- EVALUATION OF CONTRIBUTION OF COMMERCIAL BANK TO THE ECONOMIC DEVELOPMENT OF NIGEIRA (A CASE STUDY OF FIRST BANK OF NIGERIA PLC)
- AN ASSESSMENT OF CONTRIBUTION OF COMMERCIAL BANK TO THE ECONOMIC DEVELOPMENT OF NIGEIRA (A CASE STUDY OF FIRST BANK OF NIGERIA PLC)
- THE EFFECTS OF CORPORATE SOCIAL RESPONSIBILITY ON PROFITABILITY AND CORPORATE IMAGE OF A PRIVATE ORGANIZATION “A STUDY OF SOME MANUFACTURING FIRMS IN NIGERIA”
- IMPACT OF THE BANKING SECTOR ON DISCHARGE OF SOCIAL RESPONSIBILITY BY SMALL SCALE BUSINESS ORGANISATION (A CASE STUDY OF TASHO ENTERPRISE AND LUWOJU HOTEL)
- ROLE OF BANKING SYSTEM IN THE DEVELOPMENT OF NIGERIAN ECONOMY (A Case Study of Nigerian Breweries Plc)
- ECONOMIC EFFECT OF ADVANCED FREE FRAUD IN THE BANKING SYSTEM IN NIGERIA
- THE ROLE OF COMMERCIAL BANKS TO THE DEVELOPMENT OF SMALL SCALE INDUSTRIES IN NIGERIA
- EFFECTS OF THE PRACTICE OF ETHICS AND SOCIAL RESPONSIBILITY OF MANAGEMENT ON THE GOAL ATTAINMENT OF BUSINESS (Focus on Promasidor Nig. Ltd. and Nestle Nig. Plc.)
- THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON ORGANIZATIONAL PERFORMANCE (A Study of Nigeria Bottling Company Plc)
- IMPACT OF SOCIAL RESPONSIBILITY ON ORGANISATIONAL IMAGE (A STUDY OF CADBURY NIGERIA PLC)
CORPORATE SOCIAL RESPONSIBILITY AND SOCIAL ECONOMIC DEVELOPMENT USING BANKING AND TELECOMMUNICATION INDUSTRIES IN BADAGRY CENTRAL AREA OF LAGOS STATE
In the Nigerian society, Corporate Social Responsibilities [CSR] has been a highly cotemporary and contextual issue to all stakeholders including the government, the corporate organization itself, and the general public. The public contended that the payment of taxes and the fulfillment of other civic rights are enough grounds to have the liberty to take back from the society in terms of CSR undertaken by other stakeholders. Some ten year ago, what characterized the Nigerian society was fragrant pollution of the air, of the water and of the environment. Most corporate organizations are concerned about what they can take out of the society, and de-emphasized the need to give back to the society [their host communities]. This attitude often renders the entire community uninhabitable. A case in mind is the Niger Delta area of Nigeria. This translated to negative integrity and reputation on the part of corporate identity as people perceived this as exploitation and greed for profitability and wealth maximization within a decaying economy of Nigeria. However, the general belief is that both business and society gain when firms actively strive to be socially responsible; that is, the business organizations gain in enhanced reputation, while society gains from the social projects executed by the business organization. In modern day however, having seen the benefits and average favorable pay-back period of their investment in CSR, corporations are now seriously involved in this project, which had impacted in the society wonderfully and profitably. This study is therefore, intended to consider the imperative and benefits of CSR on the Nigeria society. The perceived gap supposedly created is harnessed and investigated for possible resolution, using the banking and communication industries as a case study. The research approach is both descriptive and analytical. Data collected for this study are from both primary and secondary sources, relying heavily on the relevant information available from both banking and communication sectors, and other sources. Tests were conducted using both regression and correlation analysis. The regression result reveals a strong and significant relationship between CSR and Societal Progress such that the relationship between CSR and Societal Progress is statistically significant. It is thus conclusion that CSR plays a significant role in Societal Progressiveness in terms of environmental and economic growth. The study recommends that, while improvement in the depth of participation by banking and telecommunication industries in economic and environmental development is desirable, they are encouraged to close ranks and forge common interest in addressing certain social responsibilities, especially those bothering on security and technological advancement of the polity.
Keywords: Corporate Social Responsibility, societal Progressiveness, Banking, Communication, Environment.
TABLE OF CONTENTS
Front Page i
Title page ii
Table of contents vi
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 2
1.3 Research Questions 3
1.4 Aim and Objectives of the Study 3
1.5 Research Hypotheses 4
1.6 scope and limitation of the study 4
1.7 Definition of Terms 4
CHAPTER TWO: LITERATURE REVIEW
2.1 Literature Review 6
2.1.1 Introduction 6
2.1.2 Definition of Corporate Social Responsibilities 6
2.1.3 Carrol’s Pyramid of Corporate Social Responsibility 8
2.1.4 Implicit Versus Explicit Corporate Social Responsibility 8
2.1.5 The Three Components of Sustainability - The Triple Bottom Line 9
2.1.6 Characteristics of Corporate Social Responsibilities 10
2..1.7 Responsibilities of a Firm 14
2.1.8 Social Responsibility to Stakeholders 16
2.1.9 Modern Corporate Social Responsibility 18
2.1.10 What Drives Corporate Social Responsibilities Defending Public
2.1.11 Concept of Corporate Social Responsibilities in Nigeria 20
2.1.12 Implementation of Corporate Social Responsibilities in Nigeria 23
2.1.13 Historical Background of MTN Nigeria 24
2.1.14 Emphasis on Corporate Social Responsibilities by the
Telecommunication Industry in Nigeria 25
2.1.15 Historical Background of Guarantee Trust Bank Nigeria 30
2.2 Theoretical Framework 34
2.2.1 Introduction 34
2.2.2 Global Capitalism and Marxist Theory 36
2.2.3 Corporationsin Global Capitalism 39
2.2.4 CSR as a Spectacle 42
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction 44
3.2 Research Design 44
3.3 Sample Size. 44
3.4 Method of Data Collection 44
3.5 Method of Data Analysis 45
CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION
4.0 Regression Interpretation 46
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of Findings 54
5.2 Conclusion 55
5.3 Recommendations 56
1.1 BACKGROUND OF THE STUDY
At an earlier point in history, societal expectations from business organizations did not go beyond efficient resource allocation and its maximization. But today, it has changed and modern business must think beyond profit maximization toward being at least socially responsible to its society. Today’s heightened interest in the role of business in society has been promoted by increased sensitivity to the awareness of environmental and ethical issues. It means our society has become increasingly concerned that greater influence and progress by firms has not been accompanied by equal effort and desire in addressing important social issues including problems of poverty, drug abuse, crime, improper treatment of workers, faulty production output and environmental damage or pollution by the industries as it has overtime been reported in the media. It is therefore very essential for all to realize that public outcry for increased social responsibility will not disappear if business organizations fail to respond to the challenges these had posed for the society.
In view of the perceived information gap, it is therefore worthwhile collating and aggregating in a more organized manner, the contributions of Nigerian corporations [using banking and communications industries as a focus] to the well-being of the society. This is necessary if only to show, in a graphic and mathematical ways that the industries seriously identify with the aspirations of the communities and the general public. In the early years of this century, two Americans independently and without knowing of each other were among the first businessmen in the world’s history to initiate major community reforms.
Andrews Carnegie preached and financed the free public library. Julius Rosenwald fathered the country farm agent system and adopted the infant 4-H CLUBS. Carnegie was already retired from business and one of the world’s richest men. Rosenwald who had recently bought a near bankrupt mail order firm called Sear Roebuck and Company, was only beginning to build both his business and fortune. The two held basically different philosophies. Carnegie believed that the sole purpose of being rich is to be a philanthropist, that is, the “social responsibility of wealth”. Rosenwald believed that you have to be able to do good to do well, that is, the “social responsibility of business”. J. Irwin miller of the Cummins Engine Co. Ltd in Columbus, Indiana, has systematically used corporate funds to create a healthy community which, at the same time is a direct, though intangible investment in a healthy environment for his company. Miller specifically aimed at endowing his small industrial town with the ‘quality of life’ that would attract to it the managerial and technical people on whom a big high-technology business depends.
Only if business and particularly Nigerian business learns that to do well it has to do good, can we hope to tackle the major challenges facing developing societies today. The economic realities ahead are such that ‘social needs’ can be financed increasingly only if their solution generates commensurate earning which precisely is what business is known for. We can actually say firms involved in Corporate Social Responsibility are actually not regretting because of the increase it has made on their sales leading to profit and how they have impacted the environment. The significance of corporate social responsibility as a vital tool for the societal progressiveness cannot be over emphasized. This can be seen from the points of view of showing concern for the welfare of the community in order to reap peace, competent and cheaper manpower, a platform for a better community; by making the host community worthy of livelihood in terms of infrastructural development; and by boosting their image, reducing advert cost, gaining an edge over competitors, and making your name as a firm an household name in the society.
1.2 STATEMENT OF THE PROBLEM
In recent years there have been series of arguments, debates and controversies among businessmen, academics, government officials and the society in general on what should be the principle objectives of business enterprises. Over the years, managers have neglected the problems created by corporate firms to their host communities. These problems possess a lot of threat and sometimes make life difficult for these communities. The privilege giving to organization to operate in the society stems from the fact that society believes that there is a mutual interdependency existing between them, that is, the organization and the society. The relationship between organizations and their host community has become increasingly important.
Despite the roles played by organizations carrying out corporate social responsibility and the growing importance of social responsibility, the following issues have not been fully addressed:
i. Why should organizations be socially responsible to their environment?
ii. What benefits do organizations get from performing its corporate social responsibility?
iii. Why is social responsibility considered as a waste drain of business resources?
iv. Are organizations in Nigeria socially responsible?
In view of the perceived information gap, it is therefore worthwhile collating and aggregating in a more organized manner, the contributions of Nigerian corporations [using banking and communications industries as a focus] to the well-being of the society.
1.3 RESEARCH QUESTIONS
1. To which degree are CSR commitments successfully enacted in practice?
2. Is CSR perceived as a meaningful tool for social and economic development?
3. What are the opportunities and limitations of CSR?
4. What are the factors responsible for the adoption of corporate social responsibility.
1.4 AIM AND OBJECTIVES OF THE STUDY
The aim of this study has been to evaluate some of the opportunities and limitation for Corporate Social Responsibility (CSR) to improve the socio-economic development of Lagos Society with examples of banking and telecommunication industries
The main objective of this study has been to compare statements and codes of conducts of companies (MTN and GTBank) involved with the findings of a worker interview study. In doing this, the study evaluates which factors of corporate responsibility that translates into perceived social or economic development and to which degree are they implemented. The specific objectives of the study are to:
i. Ascertain the degree at which CSR commitments is successfully enacted in practice
ii. Determine if CRS is perceived as a meaningful tool for social and economic development.
iii. To identify the opportunities and limitations of CRS.
iv. Examine the factors responsible for the adoption of corporate social responsibility.
1.5 RESEARCH HYPOTHESES
In pursuit of the objective of identifying the effectiveness and workability of corporate social responsibility, the following hypotheses have been formulated, which intend to test in the course of this study:
Ho: CSR commitments are not successfully enacted in practice.
Hi: CSR commitments successfully enacted in practice
Ho: CSR is not perceived as a meaningful tool for social and economic development.
Hi: CSR is perceived as a meaningful tool for social and economic development
1.6 SCOPE AND LIMITATION OF THE STUDY
This research work will focuses on the banking and telecommunication industries in Nigeria, but with particular reference to MTN and GTBank, Badagry, Lagos State.This research is likely to be faced with a lot of problems and limitations of are Nigerians attitude to the supply of information to a researcher due to fear of unknown and also, financial constraints, the scope and dimension of this study will not be extended beyond this limit.
1.7 DEFINITION OF TERMS
Corporate Social Responsibility: (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business/ Responsible Business) is a form of corporateself-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms.
Banking: A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank links together customers that have capital deficits and customers with capital surpluses.
Telecommunication: Telecommunication is communication at a distance by technological means, particularly through electrical signals or electromagnetic waves. Due to the many different technologies involved, the word is often used in a plural form, as telecommunications.
Environment: (systems), the surroundings of a physical system that may interact with the system by exchanging mass, energy, or other properties.
Socio-Economic Development: is the process of social and economic development in a society. Socio-economic development is measured with indicators, such as GDP, life expectancy, literacy and levels of employment. Changes in less-tangible factors are also considered, such as personal dignity, freedom of association, personal safety and freedom from fear of physical harm, and the extent of participation in civil society.