Embed Size (px)
Citation preview
1
TITLE PAGE
AN ASSESSMENT OF CORPORATE SOCIAL
RESPONSIBILITY PRACTICES OF SELECTED
INDIGENOUS MANUFACTURING COMPANIES IN ENUGU
STATE, NIGERIA.
BY
OGBODO, IGWESI HYACINTH
PG/M.Sc/06/45564
BEING A DISSERTATION PROPOSAL SUBMIT IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD
OF MASTER OF SCIENCE (M.Sc) DEGREE IN MARKETING
FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA, ENUGU CAMPUS
SUPERVISOR DR (MRS.) J.O. NNABUKO
2
2010.
CERTIFICATION
This is to certify that this dissertation on “AN ASSESSMENT OF
CORPORATE SOCIAL RESPONSIBILITY PRACTICES OF SELECTED
INDIGENOUS MANUFACTURING COMPANIES IN ENUGU METROPOLIS IN
ENUGU STATE” is the original work written by OGBODO IGWESI
HYACINTH with Registration NO. PG/M.Sc/45564.
........................................ ……………………………….
Ogbodo, Igwesi Hyacinth Date
(PG/M.Sc/06/45564).
3
APPROVAL
We certify that this dissertation on “AN ASSESSMENT OF CORPORATE
SOCIAL RESPONSIBILITY PRACTICES OF SELECTED INDIGENOUS
MANUFACTURING COMPANIES IN ENUGU METROPOLIS IN ENUGU
STATE” is the work written by OGBODO IGWESI HYACINTH with Registration
N0: PG/M.Sc/45564.
________________________ ________________________
Dr (Mrs) Nnabuko J.O. Dr (Mrs) Nnabuko J.O.
(Dissertation Supervisor) (Head of Department)
________________________ ________________________
Date Date
4
DEDICATION
To Him be the Glory, the omniscient God.
5
ACKNOWLEDGEMENTS
The successful completion of this work could not have been possible
without the co-operation and assistance of many individuals to whom the
researcher is greatly indebted to, for their idea, constructive criticism and
other contributions at various stages of this dissertation. First and foremost,
my warmest gratitude goes to omniscient God out of whose guidance and
inspiration my program in this institution became a reality. I am heartily
grateful to my supervisor, Dr. (Mrs.) .J.O. Nnabuko, a very good and
understanding mother, who despite her tight schedule gave the researcher
the needed academic guidance and attention which made the completion of
this dissertation a reality. She will ever remain blessed.
The researcher also expresses his great appreciations to all the academic
members of marketing Department for their contributions to the successful
attainment of the goal of this study. My further appreciation also goes to my
colleagues, for their wonderful relationship. Worthy of my appreciation also
include all the respondents who completed and returned the questionnaire
the researcher administered. This of course, provided the needed primary
data for this study. Finally, my gratitude also goes to my beloved parents Mr.
and Mrs. Ogbodo for their moral, spiritual, love and financial assistance.
6
TABLE OF CONTENTS
Title page - - - - - - - - - i
Certification - - -- - - - - - - ii
Approval - - - - - - - - - iii
Dedication - - - - - - - - - iv
Acknowledgments - - - - - - - - v
Table of contents - - -- - - - - - vi
List of Table - - - - - - - - - viii
Abstract - - - - - - - - - xi
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study - - - - - 1
1.2 Statement of problem - - - - - - - 2
1.3 Objectives of the Study - - - - - 3
1.4 Research Question - - - - - - 3
1.5 Hypotheses of the Study - - - - - 4
1.6 Significance of the Study - - - - - - 4
1.7 Scope of the Study - - - - - - - 5
1.8 Limitation of the Study - - - - - - 5
1.9 Definition of Terms - - - - - - 5
1.10 Historical Background of the Selected Companies - - - 7
References - - - - - - - 9
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Introduction - - - - - - - - 11
2.2 Definition of Corporate Social Responsibility - - 11
2.3 Drivers of Corporate Social Responsibility - - - 14
2.3.1 Changing Environment - - - - - - 14
2.3.2 Globalization and Technology - - - - - - 14
2.3.3 New Pattern of Consumption: Emergence of „Conscience Consumers‟ 15
2.3.4 Trend: Affluence - - - - - - - 16
2.4 Planning and Implementing Corporate Social Responsibility - 16
2.5 Marketing in Corporate Social Responsibility - - - 17
2.6 Consumers and Corporate Social Responsibility - - - 21
2.7 Social Marketing Concept - - - - - 23
2.8 Societal Marketing Concept - - - - - 26
2.9 Emergence of Ethical and Social Responsibility - - - 27
2.10 Goals of Corporate Social Responsibility - - - - 28
7
2.11 Pitfalls of Effective Corporate Social Responsibility in Nigeria - 31
2.12 Summary - - - - - - - - 32
References - - - - - - - - 34
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction - - - - - - - - 38
3.2 The Study Area - - - - - - - 38
3.3 Population of the Study - - - - - - 38
3.4 Research Design - - - - - - - 39
3.5 Sampling Procedure - - - - - - - 39
3.6 Sources of Data - - - - - - - 39
3.7 Administration Questionnaire - - - - - - 39
3.8 Determination of Sample Size - - - - - 39
3.9 Questionnaire Allocation - - - - - - 40
3.10 Pilot Survey - - - - - - - - 41
3.11 Validity of Research Instrument - - - - - 41
3.12 Reliability of the Research Instrument - - - - 42
3.13 Statistical Method of Data Presentation and Analysis - - 42
References - - - - - - - - 43
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction - - - - - - - - 44
4.2 Data Presentation - - - - - - - 44
CHAPTER FIVE: SUMMARY, CONCLUSIONS
AND RECOMMENDATIONS
5.1 Introduction - - - - - - - - 68
5.2 Summary of Findings - - - - - - - 68
5.3 Conclusion - - - - - - - - 69
5.4 Recommendation - - - - - - - 60
5.5 contributions to knowledge - - - - - - 70
5.6 Area of further Research - - - - - - 71
Bibliography - - - - - - - - 72
APPENDIX - - - - - - - 77
QUESTIONNAIRE - - - - - - - 78
8
LIST OF TABLE
4.2.1 Gender - - - - - - - - 44
4.2.2 Age - - - - - - - - - 4
4.2.3 Marital Status - - - - - - - - 42
4.2.4 Staff - - - - - - - - - 43
4.2.5
4.2.6 Education Qualification - - - - - - 43
4.2.7 Designation - - - - - - - 43
4.2.8 Staff‟s level -- - - - - - - - 44
4.2.9 The level of the companies involvement in corporate social responsibility -45
4.2.10 Corporate Social responsibility practices benefits the companies in the area of
survival and suitability - - - - - - 46
4.2.11 Ways through which corporate social responsibility can be
used by the companies - - - - - - 46
4.2.12 The cost incurs on the corporate social responsibility practices prove
efficiency and effectiveness - - - - - - 47
4.2.13 Determination of efficiency and effectiveness - - - 47
4.2.14 Corporate social responsibility practices can be used as a tool for marketing
one company‟s products - - - - - - 48
4.2.15 Capacity this can be advised - - - - - - 48
4.2.16 Does Pitfall of Corporate Social Responsibility has any impact on marketing a
company product - - - - - - - 49
4.2.17 Amount your Company voted for Corporate Social
Responsibility Practices yearly - - - - - 49
4.2.18 Company customers/Distributors - - - - - 50
4.2.19 The rate of the involvement of the company in those corporate social
responsibility practices - - - - - - 51
4.2.20 The Corporate Social Responsibility practices by the company commensurate
with the value parting from the society by the company - - 51
4.2.21 Corporate Social Responsibility practices affect the live of the people in the
environment positively - - - - - - 52
4.2.22 The way it affects the live of the people - - - - 52
9
4.2.23 Corporate Social Responsibility practices, do you think that it can be
stimulated by any other factor other than ethical considerations -
10
ABSTRACT
This study is based on the assessment of corporate social responsibility
practices of the indigenous manufacturing companies in Enugu Metropolis
in Enugu State. This study was conducted based on the issues and
agitations that surrounded the Practices of Corporate Social Responsibility
by some business organizations in the Enugu metropolis even where the
practices are available they are still at a crawling stage. The objective of the
study is to assess the impact of corporate social responsibility on
manufacturing companies. To this end, data were gathered from both the
primary and secondary sources. The primary sources comprised of survey
instrument and observation. While the secondary sources were text books,
journals and publications from both Anammco and Emenite. The population
of the study is one thousand one hundred and fifty three (1,153) but the
sample size is two hundred and ninety seven (297) which was determined
with the use of Cochran’s formular for the determination of sample size.
However, out of the 297 sample size, two hundred and sixty eight
respondents were found useful for the study. A descriptive statistic
technique was also adopted for the study and the statistical tools for the test
of the formulated hypotheses were the Multiple linear regression analysis, T-
test and Z-test tools were used in testing the hypotheses, with the aid of the
SPSS software. The study revealed that corporate social responsibility is yet
to be recognized as a marketing tool or strategy for marketing Anammco and
Emenite products. The amount usually put into corporate social
responsibility by the companies is small to execute big projects for the
benefit of the companies and stakeholders. Besides, it was identified that the
forms of corporate social responsibility the companies employed were
charity, donation, welfare packages, medical services, sponsorship and
scholarship award whereas many more suppose to be incorporated such as
research grant, entrepreneur training, infrastructural development, etc. Also,
there is no drive other than ethical consideration that pushes the
manufacturing companies in Enugu Metropolis to the corporate social
responsibility practices. And there is no significant relationship between the
companies corporate social responsibility practices financial cost and
benefits derived from it. Finally, the finding also revealed the corporate social
responsibility practices by the companies is low generally.
11
INTRODUCTION
1.1 Background of the Study and History of Selected Companies
Today, increasing numbers of companies are beginning to appreciate the rising
importance of Corporate Social Responsibility (CSR). They can no longer overlook
societal expectation. Corporate Social Responsibility is rapidly becoming one of the
principles and important priorities which modern businesses should adopt regardless
of their size and type (Jiyoung, 2007:7). Recently, businesses are expected to take
account not only of their economic interests but of their societal and environmental
impacts as well. They are responsible for delivering sustainable development where
they operate – locally, regionally and globally.
Corporate social responsibility goes beyond the old-fashioned and altruistic
philanthropy of the past. Instead, now it is an all year round responsibility for
business. In spite of mixed evidence on the financial impact of corporate social
responsibility, the largest and most powerful global corporations embrace it as their
core business principle. Hardelman and Arnold, (1999:35) explained that Corporate
Social Responsibility seems to be something of a holy grail to invigorate the business
only if they can discover it. In his view corporate social responsibility is very elusive.
How to integrate corporate social responsibility into business is one of the biggest
challenges that today‟s business face.
In the past decades, there has been a significant change in the relationship between
business and society. As witnessed by governments‟ lack of capability to solve social
problems, the public‟s expectation for business has begun to increase (Smith et al,
2001:107). In Nigeria, business organizations are expected to be socially responsible
to the environment they operate. Thus, many companies see themselves as caught
between social demanding and maximizing short-term profits (Porter and Kramer,
2002:80).
Therefore, this prompt the enactment and implementation of CSR bill to enforce the
practices of corporate social responsibility by the companies and by Nigerian.
Government as published in Nigerian daily independent newspaper 29th
January,
2009:17.
12
In this millennium, however, the demands for corporate social responsibility have
become more specific and more imperative than they used to be; the public began to
demand that businesses make social issues a part of their strategy (Lantos, 2001:600).
Not only general business associations, but the World Business Council for
Sustainable Development (WBCSD) and the Business for Social Responsibility (BSP)
Promote Corporate Social Responsibility. A number of organizations have started to
rank companies on the performance of their corporate social responsibility and these
rankings have had a significant effect on both the publics and investors. As a result,
Corporate Social Responsibility has become a priority for business, i.e. it is no longer
a business option but a fundamental (Smith, 2003:56).
History of the Selected Companies
1.1.1 Anambra Motor Manufacturing Company
Mercedes Benz ANAMMCO Limited was incorporated on January 17, 1979 and the
plant was commissioned on July 8, 1980 by the First Executive President of Nigeria,
Alhaji Shehu Shagari. It started official production in January 1989, and has to date
made an enviable mark in the nation‟s transportation industry, adding over 30,000
vehicles to it.
The company is a joint venture between the Federal Government of Nigeria and
Daimler Benz Ag/Mercedes Benz Ag of Germany. The plant has an installed
production capacity of 7,500 commercial vehicles (Truck Assembly), however,
unfortunately, due to the general economic downturn in the country, ANAMMCO‟s
current capacity utilization is put at a little over 15% of her installed capacity. For this
reason, between the period of 1981 when the started production to 1994, ANAMMCO
can just boast of having added only about 20,000 vehicle made up of Trucks and
Buses to the nation‟s transport sector. The company has since diversified to the
production of buses. She also has a network of over 36 after-sales services points and
spare part supply depots.
1.1.2 Emenite Company Limited
Emenite Limited was incorporated in the month of October 1961 as Turners Asbestos
Cement Nigeria Limited. On the 22nd March, 1976, the name was change to turners
building products Emene Limited as a result of indigenization decree. The
13
significance of that changed the Head office which was formerly in Lagos was
changed to Emene. Then, on the 24th March, 1988, the company started answering
the name Emenite Limited. This change was occasioned by the subsequent sale of the
foreign partners share i.e. (Turner and Newall) to Eteroutremer S.A., presently known
as Elex Group who now holds the majority of shares and consequently controls the
affairs of the company as of now.
The company – Emenite Ltd is in business producing Asbestos Cement Building
Products, presently changed to Fibre Cement Building Products because of the
negative connotations which the word “Asbestos” has among the publics. The
company‟s product lines consist of the following: corrugated roofing sheets, ceiling
boards; flower pots and water pipes which are presently out of production.
1.2 Statement of Problem
Many companies see themselves as caught between social demanding and
maximizing short term profits (Porter and Kramer, 2002:80). Although, it is believed
that stakeholder value is hardly compatible with Shareholder value, today‟s
businesses have a fiduciary duty to shareholders and at the same time a social
responsibility to stakeholders. So far it is widely accepted that being responsible
means a cost rather than financial benefit (Jiyoung, 2007:17). Possessing a strong
Corporate Social Responsibility profile means a cost rather than as asset that can be
invested in. However, the growth in socially responsible investments and in Corporate
Social Responsibility awareness assures organizations that the future champions will
be those who proactively balance short-term financial goals to meet shareholder
demands, with building long-term sustainability to satisfy stakeholder demands.
Consumers make a purchasing decision according to a company‟s corporate
reputation.. Apparently, it seems like today‟s companies are caught in a morality.
Being moral involves costs, thus morality demands the price of resources of
companies. On the other hand, are consumers willing to pay premium prices caused
by corporate social responsibility investment? Research shows that not many of them
are (Smith, 2005:62). If so, how can companies recover the loss caused by (CSR)?
How do companies reconcile this negative financial impact caused by (CSR)? What
role can Corporate Social Responsibility play in the life of business organizations?
Can it reconcile the gap between social needs and their virtue of capitalism?
14
Therefore, this study intends to do an assessment of Corporate Social Responsibility
practices of selected indigenous manufacturing companies in Enugu Metropolis in
Enugu State.
1.3 Objectives of the Study
Generally, the objective of the study is to assess the Corporate Social Responsibility
of the selected companies in Enugu Metropolis in Enugu State. However, the specific
objectives are as follows:
1. To ascertain whether the selected companies engage in the Corporate Social
Responsibility.
2. To determine if cost is more valuable other than financial benefit.
3. To ascertain if corporate social responsibility can be used as a tool for marketing
their company‟s products.
4. To determine if there is a significant relationship between organizational morality
and Corporate Social Responsibility.
5. To determine if pitfalls of corporate social responsibility have an impact on the
marketing of company‟s product.
6. To determine if there are any other factor that stimulate company‟s to practice
corporate social responsibility other than ethical consideration
7. To determine if companies assets are used to assess the impact of their Corporate
Social Responsibility.
8. To identify the benefits ANAMMCO and Emenite derived in their practice of
Corporate Social Responsibility.
1.4 Research Questions
(1) Do the selected companies engaged in the practice of corporate social
responsibility?
(2) Do cost more valuable other than financial benefit?
(3) Do companies use corporate social responsibility practices as a tool for
marketing their company‟s products?
(4) What is the relationship between organizational morality and Corporate Social
Responsibility?
15
(5) Do pitfalls of corporate social responsibility had an impact on the marketing of
company‟s product?
(6) Do any other factor stimulated companies to practice corporate social
responsibility other than ethical consideration?
(7) To determine if companies asset are being used to assess the impact of their
corporate social responsibility
(8) What benefits do the selected companies derive in their practice of Corporate
Social Responsibility?
1.5 Hypotheses of the Study
1. Ho: Companies did not engage in the corporate social responsibility
2. Ho: There is no significant relationship between the companies
Corporate Social Responsibility Practices financial cost and benefits
derived from it.
3. Ho: Companies did not use corporate social responsibility practices as
a tool for marketing their company‟s products‟.
4. Ho: There is no significant relationship between organizational
morality and corporate social responsibility.
5. Ho: The pitfalls of corporate social responsibility have no impact on
the marketing of company‟s product.
6. Ho: Corporate social responsibility cannot be stimulated by any other
factor other than ethical consideration.
1.6 Significance of the Study
Globally, Corporate Social Responsibility Practices is another functional area of
managing and marketing the activities of business organizations to maximize
shareholders/investors value and stakeholders/public value. Therefore, this study will
benefit the following:
Government: In the area of infrastructural development which some governments
have low capacity to discharge, through Social Responsibility Practices business
organizations come to the aid of the governments.
Public/Stakeholders: The stakeholders as a result of the relationship between the
business organizations and society and for the sake of promoting loyalty with the
16
customers, business organizations are therefore rendering some social responsibility
services to improve the standard of living of their customers.
Business Organizations: The Corporate Social Responsibility Practices may be used
as a marketing tool to achieve long-term sustainability of companies and survival in
the environment with which they operate.
1.7 Scope of the Study
This study is restricted to the Corporate Social Responsibility Practices in Anambra
Motor Manufacturing Company (ANAMMCO) and EMENITE Company Limited in
Enugu Metropolis in Enugu State in Nigeria.
1.8 Limitations of the Study
In the process of carrying out this study the researcher encountered the following
problems:
Financial Constraint: The researcher was faced with the problem of transport fare
from one company to the other in searching for relevant information and
administration of questionnaire both in the pilot survey and the real field survey.
Time Constraint: The time allocated to this study was not enough, despite that the
researcher managed to complete the research work and delivered the desirable
objectives.
Scarcity of Materials: The researcher faced a lot of stress in the process of gathering
materials for this study as a result of dearth material in the areas because much
emphasis is yet to put on it. However most authors have not treated the topic
extensively.
1.9 Definition of Terms
For the purpose of clarification and understanding of this research, some concepts
required conceptual definitions. Below are some of these concepts:
Marketing: Marketing, therefore, is the anticipation of needs and wants and
providing such needs and wants at the time they are wanted. When, where that are
wants, how they are wanted and at the price they are wanted at a profit (optimal
profit) (Onah and Thomas 2004:4).
Management: Management is the careful or judicious manipulation of all the factors
employee on the production of goods and services that are needed by human beings in
17
any society for whom the good and services are meant, in such a way that the
producer and the consumer get their optimum satisfaction from action of production
or services (Iwu 1998:3).
Metropolis: Metropolis is defined as urban city: The urban environment is large,
intensively developed and typically noisy. Also people in the urban built environment
are typically engaged in the secondary and tertiary services. Conceptually, the urban
environment is a reflection of the cumulate totality of man‟s occupancy of the land as
has been made possible by the level of his technology. The urban built environment
can be perceived from the stand point of its physical structures, its amenities and
facilities. It goods and services and it characteristic problems. It may also be
perceived from the stand point of the life styles that have evolved as a result of its
“artificiality”, the crime problems, the traffic congestion problems, the insecurity, its
cultural mix and heterogeneity, its solid waste problems, it environmental pollution,
its noise and various institutional and personal devises to cope with these „problems.
The urban built environment may also be seen from the stand point of its unique
opportunities its unique collection of goods, its superior educational institutions,
health, recreational and other amenities and it rare blend of services. (Obasikene at el
2000:53).
Public: according to Black (1989:11) stated that the publics of an organizations are
those who are impacted upon by the activities of the organization and or those whose
activities, on the other hand, impact or could impact upon the organization.
Organization: This is a combination of people or individual efforts working together
in pursuit of certain common purposes called organization goals (Akpala, 1990:2).
Social Responsibility: According to International Finance Corporation (2000:137)
Social Responsibility is the commitment of business to contribute to sustainable
economic development by working with employees, their families, the local
community and society at large to improve their lives in ways that are good for
business and for development.
18
References
Akpala, A. (1990), Principles of Management, An Introduction and the Nigerian
Perspective, Enugu, Gostak Printing & Publishing Co. Ltd.
Akpala, A. (1998), Principles of Management, An Introduction and the Nigerian
Perspective, Enugu Gostak Printing & Publishing Co. Ltd.
Chukwumereje, U.(2009) Corporate social Responsibility bill Thursday, 29th
January,
2009.
Black, S. (1989), Introduction to Public Relations; London, Modino Press.
International Finance Corporation (2000), Corporate Social Responsibility.
http://www/cbr.com.ac.uk/pdf/wp337.pdf. 15th
April 2008.
Iwu .E.A (1998) understanding production and project Management. Enugu. Veamaks
Publishers Enugu.
Handelma, J.M. and Arnold, S.J. (1999), The “Role of Marketing Actions with a
Social Dimension: Appeals to the Institutional Environment”, Journal of
Marketing, Vol. 63, No.3 pp 33-38.
Jiyoung, O. (2007), “The Role of Marketing in Corporate Social Responsibility,
Cranfield University, School of Management
https://dspace.lib.cranfield.ac.UK.
Smith, N. Craig et al, (2001), “The New Corporate Philanthropy”, Harvard Business
Review, vol. 72, No.3, pp. 105-116.`
Lantos, G.P. (2001), “The Boundaries of Strategic Corporate Social Responsibility”,
The Journal of Consumer Marketing, Vol. 18, No.7, pp. 595-632.
Smith, N. Craig (2003), “Corporate Social Responsibility: Whether or How?”
California Management Review, Vol. 45, No.4, pp.52-76.
O‟Sullivan, T. (1997) “Why Charity Scheme need a Delicate Touch”, Marketing
Week, Vol. 20, No. 34, pp. 22-24.
Onah J.O and Thomas .M.J (2004) Marketing Management: Strategies and cases.
Enugu. Institute for development studies University of Nigeria. Enugu
Campus.
Obasikene J.I. Adinna EN and Uzoechi I.F. A (2000) “Man and His Environment”.
The General Studies Division: Enugu State University of Science and
Technology Enugu. In partnership with computer Edge publishers 79 and
92 Obiagu Road Enugu.
19
Porter, M.E. and Kramer, M.R. (2002) “The Competitive Advantage of Corporate
Philanthropy”, Harvard Business Review, Vol. 80, No. 12, pp. 56-68.
Smith, N. Craig (2005) “Responsibility Inc.” Business Strategy Review, Summer,
pp.62-65.
Perrault, W.D. and Mc Carthy, J.E. (2002), “Basic Marketing: A Global Managerial
Approach, (14th ed). New York, McGraw Hill/Irwin.
20
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Introduction
The review of literature centered through the following sub-topic: definition of
Corporate Social Responsibility, Drivers of Corporate Social Responsibility: why are
companies engaged in Corporate Social Responsibility, Planning and Implementing
Corporate Social Responsibility, Marketing in Corporate Social Responsibility,
Consumers and Corporate Social Responsibility, Social Marketing Concept, Societal
Marketing Concept, Emergence of Ethical and Social Responsibility, Goals of
Corporate Social Responsibility and Pitfalls of effective Corporate Social
Responsibility in Nigeria.
2.2 Definition of Corporate Social Responsibility
Corporate social responsibility has had very varying meanings for different people
over time. Stakeholders use different definitions according to their norms, values and
beliefs. Definitions vary according to a company‟s size, the perceptions of the
employees who are in charge of corporate social responsibility within the company,
which stakeholder groups are engaged in the company, and so on (Jiyoung, 2007:8).
For a long time, academics and practitioners have been striving to agree on a single
definition of Corporate Social Responsibility. Corporate Social Responsibility is
defined and regarded as a social obligation. Bowen (1953:6) defines Corporate Social
Responsibility as the obligation “to pursue those polices, to make those decisions, or
to follow those lines of action which are desirable in terms of the objectives and
values of our society”. Later, Carrol (1979:501) buttressed the view of Corporate
Social Responsibility as a Social obligation. In addition, he emphasized different
types of social obligation. Davis (1960:72) suggests that social responsibility refers to
business‟ “decisions and actions taken for reasons at least partially beyond the firm‟s
direct economic or technical interest”. Eells and Walton (1961:18) disagree that
Corporate Social Responsibility refers to the “problems that arise when corporate
enterprise casts its shadow on the social scene, and the ethical principles that ought to
govern the relationship between the corporation and society”.
21
In the 1970s, some academics emphasized social responsiveness rather than social
responsibility. They pointed out the shift from social responsibility to social
responsiveness and argued that actions or performances were being neglected
compared to societal obligations. As a result, a new question was raised about how to
integrate a firm‟s economic interest with social responsibility. In this regard, a more
comprehensive definition of Corporate Social Responsibility was called for. Carroll
(1979:501) one of the advocate of Corporate Social Responsibility which included
economic, legal, ethical and philanthropic obligations. He suggested that firms should
be judged not only by their economic and legal obligations but also their ethical and
discretionary (philanthropic) responsibilities.
However, some academics claimed corporate social responsibility to be a stakeholder
obligation. Stakeholders are those who directly or indirectly affect or are affected by
the firm‟s activities (Clarkson, 1995:103; Donaldson and Perston, 1995:66, Jones and
Kahaner, 1995:17; Wood and Jones, 1995:226). Henriques and Sadorsky (1999:26)
grouped stakeholders into four main categories: organizational stakeholders,
community, regulatory bodies, and media. Notwithstanding, The World Business
Council for sustainable Development (WBCSD, 1999) offered that “Corporate Social
Responsibility is the continuing commitment by business to behave ethically and
contribute to economic development while improving the quality of life of the
workforce and their families as well as of the local community and society at large to
improve their quality of life. The organization for economic co-operation and
development, OECD, (2000:151) stressed the need for both governments and
companies to demonstrate their corporate social responsibility by pursuing sound
environmental and socially based policies
These guidelines include:-
a. To ensure that the operations of these enterprises are in harmony with
government policies.
b. To strengthen the bases of mutual confidence between enterprises and the
stakeholders which they operate
c. To enhance the contribution to sustainable development made by indigenous
manufacturing companies.
22
This has challenged indigenous manufacturing companies to implement best practice
polices for sustainable development that seek to ensure coherence between social,
economic and environmental objectives.
In their own view Adirika, et al (1997:10) see Corporate Social Responsibility as one
of the proper solutions to the many problems posed to marketing/marketers today.
Black (1989:112) and Kotler (1997:35) see it as an organizational employment of
moral or ethical principles in her dealing with others. In a related development,
Corporate Social Responsibility, as Nwosu (2001:496), observes, demands that social
institutions should “identify with the problems and achievements of the communities
in which they operate;. Working with other members of the community to achieve set
objectives which are in the overall interest of the community and all its members”.
Nwodu (2003:48) reinforces this view when he says: “successful organizational image
building and sustenance require strict commitment to ethical imperative and social
responsibility‟. In addition, Nwodu (2007: 330) further emphasis that: in practical
terms, it is the responsibility of a corporate organization to carry out infrastructure
development of its host community as a way of compensating the community for the
damage caused it by the organizational activities.
According to Okiyi (2003:21), corporate social responsibility stems from an
organization feeling obliged and with a conscience to put back into society and at
most times its immediate environment what is has taken from it, without the
expectation of a reward or social consideration while executing her other obligations
in the environment.
Having stated this clearly, the publics of ANAMMCO and EMENITE to whom they
ought to be directing they social responsibility practices would therefore include their
internal and external publics. While the internal publics include: the employees, the
workers union, the management team, the board of directors, the shareholders etc, the
external publics would include: the community, the customers, the
suppliers/contractors, the press, the government, financial institutions, interest groups,
Standard Organization of Nigeria (SON), e.t.c. ANAMMCO and EMENITE‟S ability
to meet up their obligations to these various publics or satisfy their diverse
23
interests/aspirations would then be the yard stick for the measurement of the (success
or failure) of their corporate social responsibility practices.
2.3 Drivers of Corporate Social Responsibility
Why are Companies Engaged in Corporate Social Responsibility?
Changing environment enables consumers to involve social issues more than ever.
Due to advanced technology, their concern reaches out of borders and form global
movements by disseminating relevant information e.g boycott in case of consumers.
2.3.1 Changing Environment
Today‟s ever changing world puts pressures on businesses and provide reasons for
taking Corporate Social Responsibility as a strategy. The business environment has
changed dramatically and corporate social responsibility is one of the main drivers
that reshapes the relationship between business and society (Jiyoung 2007:13). Now,
Corporate Social Responsibility is recognized as a new, emerging, and rapidly
growing financial and non-financial risk factor. If it is mismanaged, a firm‟s corporate
reputation will be penalized and direct or indirect negative impact on its financial
outcomes may result.
In this new environment, companies have discovered that their post experiences are
no longer valid for providing a reliable solution to what today‟s marketing faces. For
example, many corporations realize that criticism reaches even areas that of their
business. For example, in the early 1990s, Nike faced a substantial boycott after the
media reported on “Sweatshops” in Asia. Pharmaceutical companies such as
GlaxoSmithKline (GSK) realized that they had to take responsibility for the HIV/AID
epidemic in Africa. When the Shell Oil Company decided to skin the Brent Spar,
Greenpeace protested aggressively. Now firms have become well aware of the risks
that are entailed when they do not take social responsibility seriously.
2.3.2 Globalization and Technology
Today, advanced technology empowers media, one of stakeholder groups, to not only
disseminate information to the public but to arouse public opinion by drawing
attention to the bad social deeds of companies or the companies who neglect their
social responsibility. Additionally, the internet, one of the greatest extended and most
24
powerful forms of media enables consumers to organized collective action such as to
buy or boycott globally. So, the negative impact can be more damaging especially to
Multinational Companies that operate globally. As well as avoiding the negative
impact on business, as many surveys underline, there are critical drivers of corporate
social responsibility for companies.
Table 1: Drivers for Corporate Responsibility
DRIVER %
Economic considerations 74
Ethical considerations 53
Innovation and learning 53
Employee motivation 47
Risk management or risk reduction 47
Access to capital or increased shareholder value 39
Reputation or brand 27
Marketing position (market share) improvement 21
Strengthened supplier relationships 13
Cost saving 9
Improved relationships with governmental authorities 9
Other 11
Source: KPMG International Survey of Corporate Responsibility Reporting (2005)
2.3.3 New Pattern of Consumption: Emergence of ‘Conscience Consumers’
Consumers expect more from the companies whose product or service they purchase.
The numbers of these conscious - consumers are new increasing. They want to be
convinced that their purchasing behavior will bring social benefit harming the
environment. That is, they want companies that not only make good products or
brands but also do good as well. This new pattern of consumption drives companies
to find a marketing strategy which is more relevant to social responsibility.
Consumers are now looking closely at companies who make claims regarding the
involvement in social issues (Bronn and Vrioni et al, 2001:208).
25
2.3.4 Trend: Affluence
Many companies have established their own corporate social responsibility strategies
and plans. As a result, reporting has increased substantially. These drivers make
corporate social responsibility an important business strategy.
2.4 Planning and Implementing Corporate Social Responsibility
Having identified the importance of corporate social responsibility in the business
cycle, it is highly essential to plan, devise strategies and enforce implementation of
perceived corporate social responsibility by business organization so as the target
objective.
In this regard, endorsement of the Corporate Social Responsibility concept Senior
Management is important if it is to be successful and Carroll (1991) in Edoga and
Izute (2008:238) recommends seven key quest to ask management while planning
corporate social responsibility strategies.
1. Who are our stakeholders?
2. What are their stakes?
3. What do we need from each of our stakeholders?
4. What corporate social responsibility(economic, legal, ethical and philanthropic)
do we have to our stakeholders?
5. What opportunities and challenges do our stakeholders?
6. How important and/or influential and different stakeholders?
7. What strategies, actions or decisions should we take to best deal with these
responsibilities?
However, four strategies of response have been identified to stakeholders perspective
on corporate social responsibilities (CSR) as follows by Tench and Yeomans
(2006:16).
1. An Inactive Strategy: Resisting societal expectations and sometimes government
regulation.
2. A Reactive Strategy: Responding to unanticipated change after the significant
change has occurred.
26
3. A Pro-active Strategy: Attempting to “get ahead‟ of a societal expectation or
government regulation (often coupled with efforts to influence the outcome).
4. An Interactive Strategy: Anticipating change and blending corporate goals with
those of stakeholders and societal expectations. Thus, an interactive strategy is
often accomplished by managements‟ commitment to a serous dialogue with
stakeholders.
2.5 Marketing in Corporate Social Responsibility
“Companies that exclude marketing from decisions on CSR are exposing themselves
to huge risk, just as those that put sole emphasis on it are Marketing is about
communicating with consumers and changing behavior, so marketers must take more
responsibility for communication the effects of corporate decision-making.”
Nell Jones, Commercial Director, Carat
Insight from the Marketing Society
Forum, 2006.
CSR is not a brand new emerging concept of the twentieth century. The concept was
observed much earlier. However, the modern era of social responsibility (SR) is
deemed to be around to beginning of the 1950s. In the 1960s, and then into the 1970s,
academics focused on the marketing function conducting social duties rather than the
whole organization‟s social role (Kotler and Levy, 1969). Until quite recently,
companies have not taken substantial responsibility in the social sector. This can be
inferred from the changes in terminology used. In most studies done before the 1980s
and 1990s, Social Responsibility was mainly used rather than CSR. In 1980s, a study
(Quinn and Rohrbaugh, 1983) determined 17 score organizational effectiveness
criteria. In the study, even CSR or business ethics have failed to be identified. In
spite of this failure, marketing has developed much knowledge and experience of
CSR and business ethics, and has tried to integrate social responsibility into its
decision-making process (Robin and Reidenbach, 1987; Singhapakdi, Vitell,
Rallapalli, and Kraft, 1996). However, it had been considered only as a limited
adoption of social responsibility by marketing in the early stages.
Ethical and socially responsible business practices have been emphasized by both
academics and practitioners. However, the business practices are not likely to receive
criticism when they try to closely connect ethics and social responsibility to marketing
activities (Singhapakdi, et al., 1996: 1131). Regarding this kind of connection,
27
(Drumwright, 1996:71) even mentions non-economic – oriented marketing activities
as “Marketing‟s most unabashed exploitation”. As a result, in the early stages,
practices were an extremely cautious and very limited adoption of social
responsibility and business ethics by marketing strategic planning process (Robin and
Reidenbach, 1987). At the time, marketing was only regarded as an element of a
secondary trade-off with economic-oriented action (Handelman and Arnold, 1999).
For instance, when companies linked their marketing activities to CSR initiatives, it
was easily exposed as target for cynicism or criticism by the public rather than
respected.
Many researchers have studied and then suggested a group of solutions in order to
avoid these negative reactions by the public or stakeholders. There have long been
conflictions between non-economic-oriented marketing activities, meeting social
demands and economic-oriented marketing, pursuing business purpose. There are a
group of studies that believe that marketing may reconcile this deep-seated historical
conflict (Robin and Redicenbach, 1987; Menon and Menon, 1997; Handelman and
Arnold, 1999; Maignan and Ferrell, 2004).
As solutions, many studies propose that non-economic-oriented marketing activities
should be integrated with economic-oriented marketing activities at the strategic level
(Menon and Menon, 1997; Robin and Reidenbach, 1987). Some studies have
empirically examined such strategic marketing as a moderate power of negative
impact on business (Handelman and Arnold, 1999). In their seminal work, Robin and
Reidenbach (1987) point out the lack of integrated approach for making social
responsibility and ethics part of the strategic marketing planning process and
recommended organizations‟ incorporate these concepts into their strategic marketing
planning process. In their paper, they suggested a „Parallel Planning Approach,‟
which still remains valid.
28
Figure 1: Parallel Planning Approach
Source: Robin and Redenbach, 1987
Robin and Reidenbach (1987) suggest a methodology for intergrating social
responsibility into the marketing planning and process. Recently, Vargo and Lusch
(2004) have suggested that there is a new emerging logic of marketing, which exists
to contribute not only economic but also social processes. Table 1 shows the
evidences examined.
Table 2: Evidences Found in Relation to Integration CSR into Marketing
FINDINGS SOURCE
Introduce a methodology for integrating the concepts of social
responsibility business ethics into marketing strategy
Robin and Reidenbach, 1987
By giving heavily to community projects, The Body Shop
International has engaged in “enlightened capitalism” as it
intertwines brand and cause.
Richards, 1995
It was emphasized that the role of the natural environment in
marketing strategy. In the paper, authors researched the strategic
importance of non-economic criteria in marketing. Companies have
begun incorporating environmental criteria (non-economic criteria)
into their marketing strategies.
Menon and Menon, 1997
This empirical study investigated the integration or intertwining of
public purpose marketing (Nicholas 1994:1) or enlightened
capitalism (Richards and Arnold, 1995:24) with their economic-
oriented marketing strategies. They discovered that consumers
engaged in positive word of mouth when companies‟ activities were
Handelman and Arnold, 1999
MISSION STATEMENT
AND ETHICAL PROFILE
PROFILE
DEVELOPMENT OF
MARKETING
OBJECTIVES
TO GUIDE
IDENTIFY
IMPACTED PUBLICS
(STAKEHOLDER GROUPS)
DEVELOP ACTIONABLE
ETHICAL CORE VALUES
ENCULTURATE-INTEGRATE
CORE VALUES INTO THE
ORGANIZATIONAL CULTURE
TO OVERSEE
TO INCLUDE
TO OVERSEE
SELECT TARGET
MARKET
DEVELOPMENT OF
MARKETING MIX
IMPLEMENTATION OF
MARKETING STRATEGY
MONITOR & CONTROL
FOR MARKETING AND
ETHICAL EFFECTIVENESS
OBJECTIVES
29
congruent with their institutional norms, values and beliefs. Based
upon this discovery, the study developed a deeper understanding of
how these marketing actions bring benefits whether tangible or
intangible to companies. The authors adopted institutional theory and
strongly supported that institutional actions (non-economic-oriented
or philanthropic actions) should be focused on, along with
marketing‟s economic-oriented strategy. That is, this study proposed
the strategic importance of integration of philanthropic actions and
self-interested actions by empirical examination.
Authors empirically examined congruence with core business versus
incongruence. The results of congruence show that there was no
significant difference.
Ellen, Mohr and Webb, 2000
This study argued that CSR is explicitly associated with corporate
performance in terms of the reputation of the organization. According
to the research, a good reputation can create brand differentiation so
as to contribute to a company‟s benefit (whether tangible or
intangible).
Bronn and Vrion, 2001
In the study, the authors described „corporate citizenship‟ as a
marketing instrument (2001). The authors also introduce a
conceptualisation of CSR that emphasises the role and potential
contribution of the marketing discipline.
Maignan and Ferrell,
2001, 2004.
Source: Vargo and Lusch 2004.
According to kotter & Keller (2009:67), the effects of marketing clearly extend
beyond the company and the customer to society as a whole. Marketers must carefully
consider their role in broader terms, and the ethical, environmental, legal, and social
context of their activities. Increasingly, consumers demand such behviaour, as
starbucks chairman Howard Schultz has observed. We see a fundamental change in
the way consumers buy their products and services… consumers now commonly
engage in a cultural audit of providers. People want to know your value and ethics
demonstrated by how treat employees, the community in which you operate. The
implication for marketers is to strike the balance between profitability and social
consciousness and sensitivity… it is not a program or a quarterly promotion, but
rather a way of life. You have to integrate this level of social responsibility into you
operation.
30
Table 3:Coporate Social Initiatives
Type Description
Corporate social marketing Supporting behavior change campaigns
Cause marketing Promoting social issues through efforts
such as sponsorships, licensing
agreements, and advertising
Cause-related marketing Donating a percentage of revenues to a
specific cause based on the revenue
occurring during the announced period
of support.
Corporate philanthropy Making gifts of money, goods, or
individuals
Corporate community involvement Providing in-kind or volunteer services
in the community
Socially responsible business practices Adapting and conducting business
practices that project the environment
and human and anima rights.
Source: Philip Kotler and Nancy Lee. Corporate Social responsibility: doing the
Most Good for Your Company and your cause (Holsoken. N.J. Wiley,
2004): Copyright @ 2005 by Philip Kotler and Nancy Lee, by Permission
of John Wiley & Sons, Inc.
2.6 Consumers and Corporate Social Responsibility
Any business can not neglect consumers in any way. In terms of CSR, companies
recognize consumers as a pressure group. Consumers have been a substantial subject
especially in the retail market place. Sometimes, companies are criticized because of
the unbalanced weight between consumers and other stakeholders. There are myriads
of studies related to consumer‟s behaviour and their responses. In the consumer
behaviour area, CSR is the influential element to affect consumers purchasing
decisions. However, in this thesis, consumers are focused on as being one of CSR
drivers rather than scrutinizing how they make decisions according to any CSR
association. Table 4 shows the evidence examined.
31
Table 4: Evidences Found in Relation to Consumers’
FINDINGS SOURCE
Consumers become sensible towards environmental issues and
increase expectations from business. They have a significant ability
and willingness to exercise bargaining power (Porter, 1980)
Menon and Menon, 1997
Authors argue that consumers expect organizations to demonstrate
congruence with such social values as contribution to the community
and nation, as well as support for family values.
Handelman and Arnold, 1999
This study observed the changing attitudes of customers e.g.
„conscious consumer,‟ and how they affect and drive companies to
find new ways of making marketing increasingly relevant to society.
Blunmenthal and Bergstrom,
2003
Suggest “CSR and Marketing: An Integrative Framework” and
summaries the work of marketing scholars in examining consumer
responses to CSR initiatives, the perceived importance of ethics and
social responsibility among marketing practitioners and the
marketing benefits resulting from corporate actions with a social
dimension.
Maignan and Ferrell, 2004
Stakeholder pressure Maignan et al., 2005
Stakeholder power Morsing, 2006
Stakeholder power Pirsch, gupta, and Grau, 2007.
Source: Vargo and Lusch 2007.
2.6.1 Conscious Consumer
Today, consumers are concerned about the issues that affect them directly as well as
indirectly (Maignan and Ferrell, 2004). They are more demanding of social
responsibilities from companies than ever before. There is a number of groups of
consumers who try to make a difference in society through their purchasing decisions.
They are called „conscious consumer(s).‟ In this thesis, we investigate them. The
growing number of conscious consumers are forming social pressure groups and
emerging as an influential stakeholder group. From the company‟s perspective they
can be the target audience of their marketing strategy incorporating CSR initiatives as
well as a pressure group. Studies related to the consumer have distinctive meanings
in the context of CSR. Some studies have identified that positive world of mouth and
a good reputation may result a competitive advantage (Handelman and Arnold, 1999).
A good of studies have suggested that a good reputation can create brand
differentiation which contributes to a company‟s benefit (Bronn & Vrioni, 2001).
32
Positive word of mouth and good reputation are mainly triggered by consumers. In
this context, consumers are regarded as one of main reasons why companies engage in
CSR. This area is one of the most rigorously studied areas by both academics and
practitioners.
Studies also demonstrate that CSR shortcomings can have a harmful effect on the
company‟s reputation and performance as a whole. This kind of damage lasts longer
than ever before due to the Internet, conscious consumers and activists. On the other
hand, consumers reward those companies with a good CSR association. According to
the Cone/Roper Benchmark Survey on Cause-Related Marketing and IEG
Sponsorship Report, when a company is associated with a cause they care about:
78% of adults said they would be more likely to buy a product;
78% of adults said they would be likely to switch brands;
62% of adults said they would be likely to switch retailers; and
54% of adults said they would pay more for a product.
Consumers extend their buying power to the social concerns and urge companies‟
engagement.
2.7 Social Marketing Concept
Kotler and Keller (2006:6) social marketing is a societal process by which individuals
and groups obtain what they need and want through creating, offering, and freely
exchanging products and services of value with others.
Social marketing is the use of marketing principles and techniques to advance a social
cause (Adirika, et al, 1987:152). It seeks to increase the society‟s acceptability of a
social idea cause or practice. Example of social marketing outlined by Adirika et al
(1987) include:
Publics health campaigns to reduce the spread of AIDS, to reduce smoking,
alcoholism, drug abuse etc.
Environmental campaigns to reduce deforestation, environmental pollution and to
promote conservation of natural resources.
Other campaigns such as family planning, emancipation of women, helping the
poor and the disabled in the society, population control, etc.
33
The social marketers, they added though research could try to understand why people
use drugs, the problems they get from using drugs and the difficulties they have when
trying to stop using drugs. These information they would use in developing an
effective marketing plan aimed at stopping people from abusing drugs, so social
marketers advocate the use of marketing to further social goals. The primary objective
of social growth in the society. Hence, it should have a place of priority in every
organizations social responsibility practices.
In the view of Nwosu (1996:181) while the marketing concept can be described as a
philosophy of business which states that the customers want satisfaction is the
economic and social justification of any organization concerned to make reasonable
profit for its survival.
In view of Subhash (1990:54) sees marketing concept generally constitute eight “core
values” in business organization and also show the corporate public and their
concerns in the following:
Publics Areas Concern
Owner Payout, equity, stock prices and Non monetary desires.
Customers Business reliability, product reliability, product
improvement, product price, produce service, continuity
and marketing efficiency.
Employees of all ranks Monetary reward, reward of recognition, reward of
pride, environment, challenge, continuity and
advancement.
Supplier Price, stability, continuity and growth.
Government (Federal, Taxes, security and law enforcement, management
States and Local Government) expertise, democratic government, capitalistic system,
implementation of programme.
Banking community and Sound risk, interest payment, repayment of principal.
Other Lenders
Immediate community Economic growth and efficiency, education,
employment and training.
34
Society at large Civil right, urban renewal and development, pollution,
abatement, conservation and recreation, culture and arts,
medical care.
In today‟s environment, corporate strategy must be developed not simply to enhanced
financial performance, but to maximize performance across the board, delivering the
highest gains to all the stakeholders of corporate publics. The concept of stakeholders‟
is really the extension of the marketing concept. Marketing concept and stakeholders‟
concept are strongly related with a common root or core. Clearly, one commonality is
that the stakeholder as a public central to the organization‟s purpose, while marketing
concept centered on consumer. In a related development Nnabuko (2004:131) stated
that in searching for way to differentiate themselves in today‟s cluttered marketing
environment, many companies have embraced customer relationship management
(CRM) is intended to help companies increase customer loyalty target their most
profitable customers and stream line sales processes and analysis of customer data.
The social marketing concept includes embarking on social development projects
designed and packaged to attract and satisfy the target publics. It involves charging
affordable prices and identify with the needs of the organizations publics.
In line with the 4ps of marketing (product, price, promotion and place) social
marketing also fits in. under the product components, the social development project
is designed and package to attract and satisfy the target publics that is know as
product or project configuration. Under the price component, attractive and easy
means of participating in the social development project and the sacrifices to be made,
emphasized. Under the promotions component of social marketing, the social
development project is presented to the target publics in form of symbolically
significant messages in a well designed communication strategy. And finally, under
the place component, the social development projects benefits are made easily
available to the target public through appropriate channels (Nwosu, 1996:182) and
(Ifezue, 1990:660).
However, Adirika et al, (1987:154) maintain that the social responsibility of business
is a logical extension of the societal marketing concept and social marketing concept.
They said that in social marketing, customers‟ satisfaction is not enough.
35
This is because, even in situations where firms satisfy consumer wants and interest the
long run interest of the society may be dissatisfied. For example in the efforts of
Indigenous Manufacturing Companies to satisfy Nigerian consumers, wants, for
automobiles and asbestos does they take into account the uncovered social costs of
heavy pollution, road accident arising from poor quality products, and high road
maintenance cost arising from heavy automobile usage?
All these effect the long run well being of the society at large and are therefore issues
to be addressed under a social marketing philosophy/concept.
2.8 Societal Marketing Concept
Adirika, et al (1987:155) tells us that corporate social responsibility is the
responsiveness of a business to the problems and interests of the society. However,
the pressure created for social marketing by consumerists, environmentalists and other
interest/pressure groups led to the development of societal marketing concept, which
focuses on the long run consumers and society‟s well being. It requires companies to
consider the implement of their actions within the whole social system, as the system
holds the company responsible for any harm of damage the company‟s action will
have any where in that system. In their own contribution, Baskin and Aronoff
(1988:12) asserted that many thoughtful observers feel that institutions should assume
responsibility for the consequences of their actions.
According to Kotler (1990:28) the societal marketing concept holds that the
organization‟s task is to determine the needs, wants and interest of target markets and
to deliver the desired satisfaction more effectively and efficiently than competitors in
a way that preserves or enhances the consumer‟s and the society‟s well being. This
concept calls for the marketing orientated companies to consider the interest of the
society while trying to deliver consumer satisfactions. In related development, the
societal marketing concept entails the practice of the marketing concept with a
consideration for the long run welfare of both consumers themselves and the society
at large. There are three assumptions that management makes and which favours the
adoption of the societal marketing concepts which include the following:
1. The needs or wants of consumers do not always agree with their long run welfare
or society‟s, interest.
36
2. Consumers will favour those organizations which are interested in both their
present as well as long run welfare, and the long run welfare of the society.
3. The task of the organization is to satisfy its customers needs in such a way as to
promote their long run well being and society interest as the means of attracting
and retaining customers, (Olakunle and Ejionueme, 1997:51-52).
Societal marketing concepts are essentially an extension of marketing concepts. It is
„going an extra kilometer‟s, in satisfaction of consumers needs and wants by giving
consideration for their immediate and long run or total well being as well as the
interest of the society at large. This usually it details the performance of social
responsibilities in addition to serving customers profitably. The implementation of the
societal marketing concepts or extension of the marketing concepts can be done by
expanding the breadth and time dimensions in an organization‟s definition of the
marketing concept. (Olakunori, 1993:17).
2.9 Emergence of Ethical and Social Responsibility
According to Edoga (1997:195) though every society is concerned with ethical and
social responsibilities, but the emergence as corporate concepts in marketing has been
traced to 1950. At this stage in the development of marketing, marketing people were
concerned with adjusting to consumer behavior, the modern marketing concept,
quantitative methods, and marketing management. However, it was from the mid-
1960s that more serious concern was shown on ethical and social responsibilities.
Many articles on this issue were being published (Spratlen, 1973).
What gave impetus to the development of ethical and social responsibilities of
business and salesman? The reason was that a lot of vices were being committed by
businessmen which brought about the reaction of consumers and the public. Serious
indictments and criticism were made by the affluent and educated society against
business organizations as a result of unethical practices and lack of responsibility. In
fact, even after the adoption of the modern marketing concept (after the Second World
War in 1945) marketers erroneously believed that their role was limited to the
satisfaction of consumers and the consequent generation of profits for their
organizations. Businessmen and marketers did not give attention to the interests and
37
needs of the general public. For instance, they were not concerned with the effects
which their products had on the environment.
When businessmen and marketers were criticized and condemned on their bad
business practices many launched a counter-attack and denied all the allegations made
against them at first. However, a few executives that were prudent changed their
minds and started preaching to their colleagues. Soon ethical and social
responsibilities became a major concern and programme of business organizations
(Levitt 1983:88).
Furthermore, in the light of the above submission Stanton (1984) identified the
practical reasons for the emergence of ethical and social responsibilities in business
(and marketing).
1. To reverse the declining public confidence in business resulting from bad and
unorthodox practices and lack of regard for the welfare of the society.
2. To pay the price of economic freedom and flexibility. Social problems affect
both the firm and its customers, and it is therefore in the interest of business if
these problems are attended to.
3. To balance the power-responsibility equation. Marketers exert a great deal of
influence on consumers and the economic policy of a nation. Lack of social
responsibility on the part of marketers may lead to the erosion of their social
power.
4. To enable the marketing department represent the company very well and so
present a good corporate image before the customers and the public at large.
2.10 Goals of Corporate Social Responsibility
In view of definition of corporate social responsibility, there is little doubt that its
practice is a viable business. Viable in the sense that operating in an investment
climate that is hostile to a corporate citizen will certainly impede the realization of the
goal of the organization. Businesses must therefore operate in a social climate that is
peaceful, friendly and accommodating for them to make progress, consolidate their
profit base and by extension, contribute to the overall development of the host
communities (Nwodu, 2007:231).
38
In the execution of Corporate Social Responsibility (CSR) therefore, “the company
giving funds does not attempt to gain any advertising benefit or undue
identification… The Company is content with “a warm glow” and the belief that
social responsibility is good business” (Black, 1989:10). The important is that when
an organization contributes meaningfully in solving its host community‟s
development problem, the community in turn will contribute to the growth of
company by offering the organization safe investment climate that will guarantee the
realization of organization‟s corporate goal.
Baumole (1970:10) offers meaningful insights for proper understanding of the goal of
corporate social responsibilities where he argues that: The company pays a high price
for operating in a region where education is poor, where living conditions are
deplorable, where health is poorly protected, where priority is unsafe, and where
cultural activity is all but dead. These circumstances are all more expensive than
corporate giving.
However, a checklist presented by Adirika at el (1987:158) of what constitutes areas
of Corporate Social Responsibility goal(s) includes:
In creasing the efficiency of marketing operations, so as to lower distribution costs
and selling prices.
- Properly interpreting and anticipating consumer demand.
- Refusing to do business with unethical suppliers.
- Reducing the marketing problems of low income consumers.
- Increasing product safety
- Minimizing defective products.
- Developing more informative packaging and labeling.
- Elimination of malpractices in the market place.
- Supporting the consumer education.
- Supporting the cause of social justice
- Cooperating with government in its effort to increase consumer well being.
- Reducing environmental pollution and hazards.
- Participating in community welfare and improvement
- Efficient (or economic) use of energy and natural resources.
39
- Maximizing job content and satisfaction for the workers
- Instituting a programme for living and training the disadvantaged and the
unemployed.
The important is that the goal of Corporate Social Responsibility is enmeshed in the
philosophy underlying the concept –a give and take phenomenon. The company, give
social – cum – welfare packages to the community and the community in return gives
cordial and harmonious operational social climate to the company (Nwodu, 2007:
232). Thus, the goals of corporate social responsibility as prescribed by Black
(1989:8) are categorized as:
1. Enterprise: Supporting and Developing Initiatives to nurture budding
entrepreneurs and to boost enterprise.
2. Education: Helping to bring new horizons into the lives of young people.
3. Arts and Culture: Providing assistance to a range of artistic activities and
bringing communities together.
4. Environment: Encouraging efforts to safeguard the environment and improve the
quality of life.
The bottom line is that corporate social responsibility goal(s) should aim at
promoting social change that touches on all aspects of community life. To act in a
socially responsibility manner therefore means that a corporate organization
should do the following:
1. Embark on Sound Community relations by learning about the host communities,
and relating well with the members and groups in such communities.
2. Obey and respect policies, laws and legislations aimed at protecting community
welfare, safety and environment.
3. Execute and champion infrastructure, economic, and physical development of its
host communities like construction of roads, hospitals, schools etc.
4. Engage in social development programme like free education to citizens of the
host communities and creation of jobs.
5. Identify, with the socio-cultural value of the host communities by observing the
communities cultures and often times sponsoring the dominant cultural festival of
the community.
40
6. Participate in civic responsibilities by identifying with less privileged in their host
communities.
2.11 Pitfalls of effective Corporate Social Responsibility in Nigeria
Corporate Social responsibility practices, especially in developing nations like
Nigeria, often hit the rock. (Even when companies make claims of living up to their
social responsibility billings, series of conflicts between some companies (especially
there in oil sector) clearly indicate that there is problem with corporate social
responsibility practice at least, in Nigeria (Nwodu, 2007:233). For example, shell is
accused of its dysfunctional development programme in communities in Nigeria.
Critics state that shell‟s community development programme is too closely associated
with the company‟s commercial activities.
In addition, Adirika at el (1987:158) stated that there are other anti corporate social
responsibility practices by bad corporate citizens which includes;
- Poor remuneration of workers.
- Poor and or harsh working conditions for workers.
- Unethical and unlawful system of recruitment.
- Managerial crushing of workers unions or associations.
- False declaration of profits in or to deceive task assess or under invoicing of
import bills in order to evade or under pay custom duties.
- Connivance with dubious or corrupt customs/excise officials to cheat the
government.
- Neglect of their environment and engagement in environmental pollution
activities.
- Turning deaf ears to the outcries of the needy and less fortunate members of
the society.
- Lack of support for community development projects.
- Close door policy to their external publics.
- Disobedience to the law of the land.
- Deaf ears students request for research grants, scholarship, programmes
sponsorship and welfare packages and infrastructural development.
However, it is for this reason that Udeagha (1999:235) that business concerns in
developing nations especially Nigeria, pay insignificant attention to their social
41
responsibility roles except when forced. Our contention however, is that even when
they are forced, their social responsibility action hardly tame their host communities
from waging war against the companies. Several, factors are responsible for this ugly
situation. Some of these factors include:
(1) Corporate bodies hardly sponsor research efforts through which the core need
and interest of host communities can be ascertained and prioritized according to
degree of importance. Nwodu (2003:185) reinforces this view where he argues
that “a situation whereby oil companies vis-à-vis concerned government
agencies embark on development projects on the mere assumption that such
projects would meet the development needs of the Niger Delta communities
tends to insult people‟s sensibilities and by extension, lead to social friction”.
(2) Due to poor utilization of research, projects that often receive priority attention
of the corporate bodies are hardly needed by the community members. This
situation is both worrisome and pathetic. (Nwodu 2003:185) argues, “Social
responsibility packages must address realistic priority needs of the targets in
order to be effective”.
(3) What some companies call social responsibility packages many a time fall short
of expectations. The reason being that such package is often designed to further
the companies‟ business interest rather than alleviating the sufferings of the host
communities.
(4) There are occasions where some powerful click in the community can collide
with a section of management team of corporate organizations to divert the
social welfare packages to the detriment of the poor and needy in the
community.
2.12 SUMMARY
In this study of the “An Assessment of corporate social responsibility practices of
selected indigenous manufacturing companies in Enugu State Nigeria” The researcher
reviewed related literature of different Authors to ascertain on corporate social
responsibility, the challenges that are impediments to the practice of corporate social
responsibility by the manufacturing companies in Enugu State. The researcher also
reviewed corporate social responsibility of selected manufacturing companies to see if
manufacturing companies in Enugu are in line with ethics. The corporate social
42
responsibility practices by the companies in the Enugu Metropolis is seeing as
fulfillment of societal expectations from legal, economic, ethics and philanthropic
obligations but Majority seeing as philanthropic obligations.
The corporate social responsibility effectiveness and efficiency as determined by the
companies through sales profit, customer‟s satisfaction, maximization of shareholder
return and stakeholder‟s satisfaction but maximum concentration is yet to be on it by
the companies. That the company‟s in Enugu Metropolis uses corporate social
responsibility to create relationship marketing between the companies and society.
Understanding corporate social responsibility by the companies will help them to
interact positively with their stakeholders.
43
References
Amato, C.H and Amato, L. H (2002) “Corporate Commitment to quality of life:
Evidence from company mission statement”, journal of marketing theory
and practice, Vol. 10 No 4, p 69-86.
Black, S. (1989), Introduction to Public Relations; London, Modino Press.
Blumenthal, D. and Bergstrom, A.J. (2003) “Brand councils that care: Towards the
convergence of branding and corporate social responsibility”, Journal of
Brand management, Vol. 10, No. 1, pp. 9-25.
Bronn P.S. and Vrioni A.B. (2001), “Corporate Social Responsibility and Cause –
related Marketing: An Overview”, International Journal of Advertising,
Vol. 20, pp. 207-222.
Carroll, A. (1991), “The Pyramid of Corporate Social Responsibility” Business
Horizons, July-august.
Carroll, A.B. (2001), “Models of Management morality for the new Millennium”
Business ethics Quarterly, Vol. 11, N0. 2 pp. 365-371.
Christian Aid, (2004), “Behind the Mask: The real face of Corporate Social
responsibility”, Christian Aid.
Costa J. (2001) :Time and decisions! Global speeds of markets vs long –term sustain
ability‟ conference on sustainability Zurich, September.
Davis, K. (1960), “Can Business Afford to Ignore social Responsibilities?”
California Management Review (Pre-1986) Vol. 2, No.000003, pp.70-
76.
Dirika, E.O, Ebue, B.C. and Nnolim, D. (1987), Principles and Practice of Marketing,
Enugu, John Jacobs Classics Publishers Ltd.
Doyle, P. (2000) “Valuing Marketing‟s Contribution”, European Management Journal
vol 18, No3, pp 232 – 245.
Edoga, N.P. (1997), Selling: Principle and Practice, Nigeria, Je-rolu Publisher.
44
Edoga, N.P. (2008), Public Relations: An Effective Approach, Nigeria, Enizol Books.
Eells, R. and C. Walton (1961), Conceptual Foundations of Business, Richard Irwin,
Homewood, IL.
Ellen, P. S., Mohr, L..A. and Webb, D.J. (2000) “Charitable programs and the
retailer: Do they mix?”, Journal of Retailing, Vol. 76, No. 3, pp. 393 – 406.
Hopkins M, (2004) „corporate social responsibility: an issues paper, “policy
integration department world commission on the social dimension of
Globalization international labour office Genva, working paper N0. 27,
http://www.ilo org/publns accessed July 2007.
https://dspace.lib.cranfield.ac.UK.
Jiyoung, O. (2007), “The Role of Marketing in Corporate Social Responsibility,
Cranfield University, School of Management.
Jones, P. and Kahaner, L. (1995) “Regulation of Environmental Marketing Claims: A
Comparative Perspective,” International Journal of Advertising, Vol. 14,
No.1, pp.1-24.
Kotler P. & Levy S. (1969) “Broadening the Concept of Marketing.” Journal of
Marketing, Vol. 33, pp. 10-15.
Kotler, P. and Keller K. (2006) Marketing Management 12th Edition, Pearson
Education Inc Upper Saddle River, New Jersey.
Kotler, P. and Keller K. (2009) Marketing Management 13th Edition, Pearson
Education Inc Upper Saddle River, New Jersey.
Luo, X and Bhattacharya, C.B. (2006) corporate social responsibility, customer
satisfaction, and market value”, Journal of marketing, vol 73, No. 4 pp 1-
18.
Maignan, I and fervell, O.C. (2004) “corporate social responsibility and marketing:
An Integrative framework‟, academy of marketing science Journal, Vol.
32 No. 1 pp. 3-19.
Menon, A and Menon A (1997) “Enviropreneurial Marketing Strategy: The
emergence of corporate environmentalism as market strategy”, Journal
of marketing, Vol. 61 No. 1, pp 51-67.
45
Morsing, M. (2006) “Corporate social responsibility as strategic auto-communication:
on the role of external stakeholders for member identification”, Business Ethics,
Vol. 15, No. 2, pp. 171-182.
Micheal E. P. and Mark R. K. (2006) Strategy and Society: The Link between
Competitive Advantage and Corporate Social Responsibility Harvard Business
Review pp 78-92.
Nicholas R. (1994) “Ben & Jerry‟s Ready to Hit UK,” Marketing, (March 24) pp. 1.
Quoted in Handelman, J. M. and Arnold, S.J. (1999) “The role of marketing
actions with a social dimension: Appeals to the institutional Environment”,
Journal of Marketing, Vol. 63, No. 3, pp. 33.
Nnabuko, J.O. (2004), Customer Relationship Management in Organizations, Nigeria
Journal of Marketing: Precision publishers Ltd Enugu.
Nwodu, L.C. (2003), “Public Relations Influence on Customer Patronage of New
Generation Banks in Enugu” in the Nigerian Journal of Communications
(TJNC) Vol. 1. No. 4.
Nwodu, L.C. (2007), Corporate Public Relations Management, Enugu –Nigeria,
Precision Publisher Limited, P. 231.
Nwosu, I.E. (1996), Public Relations Management, Principles, Issues an
Applications, Lagos.
Okiyi, G. (2003) „Implications of corporate social responsibility on conflict
management”. In Nwosu, I.E. and Wilson, D. (eds) Communication
media and conflict Management in Nigeria; Enugu; ACCE and Prime
target.
Olakunle, K.O. and Ngozi, N.E. (1997) Introduction to Marketing, Enugu, Amazing
Grace Publisher.
Pirsch, J., Gupta, S. and Grau, S. L. (2007) “A Framework for Understanding
Corporate Social Responsibility Programs as a Continuum: An
Exploratory Study”, Journal of Business Ethics, Vol. 70, No. 2, pp. 125-
140.
46
Quinn, R.E. & Rohrbaugh J.: (1983) “A Spatial Model of Effectiveness Criteria:
Towards a Competing Values Approach to Organisational Analysis‟,
Management Science Vol. 29, No. 3, pp 363-377. Quoted in
Singhapakdi, A., Vitell, S.J.
Richards, A. (1995) “ Does Charity Pay?” Marketing, (21st September) pp. 24-25.
Quoted in Handelman, J. M. and Arnold, S. J. (1999) “The role of
marketing actions with a social dimension: Appeals to the institutional
environment”, Journal of Marketing, Vol. 63, No. 3, pp. 33.
Robin, D.P. and Reidenbach, R.E. (1987) “Social Responsibility, Ethics and
Marketing Strategy: Closing the Gap Between Concept and
Application”, Journal of Marketing , Vol. 51, No. 1, pp. 44-58.
Singhapakdi, A., Vitell, S.J., Rallapalli, K.C. and Kraft, K.L. (1996) “The perceived
role of ethics and social responsibility: A scale development”, Journal of
Business Ethics, Vol. 15, No. 11, pp. 1131-1140.
Station, W.J., (1984) Fundamentals of Marketing, Tokyo, McGrew Hill Inc.
Subhash, G.J. (1990) Marketing Planning and Strategy: Ohia South Western
Publisher Co Cincinnate.
Trench, R. and L. Yeomans (2006) Exploring Public Relation, London, Prentice Hall
Pearson Education and Izute I.
Udeagha H.O. (1999) Principles and Processes of Marketing, Enugu Jamoe
Enterprises.
Vargo, S.J. and Lusch, R.F. (2004) “Evolving to a new dominant logic for
marketing”, Journal of Marketing, vol. 68, January, pp. 1-17. Quoted in
Maignan, I., Ferrell, O. C. and Ferrell, L. (2005) “A stakeholder model for
implementation social responsibility in marketing”, European Journal of
Marketing, Vol. 39, No. 9/10 pp. 956-977.
47
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter explains the design, pattern, plan, style and method which the researcher
used to conduct the research work undertaken. Specifically, the chapter covers the
following: The area of the study, research design, samples procedure, sources of data,
determination of sample size, allocation of questionnaire, pilot survey, validity of
research instrument, reliability of research instrument and statistical method of data
presentation and analysis.
3.2 The Study Area
This research work covered the area of corporate social responsibility practices, in
Anambra Motor Manufacturing Company Limited and Emenite Company Limited in
Enugu Metropolis in Enugu State in Nigeria. However, there are many Manufacturing
Companies Located within Enugu metropolis according to the National Bureau of
Statistic but two (2), out of these were selected for this study.
NBCBN/NCC Collaborative Survey 2007.
The sampled indigenous manufacturing companies in Enugu State
S/no Name Address
1 Anambra Motor Manufacturing
Company Ltd (ANAMMCO)
Emene Industrial Layout
2 Emenite Company Limited Old Airport Rd. Emene
Source: National Bureau of Statistic 2007.
3.3 Research Design
A survey research method was employed to carryout this research work. Thus, the
survey research instruments adopted for the conduct of the research were:
questionnaire, personal interview and observation. The questionnaire was prepared in
both open and close ended styles. While the interview was carried out face-to-face by
the researcher with the affected respondents. Likert scale rating was also employed
48
ranging from strongly agree (SA) 4, agree (A) 3, strongly disagree (SD) 2 and
disagree (D)1 for the study.
3.4 Sources of Data
The data used for the study were gathered from two different sources, namely:
primary source and secondary source. However, the primary sources encompassed the
use of survey method; questionnaire, personal interview and observation. In the case
of secondary sources, the data gathered were through textbooks, journals and
Anammco and Emenite Publications.
3.5 Pilot Survey
In the process of conducting pilot survey, the questionnaire were tested and retested
on 20 respondents from outside the study population. The questionnaire was
administered twice within two (2) weeks interval to the same sent of respondents.
This pilot survey was a pre-testing exercise to establish the validity and reliability of
the research instrument (questionnaire) used.
3.6 Population of the Study
The population of the study of both companies is one thousand one hundred and fifty
three (1153) staff. However, the break down goes thus: Anambra Motor
Manufacturing Limited has senior Staff Strength of One hundred and fifty seven
(157), junior staff strength of three hundred and fifty (350) and customers /distributors
strength of one hundred and eight (108), while Emenite Limited has Senior Staff
Strength of Ninety (90), Junior Staff Strength of three hundred and ten (310) and
customers/distributors strength of one hundred and thirty eight (138).
3.7 Determination of Sample Size
The sample size for the study was determined with the use of Cochran‟s (1963:75)
determination of sample size formula. The formula goes this:
n = N
1 + Ne2
Where n = the sample size
N = the total population
e = tolerable, error or margin error (i.e 5%)
I = constant
49
n = 1153
1 + 1153(0.05)2
= 1153
1 + 1153(0.0025)
= 1153
3.8825
= 296.97
= 297 Approximately.
3.8 Sampling Procedure
The sampling, technique employed in the process of conducting the research were
stratified sampling and simple random sampling techniques due to the nature of the
study.
3.9 Questionnaire Allocation
The allocation of the questionnaire for the study is shown below based on the
population from each category in each company.
3.10 Administration of Questionnaire
The study questionnaire was administrated on the senior and junior staff and
customer/distributor of both companies ANAMMCO and Emenite.
ANAMMCO Ltd
Total population of the respondents from the company = 157+350+108= 615
Total questionnaire allocated to the company = 615 x 297 = 158
1153 1
Overall sample size = 297
Overall population of the study = 1153
Total questionnaire allocated per category:
Senor Staff . 157 x 158 = 24806 = 40
615 1 615
50
Junior Staff 350 x 158 = 55300 = 90
615 1 615
Customers/Distributors 108 x 158 = 17064 = 28
615 1 615
EMENITE LTD
Total population of the respondents from the company = 90 + 310 + 138 = 538
Total questionnaire allocated to the company = 538 x 297 = 139
1153 1
Overall sample size = 297
Overall population of the study = 1153
Total questionnaire allocated per category:
Senor staff. 90 x 139 = 2510 = 23
538 1 538
Junior staff 310 x 139 = 43090 = 80
538 1 538
Customer/distributors 138 x 139 = 19182 = 36
538 1 538
Note: Total no of questionnaire allocated to each company =
Total population of each company x sample size determined
Total population of the study
Total no of questionnaire allocated to each category =
Population in each category x total no of questionnaire to each company
Total population of each company
3.11 Validity of Research Instrument
The instrument was face and content validated by the researches supervisor and two
(2) executives of the National Institute of Marketing (NIMN) Enugu chapter. The
instrument was graded on a scale of 1-5 (one, being the little or no relevance and 5
being the most relevant) and an average score was obtained. The question(s) with
least score ie, those were of little or no relevance, where expunged and replaced with
more relevant questions. As a result of the simple language used in preparation of
the questionnaire and the ways the questions were been structured, it made it easy to
51
6 dl2
get the relevant information needed from the respondents. Therefore, the
effectiveness of the research instrument employed was achieved.
3.12 Reliability of the Research Instrument
In the process of testing and retesting the questionnaire in the field prior to the main
field works. Using the values obtained from the pilot study, Spearman‟s Rank
Correlation coefficient (Spearman‟s rho) was used in determining the strength of
reliability. If the correlation coefficient is greater than or equal to 0.7, the reliability of
the instrument is said to be very strong. Spearman‟s Rank Correlation Coefficient
Formula is: P=1 - n( n2 -1)
Where p = spearman‟s rank correlation coefficient
d = difference in rank xi and rank yi
n = sample size
From the computed values from the Instrument administered to the staff (see
Appendix), a Spearman‟s Rank Correlation Coefficient (Spearman‟s rho) of 0.88
1203 was obtained. Hence the test instrument administered to the staff has a very
strong reliability.
Also, from the computed values gotten from the Instrument administered to the
customers (see Appendix), a Spearman‟s Rank Correlation Coefficient (Spearman‟s
rho) of 0.893 985 was obtained. Therefore, the test instrument administered to the
customers has a very strong reliability.
3.13 Data Presentation and Analysis
In this study, tables were used for the presentation of the data collected. Meanwhile,
simple percentages were as well used to determine relative levels. The fact that every
member of the population will be use (census), the analysis of the data will be done
through the integration of the data gathered from questionnaire, interview, observation
and secondary sources to validate the findings. Meanwhile, the multiple linear
regression analysis, T-test and Z-test tools were used in testing the
hypotheses, with the aid of the SPSS software.
52
Reference
Co Chran, W.G. (1963) Sampling Techniques, (2nd
ed) New York: John Wiley and
Sons, Inc. p. 75.
53
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Introduction
In this chapter, the presentation and analysis of the data based on the specified method
in the previous chapter in order to achieve the objectives of the study.
4.2 Data Presentation
This section covered the presentation of the data in tabular form and the interpretation
of the results. The copies of the questionnaire sent out for field survey were 297
copies. However 268 copies were recovered from the respondent and found useful for
the study. However, 268 copies were retrieved from the respondents. Thus
ANAMACO staff 128 and customer 27 while EMENITE staff 80 and customer 33.
Table 4.1:Staff Gender
Option Frequency Percentage
Anammco Emenite
Male 85 (66.4) 65 (81)
Female 43 (33.6) 15 (19)
Total 128 80
Source: Field Survey.
From the above table, it is identify that the male in both companies is higher than that
of their female counterpart as shown by 66% and 81% compare to 34% and 19%
respectively.
54
Table 4.2: Staff Age
Option Frequency Percentage
Anammco Emenite
15-25 yrs 25 (24) 16 (20)
25-35yrs 43 (30) 25 (31)
35-45yrs 45(34) 33(41)
55 above 15 (12) 6(8)
Total 128 80
Source: Field Survey.
From the table above, it is indicated that the staff age limit that carried the medium
portion in both companies is 15-25 years are 24% and 20% while 25-35 years
followed with 30% and 31% respectively, followed by 35-45years carried the highest
percentage in both companies is 34% and 41% to the least which is 55years and above
that were 12% and 8% respectively.
Table 4.3: Staff Marital Status
Option Frequency Percentage
Anammco Emenite
Married 79 (59) 53 (66)
Single 39 (47) 20 (25)
Divorced 10 (8) 5 (6)
Widow/widower 3 (2) 2 (3)
Total 128 80
Source: Field Survey.
From the table above, it is shown that the staff marital status with the highest
percentage is married in both companies which is 59% and 66% respectively and the
marital status with the least percentage is widow/widower which is 2% and 3%
respectively.
This is in agreement with the responses form the interviews where respondents agree
that married in both companies is higher than, to their counterparts. Showing
55
dissatisfaction on the side of counterparts ie single, divorced and widow/widower
respectively.
Table 4.4: Staff
Option Frequency Percentage
Anammco Emenite
Employee 128 (100) 80 (100)
Total 128 80
Source: Field Survey.
From the table above, the result showed that only 128 and 80 employees respectively
responded to the questions asked them from the two companies among the staff.
Table 4.5: Educational Qualification
Option Frequency Percentage
Anammco Emenite
WASCE/GCE 15(12) 7 (9)
Ond/equivalent 21 (16) 17 (21)
HND/B.Sc/Equivalent 82 (64) 52 (65)
M.Sc/MBA/Professional 10 (8) 4 (5)
Total 128 80
Source: Field Survey.
From the table presented above, the qualification with highest percentage in both
companies is HND/B.Sc/Equivalent with 64% and 65% respectively and the
remaining qualifications claimed the rest 36% and 355 respectively.
Table 4.6: Designation
Option Frequency Percentage
Anammco Emenite
Secretary 8 (6.25) 5 (6.25)
Personnel officer 5 (3.91) 6 (7.5)
56
Accountant/cashier 16 (12.50) 7 (8.75
Marketing/sales officer 46 (35.94) 27 (33.75)
Finance officer 9 (7.03) 6 (7.5)
Public relation officer 2 (156) 2 (2.5)
Administrative officer 23 (17.96) 13 (16.25)
Production officer 12 (9.38) 6 (7.5)
Supervisor 2 (1.56) 5 (6.25)
Clerk 5 (3.91) 3 (3.75)
Total 128 80
Source: Field Survey.
From the table showed above, Accountant/cashier, marketing/sales officer and
Administrative officer carried the larger portion of the designations in Anammco with
12.50%, 35.94 and 17.96 respectively while marketing/sales officers and
Administrative officer carried the larger portion of the designations in Emenite with
33.75% and 16.25%.
Table 4.7: Staff’s Level
Option Frequency Percentage
Anammco Emenite
Senior 31(24) 23 (29)
Junior 97 (76) 57 (71)
Total 128 80
Source: Field Survey.
From the table above, in the two companies junior officers claimed the largest
percentage of the staff with 76% in Anammco and 71% in Emenite.
From the table above, in Anammco Majority of the respondents strongly agreed and
agreed that the companies practices corporate social responsibility from the following
angles; charity, donation, welfare packages, sponsorship, provision of medical
services and scholarship with a particular reference to the frequencies from the table.
While, majority of the respondents as well strongly disagreed and disagree that the
57
company engaged in corporate social responsibility practices such as socio-cultural
activities, construction of housing estate, research grant, entrepreneur training and
infrastructural development.
On the other hand in Emenit just like in the case of Anammco majority of the
respondents strongly agree and agree that the company participates in charity,
donations, Welfare packages, medical services, sponsorship and scholarship award as
its own corporate social responsibility. While, in the case of socio-cultural activities,
construction of housing estate, research grant, recreational facilities, entrepreneur
training and infrastructural development majority of the respondents strongly
disagreed and disagreed their practices by Emenite.
Table 4.8: The level of the companies involvement in corporate
social responsibility.
Option Frequency Percentage
Anammco Emenite
Very high 1(1.0) 3(4)
High 25(20) 16(20)
Very low 10(8) 4(5)
Low 57(45) 37(46)
Moderate 35(27) 20(25)
Total 128 80 Source: Field Survey.
From the table above, in Anammco the rating of corporate social responsibility went
thus by the respondents; very high 1%, high 20% very low 8%, low 45% and
moderate 27%. While, in Emenite the rating of corporate social responsibility by the
respondents went thus; very high 4%, high 20%, very low 5%, low 46% and moderate
25%. Based on this interpretation it is assumed the corporate social responsibility
practices is low in both companies.
This is in agreement with the responses form the interviews where respondents agree
that corporate social responsibility practices is low to both companies generally
showing a disappointment on the side of the customers.
58
Table 4.9: Corporate Social Responsibility Practices Benefits the companies in
the areas of survival and sustainability.
Option Frequency Percentage
Anammco Emenite
Yes 83(65) 61(76)
No 32(25) 19(23)
No opinion 13(10) 10(1)
Total 128 80
Source: Field Survey.
From the table above, the respondents that said yes to the view claimed the highest
percentage in both companies with 65% in Anammco and 76% in Emenite
respectively. While the respondents that said No and no opinion claimed below
average as shown in the table 35% and 24% respectively.
This is in agreement with the responses from the interviews where respondents agree
that the corporate social responsibility benefits the companies in the survival and
sustainability. In their opinion, it was revealed that 83 and 61 representing 65% and
76% members of staff indicated that the adoption of corporate social responsibility
efficacious in boosting patronage from the customers. And this has as well positioned
the image of the companies as a genuine one.
Table 4.10: Ways through which corporate social responsibility can be used by
the companies.
Option Frequency Percentage
Anammco Emenite
To create a relationship marketing between the companies
and society.
73 (69) 59(80)
To create enabling business environment in the society. 55(31) 21(20)
To use it as a way of exploiting customer. 0(0) 0(0)
Others not specified 0(0) 0(0)
Total 128 80
Source: Field Survey.
59
From the table above, the respondents in both companies more than average of them
supported the opinion that the adoption of corporate social responsibility practices
will create relationship marketing between the companies and society which is
justified by 69% and 80% respectively. Moreso, it was also maintained that it will
create enabling business environment in the society by 31% and 20% respectively.
This is in agreement with the responses from the interviews where respondents agree
that both companies more than average of than supported the adoption corporate
social responsibility. In their opinion, it was revealed that 73 and 59 representing 69%
and 80% members of staff indicated that the adoption corporate social responsibility
was efficacious in boosting patronage from customer. And this has as well positioned
the image of the companies as a genuine one.
Table 4.11: The cost incurs on the corporate social responsibility practices prove
efficiency and effectiveness.
Option Frequency Percentage
Anammco Emenite
Yes 80(62.5) 50(62.5)
No 20(15.6) 22(27.5)
No opinion 28(21.9) 8(1)
Total 128 80
Source: Field Survey.
From the table above, 62.5% of respondents in both companies admitted that the cost
outlay on corporate social responsibility prove efficiency and effectiveness while
37.5% in both companies claimed the options No and no opinion.
This is in agreement with the responses from the interviews where respondents agree
that the cost out lay on corporate social responsibility prove efficiency and
effectiveness. In their opinion, it was revealed that 80 and 50 representing 62.5% and
62.5% members of staff indicated that the adoption of corporate social responsibility
was efficacious in boosting patronage from customers. And this has as well positioned
the image of the companies as a genuine one.
60
Table 4.12: Determination of efficiency and effectiveness
Option Frequency Percentage
Anammco Emenite
Through the overall sales profits and the
customers satisfaction.
72(52.5) 53(66)
Through the maximization of shareholders
return and stakeholders satisfaction.
56(47.5) 27(34)
Others not specified 0(0) 0(0)
Total 128 80
Source: Field Survey.
From the table above, in the two companies 52.5% and 66% of the respondents agreed
that the determination of efficiency and effectiveness of the corporate responsibility
practices of the companies is through the overall sales profit and the customers
satisfaction. While 47.5% and 34% of the respondents respectively in both companies
agreed that the determination of efficiency and effectiveness of the corporate social
responsibility practices of the companies is through the maximization of shareholders
return and stakeholders satisfactions.
This is in agreement with the responses from the interviews where respondents agree
that the corporate social responsibility is through the overall sales profits and the
customers satisfaction. In their opinion, it was revealed that 72 and 53 representing
52.5% and 66% members of staff indicated that the adoption of corporate social
responsibility was efficacious in boosting patronage from customers. And this has as
well positioned the image of the companies as a genuine one.
61
Table 4.13: Corporate social Responsibility practices can be used as a tool for
marketing one company’s products.
Option Frequency Percentage
Anammco Emenite
Yes 60(47) 33(41)
No 65(51) 40(50)
No opinion 3(2) 7(9)
Total 128 80
Source: Field Survey.
From the table above, 47% and 41% of the respondents in two companies agreed
using corporate social responsibility as a tool for marketing the companies products.
While 53 and 59% claimed the options; no and no opinion to this view which are
above the average.
This is in agreement with the responses from the interviews where respondents agree
that the corporate social responsibility as a tool for marketing the companies products.
In their opinion, it was revealed that 66 and 33 representing 47% and 41% members
of staff indicated that corporate social responsibility is a marketing strategy use in
stream line business success and was efficacious in boosting patronage from
customers. And this has as well positioned the image of the companies as a genuine
one.
Table 4.14: Does Pitfall of Corporate Social Responsibility has any impact on
marketing a company product.
Option Frequency Percentage
Anammco Emenite
Yes 55(43) 38(47.5)
No 63(49) 39(48.75)
I don’t know 10(8) 3(3.75)
Total 128 80
Source: Field Survey.
62
From the table above, 43% and 47.5% of the respondents in both companies agreed
that the companies see corporate social responsibility as has an impact on marketing a
company product. While 57% and 52.5% of the respondents claimed the options; no
and I don‟t know about the view.
This is in agreement with the responses from the interviews where respondents agree
that the corporate social responsibility has an impact on marketing a companies
product. In their opinion, corporate social responsibility was efficacious in boosting
patronage from customers. And this has as well positioned the image of the
companies as a genuine one.
Table 4.15: Amount your company voted for corporate social responsibility
practices yearly.
Option Frequency Percentage
Anammco Emenite
Below N1,000,000 53(29) 25(21)
N1,000,000-5,000,000 75(73) 55(79)
N5,000,000-10,000,000 0(0) 0(0)
It depends 0(0) 0(0)
Total 128 80
Source: Field Survey.
From the table above, 73% and 79% respectively of the respondents claimed that the
amount voted for corporate social responsibility is between N1,000,000-5,000,000
followed by 29% and 21% of the respondents which agreed that the amount is below
N1,000,000.
This is in agreement with the responses from the interviews where respondents agree
that the amount voted for corporate social responsibility is between N1,000,000-
5,000,000. In their opinion, the amount is small although it depend on the size of the
companies.
63
Table 4.16: Company Customers/Distributors
Option Frequency Percentage
Anammco Emenite
Customers/Distributors 27(100) 30(100)
Total 27 33
Source: Field Survey.
From the table above, the whole 27 respondents agreed to be Anammco
customers/distributors. While the whole 30 respondents also agreed to be
customers/distributors of Emenite.
From the table above, in Anammco majority of the respondents strongly agreed that
the companies practices corporate social responsibility from the angles of charity,
donation, welfare packages, sponsorship, provision of medical service and scholarship
award with particular reference to the table above. While, majority of the respondents
as well strongly disagreed and disagreed that the company engaged in corporate social
responsibility practice such as social-cultural activities, construction of housing estate,
research grant, entrepreneur training and infrastructural development.
On the other hand, in Emenite just like in the case of Anammco majority of the
respondents strongly agreed and agreed that the company participates in charity,
donation, welfare packages, sponsorship, provisions of medical services, and
scholarship award as it own corporate social responsibility. While, in the case of
socio-cultural activities, construction of housing estate, research grant, recreational
facilities, entrepreneur training and infrastructural development majority of the
respondents strongly disagreed and disagreed their practices by Emenite.
64
Table 4.17: The rate of the involvement of the company in those corporate social
responsibility practices.
Option Frequency Percentage
Anammco Emenite
Very high 0(0) 0(0)
High 0(0) 0(0)
Very low 2(7.4) 0(0)
low 15(55.6) 27(90)
Moderate 10(37) 6(10)
Total 27 33
Source: Field Survey.
From the table above, majority of the respondents from both Anammco and Emenite
rate the level of the companies involvement low this is shown with 56% and 90%
respectively.
This is in agreement with the responses from the interviews where respondents agree
that the corporate social responsibility level of the companies involvement in
corporate social responsibility is low. In the opinion, nobody responded that the rate
of involvement of both companies in corporate social responsibility is very high, what
this means is that the companies are not living up to the expectation of the customers.
The same is applicable to the rate of involvement being high. But rather, 2 customers
from ANAMMCO out of 27 representing 7.4% indicated that the rate of company‟s
involvement in corporate social responsibility is very low. While EMENITE nobody
responded. While 15 and 27 representing 55.6% and 90% indicated that the rate of
involvement is low. Also, 10 and 6 representing 37% and 10% indicated that rate of
company‟s involvement is moderate. What this signifies is that the adoption of
corporate social responsibility by both ANAMMCO and EMENITE is generally low
showing a disappointment on the side of the customers.
65
Table 4.18: The Corporate Social Responsibility Practices by the company
commensurate with the value parting from the society by the company.
Option Frequency Percentage
Anammco Emenite
Strongly agree 2(7.4) 0(0)
Agree 1(3.7) 0(0)
Strongly disagree 20(74.1) 25(83.3)
Disagree 4(14.8) 8(16.7)
Total 27 33
Source: Field Survey.
From the table above, majority of the respondents from both Anammco and Emenite
strongly disagreed the opinion that the corporate social responsibility practice by the
companies commensurate with the value parting from the society by the companies.
This is shown with 74.1% and 83.3% respectively in the table.
This is in agreement with the responses from the interviews where respondents agree
that the strongly disagree by companies corporate social responsibility. In their
opinion, 2 customers from ANAMMCO out of 27 representing 7.4% indicated that
the company corporate social responsibility commensurate with the value parting
from the society is strongly agree while EMENITE nobody responded. While I
customer form ANAMMCO out of 27 representing 3.7% indicated that the company
corporate social responsibility commensurate with the value parting from the society
is agree while EMENITE nobody responded. Also 20 and 25 representing 74.1% and
83.3% identified that the both companies corporate social responsibility
commensurate with the value parting from the society is strongly disagree. While 4
and 8 representing 14.8 and 16.7 identified that the corporate social responsibility
commensurate with the value parting from the society is strongly disagree. What this
is signifies is that the adaptation of corporate social responsibility by both companies
is generally strongly disagree. Showing disappointment on the side of the customers.
66
Table 4.19: Corporate Social Responsibility Practices affect the live of the people
in the environment positively.
Option Frequency Percentage
Anammco Emenite
Yes 25(92.6) 29(96.7)
No 1(3.7) 4(3.3)
No opinion 1(3.7) 0(0)
Total 27 33
Source: Field Survey.
From the table above, majority of the respondents from both Anammco and Emenite
agreed that the corporate social responsibility practices affect their live positively.
This is shown with 92.6% and 96.7% respectively.
This is in agreement with the responses from the interviews where the respondents
agree that the strongly disagree by companies corporate social responsibility affect
their live positively. In their opinion, 25 and 29 representing 92.6% and 96.7%
indicated that ANAMMCO and EMENITE corporate social responsibility effect their
live positively. While 1 and 4 representing 3.7% and 3.3% indicated that both
companies corporate social responsibility affect their live positively. While I customer
from ANAMMCO representing 3.7% indicated that the company corporate social
responsibility effect their live positively. While nobody responded from EMENITE
what this is signifies is that the adoption of corporate social responsibility by
ANAMMCO and EMENITE is generally accepted.
67
Table 4.20: The way it affects the live of the people
Option Frequency Percentage
Anammco Emenite
It promotes standard of living. 26(96.3) 28(93.3)
It creates economic empowerment. 1(3.7) 5(6.7)
It promotes infrastructural
development.
0(0) 0(0)
It enhance the development of the area. 0(0) 0(0)
Total 27 33
Source: Field Survey.
From the table above, it was generally agreed that the presently the corporate social
responsibility practices by Anammco and Emenite is only promoting the standard of
living of people and no substantial factors other than that. This is shown with 96.3%
and 93.3% of the respondents.
This is in agreement with the responses from the interviews where the respondents
agree that the companies corporate social responsibility promoting the standard of
living of people. In their opinion, 26 and 28 representing 96.3% and 93.3% indicated
that ANAMMCO and EMENITE corporate social responsibility promoting the
standard of living of people. While 1 and 50 representing 3.7% and 6.7% indicated
that both companies corporate social responsibility creates economic empowerment.
While, nobody respondent that it promotes infrastructural development and it enhance
the development of the area. What this is signifies is that adoption of corporate social
responsibility by ANAMMCO and EMENITE is accepted by the general public.
68
4.21. Corporate Social Responsibility practices, do you think that it can be
stimulated by any other factor other than ethical considerations.
Option Frequency Percentage
Anammco Emenite
Yes 26(96.3) 28(93.3)
No 1(3.7) 5(6.7.)
No opinion 0 0
Total 27 33
Source: Field Survey.
From the table above, 62.5% of respondents in both companies admitted
that the corporate social responsibility can be stimulated by any other factor
than ethical consideration while 37.5% in both companies claimed the
options no and no opinion.
This is in agreement with the responses from the interviews where the respondents
agree that the companies corporate social responsibility can be simulated by any other
factor other than ethical consideration, such as environment where they operate. In
their opinion, 26 and 28 representing 96.3% and 93.3% indicated that ANAMMCO
and EMENITE corporate social responsibility can be stimulated by any other factor
other then ethical consideration. While 1 and 5 representing 3.7% and 6.7% indicated
that both companies corporate social responsibility can be stimulated by any other
factor other then ethical consideration. While nobody responded. What this signifies
is that corporate social responsibility by ANAMMCO and EMENITE can be
stimulated by any other factor other then ethical consideration.
Creates economic empowerment. While, nobody respondent that it promotes
infrastructural development and it enhance the development of the area. What this is
signifies is that adoption of corporate social responsibility by ANAMMCO and
EMENITE is accepted by the general public.
69
4.22: Do you think that there is a significant relationship between organisational
morality and corporate social responsibility?
Option Frequency Percentage
ANAMMCO EMENITE
Yes 25 (92.6) 29 (96.7)
No 1 (3.7) 4 (3.3)
No Opinion 1 (3.7) 0 (0)
Total 27 33
Source: Field survey
From the table above, majority of the respondents from both companies agreed that
there is significant relationship between organizational morality and corporate social
responsibility. This is shown 92.6% and 96.7% respectively.
This is in agreement with the responses from the interviews where the respondents
agree that there is a significant relationship organizational morality and corporate
social responsibility. In their opinion, it was revealed that 25 and 29 representing
92.6% and 96.7% customers indicated that there are significant relationships between
organizational morality and corporate social responsibility. While 1 and 4
representing 3.7% and 3.3% indicated that there are significant relationship between
organizational morality and corporate social responsibility. While 1 customer of
ANAMMCO out of 27 representing 3.7% indicated that there are significant
relationship between organizational morality and corporate social responsibility.
While in EMENITE no body responded. What this signifies is that customers believe
that organizational morality and corporate social responsibility has a relationship that
is why companies adopted them to satisfy their stakeholders.
70
HYPOTHESIS ONE
Companies did not engaged in the corporate social responsibility
Oneway Descriptives
level of companies involvement in CSR
N Mean Std.
Deviation Std. Error
95% Confidence Interval for Mean Minimum Maximum
Lower Bound
Upper Bound
Staff 208 3.7452 1.11098 .07703 3.5933 3.8971 1.00 5.00
customers/distributors 60 4.2333 .49972 .06451 4.1042 4.3624 3.00 5.00
Total 268 3.8545 1.02647 .06270 3.7310 3.9779 1.00 5.00
ANOVA
level of companies involvement in CSR
Sum of Squares df Mean Square F Sig.
Between Groups 11.096 1 11.096 10.922 .001
Within Groups 270.229 266 1.016
Total 281.325 267
With a calculated ANOVA F-value of 10.922 tested at critical value of 0.05 which is
greater than the critical F-value of 3.84, the null hypothesis should be rejected. This
result is further verified by the significance value of this result, 0.001, which is lesser
than the critical value, 0.05, at which this test was carried out. Therefore, companies
engage in corporate social responsibilities.
HYPOTHESIS TWO
Regression
Descriptive Statistics
Mean
Std.
Deviation N
Corporate Social responsibility
Practices 3.7452 1.11098 208
Benefits 1.3702 .59990 208
Financial Costs 1.5481 .77247 208
71
Correlations
Corporate Social
responsibility
Practices Benefits
Financi
al
Costs
Pearson
Correlation
Corporate Social responsibility
Practices 1.000 .635 .676
Benefits .635 1.000 .874
Financial Costs .676 .874 1.000
Sig. (1-tailed) Corporate Social responsibility
Practices . .000 .000
Benefits .000 . .000
Financial Costs .000 .000 .
N Corporate Social responsibility
Practices 208 208 208
Benefits 208 208 208
Financial Costs 208 208 208
Model Summary(b)
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
Durbin-
Watson
1 .682(a) .465 .460 .81647 .039
a Predictors: (Constant), Financial Costs, Benefits
b Dependent Variable: Corporate Social responsibility Practices
ANOVA(b)
Model
Sum of
Squares df
Mean
Square F Sig.
1 Regression 118.837 2 59.418 89.133 .000(a)
Residual 136.658 205 .667
Total 255.495 207
a Predictors: (Constant), Financial Costs, Benefits
b Dependent Variable: Corporate Social responsibility Practices
72
Coefficients(a)
Model
Unstandardized
Coefficients
Standardized
Coefficients t
Sig
.
B Std. Error Beta
1 (Constant) 2.129 .141 15.049
.00
0
Benefits .350 .194 .189 1.801
.07
3
Financial
Costs .734 .151 .511 4.865
.00
0
a Dependent Variable: Corporate Social Responsibility Practices
CSRP = 2.129 + 0.350B + 0.734FC
(t = 1.801) (t = 4.865)
where; CSRP = Corporate Social Responsibility Practices
B = Benefits
FC = Financial Costs
R = 0.682
R2 = 0.465
Ř2 = 0.460
F = 89.133
D.W = 0.039
From the above model, CSRP is the summation of the constant 2.129, 0.350 times
Benefits, and 0.734 times Financial Costs.
The ANOVA table tests the acceptability of the model from a statistical perspective.
The Regression row displays information about the variation accounted for by the
model, while the Residual row displays information about the variation that is not
accounted for by the model.
The regression sum of squares (118.837) is lesser than the residual sums of squares
(136.658) which indicates that fewer of the variation in CSRP is explained by the
model.
73
The significance value of the F statistic (0.000) is lesser than 0.05, which means that
the variation explained by the model is not due to chance.
Though the ANOVA table is a useful test of the model's ability to explain any
variation in the dependent variable, it does not directly address the strength of that
relationship. The model summary table reports the strength of the relationship
between the model and the dependent variable.
R, the correlation coefficient, is the linear correlation between the observed and
model-predicted values of the dependent variables. The correlation coefficient of
0.682 indicates that there is a fairly strong, positive relationship between CSRP and
the other independent variables (B and FC).
R Square, the coefficient of determination, is the squared value of the correlation
coefficient. This shows that 46.5% of the variation in ISS is explained by the model.
With the linear regression model, the error of the estimate is very low, with a value of
about 0.81647.
Therefore from the above results, the null hypothesis should be rejected. Hence, there
is a significant relationship between Corporate Social Responsibility Practices,
Financial Costs, and Benefits. Furthermore, this relationship is positive.
HYPOTHESIS THREE
Companies did not use CSR practices as a tool for marketing one company’s
product
Oneway Descriptives
CSR practices can be used as a tool for marketing company's product
N Mean Std.
Deviation Std. Error
95% Confidence Interval for Mean Minimum Maximum
Lower Bound Upper Bound
Anammco 128 1.5547 .54424 .04810 1.4595 1.6499 1.00 3.00
emenite 80 1.6750 .63195 .07065 1.5344 1.8156 1.00 3.00
Total 208 1.6010 .58102 .04029 1.5215 1.6804 1.00 3.00
74
ANOVA
CSR practices can be used as a tool for marketing company's product
Sum of Squares df Mean Square F Sig.
Between Groups .713 1 .713 2.122 .147
Within Groups 69.167 206 .336
Total 69.880 207
With a calculated ANOVA F-value of 2.122 tested at critical value of 0.05 which is
lesser than the critical F-value of 3.84, the null hypothesis should be accepted. This
result is further verified by the significance value of this result, 0.147, which is greater
than the critical value, 0.05, at which this test was carried out.
Therefore, companies did not use CSR practices as a tool for marketing their
products.
HYPOTHESIS FOUR
There is no significant relationship between organizational morality and
corporate social responsibility
Regression Model Summary(b)
Model R R Square Adjusted R Square Std. Error of the Estimate Durbin-Watson
1 .725(a) .525 .523 .41650 .074
a Predictors: (Constant), cost incurred on CSR practices proves to be efficient and effective b Dependent Variable: CSR pitfall has an impact on marketing company's project ANOVA(b)
Model Sum of Squares df Mean Square F Sig.
1 Regression 39.496 1 39.496 227.679 .000(a)
Residual 35.735 206 .173
Total 75.231 207
a Predictors: (Constant), cost incurred on CSR practices proves to be efficient and effective b Dependent Variable: CSR pitfall has an impact on marketing company's project Coefficients(a)
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
1 (Constant) .740 .065
11.419
.000
cost incurred on CSR practices proves to be efficient and effective
.565 .037 .725 15.08
9 .000
a Dependent Variable: CSR pitfall has an impact on marketing company's project
75
CSR = 0.740 + 0.565OM
(t = 15.089)
Where, OM = Organizational Morality
CSR = Corporate Social Responsibility
R = 0.725; R2 = 0.525; Ř
2 = 0.523; F = 227.679; D.W = 0.074
From the above model, Corporate Social Responsibility is influenced by the
summation of the constant 0.740 with the product of 0.565 and organizational
morality. With a regression sum of squares (39.496) that is greater than the residual
sums of squares (35.735), more of the variation in Corporate Social Responsibility is
explained by the model. Furthermore, the significance value of the F statistic (0.000),
which is lesser than 0.05, indicates that the variation explained by the model is not
due to chance.
The regression coefficient of 0.725 indicates a strong positive relationship between
organizational morality and corporate social responsibility. The R Square value
(0.524), which is the coefficient of determination, shows that 52.4% of the variation
in CSR is explained by the model. The Durbin-Watson statistic of 0.074 which does
not tend to 2 indicates there is an autocorrelation.
Therefore from the above results, the null hypothesis should be rejected. Hence, there
is a significant relationship between organizational morality and corporate social
responsibility.
76
HYPOTHESIS FIVE
Z-Par Tests
One-Sample Kolmogorov-Smirnov Test
Does Pitfall of Corporate
Social Responsibility has any
marketing a company product
N 208
Normal
Parameters(a,b)
Mean 1.6154
Std. Deviation .60285
Most Extreme
Differences
Absolute .293
Positive .293
Negative -.291
Kolmogorov-Smirnov Z 4.232
Asymp. Sig. (2-tailed) .000
a Test distribution is Normal.
b Calculated from data.
With a Kolmogorov-Smirnov Z value of 4.232 and an Asymp. Sig. of 0.000, the
responses from the respondents as display in Table 4.15, is normally distributed. This
affirms the assertion of most of the respondents that pitfalls of corporate social
responsibility have an impact on the marketing of company‟s product.
Furthermore, comparing the calculated Z-value of 4.232 against the critical Z-value of
1.96 (2-tailed test at 95% level of significance), the null hypothesis should be rejected.
Hence, the pitfalls of corporate social responsibility have an impact on the
marketing of company’s product.
77
HYPOTHESIS SIX
T-Test
One-Sample Statistics
N Mean
Std.
Deviation
Std. Error
Mean
stimulant 208 1.7885 1.01366 .07028
One-Sample Test
Test Value = 0
T df
Sig. (2-
tailed)
Mean
Difference
95% Confidence
Interval of the
Difference
Lower Upper
stimulant 25.446 207 .000 1.78846 1.6499 1.9270
With a calculated T-value of 25.466 which is greater than the critical T-value (at df =
207 and cv = 0.05) of 1.645, the null hypothesis should be rejected. This is further
strengthened by the sig. value of 0.000 which is lesser than the critical value of 0.05 at
which the test was carried out.
Hence, Corporate Social Responsibility could be stimulated by any other factor
other than ethical consideration.
78
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 SUMMARY
5.1 Introduction
This chapter encompasses the summary of findings, conclusion and recommendations
of this study. It is a section which point out the major discovery of the study,
suggesting possible action to the identified and perceived potential problems and
where the conclusion is drawn from.
5.2 Summary of Findings
These are the findings on the assessment of the corporate social responsibility in
Enugu metropolis in Enugu State.
((i) The corporate social responsibility practices by the companies in Enugu
Metropolis is seen as fulfillment of societal expectations from legal, economic,
ethical and philanthropic obligations but Majority seen it as philanthropic
obligations.
(ii) That the companies in Enugu Metropolis use corporate social responsibility to
create relationship marketing between the companies and society.
(iii) It is also seen that the practices of corporate social responsibility by the
companies in Enugu Metropolis is generally low.
(iv) The corporate social responsibility benefit the company‟s in Enugu Metropolis
in the area of survival and sustainability.
(v) The corporate social responsibility effectiveness and efficiency is determined
by the companies through sales profit, customer‟s satisfaction, maximization
of shareholder return and stakeholder‟s satisfaction but maximum
concentration is yet to be on it by the companies.
(vi) There is no other factor other than ethical consideration that stimulated the
manufacturing companies in Enugu Metropolis to be socially responsible.
(vii) There is no significant relationship between the company‟s corporate social
responsibility practices financial cost and benefit derived from it.
(viii) It is unilaterally accepted that corporate social responsibility can be used by
the companies as a marketing tool but not yet in practice by the companies.
79
(ix) Amount companies voted for corporate social responsibility in Enugu
Metropolis in Enugu State is only at the highest tune of N5,000,000 which is
low and this contributed to the lack of involvement infrastructural
development which can benefit the society in its entirety.
(x) The customers/distributors strongly disagree that the company‟s corporate
social responsibility practices is not commensurate with the value parting from
the society by the company.
(xi) It was identified that the forms of corporate social responsibility the
companies employed were charity, donation, welfare packages, medical
services, sponsorship and scholarship award where as many more suppose to
be in corporate such as research grant, entrepreneur training infrastructural
development, etc.
(xii) It was found that the little efforts put in place by the companies in the
discharge of corporate social responsibility affects the society positively.
(xiii) It was noticed that the types of corporate social marketing, corporate
philanthropic and socially responsible business practices as observed.
5.3 Conclusion
In this study, corporate social responsibility practices recorded a low concentration by
the manufacturing companies in Enugu Metropolis despite the priority given to the
ethical issue under the social responsibility. This is as a result of low consideration
given to corporate social responsibility by the business organization in the country
generally. This indicated that the adoption and implementation of corporate social
responsibility is still at a developmental stage due to its performance by the
companies in Enugu Metropolis.
Therefore, efforts should be geared toward empowering corporate social
responsibility practices among the companies in Enugu metropolis in Enugu State and
nationwide. This can be done through given distinction to social responsibility
practices in such a way that will differentiate and elaborate on different types of the
social responsibility and how they are differently convey different messages. Also,
effort should be made to explicit succinctly the contributions each type of corporate
social responsibility aim to deliver to the public.
80
5.4 Recommendations
Based the findings of this study the researcher recommended the following.
i. That both Anammco and Emenite should employ more logical methods of
delivering their corporate social responsibility practices in Enugu Metropolis.
ii. That the corporate social responsibility of the companies should be more
environmentally demanded rather than Marjory from angle of ethical
consideration and philanthropic obligations.
iii. That company should see corporate social responsibility as a marketing tool or
strategy for marketing their products in order to achieve sales profit,
customer‟s satisfaction, maximization of shareholders return, stakeholders
satisfaction and image promotion in the face of potential employees.
iv. That the angles at which the companies are practicing the social responsibility
should be equally extended to the areas such as community volunteering,
cause related marketing, and so on.
v. That the companies should also intensify efforts to incorporate more vibrant
forms of corporate social responsibility such as provision of research grant to
the research institutions, provision of infrastructural development,
entrepreneur training, etc.
5.5 Contribution to Knowledge
This research would enable the indigenous companies, the government as well as the
general pubic to be exposed to the different type of corporate social responsibility
strategies that are available. Knowledge of these would make them better appreciate
how the practice of Corporate Social Responsibility enhances the standard of living of
stakeholders.
Furthermore, the results of this study provide the basis for better appreciation of the
contribution of corporate social responsibility in marketing in Nigeria. Among other
things, the results enhance understanding of the roles corporate social responsibility
play in marketing. The study has also provided an insight to assist policy makers
enunciate policies capable of impacting positively on corporate social responsibility
functions of manufacturing companies in Nigeria.
81
Moreover it has generated both empirical and theoretical base concerning the
awareness, application and importance of the marketing innovation and corporate
social responsibility. This will in no distant measure guide industry regulators in
designing appropriate regulation for the manufacturing sector.
Moreover, economic analysts will utilize the knowledge of this study in their analysis
on the contribution of corporate social responsibility function to the Nigeria
industries. Similarly, the general public, through the functions of this research will be
better informed on what the concept of corporate responsibility is to them.
Finally, this study has assisted in broadening the frontier of knowledge in several
ways. It has contributed to the enrichment of literature on corporate social
responsibility management. It has also suggested ways for enhancing the productive
values of manufacturing company. The study has provided useful information to
guide future researchers.
5.6 Area for Further Research
The researcher has recommended area for further research on this study as follows:
1. A holistic study of corporate social responsibility strategies in indigenous
manufacturing companies.
2. Assess the impact of corporate social responsibility on manufacturing
companies.
82
BIBLIOGRAPHY
Adirika, E.O, Ebue, B.C. and Nnolim, D. (1987), Principles and Practice of
Marketing, Enugu, John Jacobs Classics Publishers Ltd.
Akpala, A. (1990), Principles of Management, An Introduction and the Nigerian
Perspective, Enugu, Gostak Printing & Publishing Co. Ltd.
Akpala, A. (1998), Principles of Management, An Introduction and the Nigerian
Perspective, Enugu Gostak Printing & Publishing Co. Ltd
.
Amato, C.H and Amato, L. H (2002) “Corporate Commitment to quality of life:
Evidence from company mission statement”, journal of marketing theory
and practice, Vol. 10 No 4, p 69-86.
Black, S. (1989), Introduction to Public Relations; London, Modino Press.
Blumenthal, D. and Bergstrom, A.J. (2003) “Brand councils that care: Towards the
convergence of branding and corporate social responsibility”, Journal of
Brand management, Vol. 10, No. 1, pp. 9-25.
Bronn P.S. and Vrioni A.B. (2001), “Corporate Social Responsibility and Cause –
related Marketing: An Overview”, International Journal of Advertising,
Vol. 20, pp. 207-222.
Carroll, A. (1991), “The Pyramid of Corporate Social Responsibility” Business
Horizons, July-august.
Co Chran, W.G. (1963) Sampling Techniques, (2nd
ed) New York: John Wiley and
Sons, Inc. p. 75.
Christian Aid, (2004), “Behind the Mask: The real face of Corporate Social
responsibility”, Christian Aid.
Costa J. (2001) :Time and decisions! Global speeds of markets vs long –term sustain
ability‟ conference on sustainability Zurich, September.
Chukwumueji, (2009) Corporate social Responsibility bill Thursday, 29th
January,
2009.
Doyle, P. (2000) “Valuing Marketing‟s Contribution”, European Management Journal
vol 18, No3, pp 232 – 245.
Davis, K. (1960), “Can Business Afford to Ignore social Responsibilities?”
California Management Review (Pre-1986) Vol. 2, No.000003, pp.70-
76.
83
Doyle, P. (2000) “Valuing Marketing‟s Contribution”, European Management Journal
vol 18, No3, pp 232 – 245.
Edoga, N.P. (1997), Selling: Principle and Practice, Nigeria, Je-rolu Publisher.
Edoga, N.P. (2008), Public Relations: An Effective Approach, Nigeria, Enizol Books.
Eells, R. and C. Walton (1961), Conceptual Foundations of Business, Richard Irwin,
Homewood, IL.
Ellen, P. S., Mohr, L..A. and Webb, D.J. (2000) “Charitable programs and the
retailer: Do they mix?”, Journal of Retailing, Vol. 76, No. 3, pp. 393 – 406.
Handelma, J.M. and Arnold, S.J. (1999), The “Role of Marketing Actions with a
Social Dimension: Appeals to the Institutional Environment”, Journal of
Marketing, Vol. 63, No.3 pp 33-38.
Henrique‟s, I. and Sadorsky, P. (1999), “The Relations between Environmental
Commitment and Management Journal, Vol. 42, No.1, pp.87-79.
Hopkins M, (2004) „corporate social responsibility: an issues paper, “policy
integration department world commission on the social dimension of
Globalization international labour office Genva, working paper N0. 27,
http://www.ilo org/publns accessed July 2007.
International Finance Corporation (2000), Corporate Social Responsibility.
http://www/cbr.com.ac.uk/pdf/wp337.pdf. 15th
April 2008.
Iwu .E.A (1998) understanding production and project Management. Enugu. Veamaks
Publishers Enugu.
Jiyoung, O. (2007), “The Role of Marketing in Corporate Social Responsibility,
Cranfield University, School of Management
https://dspace.lib.cranfield.ac.UK.
Jones, P. and Kahaner, L. (1995) “Regulation of Environmental Marketing Claims: A
Comparative Perspective,” International Journal of Advertising, Vol. 14,
No.1, pp.1-24.
Kotler P. & Levy S. (1969) “Broadening the Concept of Marketing.” Journal of
Marketing, Vol. 33, pp. 10-15.
Kotler, P. and Keller K. (2006) Marketing Management 12th Edition, Pearson
Education Inc Upper Saddle river, New Jersey.
Kotler, P. and Keller K. (2009) Marketing Management 13th Edition, Pearson
Education Inc Upper Saddle River, New Jersey.
84
Lantos, G.P. (2001), “The Boundaries of Strategic Corporate Social Responsibility”,
The Journal of Consumer Marketing, Vol. 18, No.7, pp. 595-632.
Luo, X and Bhattacharya, C.B. (2006) corporate social responsibility, customer
satisfaction, and market value”, Journal of marketing, vol 73, No. 4 pp 1-
18.
Morsing, M. (2006) “Corporate social responsibility as strategic auto-communication:
on the role of external stakeholders for member identification”, Business Ethics,
Vol. 15, No. 2, pp. 171-182.
Micheal E. P. and Mark R. K. (2006) Strategy and Society: The Link between
Competitive Advantage and Corporate Social Responsibility Harvard Business
Review pp 78-92.
Nicholas R. (1994) “Ben & Jerry‟s Ready to Hit UK,” Marketing, (March 24) pp. 1.
Quoted in Handelman, J. M. and Arnold, S.J. (1999) “The role of marketing
actions with a social dimension: Appeals to the institutional Environment”,
Journal of Marketing, Vol. 63, No. 3, pp. 33.
Nnabuko, J.O. (2004), Customer Relationship Management in Organizations, Nigeria
Journal of Marketing: A Research Professional Publication Department
of Marketing, University of (Nsukka) Enugu, Campus, Nigeria.
Nwodu, L.C. (2007), Corporate Public Relations Management, Enugu –Nigeria,
Precision Publisher Limited, P. 231.
Nwodu, L.C. (2003), “Public Relations Influence on Customer Patronage of New
Generation Banks in Enugu” in the Nigerian Journal of Communications
(TJNC) Vol. 1. No. 4.
Nwosu, I.E. (1996), Public Relations Management, Principles, Issues an
Applications, Lagos.
O‟Sullivan, T. (1997) “Why Charity Scheme need a Delicate Touch”, Marketing
Week, Vol. 20, No. 34, pp. 22-24.
Olakunle, K.O. and Ngozi, N.E. (1997) Introduction to Marketing, Enugu, Amazing
Grace Publisher.
Onah J.O and Thomas .M.J (2004) Marketing Management: Strategies and cases.
Enugu. Institute for development studies University of Nigeria. Enugu
Campus.
85
Obasikene J.I. Adinna EN and Uzoechi I.F. A (2000) “Man and His Environment”.
The General Studies Division: Enugu State University of Science and
Technology Enugu. In partnership with computer Edge publishers 79
and 92 Obiagu Road Enugu.
Pearson, L. (2003) Dictionary for Contemporary English, (5th ed.) Edinburgh:
Pearson Education Ltd.
Perrault, W.D. and Mc Carthy, J.E. (2002), “Basic Marketing: A Global Managerial
Approach, (14th ed). New York, McGraw Hill/Irwin.
Pirsch, J., Gupta, S. and Grau, S. L. (2007) “A Framework for Understanding
Corporate Social Responsibility Programs as a Continuum: An
Exploratory Study”, Journal of Business Ethics, Vol. 70, No. 2, pp. 125-
140.
Porter, M.E. and Kramer, M.R. (2002) “The Competitive Advantage of Corporate
Philanthropy”, Harvard Business Review, Vol. 80, No. 12, pp. 56-68.
Quinn, R.E. & Rohrbaugh J.: (1983) “A Spatial Model of Effectiveness Criteria:
Towards a Competing Values Approach to Organisational Analysis‟,
Management Science Vol. 29, No. 3, pp 363-377. Quoted in
Singhapakdi, A., Vitell, S.J.
Richards, A. (1995) “ Does Charity Pay?” Marketing, (21st September) pp. 24-25.
Quoted in Handelman, J. M. and Arnold, S. J. (1999) “The role of
marketing actions with a social dimension: Appeals to the institutional
environment”, Journal of Marketing, Vol. 63, No. 3, pp. 33.
Robin, D.P. and Reidenbach, R.E. (1987) “Social Responsibility, Ethics and
Marketing Strategy: Closing the Gap Between Concept and
Application”, Journal of Marketing , Vol. 51, No. 1, pp. 44-58.
Singhapakdi, A., Vitell, S.J., Rallapalli, K.C. and Kraft, K.L. (1996) “The perceived
role of ethics and social responsibility: A scale development”, Journal of
Business Ethics, Vol. 15, No. 11, pp. 1131-1140.
Smith, N. Craig (2003), “Corporate Social Responsibility: Whether or How?”
California Management Review, Vol. 45, No.4, pp.52-76.
86
Smith, N. Craig (2005) “Responsibility Inc.” Business Strategy Review, Summer,
pp.62-65.
Smith, N. Craig et al, (2001), “The New Corporate Philanthropy”, Harvard Business
Review, vol. 72, No.3, pp. 105-116.
Station, W.J., (1984) Fundamentals of Marketing, Tokyo, Mc Graw Hill Inc.
Subhash, G.J. (1990) Marketing Planning and Strategy: Ohia South Western
Publisher Co Cincinnate.
Trench, R. and L. Yeomans (2006) Exploring Public Relation, London, Prentice Hall
Pearson Education and Izute I.
Udeagha H.O. (1999) Principles and Processes of Marketing, Enugu Jamoe
Enterprises.
Vargo, S.J. and Lusch, R.F. (2004) “Evolving to a new dominant logic for
marketing”, Journal of Marketing, vol. 68, January, pp. 1-17. Quoted in
Maignan, I., Ferrell, O. C. and Ferrell, L. (2005) “A stakeholder model for
implementation social responsibility in marketing”, European Journal of
Marketing, Vol. 39, No. 9/10 pp. 956-977.
87
APPENDIX
Department of Marketing,
Faculty of Business Administration
University of Nigeria,
Enugu Campus.
Dear Sir/Ma,
I am a postgraduate student of marketing of the said university above. I am currently
undertaking a research work as part of requirements for the fulfillment of Master of
Science (M.Sc) degree in marketing on the topic “an Assessment of Corporate Social
Responsibility Practices of Selected Indigenous manufacturing Companies in Enugu
Metropolis in Enugu State”.
Therefore, I hereby implore your maximum cooperation to supply me relevant
information as it‟s affected your company and I promised you that every piece of
information given shall be treated with utmost confidential.
Thanks.
Yours Faithfully,
Ogbodo, Igwesi Hyacinth.
88
QUESTIONNAIRE
Section A (Staff)
Please answer the questions below appropriately either by ticking or stating the
appropriate options.
1. Employee
(a) ANAMMCO (b) Emenite
2. Gender
(a) Male (b) Female
3. Age
(a) 15-25 years (b) 25-35 years (c) 35-45 years
(d) 45-55 years (e) 55 and above
4. Marital Status
(a) Single (b) Married (c) Divorced
(d) Widow
5. Educational Qualification
(a) First leaving School Certificate/WASC
(b) OND/Equivalent
(c) HND/B.Sc/B.A/equivalent
(d) M.Sc/MBA/Professional
6. Please state your designation in the company ………………………………….
7. Please state whether you are senior or junior staff …………………………….
8. Please indicate which of these social responsibility practices your company is
partaking.
(i) Charity
(ii) Donation
(iii) Welfare packages
(iv) Socio-cultural activities
(v) Construction of housing estate
(vi) Sponsorship
(vii) Medical services
(viii) Research grant
(ix) Recreational facilities
(x) Entrepreneurial training
SA A SD D
89
(xi) Infrastructural development
(xii) Scholarship award
(xiii) Not specified
9. How can you rate the level of your company involvement in that social
responsibility practices?
(a) Very High (b) High (c) Very Low
(d) Low (e) Moderate
10. Do you think these practices are equally benefiting the company in the areas
of survival and sustainability?
(a) Yes (b) No (c) No opinion
11. If yes, in what way can this corporate social responsibility practices be used by
the companies?
(a) To create a relationship marketing between the companies and society
(b) To use it as a way or method of exploiting consumers.
(c) To create enabling business environment in the society
(d) Others not specified
12. Do you think the cost incur on the corporate social responsibility practices in
your company prove efficiency and effectiveness in term of societal value
delivery?
(a) Yes (b) No (c) No opinion
13. If yes, how do you determine that?
(a) Through the overall sales profit and the customers satisfaction
(b) Through the maximization of shareholders return and
Stakeholders satisfaction
(c) Others not specified
14. Can corporate social responsibility practices be used as a tool for marketing
one company‟s products?
(a) Yes (b) No (c) No opinion
15. If yes, in what capacity can this be achieved?
(a) Through the fulfillment of societal expectations from legal,
economic, ethics and philanthropic obligations
(b) Through the reduction of companies products prices
90
(c) Through increase in production capacity
(d) Others not specified.
16. Does pitfall Corporate Social Responsibility has any impact on marketing a
company product?
(a) Yes (b) No (c) No opinion
17. If, yes, like how much does your company vote for the corporate social
responsibility practice yearly?
(a) Below N1,000,000 (b) N1,000,000-
(c) N5, 000,000-10,000,000 (d) it depends
SECTION B. (CUSTOMERS/DISTRIBUTORS)
18. Please state the company you are dealing with…………………………………
19. Please indicate which of these corporate social responsibility practices the
company is involved in your environment.
(i) Charity
(ii) Donation
(iii) Welfare packages
(iv) Socio-cultural activities
(v) Sponsorship
(vi) Research grant
(vii) Recreational facilities
(viii) Entrepreneurial training
(ix) Infrastructural development
(x) Scholarship award
(xi) Not specified
20. How can you rate the level of the involvement of the company in those
corporate social responsibility practices?
(a) Very high (b) High (c) Very low
(d) Low (e) Moderate
21. Do these corporate social responsibility practices affect the live of the people
in the environment positively?
(a) Yes (b) No (c) No opinion
SA A SD D
91
22. If yes, how does it affect your live?
(i) It promotes Standard of living
(ii) It creates economic empowerment
(ii) It promotes infrastructural development
(iv) It enhance the development of the area
23. Based on your rating you think the corporate social responsibility practices by
the company commensurate with the value parting from the society?
(a) Strongly agree (b) Agree (c) Strongly Disagree
(d) Disagree
24. Do you think that corporate social responsibility practices can be stimulated
by any other factor other than ethical consideration?
(a) Yes (b) No (c) No opinion
25. Do you think that there is a significant relationship between organizational
morality and corporate social responsibility?
(a) Yes (b) No (c) No opinion
92
APPENDIX
COMPUTATION OF SPEARMAN‟S USING TEST- RETEST RESULTS FROM STAFF TEST
INSTRUMENT
1st Test Result 2nd Test Result Ranks1st Rank2nd Difference(d) Squared
Difference(d)2
40 41 4 4 0 0
32 33 16 17 -1 1
36 34 11 16 -5 25
34 33 14 17 -3 9
39 39 6 8 -2 4
43 42 2 1 1 1
40 42 4 1 3 9
38 40 8 6 2 4
32 35 16 14 2 4
36 36 11 11 0 4
37 36 9 11 -2 4
45 42 1 1 0 0
37 36 9 11 -2 4
45 42 1 1 0 0
30 36 19 11 8 64
28 30 20 20 0 0
43 39 2 7 -5 25
39 41 6 4 2 4
37 38 9 8 1 1
33 35 15 14 1 1
32 33 16 17 -1 1
36 37 11 10 1 1
Total 158
P=1 – 6(158)
20(202-1)
P=1 – 948
7980
P=1- 0.118797
P= 0.881203
93
COMPUTATION OF SPEARMAN’S USING TEST-RETEST
RESULTS FROM CUSTOMER TEST INSTRUMENT
1st Test Result 2nd Test Result Rank1st Rank2nd Difference (d) Squared Difference (d2)
34 33 5 6 -1 1
32 33 9 6 3 9
33 34 7 2 5 25
35 34 3 2 1 1
36 35 1 1 0 0
32 31 9 10 -1 1
34 32 5 8 -3 9
35 34 3 2 1 1
28 30 17 14 3 9
27 29 18 17 1 1
29 28 15 19 -4 16
30 31 13 10 3 9
33 32 7 8 -1 1
32 30 9 14 -5 25
36 34 1 2 -1 1
29 31 15 10 5 25
27 29 18 17 1 1
26 28 20 19 1 1
30 30 13 14 -1 1
31 31 12 10 2 4
Total 141
p =
p =
p =
p =
