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Abstract
The study examines the relationship between corporate social responsibility and corporate survival in selected telecommunication companies in Port Harcourt, Rivers State. In this study therefore, we have employed the survey research design that is cross sectional. The population of the study is made up of 150 employees from operating firms in the Nigeria telecommunication industry in Port Harcourt as follows: MTN = 50, Airtel = 40, 9mobile = 30, Globacom 30. Self-designed questionnaires on corporate social responsibility and organizational effectiveness was used and administered for the collection of data from the respondents in MTN, 9mobile and Etisalat in Port Harcourt, Rivers State. The Yaro Yemens formula was used to determine the sample size of 80. The Chi-Square statistical tool was used to test the hypotheses. Findings reveal that there is a significant relationship between corporate social responsibility and corporate survival in selected telecommunication companies in Port Harcourt, Rivers State. Based on the findings of the study summary conclusion and recommendations were made that to cope with the issues of environmental management, telecommunication companies need not only to develop specific activities and strategic responses at organizational level but also facilitate the evolution of managerial values and beliefs toward corporate social responsibility and higher level of environmental management, in addition, there is need for governments backing of environmental management by assisting telecommunication companies that are socially responsible and involve in environmental sustainability, that communication companies should improve in her activities of corporate social responsibility and that corporate social responsibility should be properly addressed on the company.
Table of Contents
Title Page i
Declaration iii
Certification iv
Dedication v
Acknowledgment vi
Abstract vii
Table of Contents viii
List of Tables x
List of Figure xi
CHAPTER 1 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of Problems 3
1.3 Objectives of the Study 4
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 8
REVIEW OF RELATED LITERATURE 8
2.1.1 Concept of Corporate Social Responsibility 9
2.1.2 Dimensions of Corporate Social Responsibility 13
2.1.3 Concept of Corporate Survival 13
2.1.4 Measures of Corporate Survival 14
2.1.5 Corporate Social Responsibility and Corporate Survival 17
2.2 Theoretical Framework 19
2.2.1 Stakeholder Theory 19
2.3 Empirical Framework 20
CHAPTER 3 23
RESEARCH METHODOLOGY 23
3.1 Research Design 23
3.2 Population of the Study 24
3.3 Questionnaire Design 25
3.4 Source and Method of Data Collection 25
3.5 Sample and Sampling Technique 26
3.6 Data Analytical Method 27
3.7 Reliability and Validity 28
CHAPTER 4 29
DATA PRESENTATION AND ANALYSIS 29
4.2 DATA ANALYSIS 30
4.3 HYPOTHESIS TESTING 36
4.4 Discussion of Finding 39
CHAPTER 5 42
SUMMARY, CONCLUSION AND RECOMMENDATION 42
5.1 Summary 42
5.2 Conclusion 42
5.3 Recommendations 43
References …………………………………………………………………44A
Appendix I 46
Appendix II 47
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
Corporate survival has been the most interesting topics for organizations over the years. Organizations exist to survive during environmental factors that tend to encroach on business performance. Organizations attempt to maintain the existing, but essentially the larger part of their efforts is tilted toward survival (Mindy, 1998). The competition in the industry is getting stronger and firms are adopting different strategies to be competitive in the industry. Surviving in the global struggle to meet with increasing demand on firms in the market place has seen many researchers and academicians having a resort to pay attention to the individual employees in the organization since innovation in product and services are brought about by these individuals.
However, in the review of past studies, despite the level of work that has been done, only few studies try to discuss some specific aspects of employee participation that can affect survival of organizations. 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. From the foregoing therefore, the study seeks to examine the relationship between corporate social responsibility and corporate survival in some selected telecommunication companies in Port Harcourt, Rivers State.
1.2 Statement of Problems
The purpose of this study is to investigate corporate social responsibility and corporate survival. 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 attempts to understand which CSR elements have the ability to influence the corporate reputation.
The study also attempts 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 corporate survival. 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 corporate survival in selected telecommunication companies in Port Harcourt, Rivers State. The following objectives are to be achieved:
- To examine the relationship between economic responsibility and corporate survival in selected telecommunication companies in Port Harcourt, Rivers State.
- To examine the relationship between legal responsibility and corporate survival in selected telecommunication companies in Port Harcourt, Rivers State.
iii. To examine the relationship between ethical responsibility and corporate survival in selected telecommunication companies in Port Harcourt, Rivers State.
- To examine the relationship between discretionary responsibility and corporate survival in selected telecommunication companies in Port Harcourt, Rivers State.
1.4 Research Question
The following research questions are posed to guide the study:
- To what extent is economic responsibility associated with corporate survival in selected telecommunication companies in Port Harcourt, Rivers State?
- To examine the relationship legal responsibility associated with corporate survival in selected telecommunication companies in Port Harcourt, Rivers State?
iii. To what extent is ethical responsibility associated with corporate survival in selected telecommunication companies in Port Harcourt, Rivers State?
- To what extent is discretionary responsibility associated with corporate survival in selected telecommunication companies in Port Harcourt, Rivers State?
1.5 Research Hypothesis
The following research hypothesis are postulated to guide the study:
Ho1: There is no significant relationship between economic responsibility and corporate survival in selected telecommunication companies in Port Harcourt, Rivers State.
Ho2: There is no significant relationship between legal responsibility and corporate survival in selected telecommunication companies in Port Harcourt, Rivers State.
Ho3: There is no significant relationship between ethical responsibility and corporate survival in selected telecommunication companies in Port Harcourt, Rivers State.
Ho4: There is no significant relationship between discretionary responsibility and corporate survival in selected telecommunication companies in Port Harcourt, Rivers State.
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 corporate survival, measures by innovation, Adaptability, service quality and Profitability.
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 corporate survival. 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.
DISCRETIONARY RESPONSIBILITY: This concerns group activities and actions that are the result of organizations discretions rather than legal demands or ethical norms.
ADAPTABILITY: It is a change by an organization in response to external changes.
INNOVATION: It is the embodiment, combination, or synthesis of knowledge in original, relevant, valued new products, processes, or services.