CORPORATE SOCIAL RESPONSIBILITY AND ORGANIZATIONAL EFFECTIVENESS
(A SURVEY OF SELECTED COMMUNICATION FIRMS IN PORT HARCOURT, RIVER STATE)
Abstract
The determined to examine the relationship between corporate social responsibility and organizational effectiveness. The objectives of the study are to examine the relationship between economic responsibility and organizational effectiveness, to examine the relationship between legal responsibility and organizational effectiveness, to examine the relationship between ethical responsibility and organizational effectiveness, to examine the relationship between discretionary responsibility and organizational effectiveness in selected telecommunication companies in Port Harcourt, Rivers State. The survey research design used for the study. The population is made up of 100 employees from operating firms in the Nigeria telecommunication industry in Port Harcourt as follows: MTN = 100, Airtel = 40, 9mobile = 30, Globacom 30. A self-designed questionnaire was used for the collection of data. This study utilizes the probability sampling technique, placing emphasis on simple random sampling. The Taro yemen’s formulae was used to determine the sample size of 80. The simple percentage was used to analyze the response. The Chi-Square statistical techniques was used to test the hypothesis. Findings amongst others reveal that there is a significant relationship between corporate social responsibility and organizational effectiveness. Based on the findings of the study summary, conclusion and recommendations were made that there is need for governments backing of environmental management by assisting telecommunication companies that are socially responsible and involve in environmental sustainability, communication companies should improve in her activities of corporate social responsibility, corporate social responsibility should be properly addressed on the company and for the fact that corporate social responsibility is the appropriate mechanism for organizational effectiveness, therefore, communication companies should go ahead with it.
CHAPTER 1. 1
INTRODUCTION.. 1
1.1 Background of the Study. 1
1.2 Statement of Problems. 3
1.3 Objectives of the Study. 3
1.4 Research Question. 4
1.5 Research Hypothesis. 5
1.6 Significance of the Study. 5
1.7 Scope/Delimitation of the study. 6
1.8 Definition of Terms. 7
CHAPTER 2. 10
REVIEW OF RELATED LITERATURE.. 10
2.1 Conceptual Framework. 10
2.2 Theoretical Framework. 11
2.3 Literature Review on Subject Matter. 13
CHAPTER 3. 24
RESEARCH METHODOLOGY.. 24
3.1 Research Design. 24
3.2 Population of the Study. 26
3.3 Questionnaire Design. 27
3.4 Source and Method of Data Collection. 27
3.5 Sample and Sampling Technique. 28
3.6 Data Analytical Method. 30
3.7 Reliability and Validity. 30
CHAPTER 4. 31
DATA PRESENTATION AND ANALYSIS. 31
4.1 Questionnaire Administration and Retrieval 31
4.2 Data Analysis. 32
4.3 Hypothesis Testing. 39
CHAPTER 6. 47
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS. 47
6.1 Summary. 47
6.2 Conclusions. 48
6.3 Recommendations. 48
REFERENCES. 50
APPENDIX I. 52
APPENDIX II. 53
1.1 Background of the Study
Effectiveness requires that organizations have to harmonize and satisfy the conflicting interest of its numerous stakeholders, these calls for the deployment of people with sound understanding of both the market, societal, cultural, technological and environmental terrain. In this study, organizational effectiveness is seen as the ability of telecommunication firms to meet these diverse goals without sacrificing any of the goals for another. Mohammad, Habib and Alias (2011), posit that organizational effectiveness is the notion of how effectual an organization is in accomplishing the results the organization aims to generate. It plays an important role in accelerating organizational development. It is the net satisfaction of all constituents in the process of gathering and transforming inputs into outputs in an efficient manner (Matthew, Grawhich and Barber 2009). One of the ways an organization can be effective is by practicing corporate social responsibility.
Corporate social responsibility is a nebulous concept that has been described in a number of ways, it is widely used in literature of sociology, anthropology, economics, politics and business administration .Most writers on corporate social responsibility see the concept as the disposition of an organization to exhibit‘’ missionary’’ rather than ‘’mercenary’’ attitudes toward the society. Corporate social responsibility in relation to business is the obligation of a business organization to pursue those lines of action, which are desirable in terms of objectives, and values of society. (Lawal and Sulaimon, 2007) defined it as ‘’ intelligent and objective concern, which restrains individual or corporate behaviour from ultimately destructive activities, no matter how immediately profitable, and leads to the direction of the positive contribution to human betterment’’. Presumably, corporate executives as agents of the owners are to be responsible for conducting the business in accordance with the desire of the owner while conforming to the basic rules of the society. The responsibility has three broad facets (Ikpeze, 2001).First, contribution to charity. Second, elimination of social costs. The third facet of social responsibility is the adoption and observance of ethical codes aimed at reducing business malpractices.
Telecommunication firms in Nigeria and other types of business must be seen in many actions domains can pursue social responsibility in areas such as: concern for ecology and environment, commitment to quality, truth in advertisement, customer satisfaction and education. Other concern include service to community needs, fair employment practices, progressive labour relations, employment assistance and corporate philanthropy.(Ogbeuchi, 2008). This study proxied corporate social responsibility with economic, legal, ethical and discretionary responsibility while organizational effectiveness was proxied with four non-financial outcomes associated with telecommunication firms namely; community relations, adaptability, competitiveness and innovativeness. In the next segment, statement of the problem will be discussed.
1.2 Statement of Problems
The purpose of this study is to investigate corporate social responsibility and organizational effectiveness. It attempts to determine how an organization carries out its obligation to the stakeholders which serves as a strategy for carrying out business activities peacefully. Most times claims made by various stakeholders are too much on the organization, yet they are expected to get actively involved in getting them solved. In trying to meet up these expectations, most organizations indulge in some unethical acts which most times boomerang on them.
This study attempt to understand which CSR elements have the ability to influence the corporate reputation.
The study also attempt employees’ perception on their organization’s corporate image affects their behavior as well as how they promote their organization to the other stakeholders.
Previous researchers indicated certain elements of CSR (such as organizational ethics) as having impact on employees’ perceived corporate image that can affect their commitment to their organization. From the foregoing, therefore this study seeks to examine the relationship between corporate social responsibility and organizational effectiveness. In the next segment, objectives of the study will be discussed.
1.3 Objectives of the Study
The main objective of the study is to examine the relationship between corporate social responsibility and organizational effectiveness in selected telecommunication companies in Port Harcourt, Rivers State.. The following objectives are to be achieved:
- To examine the relationship between economic responsibility and organizational effectiveness in selected telecommunication companies in Port Harcourt, Rivers State.
- To examine the relationship between legal responsibility and organizational effectiveness in selected telecommunication companies in Port Harcourt, Rivers State.
- To examine the relationship between ethical responsibility and organizational effectiveness in selected telecommunication companies in Port Harcourt, Rivers State.
- To examine the relationship between discretionary responsibility and organizational effectiveness in selected telecommunication companies in Port Harcourt, Rivers State.
In the next segment research questions will be discussed.
1.4 Research Question
The following research questions are posed to guide the study:
- To what extent is economic responsibility associated with organizational effectiveness in selected telecommunication companies in Port Harcourt, Rivers State?
- To examine the relationship legal responsibility associated with organizational effectiveness in selected telecommunication companies in Port Harcourt, Rivers State?
- To what extent is ethical responsibility associated with organizational effectiveness in selected telecommunication companies in Port Harcourt, Rivers State?
- To what extent is discretionary responsibility associated with organizational effectiveness in selected telecommunication companies in Port Harcourt, Rivers State?
1.5 Research Hypothesis
The following research hypothesis are postulated to guide the study:
HO: There is no significant relationship between corporate social responsibility and organizational effectiveness.
HA: There is a significant relationship between corporate social responsibility and organizational effectiveness.
1.6 Significance of the Study
One of the main reasons this study is being conducted is because society’s expectation on organizational CSR effort is gaining momentum and fast becoming a standard business practice. Many organizations have started implementing CSR as part of their organization practices as well as to fulfill their legal obligation. However, in order for CSR to be effective and bring to bring value to the organization (such as improving the corporate image and employees commitment), organization and employees’ need to have a deeper insight to the benefit of investing in CSR prior to embarking on this time consuming, resources demanding and costly project.
This study is also significant because it has been able to unveil the roles of corporate social responsibility and organizational effectiveness. In the next segment scope/limitation of the study will be discussed.
1.7 Scope/Delimitation of the study
The study is delimited under the following heading: content scope, geographical scope and unit of analysis.
- Content Scope: The content scope of this study involves an investigation to ascertain the relationship between corporate social responsibility and organizational effectiveness. The independent variable is corporate social responsibility measure by Economic responsibility, Legal responsibility, ethical responsibility and discretionary responsibility. While dependent variable is organizational effectiveness, measures by community relation, Adaptability, Competitiveness and Innovativeness.
- Geographical Scope: This study is delimited in Port Harcourt Metropolis with special reference to some selected telecommunication companies which include MTN, Globacom and 9Mobile in Port Harcourt, Rivers State.
- Unit of Analysis: The unit of analysis in this research involves the individuals at the time of carrying out the study.
In carrying out an investigation of this nature the researcher must of necessity be faced with the following constraint; Time, poor response from respondents and finance.
This study involves an investigation of corporate social responsibility in relation to organizational effectiveness. Hence it is a micro level study. In the next segment, definition of terms will be discussed.
1.8 Definition of Terms
The following terms are operationally defined below:
CORPORATE SOCIAL RESPONSIBILITY: Corporate Social responsibility is firm’s obligation to constituent groups in society other than shareholders and beyond that prescribe by law or union contract.
ECONOMIC RESPONSIBILITY: This is base level of the itinerary; it involves returns to owners and shareholders, creations of job, fair play for workers, innovation, efficient utilization of resumes etc.
LEGAL RESPONSIBILITY: This relates to complying with legal legislations imposed by the government and regulatory agencies. It means that corporations that want to be ethical must be the economically, and legally responsible.
ETHICAL RESPONSIBILITY: Those activities expected of corporations as members of the society, which are not defined by laws. This shows corporation as being moral, doing things, just and fair.
DISCRETIONARY RESPONSIBILITY: This concerns group activities and actions that are the result of organizations discretions rather than legal demands or ethical norms. Examples are philanthropic contributions, sponsorship, and educational development.
COMMUNITY RELATIONS: Community relations are a sub-set of Public relations, and its main focus is to promote a symbiotic relationship between a corporate entity and the community in which it operates.
ORGANIZATIONAL ADAPTABILITY: It is a change by an organization in response to external changes. Successful organizational adaptation may result in a more effective organizational structure and process, replacement of outmoded and a better fit with emerging environmental conditions.
COMPETITIVENESS: It is the firm’s ability to design, produce and/or market products superior to those offered by competitors, considering price and non-price qualities.
INNOVATION: It is the innovation as the successful introduction of a better thing or method. It is the embodiment, combination, or synthesis of knowledge in original, relevant, valued new products, processes, or services.
ORGANIZATIONAL EFFECTIVENESS: Is defined in many ways depending on the organizations goals and objectives in today’s market and also is dependent on the industry. In today’s market, organizational effectiveness is dependent on seven to ten attributes/characteristics.