Business – The Social Responsibility

Business – The Social Responsibility: (A Case Study Of Nigerian Bottling Company Plc 9th Mile Corner Udi Enugu State)

Business – The Social Responsibility: (A Case Study Of Nigerian Bottling Company Plc 9th Mile Corner Udi Enugu State)

The society can be referred to as system where there are three key players, government, consumers, firms other things being equal.

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The government being the umpire, if the government controls the system in favour of the firms, more firms will be born than die and more consumers will die than be born. As the consumer became increasingly scared. Things began to go badly for the firms. If the condition persistently continues, more firms will die than be born.

As the years pass by and the system was controlled in favour of the consumers, things really began to look good for the consumers at the expense of the firms. This interchange will continue until the government plays a neutral role in the system and that will bring the system to a balance.

No commercial organisation supplying goods and/or services will be able to survive let alone thrive, unless it has customers who are willing to pay for those goods and/or services it provides.

The evolution of business history as an academic discipline began at Harvard Business School U.S.A (United States of America) in 1920’s and ascribed to Dean Donham (Warner 1996:350), Donham Sought both to develop a research area. Which would examine critically the history of firms, and to apply the lessons learnt from this to the current challenge faced by business.

Business and society study all the interfaces between business organizations and the wider communication in which they are set. While traditionally it was not considered part of business management to influence the operation of these interfaces, in the modern world managers must be active in these wider areas as they are within their own firms. This entry explores these interfaces, examining the role of managers in advertising, marketing, research and public relations, the application of business ethics, concern for the physical environment, the use of technological changes and their impact on industrial relations, the awareness of political changes with new laws and new taxes and a recognition of demographic changes having implications for the firm’s activities. Each has a contributory influence on the general social awareness which modern managers require.

Traditional theory sees a firms strictly as profit maximizing organisation. That is, it views profit maximization as the firm’s sole objective. Business enterprise felt public power in determining the survival of the firm. Firms are trying to respond to social programmes, which are both internal and external to the organisation. These special programmes are called social responsibilities of business.

Social responsibility requires business organizations to consider their acts within the framework of the whole social system. This implies that business organizations are responsible for the effect of their acts anywhere in the system. It is an important part in the modern business administration in the sense that, management consider social effects as well as economic effects in its decisions. This affects all sizes of business regardless of their location.

Business does not exist in isolation, vaccum or empty space. It has environment in which it operate and this environment is not statistic in nature. This environment is the aggregate of the demographic, social, cultural, economic, political and technological conditions that influence an organization. The environment provides resources and limitations and determines opportunities open to and threats that can be faced by business organizations: however, business executives should realize that a healthy environment is the bed rock for survival and growth of any enterprise.

Social irresponsibility on the other hand is the failure of business organizations to pursue those policies to make those decisions or to follow those lines of action, which are desirable in terms of the objectives, and values of the society.

This research work is intended to study social responsibility in the area of social amenities and to examine whether Nigerian Bottling Company is socially responsible within it environment.

1.1 HISTORICAL BACKGROUND OF NIGERIAN BOTTLING COMPANY PLC.

Nigerian Bottling Company was invented in May 1886 by Dr. John S. Pemberton in Atlanta, Georgia. The name “Bottling Company” was suggested by Dr. Pemberton’s bookkeeper Frank Robinson. He penned the name coca-cola in the flowing script that is famous today.

Bottling Company was first soda fountain in Jacob’s pharmacy in Atlanta by Willis Venable. During the first year, sales of Beer averaged nine drinks a day, adding up to total sales for that year of $50. since the year’s expenses were just over $70, Dr. Pemberton, took a loss. Today, products of the Nigerian Bottling Company are consumed at the rate of more than one billion drinks per day.

Up until Robert Woodruff’s election as president, the Nigerian Bottling Company’s business outside the united state was somewhat limited. During a trip to Europe, Asa Candler’s eldest son, Charles Howard Candler, has prevented the drink to a London soda fountain owner, who responded by sending an order for five gallons of syrup back to Atlanta occasional shipments also went out to Germany, Jamaico and Paname in those early years, and by 1906, the first overseas bottling plants had been established in panama and cuba. Efforts to make the company’s product available worldwide were stepped up under wooduff’s leadership. In 1926, with only nine bottlers of beer outside the united states and Canada, woodruff established the foreign department. By 1930, the foreign department had been renamed the beer export corporation. Overseas sales climbed steadily, and by 1940, coca-cola bottlers were operating in more than 45 countries.

On January 29. 1897 the bottling company was incorporated as a Georiga corporation. Authorized capital stock is $100.000.

1.2 STATEMENT OF PROBLEM

In the early 1900s, the mission of business organization was primarily utilitarian. But within the past few decades, business organizations have moved away from the traditional utilitarian model to take a more proactive stance with respect to contributing to social responsibilities (Okafor et al 2002: 222).

Corporate enterprise has grown in size. The level of educations has significantly increased and people now ask a lot of questions about their rights, privileges and responsibilities. Related to this the fact that the awareness of the social impact of business activities on the society as a whole is enormous both directly and indirectly (Aluko et al, 1998:157).

Based on the above assertion is some area, we usually hear of some communities revolting against the companies that are operating in their area. For instance, when Enugu Vegetable Oil (AVOP) was in operation, Nachi people revolted against the company saying that it was not being of any help to the community.

Again, in the year 2002, we heard that Ngwo people of udi L.G.A in Enugu State stopped production at coca-cola company at 9th mile because of social irresponsibility.

With the increasing awareness of consumer, and environmental concerns are now leading to conflicts between the companies and environment in which they operate as oil companies and citizens clamoring for less pollution and more amenities from oil companies.

1.3 OBJECTIVE OF THE STUDY

Based on the problem highlighted above, the following objectives have been selected to give focus to the research effort.

a. To study and identify the social activities of Nigeria Bottling Company Plc and determine how it fits into the doctrine of social responsibility.

b. To determine the basic objective for undertaking these social responsibility.

c. To identify what financial implication it takes embarking on social activities by organizations.

d. To suggest ways of improving on social responsibility.

1.4 SIGNIFICANCE OF THE STUDY

It is hoped that this study when completed will contribute to existing literature on effects of social responsibility and therefore will serve as reference material for students who may wish to explore the subject matter further. It is also hoped that the study might help the organization to reassess its activities on the areas of social responsibility and in addition, all mentioned and determined problems and solutions will be critically reviewed to serve as possible recommendation.

1.5 SCOPE AND LIMITATION OF THE STUDY.

This research study intends to consider or rather to assess the extent of social responsibility as it concern as the Nigerian Bottling Company at 9th Mile Corner Enugu State.

Lawrence C. Okafor and Ama A. Udu (2002: 16) For the purpose of the study, social responsibility might be defined as a concept that involves all the activities of organization in which their limited resources are expended, appear less economically attractive and viable, but are socially desirable by members of the society. Examples include awarding scholarships, financial support for charities, tarring of roads, sinking boreholes and so on.

LIMITATION:

In Nigerian, to carry out a research is usually fraught with some difficulties, mostly due to ignorance, dishonesty, lack of trust and a host of other problems like:

a. Finance (b) Time factor c. Scarcity of library materials.

The study is focused mainly on social responsibility of Nigerian Bottling Company Plc 9th Mile Corner Enugu State. This includes aspects on waste management, pollution control, education, employees welfare etc.

1.6 RESEARCH QUESTIONS

1. What are the social activities of Nigerian Bottling Company?

2. What are the objectives for undertaking the social responsibility?

3. What are the financial implications of embarking on social activities by organisations.

LITERATURE REVIEW

2.1 DEVELOPMENT/ EVOLUTION OF SOCIAL RESPONSIBILITIES OF BUSINESS

In the early stages of human society, trade or exchange in any form did not exist. Every family unit lived on the most basic food items required by it and sufficiently produced such goods. For instance, man as a hunter in the early stages of human existence lived on fruits and wild animals, which were sufficiently abundant for all.

Later, as society developed and became more civilized, there was division of labour and specialization. People later found out that they could produce certain items better and cheaper than others. This division of labour and specialization first led of exchange of goods for goods (Okoro 1999:4). This system of exchange was known as Barter.

Further organization and development in society led to stronger entrenchment of the exchange process. For instance some societies has soldiers primarily for defence; administrators to run the society and traders to produce and exchange one type of goods or services for another as witnessed in the case of early Greek, Rome, India etc. production within this time was in small scale.

With the coming of industrial revolution mainly in England in the 18th century, the great need for the distribution of mass produced goods became more evident. People were moving to larger towns to work in factories. Exchange and trade were also developing in the colonies like West Africa, South Africa, India etc. production within this time was in large scale.

W. J Stanton (1984:195) states that the need for marketing arises and grows as the society moves from an economy of Agriculture and self-sufficiency to an economy built around division of labour, industrialization and urbanization.

As more factories were developed in many countries, production capacity grew tremendously. By this time, it become clear that production was not stripping demand and consumption of goods. Manufacturers questioned the rational behind producing goods, which an increasingly affluent and sophisticated society did not want. This led to the production of goods which consumers wanted thus bringing the consumer into more consideration.

In the late seventies and early 80s, consumer welfare, environment concern and the total welfare of the society, led to the increased pressure on business organizations to sacrifice some of their profit for social and environment concerns. This led to societal marketing where it was believed that focus in the welfare of the society will in the long run bring in more profit for the organization through greater patronage by the society.

2.2 OVERVIEW OF SOCIAL RESPONSIBILITY

We are living in a world that is dynamic and full of uncertain ties. Until the 1960’s, business organizations apparently considered themselves to be a closed system; that is one which operate without having significant transaction with those outside the economic system, but for any business to survive and grow, it must be able to influence its public or adapt to changes in its environment.

The desire of the society from business is changing rapidly. The society does not only want goods and services from business but it also want its social needs to be met by business. Thus for any business to survive and grow, it must be able to influence its public or adapt to changes in its environment.

Probably, no question has received more attention by business organization, government, politicians and people in the past few years than the question of what the social responsibility (ies) of business organization is (are)?

One school of thought maintains that business should be socially responsible to all its publics. Another school of thought maintains that the owner of business should receive the social responsibility of business.

Milton friedman, an economist, is a key figure in the school of thought that maintains that the only responsibility of business to make as much profit for its owner as it can (Milton Friedman in Hicks and Gullet 1962:133) the people in this school of though follow the profit ethics. Profit ethics holds that the primary object of business is to maximize profit and secure the interest of its owners (Glueck 1977:568). This school also believes that managers are not trained to play social roles. The critics want ahead to say that managers are appointed by owners to maximize the economic gain of the firm within the established legal framework. Thus, the social role of business is a passive role.

The school of thought that business should be socially responsible to its public said that business has grown in both economic and social power, and that social power and social responsibility form an equation that must be balanced. When an institutional power grows, its responsibility grows accordingly (Blomstorm et al 1980:78). Hicks and Gullett added that for a firm to exercise enough responsibility it will eventually result in an institutional losing some of its power so that the power responsible equation become balanced gain (Gullett up cite 1981:76) profit maximization is not the only aim of business but some profit should be diverted to social responsibly projects. In the short run; this will lead to greater ability to survive and satisfactory long run profits (Glueck up cite:569). It could be rightly said that this school of thought believes in social ethics. Social ethics holds that a business is responsible to many groups besides owners including employees and customers. Thus the social responsibility of business is an active role.

Business organization have a responsibility to undertake other than producing goods and services, profit making (maximization). This statement leaves us with the historical perspective of social responsibility of business.

However, social responsibility involves various functions performed by business organization the areas of social matters, which benefit the public, but have no economic benefit to the organization carrying out such functions.

2.3 HISTORICAL PERSPECTIVE OF BUSINESS SOCIAL RESPONSIBILITIES

The concept of social responsibility can be said to be a fairly neglected one in the world of business. This is because right from the time of Adam Smith and other great social scientists, only little or no attention was paid to that aspect of business environment. Today, however, it has become such a common nomenclature in the vocabulary of business organization that special attention is now paid to it as an essential part of business existence, survival and growth.

Business firms must earn profits while simultaneously acting as good citizens. Indeed, they must earn profits if they are to survive and continue to provide their products and /or services. (Longenecker et al (1997:555). Certain things are expected of business organisations. These things are known as business obligations. Though these obligations vary, they are peculiar to each business and have one thing in common which is to maintain a continued beneficial relationship between the business organization and the different groups. These obligations have been discovered to be economic and social in nature. The public can facilitate or impede a company’s ability to achieve its objectives. The wise company takes concrete steps to manage successful relations with its key public (Kottlet 1994:676). However, before investigating further into the issue of social responsibility, let us now look at what business are and what they do.

2.4 DIFFERENT DEFINITIONS OF BUSINESS

The term “business” is differently perceived. Some see it as the act of buying and selling of goods and services (Okafor et al 2002:1) others describe it as an economic activity. Others say it is an organization that makes profit. The economists conceptualize any exchange transaction that produces profits as a business. (Boone and Kurts, 1976) in Okafor et al define business in more technical sense. He sees business as “all legal, profit-directed economic and commercial activities that provide goods and services necessary to a nations standard of living”.

The presence of business in any society also has some impact on the society. Infact, both depend on each other for sustenance, survival and growth. Therefore, a type of symbolic relationship exists between the two, each depending on the other however, the society has never believed that there is this mutuality which is believed to be present in most thriving relationship (Gullet et al 1982:3). As a result, the society always feel deprived and cheated by business organizations. This then brings us to the them of this write up: social responsibility of business organization, what social responsibility is and why it is being emphasized?

2.5 DEFINITIONS OF SOCIAL RESPONSIBILITY

The issue of business social responsibility has become a subject of wide discussion and growing concern to many organization especially the multi-national corporations. This in turn made it difficult to prefer a comprehensive definition of the concept. In today’s business world, the concept connotes different things to different people especially in the developing world. This can be seen from an analysis of the various definitions of the concept put forward by different authors.

According to Akpala (1990:38), social responsibility is an image, which organizations demonstrate to society by its management system.

The concept of social responsibility is the obligation of businessmen to pursue those policies to make those decisions or to follow those lines of actions which are desirable in terms of the objectives and values of the society (Renon 1986:495).

An analysis of these two definitions given above shows that it has some shortfalls. The major problem with these definitions is that operationally they are found wanting for one thing, they have failed to state the line of actions which are desirable in terms of the objectives and values of the society. These definitions therefore assumed that the business managers know their obligations in the area of social responsibility and should carry them out.

The intelligent and objective concern for the welfare of society which restrains individuals and corporate bodies from ultimate destructive activities no matter how immediately profitable and which leads in the direction of positive contributions to human betterment, is social responsibility (Nwachukwu 1988:272).

The analysis of these definitions by Nwachukwu stressed the importance of being socially responsible both by individuals and organization. That is to say that social reasonability is not limited to business organization but it also extends to individuals.

2.6 PHASES OR ERA OF SOCIAL RESPONSIBILITY

Developments in the revolution of marketing have been significant from the end of the 19th century and the beginning of the 20th century to the late 20th century (Umeh 2002:20). These development have been classified into five eras.

Each era witnessed the application of different concept, policy and technique to the formulation and disposition of product by manufacturers.

The five different eras and their different approaches to marketing are discussed hereunder:

I. THE PRODUCTION ERA:

This was around the 1900’s. the emphasis was how to produce goods and not how to sell. Firms adopted production techniques with focus on product research, which was aimed at mass production. Competition during this era was on quantity, not quality since everything produced was sold. Eventually, this led to excess production of goods. Firms then began to think about quality in other to sell large quantity of good they produced over their competitor’s products. This quality emphasis led to the product era.

II. THE PRODUCT ERA

This era covered the period of the 1910’s. quality in this era was defined by taste and durability. Consumer items like shoes, cars etc produced, lasted for many years. The belief was that if a man made a better mouse trap, the world beat a path to his door. It was later discovered that quality alone never quanranteed sales and return to investment. This is because durable products lasted for very long time there by discouraging repeat purchase inventory thus kept mounting in company’s warehouses. More activities to sell these goods led to sales era.

III. SALES ERA:

This era was marked by shortage of consumers. The emphasis was to find buyers for their product and convince them through high-pressure tactics to buy these products. This period was between the 1920’s and 1950 which witnessed the great depression and lack of purchasing power. Sales department was first established in many firms and advertising came to assist the sales effort. In the 1950’s consumers became more sophisticated and more affluent. They were not eager to buy many goods and this led to the collapse of many firms. Companies came to the conclusion that the only way to avoid failure and ensure demand was first to ascertain what could be sold by finding out from the market what the market would buy before producing. This led to marketing era.

IV. THE MARKETING ERA:

This was the period of market or consumer orientation. The basic assumptions were:

a. Companies should produce only what consumers’ want.

b. Management must integrate all company activities in order to develop programmes to satisfy those wants.

c. Long-range profit goals rather than quick sales should guide management in decision making.

Product failure was rampant and the businessmen attempted to stem this tide by first finding out producing it. This led to societal marketing era.

V SOCIETAL MARKETING ERA:

This era rose in response to calls by environmentalists, consumerists, concerned citizens and government for safer and better quality products, unpolluted environmental and social responsibility. This concept holds that the success of a firm is measured by the degree of both consumer and society’s well being and that management should direct its efforts at satisfying consumer at a profit as well as maintaining the society’s well being.

2.7 CONCEPTS OF BUSINESS ENVIRONMENT (THE PUBLIC OF BUSINESS)

The environment of business is ever changing and ever-evolving such that the only permanent thing about the business environment is change (Okafor et al 2002:16). By business environment, we refer to all the person, groups, forces, actors or their agents whose actions directly or indirectly affect the operations of an enterprise (Okafor up cit: 17).

Environment is very important when doing business; since business is not operated in a vacuum. The business and environment affect each other. This could be positive or negatively. No matter the direction in which the organization is effected, the environment of business should not be neglected if the organization wants to succeed. Moreover, the environment of business is dynamism in nature and this dynamism will put the business managers to be on the look out in other to checkmate the movement.

2.8 ENVIRONMENT WHICH BUSINESS ORGANIZATIONS ARE TO SERVE

The British institute of management lists eight areas of public, environment, social or civic responsibility for a business organization. They are as follow:

a. The government or legal responsibility for a business organization.

It must be realized that businesses owe some social responsibilities to the government as a sign of appreciation for the protection and sometimes – financial assistance that the government extend to them (Umoh 1998:251). The management can discharge these obligations in the following ways:

i. Declaring true profits and paying taxes regularly:

ii. Accepting government interventions in business affairs as normal rather than currying for favours or protesting against such intervention;

iii. Making all directors and managers aware of current and pending legislations relating to the conduct of the business;

iv. Exposing competitors that violate the law:

v. Not indulging in illegal importation of contrabands not producing.

b. Responsibilities to shareholders:

Managers may not necessarily be the owners of business organization. Where the two are different people, the management owes the owner(s) social responsibilities in:

i. Producing economically, so that the owners can make some reasonable profits on his (their) investment;

ii. Dealing equitably with different classes of shareholders;

iii. Preparing and submitting annual reports and accounts to shareholders and disposing earnings properly etc.

c. Responsibilities to employees:

treating employees fairly, making them part of the team and respecting their dignity and basic human needs can go a long way towards having a satisfied work force. Take for instance the Japanese “RINGISHO” which is the Japanese system of management that has gone a long way to enhance Japan’s technological wonders in the world today. As human beings, employees have certain needs that they expect the organization or management to help satisfy them. They also expect to derive many benefits and privileges other than wages and salaries from the organization. Some of these responsibilities are:

i. Making recruitment and promotion practices non discriminatory, particularly in relation to race, tribe and religion;

ii. Providing security of tenure for employees;

iii. Making employment, promotion, redundancy and pension policies equitable and clear to employees etc.

d. Responsibilities to suppliers:

Suppliers are business firms and industries who provide resources needed by companies and its competitors to produce good and services (Kotlen) 1998:137). These include:

i. Honoring settlement dates with suppliers instead of using them as an involuntary source of funds,

ii. Giving consideration to suppliers interest and trying to maintain a fairly regular flow of orders instead of considering ones own requirements only etc.

e. Responsibilities to customers:

In Nigeria, most business organizations do not see any reason that they owe their customer a duty. Unfortunately, companies look at the need of customers from the narrow point of view, which is how much money they were able to exploit from their customer as a priority factor more especially when they have monopolistic power. Business organizations have a responsibility to serve its customers well. According to Drucker (1974:312-314) the days when business could operate successfully on the precept of caveat emptor, “let buyers beware” are long gone. In today’s society, he further argued that firms are expected to produce goods and services of safe; acceptable quality on honest terms without misleading claims and deceptive financing practices. Under U.S.A law, companies must avoid false or deceptive advertisement. Advertisers must not make false claims such as stating that a product cures something when it does not (Kottles 1998:598).

f. Environmental responsibilities:

In recent decades, deterioration of the environment has become a matter of wide spread concern. One source of pollution has been firms that discharge waste into streams contaminants into the air and noise into the areas surrounding their operations. (Canter 1997:248). Firms must carefully and adequately discharge its waste without contaminating the environment.

g. Responsibilities to local communities:

A good number of issues affect the wider society to which business should respond to. For example, in recent time Acquired immune Deficiency syndrome (AIDS) and family planning are some of the most prominent issues in our society. It is therefore, the social responsibility of business to involve themselves in educating the general public about these issues and in helping to sponsor research that could help to eradicate or address such issues.

h. Responsibilities to competitors:

Business firms also have responsibilities to their competitors in the same industry. These responsibilities are as follows:

i. They should attempt to be fairly competitive and eschew a desire and tendency for monopoly:

ii. They should not attempt to gain access to competitor’s secret research, production or marking data through industrial espionage or by luring away an employee especially for the purpose of getting such information.

2.9 NEGLECT OF SOCIAL RESPONSIBILITIES

Many factors account for the neglect of social responsibilities by Nigerian business organizations. Some of the major reasons include:

a. The relative small size of Nigerian business enterprises. Many Nigerian enterprises are size and their financial strength precludes the consideration of social responsibilities at task that must be seriously considered;

b. Many large enterprises are owned by foreign firms whose main occupation is profit maximization. Some of these firms see social responsibility as a patriotic gesture best undertaken by indigenous businessmen to help their country.

c. Some of the entrepreneurs came from countries where the consciousness for social responsibility is at best in its basic infancy. This is the case in Britain.

d. Nigerian has, over the years placed much reliance on publicly owned enterprises. The government or foreign companies either own the major organization in this country like production and distribution of coal, generation of electricity, oil drilling, refining and distributing etc. since these large enterprises belong to the society, it is assumed that they are socially responsible since profit is not their major interest.

e. The lack of professionalism in management style. Many Nigerian managers do not perceive social responsibility as one of the key functions of management.

2.10 ARGUMENTS FOR AND AGAINST BUSINESS SOCIAL RESPONSIBILITY

Many scholars have contributed greatly to the controversy of social responsibility.

2.10a ARGUMENT FOR SOCIAL RESPONSIBILITY

Some arguments to embark on social responsibility. Some of these arguments include:

a. The creation of a better social environment benefits both society and business. Society gains through better neighborhoods and employment opportunities; business benefits from a better community, since the community is the source of its work force and the consumer of its products and service.

b. Social responsibility is in the best interest of the business; this argument can best be summarized in two forms, positive and negative depending on how the business organization views the ideas (Okafore et al 2002:235). The positive is based on the conception that fufillment of social responsibility will benefit the organization in the long run, on the other hand, the negative aspect is based on the conception too, that where business fail in societal problems, society may retaliate by or chest-rating product boycotts and protests.

c. Socially responsible action is an ethical issue. This argument holds that companies should commit themselves to social activities because they have a moral obligation to do so. Those that subscribe to this view are of the opinion that social problems are largely created by business and as such, business is expected, as a matter of conscience to be socially responsible.

d. Desire for corporate autonomy; it the need for private business to check government incursion and interference in their affairs. They want to survive. They want to be free from undue political intervention and control. To achieve these, they should exercise self-regulations and discharged their social obligation without being pushed to do so.

2.10b. ARGUMENTS AGAINST BUSINESS SOCIAL RESPONSIBILITY

Although some arguments have been advanced for the needs for business organization to embark on social responsibility, there are also arguments on the contrary. These include the following facts:

a. There exists no complete support for involvement of business in social actions consequently: disagreements among groups with different view points will cause frictions.

b. In the final analysis, society must pay for the social involvement of business through high prices social involvement would cause excessive costs for business which cannot commit its resources to social actions;

c. Money for scholarship or to train workers is not readily available and because of the prevailing dismal economic climate, many firms cannot afford to invest in social facilities;

d. The primary task of business is to maximize profit by concentrating strictly on economic activities and as long as it stays within the rules of the game, it is socially responsible economic efficiency.

The list of the argument is endless. But the much we have reviewed is enough to highlight the controversial nature of the subject. However, it is important to state that the proponents of this argument seem to have stronger position than the opponents. This is because, in addition to the points highlighted above, it is morally unjustified if businesses should refuse to contribute to solving problems either created by them or by nature in the society in which they operate. By implication, the concepts of incorporation, business acquire legal status and therefore are seen as artificial being capable of suing and being sued. They should therefore perform their civic responsibilities just like other citizens. Moreover, involvement in solving social problems of the society creates favorable image for the business. This is because “the public can facilitate or impede the company’s ability to achieve its objectives. The wise company takes concrete steps to manage successful relations with its key public (Kottler 1994:676) 5th edition.

Furthermore, governments all over the world, both in industrialized and developing nations seem to have accepted the arguments for social responsibilities of business. This can be seen from a number of legislations enacted by them. Some of these laws as obtained from Nigerian perspective are:

i. Weights and measures act of 1962.

ii. Standard organization of Nigeria decree 1971.

iii. Food and drug Act of 1974

iv. The price control legislation of 1970

v. The companies and Atlied matters decree (CAMD) 1990 etc.

The weights and measures Act of 1962 provided for the standardization of measurement instrument in Nigeria so that consumer would not be exploited.

The standard organization of Nigeria Decree 1971 was promulgated to ensure that manufacturers produce and sell goods of acceptable standard.

The price control legislation of 1970 was aimed at eliminating hoarding and arbitrary price increase by manufacturers and sellers in general.

The Company and Allied matters is Decree of 1990 made provisions for the incorporation, regulation and winding up to companies.

Furthermore, the CAMD, 1990 also made provisions for the protection of society and general public. The Decree provided for the disclosure of as much information as is reasonably required by the shareholders, the creditors of the company and the general public the CAMD 1990 also made elaborated provision regulating the duties and responsibilities of directors of companies.

2.11 THE LAW AS AN INSTRUMENT OF SOCIAL RESPONSIBILITY IN NIGERIA

Inspite of all the arguments about the concept of business social responsibility, many managers in Nigeria are not minding the negative impact of their business activities. As a result, the Federal Government of Nigeria has enacted several pieces of legislations aimed at compelling businesses in different sectors of the economy to be socially responsible. These include:

i. Weights and measured Act of 1962.

ii. Standard organization of Nigeria

iii. Food and Drugs Act of 1974.

iv. The price control legislation of 1980

v. The companies and allied matters Decree (CAMD) 1990 etc

The weights and measures Act of 1962 provided for the standardization of measurement instruments in Nigeria so that consumers will not be exploited.

Standard organization of Nigeria Decree of 1971 was promulgated to ensure that manufactures produce and sell goods of acceptable, international/national standard. This will stop production of sub-standard goods. The food and drug Act of 1774 made elaborated provisions for the regulation of the manufacture, sale and advertisement of drugs, food, cosmetics and other like commodities. It prohibits the sale of harmful substances, commodities not fit for human consumption, food of drug that is adulterated or produced, packaged preserved or stored hinder unsanitary conditions.

Price control legislation of 1970 was aimed at eliminating hoarding and arbitrary price increases by manufactures and sellers in general.

On its own part, the companies and allied matters, Decree 1990 among others, made provisions for the incorpoation, regulations and winding up of companies. Firstly, the law protects the businessman by putting a corporate shell according to him by making the companies a separate legal person, distinct and different from the shareholders. The shareholders are therefore protected from liabilities beyond what they have invested. The concept of limited liability is also a warning to the potential company customers especially creditors and the general public that they cannot hold the shareholders personally responsible for the debt of the company.

Furthermore, the CAMD, 1990 also made provision for the protection of the society and the general public. The decree provided for the disclosure of as much information as it reasonably repaired by the shareholders, the creditors of the company and the general public. This public accountability is ensured by the provision for a compulsory maintenance of various registers and publication of annual statement of accounts to the general public (in the case of public companies). Also, members of the public can get informations about any company from the cooperate affairs commission from such documents like the Memorandum and Articles of Association, Extra ordinary and special resolutions of one company filled with them as provided for the CAMD 1990.

The CAMP 1990 also made elaborate provision regulating the duties and liabilities of the directors of companies. These provisions request for details of the particular of directors and their interest in the company.

2.12 WHOSE DUTY FOR SOCIAL RESPONSIBILITY

A lot of arguments have cropped up from this critical issue i.e. whose duty is social responsibility the government of business. Some argued in favour of business organization while others argued in favour of government.

Those that argue on favour of business organization said that the business is paying taxes to the government and therefore it is the responsibilities of the government to carry out social responsibilities to the community.

On the other hand, those that argued in favour of government said that the taxes that the business organizations pay are for conducive environment that the government provides for the business organization. This made it possible for them to operate. Apart from this tax they pay; they should satisfy the community with their own needs.

REFERENCES

Agwu Akpala (1990). Management; An introduction and the Nigeria perspective. Precision printers and publisher Enugu.

Canter L.W. (1997). Environement Impact Assessment. Mc Graw-Hill books coy. Signspore.

Druncker P.F (1974). Management Tasks Responsibilities and Practice. Harper and Row Ltd New York.

Edgar F.H (1982). Management. West Publishing Company New York.

Friedman Milton (1962). Capitalism and Freedom University of Chicago Press.

Hicks, Herbert G and C. Gullet (1987). Management. Forth Edition Singapore Mc Crow- Hill Inc.

K. Davis and R.L. Blomstrom (1980). Business society and environment. Mc. Graw – Hill New York.

Kotler (1998). Marketing Management 11th Edition. Pear son Education Singapore Ptc Ltd

Kotler .P (1994). Marketing Management. 5th Edition. Prentice Hall Inc. U.S.A

Kotler P. (1988). Marketing Management. Prentice Hall New Jersey.

Kotler P. (1994). Marketing Management. Paramount Communication Coy U.S.A

Nwachukwu C.C. (1998). Management Theory and Practice. African Fep. Publishers Ltd Onitsha.

Okafor L.C and Ama A. Udu (2002) Essentials of Business Management. Willy Rose and Appleseed Publishing Coy.

Okoro W.(2001) Money and Banking. Rosy Publisher. Abakaliki.

Renon S. (1986). Comparative and Multinational Management. Will International Business services. New York.

Umeh G. etal (2002). Principles of Modern Management Jones Communication. Publishers.

Umoh S.M (1998). Analysis for Management Principles and Practice J.T.C Publishers Enugu.

William F. Glueck (1977). Management. Dryden Press.

William J. P. et al (1994). Small Business Management. International Thomson Publishing U.S.A.

 

RESEARCH METHODOLOGY

3.1 INTRODUCTION

In the preceding chapter, we examined the relevant literatures that guided the study. This chapter discuss the methods and procedures used in generating data for this study. This methodology provides a detailed account of the methods used in selecting the data, why the methods were chosen, what data were obtained how they were obtained and analyzed.

Iyiogwe (2002:108), defines research methodology as the systematic process or procedure designed for generating, collecting and analyzing the data required for solving a specified research problem. In the light of the above, this chapter is therefore a systematic presentation of how the study was carried out and information generated. The presentation of the study is divided into the following sub-headings.

= Research design

= Population and its characteristics

= Sample size and its determination

= Sources of data

= Collection of data

= Data analysis techniques

3.2 RESEARCH DESIGN

Baridan (1995:50), Points out that research design does not mean the specified method for collection data e.g questionnaire, interview or direct observation, but the more fundamental question is how the study subjects will be brought into the scope of the research and how they will be employed within the research setting to yield the required data.

Arguing further Baridan (1995:51), asserts that research design is a guide in collecting and analyzing the data for a study Umoh (1977:71), posits that research design is otherwise referred to as “PROCEDURE PHASE”.

Beridan (1995:52), stipulates that there are two types of research design, namely the experimental and quasi- experimental research design respectively. In this study, the researcher used, the quasi-experimental research design because, the study elements were not under the researcher’s control.

3.3 POPULATION AND ITS CHARACTERISTICS

This research was designed to study the social responsibility of business. A case study of Nigerian Bottling Company Plc 9th Mile Corner Udi Enugu State. The researcher decision to used Nigerian Bottling company as a case study because, it was the top Nigerian Bottling Company as at the time of the study.

The population of Nigerian Bottling Company Plc 9th Mile Corner Udi Enugu State stood at ninety six (96) representing the entire staff of the company as shown in the table below:

TABLE 1

MANAGERS SUPERVISORS JUNIOR STAFF TOTAL

N 7 10 79 96

Source: Payroll Statistics July, 2006.

3.4 SAMPLE SIZE AND ITS DETERMINATION

Based on the population of Nigerian Bottling Company, confidence level of 95% and the error tolerance of 5% in determining the sample size was chosen. the sample size was therefore, determined by using Yaro Yameni’s Formula:

n = N

1+N (e)2

Where:

N = population

n = Sample size

e = The margin of error

1 = Constant

given that:

N = 96

e = 5% (0.05)

n = 96

n = 96

1+96(0.05)2

 

n = 96

1+0.24

n = 96

1.24 = 77

:. = 77 respondents

Operative assumption = 5% (0.05) margin of error

Sample fraction = 77 = 0.08

96

Stratum sampling formula

nx = (n) (Nx)

N

(Managers)nx = (77) (7) = 6

96

:. (Managers)nx = 6 questionnaires

(supervisors)nx = (77) (10) = 8

96

:. (supervisors) nx = 8 questionnaires

(Junior Staff) nx = (77) (79) = 63

96

:. (Junior Staff) nx = 63 questionnaires

 

TABLE 2

Managers Supervisors Junior staff Total

Nx 6 8 63 77

Source: Survey Data 2006.

The questionnaires were distributed and administered personally by the researcher.

3.5 SOURCES OF DATA

Iyiogwe (2002:109), asserts that two sources of data are

generally used for research. These are the secondary (documented) and primary (fresh original) sources.

3.5a SECONDARY SOURCES

Nworgu (1991:23), posits that secondary sources are those materials which contain an account of an event or phenomenon by some one who did not actually witness the event or phenonmenon. The author of secondary source material tries to collect and synthesized a pool of primary materials.

In the course of this research, the researcher used the following secondary sources of data: textbooks, bulletins, newspapers, journals, periodicals and internal browsing.

3.5b Primary sources

Primary are those sources, which contained a direct account of an event or phenomenon. All research reports written by the person or persons who conducted the research are primary sources (Nworgu, 1991:22). All data collection for a specific purpose by the researcher from the field are known as primary data (Iyiogwe, 2002:21).

The researcher used questionnaire and interview when necessary as primary sources of data.

3.6 DATA COLLECTION

Collection of data is a very crucial step in the research process. Every scientific research involves the collection of pertinent data. Such data are necessary for arriving at the solutions of the problem on hand (Nworgu, 1999:81).

The researcher collected data through the use of questionnaire that was distributed to the staff and management of Nigerian Bottling Company in order to determine the social responsibility of business in the Nigerian Bottling Company. The researcher also used internet, browsing, textbooks and oral interview in the data collection.

3.7 QUESTIONNAIRE AND ADMINISTRATION

The questionnaire was divided into two parts (A and B

respectively) in part A, the researcher considered the respondent’s personal data like, sex, age bracket, qualification and rank. The question in the questionnaire were designed in a simple language for easy understanding and articulation.

In part B, researcher structured the questionnaire into structure, and unstructured questions. In the structured question, the respondent is restricted to some response options in such a way that the respondent is guided to tick the one he/she feels is the correct. One advantages of this types of questionnaire is that the respondent has a multiple choice of answers to choose from while the disadvantage is that the respondent is not entitle to his/her opinion.

On the other hand, the unstructured question does not provide any response options for the respondent. Only questions pertinent to the problem are asked and the response in his/her own opinion. One the advantage of this form of question is that it allows the respondent to express his/her own opinion. While, one of the disadvantages is that, it is difficult to complete and time consuming. The questionnaires were distributed to the management and staff of Nigerian Bottling Company through the personnel manager of the company.

3.8 DATA ANALYSIS TECHNIQUES

The researcher used tables, simple average and percentage as a means of analyzing the data collected from Nigerian Bottling Company for fair representation and easy comprehension of the data so collected.

 

REFERENCES

Baridan, D.N. (1995), Research Method in Administrative Science, Port Harcourt: Paragraphics.

Iyiogwe, S.O. (2002), Research Methodology: New Practical Approach for Report with Vocational Statistics (2nd ed), Abakaliki: Willy Rose and Appleseed Publishing Coy.

Nworgu, B.G. (1991), Educational Research: Basic Issues and Methodology, Ibadan: Wisdom Publishers Limited.

Umoh, S.M. (1997), Fundamental of Project and Research Writing in Tertiary Institution, Enugu: JEE Communications.

RECOMMENDATION, SUMMARY AND CONCLUSION

4.1 RECOMMENDATION

With respect to the researcher’s findings, the research will make the following recommendations:

(a) Nigerian Bottling company 9th mile Enugu should increase employment quota of the local community where they operate more especially in top position if they have the necessary qualifications for the post. When this is done, it will help to improve the image of the company and there will be increased friendly relationship between the company and the general public.

(b) The company should engage in given scholarship to the public

(c) The company should form a committee apart from the public Relations officer who will be going round to seek the public advice on the areas, which they want the company to be socially responsible.

(d) The Nigerian Bottling company should provide school to the children of their employees.

(e) They should provide hospitals to maintain adequate health care of their employees.

4.2 SUMMARY

The topic that has been researched 0n by the researcher is an interesting and very important one which so many company do not pay much attention to.

Social responsibilities are services any business organization renders to its environment for which money and materials are spent by the money and for the benefits of the community for which the organization gain nothing usually performed in Nigeria in a charitable manner while in some other, advanced countries, the law usually mandates companies to carry out these responsibilities. The type of services includes; scholarship award, road construction, health care services, donations to charitable homes, community development centers.

Though some people argue that business organizations should concentrate on their profit motive while forget social responsibility while others argued that every business organization should be interested in the development of the community or environment in which they carry out their business. This point was buttressed by this group of people based on the fact that business not operate in isolation nor does it operate successfully in an unhealthy environment. All these views about social responsibility has been reviewed during the literature review of this work. Nevertheless, we have equally seen the areas where Nigerian Bottling company 9th mile Enugu state has exhibited or carried out their social responsibilities function and the areas they need to sit up or give more attention to.

4.3 CONCLUSION

This research work social responsibility of business organization which Nigerian Bottling company 9th mile Enugu state was a case study had been thoroughly carried out. From the analysis given above, it can be seen that Nigerian bottling company carry out their social responsibilities mainly on its internal environment like the employees, staff welfare services etc. and to support of its external environment like the shareholders, customers, Government, etc while it pays little or no attention to some of the environment which is the most important of all because it is when people have healthy environment that they will be healthy to consume the company’s product which is the determinant of profit to the organization.

Though social responsibility does not generate immediate return to the company, it usually has long-term benefits to any company that is carrying it out. I hope with the recommendations so far made that the company will spring up to action on those areas they are lagging behind in other to maintain the position, which they have attended in the beer world.

BIBLIOGRPHY

Agwu Akpala (1990). A management: An introduction and the Nigeria perspectives. Precious Printers and publisher, Enugu.

Alukom et al (1998) “business Policy Strategy” Educational Publishers Nigeria.

Center L.W (1997). Environment Impact Assessment Mc Graw-Hill Books coy. Singapore.

Druncker P.F (1974). Management Tasks responsibilities And Practice. Harper And Row Ltd New York.

Edgar F.H (1982) Management West publishing company New York.

Friedman Milton (19620. Capitalism and Freedom. University of Chicago Press.

Ikime O. (19900 “a History of Nigerian Bottling company 9th Mile Enugu state” Management Reproduction Ltd London.

K. Davis and R.L. Blomstrom (1980) Business, Society and Environment. Mc Graw New York.

Kotler (1988). Marketing Management. Prentice Hall New Jersey.

Kotler P. (1994). Marketing Management 11th Edition. Pearson Education Singapore Pte Ltd.

Kotler p. (19940. Marketing Management. Paramount communication coy U.S.A.

Nwachukwu C.C.(19980. Management theory and Practice. African Feb Publishers Ltd Onitsha.

Okafor L. and Ama U. 92002). “Essentials of Business Management” Willy Rose and Appleseed publishing coy. Nigeria.

Okafor L.C and Ama A, Udu (2002). “Essentials of Business Management” Willy Rose and Appleseed Publishing coy.

Okoro W. (20010 Money and Banking. Rosy publisher Abakaliki.

Renon S. (1986). Comparative and Multinational Management. Wiley International Business services. New York.

Umeh G. et al (20020. Principle of Modern Management. Jones communication publishers.

Umoh S.M 91998). Analysis for Management principles and Practice. J.T.C Publishers Enugu.

Warner M (1996). “International Encyclopedia of Business Management.

William F. Glueck (19770. Management Dryden press.

William J. Petal (1994).Small Business Management International Thomson publishing U.S.A.

 

QUESTIONNAIRE

Please indicate your response by ticking [] in the appropriate box.

PART A (PERSONAL DATA

(1) Sex: (a) Male (b) Female

(2) Age Bracket: (a) 20-30 Yrs (b) 31 – 40yrs

(c) 41 – 50yrs (d) Above 50yrs

(3) Marital status: (a) Single (b) Married

(c) Divorce

(4) Qualification (a) SSCE (b) OND

(c) First degree (d) Above first degree

(5) Rank ——————————————————–

PART B

(6) Have you heard of social responsibility?

(a) Yes (b) No

(7) List three implications of social responsibilities in Nigerian Bottling Company at 9th mile corner Enugu state.

(a) ————————————————–

(b) ——————————————————

(c) ——————————————————

(8) state (3) three benefit of social responsibilities at Nigerian Bottling company 9th mile Corner Enugu state.

(a) ——————————————————–

(b) ——————————————————-

(c) ——————————————————–

(9) Does social responsibility has anything to do with the image of the company.

(a) Yes (b) No

(10) Government the beneficiary for social for social responsibility.

(a) Yes (b) No

(11) Social Responsibility is waste firms’ resources

(a) True (b) False

(12) No social Responsibility, no firm goodwill

(a) True (b) False

(13) Social Responsibility has No Responsibilities has no financial implication on the firm. (a) True (b) False

(14) There any Government law guiding social Responsibility of a firm?

(a) Yes (b) No

(15) Is it a must that firm must embark on social Responsibility?

(a) Yes (b) No

(16) Firm’s inability to meet up with its social responsibility can lead to operations instability.

(a) Yes (b) No

Business – The Social Responsibility: (A Case Study Of Nigerian Bottling Company Plc 9th Mile Corner Udi Enugu State)

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