Corporate Social Responsibility And Suitable Development

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The need to improve involvement of corporate organizations in the Socio-economic development of the nation has been of paramount Concern. Therefore, this study examines organisazation performance and corporate social responsibility in Nigeria. The survey research method was adopted and a sample size of 100 Respondents was selected using the simple random sampling technique.  Data collection was done through questionnaire administration and Analysis of data was carried out by adopting statistical tools of analysis. It was concluded that Nigeria companies embraces the idea of CSR But differs in their areas of implementation. Also level of involvement is not in direct proportion to their economic status. It was however recommended that companies should see CSR as a way of showing appreciation and contributing to the socio economic development of the nation.











Title page                                                                         i

Certification                                                                     ii

Dedication                                                                       iii

Acknowledgement                                                            iv

Abstract                                                                           vi

Table of contents                                                             vii

CHAPTER ONE: INTRODUCTION                                          


1.1   Background of the study                                          1

1.2   Statement of the problem                                        4

1.3      Objective of the study                                              6

1.4      Research question                                                   9

1.5      Research hypothesis                                                10

1.6      Significance of the study                                          11

1.7      Scope of study                                                                 13

1.8      Limitation of study                                                   13

1.9      Definition of terms                                                   14

References                                                               15


2.1      Theoretical Framework of the study                                 17

2.2      Conceptual Framework of the study                                22

2.3      Historical Background of the study                          26

2.4      Review of the study                                                  27

References                                                               49



METHODOLOGY                             50   

3.1      Area of the study                                                      50

3.2      Sources of data                                                        50

3.3      Population of the study                                            52

3.4      Sampling size determination and sampling techniques 52

3.5      Methods of data collection                                       54

3.6      Validity of the instrument                                        54

3.7      Reliability of the instruments                                  55

3.8      Method of data presentation and analysis               55

References                                                               56



4.1      Introduction                                                            57

4.2      Data presentation                                                    57

4.3      Test of hypotheses                                                   81



5.1   Summary of findings                                               86

5.2   Conclusion                                                              89

5.3   Recommendations                                                   90

Bibliography                                                                    93

Appendix 1                                                                      96

Appendix2                                                                      99

Appendix3                                                                      101

Appendix4                                                                      104









An organization has been viewed by management practitioners as a social system that its inputs i.e raw materials, money, machine, man and information from the operating environment and subsequently transformed such inputs into finished products that provide satisfaction for the people in the environment. It is a well known fact that corporations are established to achieve certain goals of which profit maximization is said to be imperative.


Lately, the need for corporate social responsibility (CSR) to their host communities has become a major concern for governments and business organizations. Reason for this argument is borne out of the fact that companies are not established for their owners alone. It is generally noted that the activities of corporations have both negative and positive impacts on the environment.


Henderson (2001), observed that corporate social responsibility (CSR), the set of standards to which a company subscribes in order to make its impact on society, has the potential to make positive contributions to the development of society and businesses. More and more organizations are beginning to see the benefits from setting up strategic CSR agendas. The CSR movement is spreading over the world and in recent years a large number of methods and frameworks have been developed, the majority being developed in the west. This research work, though, will take its focus on Africa in general, and on Nigeria specifically. The purpose is to investigate and analyse the concept of CSR from a Nigerian perspective.


According to Maignan and Ralston (2002) a wide range of behaviours are classified under CSR including cause-related marketing, sponsoring charitable events, offering employee volunteerism programs, making charitable donations, utilising environmental initiatives and demonstrating a commitment to health and safety issues in the host community.


The foregoing implies that as corporations enjoy outstanding performances in terms of profit making and organisational development they should positively impact on the country of operation. This according to Wikipedia (2008) report is synonymous to corporate responsibility.


In the light of the above, the company is responsible to those who invest in it. Shareholders should enjoy adequate returns on money invested on its operations. In the same vein, the workers who are responsible for the organisation’s profit generation deserve proper welfare packages. On the other hand, suppliers of raw materials should be catered for, while the customers that purchase the goods and services offered by the company have the right to maximum satisfactions derivable from using it products at affordable prices.


Ironically, several views have been espoused by critics for and against the need for companies to engage in corporate social responsibility. It is against this backdrop that this study is embarked upon to evaluate organizational performances and CSR in Nigeria.



The drivers for CSR in the west are to be found within areas such as increased brand value, greater access to finance, a healthier and safer workforce, stronger risk management and corporate governance, motivated people, customer loyalty, enhanced confidence and trust of stakeholders as well as enhanced public image. These drivers may not necessarily be applicable to Nigerian companies. Most indigenous companies in Nigeria are seen as, privately held, family owned and operated as such. Local consumer and civil society pressures are almost non-existent and law enforcement mechanisms are weak (Amaeshi, Adi, Ogbechie & Amao, 2006).


Furthermore, the survey ‘’ corporate social responsibility monitor: Global public opinion on the changing Role of companies’’     ( of 20,000 people in 20 countries offers an insight into the way consumers, and societies at large, perceive the social and environmental responsibilities of business. The study identified the aspects of corporate practice that matter most to the general public and also revealed differences in priorities between different regions in the world. Nigeria was one of the countries included in the study and the study showed that Nigeria together with lndia and Russia seemed to be least socially demanding markets.


There are numerous ways of implementing CSR in an organization. CSR practices can address environmental issues, social issues or both. The implementation can be done by integrating CSR in the business or it can be run as a project. Sometimes there are CSR strategies and policies framing the CSR agenda, sometime there are not. According to world Business council for sustainable Development (Lohman & Steinholtz, 2003) an active CSR work might include areas such as:

·                    The management of the organisation clearly declares its views and obligations towards the society and its stakeholders.

·                    The organisation develops and implements clear policies

·                    The organisation has rule for purchasing, including social and environment concerns the organisation reduces its ‘’ ecological footprints ‘’, both in production and in the process of production.

·                    The organisation has objectives with regard to environmental and social concerns.

·                    The organisation shows an active engagement with regard to the development of its local society.

·                    Consumers are educated on how products ought to be used.

·                    The organisation informs about all its different business areas in a transparent manner.

For most businesses operating in Nigeria whether small or large, local or national, the transaction cost of operating is often unpredictable. At the heart of this difficulty is the obvious problem of lack of infrastructure as well as the not so obvious problem of operating in a low trust economy. For many businesses the cost of paying upfront on cash flow or delayed payment; the difficulty of investing in people development; the challenge of high volume cash transactions are all part of a severely eroded social capital.


At the core of this issue is the role of business partnership with government and others to exemplify and model behaviours that restore optimism and improves trust. The challenges that face a business in Nigeria are unique business corporate social responsibility can probably not be optional in such a climate in a country where the social, health, education and environmental needs are so prevalent, where government resources are so stretched, where everyday people live on the breadline, business any other way is not only unethical, it is most probably not sustainable.


Despite the fact that the concept of CSR is relatively new in Nigeria, This study will examine how Nigerian organizations implement CSR as well as examine what the learning experiences are so far and what will be needed for the future.


The purpose of this study is primarily to gain a first understanding of CSR from a Nigerian perspective to form a baseline for further research. The aim is to examine how Nigerian organisations view their roles and part in reaching sustainable growth and development in Nigeria, and to find out what the learning experiences are that can be used, not only by multinational companies operating in Nigeria but by management globally. Other salient objectives include;


1.            To identity the major challenges facing CSR in the country.

2.            To evaluate the extent to which companies strive to provide basic amenities to the citizens of their host community.

3.            To suggest ways by which problems of CSR can be solved.



The following questions have been raised in order to emphatically test the result from the questions in my questionnaire. The result of these questions will form the basis for my conclusions and recommendations:

(1)        Is there a significant relationship between CSR and organizational performance?

(2)        Is CSR a measure of corporate effectiveness in Nigeria business environment?

(3)        To what extent does CSR irrelevant in organizational/host community relationship


Answers to these questions would be a immense benefit in making meaningful recommendations which will aid the business corporate and government in its policy formulations.

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Corporate Social Responsibility And Suitable Development