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The Effect Of Corporate Social Responsibility On Organisational Performance
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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
In
the last twenty years, there has been a sea of change in the nature of
the triangular relationship between companies, the state and the
society. No longer can firms continue to act as independent entities
regardless of the interest of the general public (Crane et al, 2009).
The evolution of the relationship between companies and society has been
one of slow transformation from a philanthropic coexistence to one
where the mutual interest of all the stakeholders is gaining paramount
importance (Anao, 2009).
Companies are beginning to realize the fact
that in order to gain strategic initiative and to ensure continued
existence, business practices may have to be moulded from the normal
practice of solely focusing on profits to factor in public goodwill and
responsible business etiquettes (Oghojafor, 2001). An examination of
some of the factors which have led to the development of the concept of
corporate social responsibility (CSR) would be ideal starting ground for
the conceptual development of suitable corporate business practices for
emerging markets.
Corporate social responsibility (CSR) also called
corporate conscience, corporate citizenship, social performance, or
sustainable responsible business is a form of corporate self¬-regulation
integrated into a business model. Corporate social responsibility
policy functions as a built-in, self-regulating mechanism whereby
business monitors and ensures its active compliance with the spirit of
the law, ethical standards, and international norms (Blowfield and
Murray, 2008).
According to Montiel (2006), the goal of corporate
social responsibility is to embrace responsibility for the company's
actions and encourage a positive impact through its activities on the
environment, consumers, employees, communities, stakeholders and all
other members of the public sphere. Furthermore, corporate social
responsibility-focused businesses would proactively promote the public
interest by encouraging community growth and development, and
voluntarily eliminating practices that harm the public sphere,
regardless of legality. Corporate social responsibility is the
deliberate inclusion of public interest into corporate decision-making
that is the core business of the company or firm, and the honouring of a
triple bottom line: people, planet, profit.
Business organizations
taking responsibility for its impact on society means first and foremost
that a company must account for its actions. Social accounting, a
concept describing the communication of social and environmental effects
of a company's economic actions to particular interest groups within
society and to society at large, is thus an important element of CSR.
1.2 STATEMENT OF THE PROBLEM
The
role corporate social responsibility play in business organization
growth needs not be over-emphasized. Acceptably, for business
organization to achieve optimum profit and growth in the economy, the
need for continuous corporate social responsibility is essential.
However,
most organizations have extreme difficulty and in most cases impossible
to conveniently exercise its corporate responsibility to the society in
which they operate. The minimal level of customers' satisfaction and
frequent winding up of some telecommunication organizations are
testimonies of this, precisely, many of these fold-ups happen because
some telecommunication companies disregard corporate social
responsibility.
Some telecommunication organizations experience sales
decline, slow growth and changing buying pattern. These problems are
generated as a result of not embarking on corporate social
responsibility. Many organizations are unable to operate effectively due
to the fact that they have not being able to play their role as a
corporate responsible body. This has generated the following problems:
i. Low market shares resulting from low customers and employees commitment;
ii. Frequent complaints from member of the society can lead to the winding up of the company;
iii. Members of the community would not patronize the
company products/services thereby leading to low performance and
profitability levels.
iv. Inability of the company to achieve sustainable competitive advantage over its rivals.
Thus,
in order for telecommunication companies to be able to achieve
sustainable competitive advantage, they have to embark on corporate
social responsibility.
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ABSRACT - [ Total Page(s): 1 ]The aim of the study is to examine the effect of corporate social responsibility on organizational performance. The population comprises of two thousand seven hundred (2700) workforces. The questionnaires were issued to one hundred and thirty five (135) respondents which formed the sample size. The samples were drawn using stratified and simple random sampling technique. Data were analyzed using frequency tables and percentages method. The formulated hypotheses were tested using chi¬-square ( ... Continue reading---
