THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON ORGANIZATIONAL PRODUCTIVITY

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The concept of business social responsibility has continued to evolve and expand today. Traditionally, business has been viewed as an economic institution and profit- maximization as its sole objectives. This represents the classical view advocated by economist and Noble Laureate, Milton Friedman. Today, business manager are expected to serve as trustees of various stakeholders groups such as inventor, customers, employees, government and it community. This represents the socio-economic views which say that management’s social responsibility goes well beyond the making of profit to include protecting and improving society welfare (Njoku and Nwosu, 2010).

The idea of corporate social responsibility began in the earlier part of the twentieth century, interesting enough, corporate social responsibility comes from business executive who believed that corporation has an obligation to use its sources in ways that could benefit the entire society Sama (1994). Although, the role of business firms is that of producing goods and services as profit, social expectations of business have increase dramatically since 1960. So, there is a need for social response, in other to bridge the gap between expectations and response, and keep business in tune with society, while an organization is busy establishing its goal and objectives, developing and executing strategies for achieving its stated purpose.

Epstein (1976) succinctly points out, business enterprises gives adequate attention to the issue of social responsibility because they want to achieved social harmony between themselves and this environment and companies see it expenses associated with social responsibility as tax or license fee they paid to society so that the latter can allow them to carry out their every day economic functions.

Seittim in Abubakar (1992), says “business social responsibility implies bringing about corporate behaviour to a level congruent with the prevailing social norms, values and expectation of performance” Knootz in Nwachukwu (1988) “corporate social responsibility in an obligation of business pursue those polices, make those decisions said to follow those courses of action which are at benefit to the society”. On the other hand, Mali in Nwachukwu (2006) sees organizational productivity as the measure of how resource are brought together in organizations and utilized for accomplishing a set result. Productivity is reaching the highest level of performance with the least expenditure of resources. Furthermore, there is little doubt that business must involve itself in social issue broader than providing goods and services not only because it is in the best interest in business. In view of this, this study narrow down to coca-cola company which can approximately to be describe as the most prominent and well known company in the beverage and bottling industry with branches within and outside the country. The company in the year 2012 celebrates her 50th years of corporate existence In Nigeria and the demand for its products, in no doubt has continued to grow and it has remained consisting high all through the years. Therefore, the coca-cola company majors in the population of small, medium and big eva premium table water, soft drinks (non alcoholic drinks), fruit juice etc.

1.2 STATEMENT OF THE PROBLEM

According to Nwachukwu (1998:227)a majority of Nigeria business organization believed that business enterprise had not shown sufficient interest to their social responsibility. At present, many Nigerian businessmen’s attitude to social responsibility is characterized by the belief in the doctrine of laissez- faire. This belief has result in conflicts especially on this, everywhere, large number of people now believed that corporation should actively pursue society responsibility goods. These includes, reducing pollution, programmed for education, public health employee’s welfare, environmental protection and in calculating were safety and reliability into the produce.

Corporate social responsibility is treated within the context of   the research work in relation with coca-cola company’s activities with respect to consumers, employees, shareholders and community at large. Perception to this, both community members and management of coca-cola company seems to differ base on each group and aspirations. Coca- Cola Company is constantly maximizing profit but not much attempt has been made in balancing ethic with economy.

Therefore, a balance must have struck between actions of coca-cola company which is profit maximization and the community’s wants.

In the light above, this study attempt to determined the extent to which coca-cola has socially responsible in the need of it community.

The following are the problem under study:

The major aim of this dissertation is to determined whether coca-cola company is genuinely perforating cooperate the responsibility with society or community      were they operate

What are the relationship that exists between the company and the society?

What are the social responsibilities of coca-cola company on environment and whether they been met?

What are the public impression/corporation /perception on the company?

1.2 OBJECTIVES OF THE STUDY

Social involvement has not replaced the economic role of business on society, but it does introduce new goals for business to propose a new constraint on how business will operate.

The study thus, will serve to highlight on these goals and constraints

The following aims and objectives of the study comes to the mind in the choice of this topic:

To what extent has coca –Cola Company genuinely performing corporate social responsibility in society or community where they operate?

To what extent has the relationship that exist between coca-cola company and the society improve the lives of the people.

To identify the social responsibility of coca-cola company on the environment and whether they have been met.

To evaluate public impression/corporation/ perception on company.

1.3 RESEARCH QUESTIONS

The following questions are posed to this study;

1) To what extent has coca-cola company genuinely performed co-operate social responsibility in the     society     where they operate

2) To what extent does the relationship that exist         between   the coca-cola company and society improve        the lives of the people in the society.

3) To what extent is the identification of coca-cola      company effective on social responsibility in the     environment?

4) To what extent is the development of the public      impression corporation/ perception affect the company?

1.4 SIGNIFICANCE OF THE STUDY

TO MANAGERS:

The result of this study will acquaint managers with indepth knowledge of corporate social responsibility and its effectiveness as regards to society or communities in modern business.

TO ORGANIZATION:

This study will be useful to the organization in decision making and will help government in polices formation. It will also serve to broaden the frontier of knowledge and draw attention of Business Corporation in the role they operate are excepted to in the society where they operate

TO FUTURE RESEARCHERS:

This study will serve as a source of knowledge and reference to the future researcher in order to aid their research in the future.

TO ACADEMIC SCHOLARS:

As a result of this study, those in the academic field will benefit from it based on the perception that they might stumble upon if read or study it in order to improve them academically.

1.5 SCOPE OF THE STUDY

In order to be able to effectively evaluate the activities of Business Corporation and the community in which they operate in terms of their corporate social responsibility, the study will narrow down to determined how social responsible coca-cola company is to community in which it operates hence the emphasis on coca-cola company.

1.6 LIMITATIONS OF THE STUDY

TIME CONSTRAINT: respondents were not able to response to questionnaire administered to them due to their busy schedule and period when this research was conducted was not a enough due to the fast approaching of  second semester examination which warranted some part of this research to be rushed.

FINANCIAL CONSTRAINT: some of the companies in view are located at distant places that required excessive transport. Also some of the respondents reside very far from the location were he research was been conducted. This made it almost impossible and difficult to retrieve questionnaire that were administered.

UNCOMPROMISING ATTITUDE OF RESPONDENT: most respondents felt reluctant in responding to questionnaire administered to them. This also proved to be a limitation on this research.

1.7 DEFINITION OF TERMS

Corporate: this is a company which has a legal right as an entity separate from its owners, shareholder and it managers.

Corporate social responsibility: this refers to the comprehensive approach organization take to meat or exceed expectations to stakeholders beyond such measures as a revenue, profit, and legal obligations. It involves community investment, human right and employee relations environmental practices and ethical conduct. Corporate social responsibility is also concern with the way in which an organization exceeds minimum obligation to stakeholders specified through regulation.

Responsibility: this is a duty or obligation to satisfactorily perform or complete a task (assigned by someone or created by one’s own promise or circumstances) that one fulfill, and which has a consequent penalty for failure.

Social responsibility: this is a duty every individual or organization has to perform so as to maintain a balance between the economy and the ecosystem.

Social responsibility is also an ethical theory that an entity, be it an organization or individual has an obligation.