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THE ISSUE OF CORPORATE SOCIAL RESPONSIBILITY

A MUST TO NIGERIAN BUSINESS ORGANIZATION

“A CASE STUDY OF GUINNESS NIGERIA PLC”

 

ABSTRACT

The concept of corporate social responsibility has generated a lot of controversy over the years. While some executives and economists argue that the business of  business was business alone. Some strongly believe that business should become more involve with public interest.

        This study is thus an attempt to have an insight into the extent to which Guinness Nigeria Plc has been socially responsible to the needs of the different interest groups in the communities in which it operates.

 

TABLE OF CONTENT

CHAPTER ONE (INTRODUCTION)

1. Background Of Study                              1
2. Statement Of Problem                              3
3. Purpose Of Study                                     5
4. The Scope Of Study                                 6
5. Research Questions                                 6
6. Significance Of The Study                                7
7. Limitations Of The Study                         9
8. Definition Of Terms                                 9

 

CHAPTER TWO:  REVIEW OF RELATED LITERATURE

1. The Issue Of Corporate Social Responsibility15
2. The Extent Of Social Responsibility In Nigeria20
3. The Corporate Social Responsibility Controversy23
4. The Power- Responsibility Equation                        30
5. Business Hazard On Environment                   33
6. Ethics And Morality In Relative To Social        Responsibility.                                         36
7. Effects Of Failure To Be Socially Responsible  37
8. Pressure Groups Affecting The Corporation.    40

CHAPTER THREE:  RESEARCH DESIGN AND METHODOLOGY

1. Research Design                                              41
2. Area Of The Study                                            42
3. Population Of The Study                                  42
4. Sample And Sampling Procedure                     42
5. Instrument For Data Collection                               44
6. Validation Of The Instrument                          44
7. Reliability Of The Instrument                           44
8. Method Of Data Collection                               44

CHAPTER FOUR:  DATA PRESENTATION AND ANALYSIS

1. Presentation And Analysis Of Data                  46
2. Testing Of Hypothesis                                     
3. Summary Of Results

CHAPTER FIVE:  DISCUSSIONS, RECOMMENDATIONS AND CONCLUSIONS.

1. Discussion Of Result/Findings                                62
2. Conclusions                                                     63
3. Implications Of The Research Findings           65
4. Recommendations                                           68
5. Suggestions For Further Research                   70

References                                                       72

Bibliography                                                    73

 

 

CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

The concept of business social responsibility has continued to evolve and expand. Today, the efficient use of resources to make profit is still seen as the primary social responsibility of business.

        The idea of corporate social responsibility began in the early part of the twentieth century. Interestingly enough, it came from business executives who believed that corporations has an obligations to use their resources in ways that would benefits the entire society.

        Although, the role of business firms is that of producing goods and services for a profit, social expectations of business have increased dramatically since the 1960, so there is a need for social response in order to narrow the gap between expectations and response and to keep business in tune with society.

While an organization is busy establishing its goals, objectives, developing and executing strategies for achieving its stated purpose, it should recognize that it operates within an environment which expects it to operates in such a manner that would not disrupt its very essence.

        Furthermore, there is little doubt that business must involve itself in social issue broader than producing goods and services, not only because it is the best thing to do but because it is in the best interest of business.

In view of these, this study narrow down to Guinness Nigeria Plc which can approximately be  describe as one of the  most prominent and well known company in the brewery Industry with branches within and  outside the country. The company in the year 2002 celebrated her 50th year of corporate existence in Nigeria and the demand for its product, no doubt has continue to grow and it has indeed remain consisting high all through the years.

        This brewery company majors in the production of small and big Guinness Stout Beer, Harp, Golder, spark, Malta Guinness and Satzenbrau. Guinness Nigeria Plc operates in various parts of the country until the early seventies precisely (1974)  when a plant was established at Ikpoba slope in Benin City. Till this day, the company has continue to grow and it remains one of the most dominant and prominent company in the brewery industry.

 

1. STATEMENT OF THE PROBLEM

According to C.C. Nwachukwu (1988: 227) a majority of Nigeria business organization believed that business enterprise had not shown sufficient interest to their social responsibility. At present, many Nigeria businessmen’s attitude to social responsibility is characterized by the belief in the doctrine of laizzez-faire “ the government is best that governs the lest”. This belief has resulted in conflicts especially in this era where larger number of people now believe that corporations should actively pursue socially responsible goal. This include reducing pollution, programme for education, public health, employees welfare, environmental protection and inculcating more safety and reliability into their products.

        The issue  of corporate social responsibility is treated within the context of this research work in relation with Guiness Nigeria Plc Benin, City activities with respect to consumers, employees, shareholders and the community at large. Perception to the issue by both community members and management of Guinness Nigeria Seems to differ based on each group preference needs, motives, values, goals and aspirations. Guinness Nigeria is constantly maximizing profit but not much attempt have been made in balancing ethics with economies.

A balance must be struck between actions of Gunnies Nigeria which is profit maximization and the community wants. In the light of the above, this study attempts to determine the extent to which Guinness Nigeria Plc Benin City has been socially responsible to the needs of the community.

 

1. PURPOSE OF STUDY

Social involvement has not replace the basic economic role of business in society, but it does introduces new goals for business to pursue and new constraints 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 cam to mind in the choice of this topic.

1. To evaluate the extent of Guinness Nigeria Plc, Benin City involvement in social affairs.
2.  To have an insight into the role it is expected to play in the area of corporate social responsibility.
3. To become familiar with the effects of social responsibility on a company and the society.
4. To evaluate public impression/opinion/perception on the company.