STRATEGIC MANAGEMENT AND CORPORATE SOCIAL RESPONSIBILITY OF MULTINATIONAL FIRMS IN RIVERS STATE

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ABSTRACT

The study examines the relationship between strategic management and corporate social responsibility. The survey research design was employed for the study. The population of this study is designed to constitute all Senior and staffs of the administrative department of the selected multinational firms in Rivers State. The population of the study comprises one hundred and twenty (140). The Taro Yemen’s formula was used to determine the sample size of 112. The primary and secondary data were used. Data collection was done using a structured questionnaire. A self-design questionnaire on strategic management and corporate social responsibility was used specifically for data collection. The chi-square statistical test was employed this test was used due to the nature of the questionnaire designed for the hypothesis testing. The hypotheses will be tested electronically with SPSS Version 22. Findings amongst others revealed that environmental scanning is associated with corporate social responsibility, strategy formulation is associated with corporate social responsibility and strategy implementation is associated with corporate social responsibility. Based on the findings of the study, we recommended that any organization that desires high output performance (financially and non-financial wise) should endeavour to embrace the principles of strategic planning which is embedded in strategic management and to avoid failure or the death of an organization, the managers of the organization should be committed to institutionalizing the practice of strategic management in its culture by ensuring that strategic planning permeates every nook and cranny of the organization and making sure that strategies planned are implemented else it will be a waste of time and resources.

TABLE OF CONTENTS

Title Page    i

Certification         iii

Abstract      vii

Table of Content……………………………………………………………….viii

List of Tables       x

List of Figures      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 Questions 4

1.5 Research Hypotheses        4

1.6 Significance of the Study   5

1.7 Scope/Limitations of the Study   5

1.8 Definition of Terms 6

CHAPTER 2        8

REVIEW OF RELATED LITERATURE   8

2.1 Conceptual Framework     8

2.1.1 Strategy       8

Strategy Implementation         8

Strategy Implementation         8

Legal Responsibility      8

Strategy Implementation         8

Ethical responsibility     8

Discretionary responsibility    8

Environmental Scanning         8

2.1.2 Strategic Management    10

2.1.3 Dimensions of Strategic management…………………………………..11

2.1.4 Phases of Strategic Management       13

2.1.5 Benefits of Strategic Management………………………………………13

2.1.6 Concept of Corporate Social Responsibility        14

2.1.7 Dimensions of Corporate Social Responsibility   18

2.1.8 Strategic management and corporate Social responsibility      18

2.2 Theoretical Framework     20

2.3 Empirical Review    22

CHAPTER 3        24

RESEARCH METHODOLOGY      24

3.1 Research Design      24

3.2 Population of the Study    25

3.3 Sample Size Determination         25

3.4 Sampling Techniques        26

3.5 Source and Method of Data Collection 27

3.6 Methods of Data Collection        27

3.7 Questionnaire Design        28

3.6  Data Analytical Techniques…………………………………………….29

3.7 Reliability and Validity     30

CHAPTER 4        31

DATA PRESENTATION AND ANALYSIS       31

4.1 Data Collection and Presentation         31

4.2 Data Analysis 32

4.3 Discussion of Findings      39

CHAPTER 5        41

SUMMARY, CONCLUSION AND RECOMMENDATIONS         41

5.1 Summary       41

5.2 Conclusion     41

5.3 Recommendations   41

References  43

Appendix I 47

Appendix II          48

LIST OF TABLES

Table 4.1: Questionnaire Administration and Retrieval 31

Table 4.2: Showing the age of respondents          32

Table 4.3: Showing the Gender/Sex of Respondents     32

Table 4.5: Showing the Marital Status of Respondents 33

LIST OF FIGURES

Fig. 2.1: A Conceptual Framework Showing the Relationship between Strategic Management and Corporate Social Responsibility          8

CHAPTER 1

INTRODUCTION

1.1 Background of the Study

The world has experienced a rapid change in the business environment such that the product-market competition is ever increasing among industries, information technology improving in various industries as the day goes by in a way that firms use internet facilities and social network to advertise and market their products and services. To compete successfully in this present competitive business environment, firms continually need to make some strategies and take some actions by improving product quality and productivity, reducing product cost, promoting product and process innovations, and improving product speed to the market and customers’ goodwill. Firms therefore need to strive to be at par with the global change, achieving competitive advantage position and enhancing performance relative to their competitors (Muogbo, 2013).

Strategy is a detailed plan for a business in achieving success. Since business is a high-stakes game, a poorly planned and executed strategic move could result in loss of millions of dollars, thousands of jobs, or even bankruptcy of business (Dauda et al., 2010). This calls for strategic management in order to develop an effective strategy. Thus, strategic management comprises the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a firm’s objectives.

Strategic management is the process of making decision, planning, coordinating and taking some actions by the top managers of a company in order to achieve set goals and objectives. Decisions are of little use unless they are acted upon. Firms must take the necessary actions to implement their strategies. This requires top managers to allocate the necessary resources and to design the organization to bring the intended strategies to reality (Dess et al., 2005). Because it involves long-term, future-oriented, complex decision making and requires considerable resources, top-management participation is crucial.

Wheelen and Hunger (2007) articulated that initially strategic management was of most use to large firms operating in multiple industries. Increasing risks of error, costly mistakes, and even economic ruin now forced today’s professional managers in all organisations to take strategic management seriously in order to keep their firms competitive in an increasingly volatile environment.

The study of strategic management has drawn so much attention among business practitioners and academic researchers in the last two decades as globalization came fully into limelight. As more industries become global, strategic management now becomes an increasingly important tool to keep track of international developments and position the firm for long term competitive advantage. In developed countries as well as in developing ones, much has been written on strategic management in form of books. However, Nigeria in particular, there are few empirical studies conducted to investigate the relationship between strategic management and firm performance. Managing the human capital in any organization is considered of utmost importance since it is the main engine of an economic success and ignition of prosperity. Nonetheless, human resource departments were not fully recognized as an inseparable unit in corporations in Nigeria until recently, which indicates that in most cases it is not yet fully developed; contain well-trained personnel or even using complex techniques for maximum use of available potentials. In another words, most of the corporations haven’t been aware of the impact of HR practices of human capital management, organization development, resourcing, performance management,  and  job  evaluation  and  others  on  the  organization’s  success  and  hence  profits.  Thus,  a considerable gap is found that yet needed to be covered. It is against the background of this study that necessitates our undertaking of this research, to examine the relationship between strategic management and corporate social responsibility in some selected multinational firms in Rivers State.

1.2 Statement of Problems

          Strategic management is the process and approach of specifying an organization’s objectives, developing policies and plans to achieve and attain these objectives, and allocating resources so as to implement the policies and plans (David, 2005)

The strategic management and corporate social responsibility has been the focus of intensive research efforts in recent times economic environment is changing rapidly and this change is characterized by such phenomena as the globalization, changing customer and investor demands, ever-increasing product-market competition to complete successfully in this environment, organizations continually need to improve their performance by reducing cost, innovating products and processes and improving quality, productivity and speed to market “Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved, assesses its competitors and set goals and strategies to meet all existing and potential competitors, and then reassess each strategy annually or quarterly i.e. regularly to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet charged circumstances, new technology, new competitors, a new economic environment, or a new social, financial or political environment” Achieving a competitive advantage position and enhancing firm performance relative to their competitors are the main objectives that business organizations in particular should strive to attain (Raduan, 2009). From the foregoing therefore, the study seeks to examine the relationship between strategic management and corporate social responsibility in some selected multinational firms in Rivers State.

1.3 Objectives of the Study

          The main objective of the study is to examine the relationship between strategic management and corporate social responsibility in some selected multinational firms in Rivers State the specific objective are:-

1.       To examine the extent to which environmental scanning and corporate social responsibility.

2.       To examine the extent to which strategy formulation and corporate social responsibility.

3.       To examine the extent to which strategy implementation and corporate social responsibility.

1.4 Research Questions

1.       To what extent does environmental scanning associate with corporate social responsibility?

2.       To what extent does strategy formulation associate with corporate social responsibility?

3.       To what extent does h strategy implementation associate with corporate social responsibility?

1.5 Research Hypotheses

The following research hypotheses were formulated to guide the study.

HO1: There is no significant relationship between environmental scanning and corporate social responsibility.

HO2: There is no significant relationship between strategy formulation and corporate social responsibility.

HO3: There is no significant relationship between strategy implementation and corporate social responsibility.

1.6 Significance of the Study

          The outcome of this study will be of immense benefit to a wide range of people. First, to the government and public policy makers, this study will help them appreciate the strategic importance of strategic management and policies that can fast-track corporate social responsibility for business to serve, hence, promote friendly investment climate which is an impetus for increased foreign direct investment. The study will reveal to Multinational firms to promote strategic management in the organization in other for the organization to be effective and face their competitors.

1.7 Scope/Limitations 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 on investigation to ascertain the relationship between strategic management and corporate social responsibility. The dependent variable is corporate social responsibility. While independent variable is strategic management measure by environmental scanning, strategy formation and strategy implementation. 

Geographical Scope: This study is delimited to selected multinational firms in Rivers State which include Dangote Cement, and Shell Petroleum Limited.

Unit of Analysis: The unit of analysis in this research involves the individuals at the time of carrying out the study. The scope of this study is to ascertain the relationship between strategic management and corporate performance.

In carrying out an investigation of this native the researcher must of necessity be faced with the following constraint.

Firstly, The time constraint’s the time frame provision for this study was short.

Secondly,  Financial constraints. Usually, a study of this nature involved some level of expenditure Therefore; finance was also a limiting factor.

Thirdly,  Poor response from the respondent and inability to access the entire population of the study. In the next segment significance of the study will be discussed. Lastly, poor measurement instrument.

1.8 Definition of Terms

There is need for every work in a research proposal and of course in any research report to be clear as to its meaning, since words have different meaning in different context. As such, the following definition will guide the conduct of this research work:

EFFECTIVENESS It is defined in many ways depending on the organizations goals and objectives in today’s market and also is dependent on the industry

EFFICIENCY It is the ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result.

EVALUATION AND CONTROL Is a process in which corporate activities and performance results are monitored so that actual performance can be compared with desired performance.

INNOVATION It is thus more than coming up with good ideas, it also includes making these ideas work technically and commercially.

PROFITABILITY It is the state of yielding financial profit or gain. It is often measured by price to earnings ratio.

STRATEGIC MANAGEMENT Is a managerial process of making strategies towards Corporate objectives and evaluating the Productivity of employees and adjustments according to the requirements of the department to get best possible result from the formatting strategy.

STRATEGIC MANAGEMENT PROCESS The process of strategic management is a comprehensive collection of different types of continuous activities and also the processes which are used in the organization.

STRATEGY FORMATION It is the process of deciding best course of action for accomplishing corporate objectives and hence achieving corporate purpose.

STRATEGY IMPLEMENTATION It implies making the Strategy work as intended or putting the organization’s chosen Strategy into action.

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