IMPACT OF SOCIAL RESPONSIBILITY ON ORGANISATIONAL IMAGE
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
IMPACT OF SOCIAL RESPONSIBILITY ON ORGANISATIONAL IMAGE
ABSTRACT
This study investigates the effect of social responsibility on organisational image. A case study of Cadbury Nig. Plc. The primary goal of the research was to determine the true impact of social responsibility as a tool for organisational image in order to increase profitability and maximise shareholder wealth, while also considering the interests of shareholders such as owners, employees, customers, community government, and society at large.
The survey approach was utilised; the size of the entire population is too vast for the study, but in this case, a sample size of sixty (60) employees was chosen from a total of seventy (70). Questionnaires were provided to a sample of sixty (60) randomly selected respondents.
This study’s research instruments included a questionnaire and an interview. Data were presented in a tabular format for ease of interpretation. In data analysis, the simple percentage (%) method was utilised for ease of comprehension, while the chi-square statistical methodology was used to test the hypothesis.
The findings found that, while commercial organisations in Nigeria are socially responsible to some level, they are not sufficiently responsible to employees and society in general.
Corporate social responsibility has not been effective in the country due to: decreased profitability, excessive government taxation, a lack of corporate and public awareness, government policy, high production costs, management principles and policies, and so on.
However, there is a positive correlation between social responsibility and business goal achievement. This research paper recommends that the government offer tax breaks to corporations in order to alleviate financial pressure on business units. The study found that corporations should be socially responsible for their direct impacts on the community.
The project’s five (5) core words primarily address the following: impact, social responsibility, society, organisation, and image.
INTRODUCTION
1.1 Background of the Study
The notion of social responsibility is one in which a company considers the interests of society by accepting responsibility for the influence of its activities on customers, suppliers, shareholders, and the environment.
Social responsibility in management refers to the ethical and moral obligation of the organization’s image to society as a whole. It refers to an organization’s social commitment, in addition to its legal and economic obligations, to seek long-term goals that benefit society.
The social obligation of management refers to the organization’s economic and legal responsibilities. Social responsibility is defined as an obligation that extends beyond the formal obligation to comply with legislation and involves organisations taking voluntary actions to improve the quality of life of their employees, their families, and the local community. and society at large.
All organisations have an impact on society and the environment through their operations, goods, and services, as well as interactions with key stakeholders such as employees, customers, suppliers, investors, and the local community.
While traditional business models focus primarily on the economic aspects of organisational activities (e.g., profitability and growth), more modern conceptions of organisational behaviour place equal emphasis on social, ethical, and environmental impact,
as exemplified by the concept of corporate social responsibility. As a result, businesses are far more socially responsible than they were in the past. Business are not just interested in the quality of items.
Not only do they generate goods and services, but they also interact with their corporate environment. They value a positive public perception of their products and services. This might entail a significant increase in long-term profits. A reduced image may have a detrimental impact on company social responsibility.
However, increased influence and pressure from organisations such as labour to respond to societal concerns may lead to the corporation being more responsive. Social responsibilities can develop in two ways for businesses, governments, non-governmental organisations, or any other institution.
They may occur as a result of the institution’s social impact or as societal problems. Both are of relevance to management since the institutions they govern exist inside society. The first focuses on what an institution can achieve for society.
Based on the fact that business depends on society to exist. For example, businesses rely on society for high-quality goods and services at reasonable rates. In light of these, the link between organisations serves the interests of everyone affected by or related to them. Like the government, shareholders, employees, customers, and society.
Corporate social responsibility is defined as serious attempts to solve social problems caused wholly or in part by the corporation, or the obligation of a business to assist the society in which it operates, in order to solve some of the social problems affecting the welfare of the society.
It is a truism that companies, whether local or international corporations (ICHs), have certain corporate social responsibilities to fulfil. The point of contention is whether corporations that carry out these corporate social responsibilities should take a rigid and technical approach or a liberal and broad approach.
The technical term refers to a company’s obligations to its shareholders alone. Advocates of this method base their arguments on long-established company law and norms,
which state that a corporation is exclusively responsible to its shareholders, who put their money in the firm and appoint directors to run the company’s activities in their best interests.
Some legal scholars today have a liberal perspective. The concept of this approach is that a corporation is responsible not only to its shareholders, but also to its employees, customers, the community, and the state in which it works. Despite the foregoing, the cry for corporate social responsibility has not been effectively overblown.
The concerns, however, are where this or that obligation begins and ends, and what principles of behaviour should govern the exercise of executive authority? Should a company prioritise shareholder interests over those of society or the environment?
Should a company be held liable for the societal consequences of this operation? When is this relationship necessary, and when is it an undue burden? What exactly is Corporate Social Responsibility? Drucker (2004) proposed two approaches to meeting the demand for social impact from corporate organisations.
Negative consequences for corporate activities include rural-urban drift traffic jams, environmental pollution, deception and advertising of substandard products for sale in seller markets, tax aversion and avoidance, and so on.
It could be caused by societal issues such as declining living conditions, illiteracy, inadequate infrastructure, insufficient social amenities, and a rising dissatisfaction with the government’s ability to tackle key social problems.
As a result, society has grown to expect businesses who have successfully completed this task to solve significant portions of their problems by adopting social responsibility goals and methods. Finally, businesses cannot avoid societal concerns.
According to Luthans and Hodgets (2006), social responsibilities are businessmen’s obligations to supply policies, make decisions, or take actions that are desirable in terms of our society’s objectives and values. Bedetin (2007) defined social responsibility as the business’s reactive reaction to its mandatory operational legal requirements to its stockholders and shareholders.
The business’s stockholders include society, the government, consumers, employees, and the community as a whole. As stated above, the impact of social responsibility is a business’s commitment to assist the society in which it works in solving some of its social problems that arise directly or indirectly as a result of the business’s operations or actions.
A business is a subset of society within which it operates; it imports its human and material resources, which it processes into output of goods and services from the society, and then exports back to the society; this implies that society responsibility is the need for corporate bodies to give back to it. Should a business be socially responsible? “Yes”.
A company operation pollutes the environment and poses sanitary risks to the society in which it exists. One is responsible for their impact, whether planned or unintentional. As a result, the social impact of a company organisation is the management business, because one is accountable for one’s impact.
One minimises them. Impacts can be an annoyance, such as sanitation hazards, or harmful, such as environmental contamination. They are never advantageous since they come at a cost and pose a threat.
Furthermore, a business is a meeting place of interest for shareholders such as owners, employees, and consumers, which must be reconciled before it can reach its desired objectives, and there are some interest groups that contribute to business performance and establish a positive image for the organisation.
The impact of social responsibility is defined as activities that safeguard and increase societal welfare while also serving one’s personal interests. It is usually stated that firms should not just consider the interests of their consumers, but also the interests of all those who have a stake in the organisation.
Social responsibility focuses on three important areas. The first was the extent to which a manager should sacrifice his commitment to society as a whole in order to maintain his devotion and obligation to his organisation. The second refers to how companies use their authority and use their riches to meet not only the economy but also the human needs of their employees.
The third concept relates the expectation of business enterprises (such as banks) to act as patrons and financial benefactors. Social responsibility is defined as investments in and contributions to the larger community aimed at providing the healthy or excellent environment that the firm needs to survive and operate successfully.
It entails protecting shareholders’ interests in an enterprise by providing a good return on their capital. It entails generating goodwill and a positive public image for the company by providing efficient services and keeping a satisfied workforce in the society.
It entails maintaining customer satisfaction by reducing customer complaints, as well as cooperating and working hand in hand with governments around the world to help them set national goals and create the framework infrastructure that will assist individual economic components in promoting growth and development.
As can be seen from the above, business has a variety of groups to which it must be socially responsible in various ways. In the following chapter, the researcher will identify or emphasise more aspects of social responsibility’s impact.
1.2 Statement of the Problem
If difficulties may be defined as conditions that have a negative impact on the majority of individuals and business organisations, then something should and can be done about it.
Then, some of the issues that this study is seeking to investigate include profit maximisation, government policies involving high tax rates, revenue, levies, and rates. Lack of goodwill, low consumer satisfaction, and a poor economic infrastructure in society,
including substandard roads, water, power supply, administrative processes, and unemployment. Many organisations’ primary goal is to maximise profits.
Many organisations have failed to attain this goal (profitability and expansion) due to their incapacity to assess the impact of social responsibility on the company.
1.3 RESEARCH QUESTIONS.
Research on the influence of social responsibility is a strategy for promoting a positive organisational image. To evaluate this study, certain preliminary assertions and questions will be examined. Some of the questions include:
(1) What effect does social responsibility have on the corporate image of the organisation?
(2) What effect does social responsibility have on customer behaviour?
(3) Should government policies influence how business bodies carry out their social responsibilities?
(4) How does the organisation’s image affect its performance?
1.4 Objectives of the Study
The primary goal of this study is to investigate the effect of social responsibility on organisational image. Other specific objectives are:
1. Examine the organization’s policy, image, and activities in society.
2. To investigate the effect of social responsibility on the organisational image.
3. To determine how government regulations affect a company’s performance of its tasks.
1.5 Significance of the Study
This study will assess the impact of social responsibility on organisational image and survival, with a focus on Cadbury Nig. Plc. The study of social responsibility is crucial for organisations and society as a whole.
The organisation would gain from knowing the facts and diverse areas where they can be socially responsible, measure their impact on society, and be able to convert this opportunity, therefore improving their corporate image and maximising justifiable profits.
It also helps the organisation understand the public’s opinion and reactions to socially responsible organisations. The study of socially responsible organisations.
Scholars, particularly those working in the social sciences, will benefit from research into social responsibility.
1.6 Research Hypothesis
The research hypothesis demonstrates the association between the key variables that are relevant to determining the correlation between organisational image and social responsibility. In order to meet the goals and objectives of this study, the following hypothesis has been developed:
1. Ho: Social responsibility has little impact on an organization’s image.
Hl: Social responsibility has an impact on an organization’s image.
2. Ho: Business enterprises are not socially responsible in order to maximise profit and shareholder wealth.
H1: Businesses are socially responsible in order to make a profit and maximise shareholder value.
3. Ho: Social responsibility isn’t a waste of resources.
H1. Social responsibility is a waste of resources.
1.7 Research Methodology
The research methodology is the operational blueprint that the researcher intends to use to achieve the study’s purpose. Its sufficiency will determine whether the study succeeds or fails. It focuses on ‘how’ rather than ‘what’ and ‘why’ in the study.
1.7.1 SCOPE OF THE STUDY.
The study focuses on how social responsibility affects organisational image. The scope of this study also focuses on Cadbury Nigeria Plc, namely on the moral and ethical content of managerial and corporate decisions, as well as the impact they have on organisational profits.
As previously said, business contributes more to living equality than simply creating. This research focused on areas where organisations failed to respond to the needs of the Nigerian population and to add new dimensions of responsibility to the organisation, consequently strengthening the customers’ trust in the organisation.
1.7.2 Limitations of the Study
The following are expected to be barriers to the effective conduct of this research effort.
a) The time frame within which the investigation must be finished.
b) Financial constraints.
c) Inaccessible and inadequate data.
Nonetheless, I feel that the restrictions listed above will have no bearing on the research study’s reliability or validity.
1.7.3 Sources of Data
Data was gathered from both primary and secondary sources. Interviews and questionnaires were used using primary sources to ensure correct and direct responses. The surveys largely consisted of open-ended questions. This was to allow respondents to:
· Provide thorough answers to all research study questions.
• Improve response time for questionnaires.
· To clarify research needs and
· To increase questionnaire response rates.
In addition to the interview and questionnaire indicated earlier, a critical observation of activities was conducted to confirm the trustworthiness of the primary data collection, which contributed to the acquisition of additional facts on the research study.
Secondary data sources are those that are not directly related to the location of study, such as published annual reports, journals, unpublished course and seminar work, library and desk research books, and other relevant papers and manuals.
1.7.4 DATA ANALYSIS
The study analysed the data using both descriptive and inferential statistics. The data was also analysed using simple frequency counts, percentages, and the chi-squared test.
Questionnaires would be utilised to collect data. Tables would be created to analyse the data and information provided through the questionnaire, and the percentage distribution of the information submitted would be calculated.
Chi-square would be used to determine the relationship between the variables. The hypotheses are developed from a negative and positive standpoint, i.e. a null and alternative hypothesis (Ho and H1), respectively.
A process for determining whether to accept or reject a hypothesis is known as a test of significance.
Once the chi-square value is obtained, a 5% confidence interval will be utilised to evaluate whether the hypothesis is true.
1.7.5 Area of Study
The research focuses on Lagos State, specifically Cadbury Plc. Located in the Ogba neighbourhood of Lagos State.
1.8 Definition of the Terms
For the magnitude study, the keyword employed in the research study must be defined in order to better comprehend the issue. The terminology mentioned below are those used in the context of this research.
Need help with a related project topic or New topic? Send Us Your Topic