ]
towards the improvement of the well being of people in your
community?
a. Yes [ ] b. No [ ] I don't known [ ]
5.. In what areas of existence do you expect the firms to
invest more in their social responsibility. Indicate the
percentage you expect them to vote for each
a. Education
b. Sports
c. Charity
d. Infrastructure development
6.. Has Nigerian Breweries and Nigerian Bottling Company
lived u p to their expectation in social responsibility?
I-- 1 (Nigerian breweries I Nigerian Bottling co.
I I
I don't know I [ ] I [ 1
Yes
7. Do Nigerian Breweries and Nigerian Bottling Company
discriminate against some sections of the community while
[ I [ I
discharging their social responsibility?
8. What is your assessment of Nigerian Bottling Company
and Nigerian Breweries social responsibility programme as it
is being practiced?
Nigerian Bottling co.
[ I [ I [ 1
-
Yes
No
I don't know
Good
Nigerian breweries
[ I [ I
--
[ ]
Nigerian breweries
[ I
Nigerian Bottling co.
[ I
Average
Bellow
average
9. Do you think that the performance of the two
companies so fa r in the area of social responsibility has kept
them in good relationship with public.
- --- Yes
No
I don't know
Nigerian breweries I Nigerian Bottling co.
10. In your view, there will be a great level of cooperation
between the community and the firms if they discharge their
social responsibility in the preferred areas of human
existence?
a. Yes [ ] b. No [ ] c.. I don't know [ ]
11. In your view, the Community will be satisfied if the
firms are not discriminatory in the discharge of their social
responsibility thereby leading to a satisfactory and peaceful
coexistence between the firms and the community?
a. Yes [ ] b. No [ ] c. I don't know [ ]
APPENDIX B
QUESTIONNAIRE FOR MANAGEMENT OF THE TWO
FIRMS
FACULTY OF BUSINESS
ADMINISTRATION
DEPARTMENT OF MANAGEMENT
UNIVERSITY OF NIGERIA
ENUGU CAMPUS
Dear Sir or Madam: b
THE EFFECTIVENESS OF SOCIAL RESPONSIBILITY IN THE
PROMOTION OF CORPORATE IMAGE .OF BUSINESS
ORGANISATION: A STUDY OF NIGERIAN BREWERIES PLC
AND NIGERIAN BOTTLING COMPANY ENUGU
I am a post graduate student of the above institution carrying
out a research on the above stated topic leading to the award
of a Masters Degree in Business Administration.
All information gathered will therefore be treated with strict
confidence. Please help me by filling in appropriate response
in the boxes provided.
Thank you for your anticipated co-operation
Your faithfully
Nwakobi M.E.
12 Do you agree that social responsibility of business
organizations if effectively carried out will lead to a promotion
of corporate image of the organization?
a. Strongly agree [ ] b. Agree [ ] c. Disagree [ ]
INSTRUCTION: tick (4) in the space provided against each
option of our choice or fill in the gap provided.
1. Sex a. Male [ ] b. Female [ ]
2. Designation ........................... 3. Does your organization embark on any form of activity
to promote the well being of your lost community?
a. Yes [ ] b. No [ ]
4. Does your firm have it as a policy to embark on social b
responsibility?
a. Yes [ ] b. No [ ]
5. Why does your firm embark on the discharge of social
responsibility?
a. Corporate self interest [ ]
b. Compliance with government regulation [ ]
c. A s a result of agitation by the community
6. In these area of human existence, how do you give
preference in your social responsibility. indicate the
percentage of what you vote for each
a. Education
b. Sports
c. Charity
d. Infrastructure development
7. In your view, there will be a great level of cooperation
between your firm and the community if you discharge your
social responsibility in their preferred areas of human
existence
a. Yes [ ] b. No [ ] c. I don't know [ ]
8.. In your view: The community will be satisfied if your
firm is not discriminatory in the discharge of its social
responsibility thereby lending to a satisfactory and peaceful
coexistence between your firm and the community?
a. Yes [ ] b. No [ ] c. I don't Know [ ]
9. Do you agree that social responsibility of business b
organizations if effectively carried out will lead to a I I I
promotion of corporate image of the organization?
a. Strongly agree { ] b. Agree [ ] c. Disagree [ ]