CORPORATE SOCIAL RESPONSIBILITY AND ORGANIZATIONAL SUSTAINABILITY (A STUDY OF SELECTED COMMERCIAL BANKS IN P.H)

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Abstract

The study has examined the relationship between corporate social responsibility and organizational sustainability in selected commercial Banks in Port Harcourt. The survey research design was employed since the study was to ascertain corporate social responsibility and organizational sustainability. The population of the study was made to be one hundred (100). The Yaro Yemens formula was used to determine the sample size of  80. The instrument used in the data collected is interview and questionnaire method which are seen as being more effective and stable for a research of this nature. The method used to analyze the data was simple descriptive method stated in tables and expressed in percentage. Findings amongst others reveal that economic responsibility associated with organizational sustainability of some selected Commercial Banks in Port Harcourt and legal responsibility is associate with organizational sustainability of some selected Commercial Banks in Port Harcourt. Based on the finding of the study, we recommended that 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

Cover Page ii

Declaration iii

Certification         iv

Dedication  v

Acknowledgements        vi

Abstract      vii

Table of Contents viii

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

1.5 Significance of the Study   5

1.6 Scope of the study   6

1.7Limitation of the Study      6

1.8 Definition of Terms 7

CHAPTER 2        8

REVIEW OF RELATED LITERATURE   8

2.1 Conceptual Framework     8

2.1.1 Concept of Corporate Social Responsibility        9

2.1.2 Dimensions of Corporate Social Responsibility   13

2.1.3 Concept of Organizational Sustainability   14

2.1.4 Measures of Organizational Sustainability  15

2.1.5 Corporate Social Responsibility and organizational Sustainability   16

2.2 Theoretical Framework     18

2.2.1 Stakeholder Theory:       18

2.3 Empirical Framework       19

CHAPTER 3        25

RESEARCH METHODOLOGY      25

3.1 Research Design      25

3.2 Sample Design         25

3.3 Population     26

3.4 Sample Size    26

3.5 Method of Data Collection          27

3.6 Method of data analysis    28

CHAPTER 4        29

DATA PRESENTATION AND ANALYSIS       29

4.1 Data Collection and Presentation         29

4.2 Data Analysis 30

4.3 Discussion of Findings      35

CHAPTER 5        37

SUMMARYS, CONCLUSIONS AND RECOMMENDATIONS     37

5.1 Summary       37

5.2 Conclusions   37

5.3 Recommendations   38

References  39

Appendix I 41

Appendix II          42

CHAPTER 1

INTRODUCTION

1.1 Background of the Study

organizational sustainability is an approach that creates long-term stakeholder value by implementing a business strategy that considers every dimension of how a business operates in the ethical, social, environmental, cultural, and economic spheres. It also formulates strategies to build a company that fosters longevity through transparency and proper employee development. organizational sustainability is an evolution on more traditional phrases describing ethical corporate practice. The phrase is derived from two keys sources. The Brundtland Commission’s Report, Our Common Future, described sustainable development as, “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. This desire to grow without damaging future generations’ prospects is becoming more and more central to business philosophies. Within more academic management circles, Elkington (1997) developed the concept of the Triple Bottom Line which proposed that business goals were inseparable from the societies and environments within which they operate. Whilst short-term economic gain could be chased, a failure to account for social and environmental impacts would make those business practices unsustainable.

Measuring organizational sustainability is possible through composite indicators which aggregate environmental, social, corporate governance and economic measures, e.g. Complex Performance Indicator.  Corporate social responsibility is one construct that can enhance organizational sustainability.

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.

Oil exploratory 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 sustainability was proxied with three non-financial outcomes associated with commercial banks namely; economic sustainability, social sustainability and environmental sustainability.

1.2 Statement of Problems

The purpose of this study is to investigate corporate social responsibility and organizational sustainability. 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 return 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 as well as host community relations (Ikpeze, 2001). From the foregoing, therefore this study seeks to examine the relationship between corporate social responsibility and organizational sustainability in selected commercial Banks in Port Harcourt.

1.3 Objectives of the Study

The main objective of the study is to examine the relationship between corporate social responsibility and organizational sustainability in selected commercial Banks in Port Harcourt. The following objectives are to be achieved:

  1. To examine the relationship between economic responsibility and organizational sustainability in selected commercial Banks in Port Harcourt.
  2. To examine the relationship between legal responsibility and organizational sustainability in selected commercial Banks in Port Harcourt.

iii.      To examine the relationship between ethical responsibility and organizational sustainability in selected commercial Banks in Port Harcourt.

  1. To examine the relationship between discretionary responsibility and organizational sustainability in selected commercial Banks in Port Harcourt.

1.4 Research Question

The following research questions are posed to guide the study:

  1. To what extent is economic responsibility associate with organizational sustainability in selected commercial Banks in Port Harcourt?
  2. To what extent does legal responsibility associate with organizational sustainability in selected commercial Banks in Port Harcourt?

iii.      To what extent is ethical responsibility associate with organizational sustainability in selected commercial Banks in Port Harcourt?

  1. To what extent is discretionary responsibility associate with organizational sustainability in selected commercial Banks in Port Harcourt?

1.5 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 employee’s 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 sustainability in selected commercial Banks in Port Harcourt.

1.6 Scope 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 sustainability, measures by economic sustainability, social sustainability and environmental sustainability.

Geographical Scope: This study is delimited in Port Harcourt Metropolis with special reference to some selected commercial Banks 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.

1.7Limitation of 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 sustainability. Hence it is a micro level study.

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.

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