Introduction:
Corporate social responsibility is a broad concept that can take many forms depending on the company and industry. Through CSR programs, philanthropy, and volunteer efforts, businesses can benefit society while boosting their brands.
As important as CSR is for the community, it is equally valuable for a company. CSR activities can help forge a stronger bond between employees and corporations, boost morale and help both employees and employers feel more connected with the world around them.
In Nigeria;
Corporate social responsibility (CSR) initiatives in Nigeria originated from the practices of multinational companies (MNCS) operations in the extraction sectors of the Nigerian economy, especially in the oil sector. Their operations in communities resulted in CSR breaches such as oil spillages, gas flaring, militancy/community agitations and dumping of toxic waste materials in rivers. These activities destroyed the sources of income for the communities which are mainly farming and fishing, leading to widespread poverty and agitation from the communities. Cumulatively, these raised concerns about the role of businesses in the Nigerian society.
Apart from the activities of MNCS, the failure by successive Nigerian governments to fulfil their mandatory obligation of providing social amenities for communities has made MNCS to become quasi-government with community depending and targeting MNCS to solve their economic problems. Government from all levels, have failed to offer solutions (such as building infrastructures, roads, medical equipment and schools). This is largely due to corruption, weak institutional framework, lack of transparency and accountability among public officials and bad governance among other issues.
As a result, CSR initiatives in Nigeria have not been strategic, in a way which provides a thorough engagement of businesses in society and nation building, but have been culturally oriented, reflecting the religion, ethnicity, traditions and communal lifestyle of the people which involves sharing, togetherness and consensus. As such CSR initiatives in Nigeria have been mostly discretionary and philanthropic, characterised by donations, charities and community developments. Most corporate entities such as mnc and financial institutions are taking csr initiatives seriously. Some have csr departments and publish their environmental/csr reports in addition to their annual reports. Their csr initiatives involve mostly sponsorship in sports, beautification of roads, giving donations and project implementations. Some of these projects include the provision of borehole water, youth empowerment, schools and healthcare centres for the communities.
What is corporate social responsibility (CSR)?
Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public. By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental. To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and the environment, instead of contributing negatively to them.
The term corporate social responsibility (CSR) refers to practices and policies undertaken by corporations that are intended to have a positive influence on the world. The key idea behind CSR is for corporations to pursue other pro-social objectives, in addition to maximizing profits. Examples of common CSR objectives include minimizing environmental externalities, promoting volunteerism among company employees, and donating to charity
Social responsibility (CSR) is a form of self-, conscious attempts and self-efforts undertaken by organisations for self-preservation and enhancement of their operations. CSR is usually integrated into a business model for an organisation to be able to live in harmony with its operating environment.
The objectives of social responsibility of business:
1. It is a concept that implies a business must operate (function)with a firm mindset to protect and promote the interest and welfare of the society.
2. It must honestly fulfil it's social responsibilities in regard to the welfare of society in which it's operates and whose resources and insfrastructures it makes use of to earn huge profits.
3. It should never neglect or avoid it's responsibilities towards society in which it flourishes.
4.profit(earned through any means) must not be it's only highest objective else contributions made for betterment and progress of a society must also be given a prime importance.
Types of corporate social responsibility:
1. Environmental responsibility
Environmental responsibility refers to the belief that organizations should behave in as environmentally friendly a way as possible. It’s one of the most common forms of corporate social responsibility. Some companies use the term “environmental stewardship” to refer to such initiatives.
Companies that seek to embrace environmental responsibility can do so in several ways:
Reducing pollution, greenhouse gas emissions, the use of single-use plastics, water consumption, and general waste
Increasing reliance on renewable energy, sustainable resources, and recycled or partially recycled materials
Offsetting negative environmental impact; for example, by planting trees, funding research, and donating to related causes.
2. Ethical responsibility
Ethical responsibility is concerned with ensuring an organization is operating in a fair and ethical manner. Organizations that embrace ethical responsibility aim to achieve fair treatment of all stakeholders, including leadership, investors, employees, suppliers, and customers.
Firms can embrace ethical responsibility in different ways. For example, a business might set its own, higher minimum wage if the one mandated by the state or federal government doesn’t constitute a “livable wage.” Likewise, a business might require that products, ingredients, materials, or components be sourced according to free trade standards. In this regard, many firms have processes to ensure they’re not purchasing products resulting from slavery or child labor.
3. Philanthropic responsibility
Philanthropic responsibility refers to a business’s aim to actively make the world and society a better place.
In addition to acting as ethically and environmentally friendly as possible, organizations driven by philanthropic responsibility often dedicate a portion of their earnings. While many firms donate to charities and nonprofits that align with their guiding missions, others donate to worthy causes that don’t directly relate to their business. Others go so far as to create their own charitable trust or organization to give back.
4. Economic responsibility
Economic responsibility is the practice of a firm backing all of its financial decisions in its commitment to do good in the areas listed above. The end goal is not to simply maximize profits, but positively impact the environment, people, and society.
Business benefits of CSR:
In a way, corporate social responsibility can be seen as a public relations effort. However, it goes beyond that, as corporate social responsibility can also boost a firm’s competitiveness. The business benefits of corporate social responsibility include the following:
1. Stronger brand image, recognition, and reputation
CSR adds value to firms by establishing and maintaining a good corporate reputation and/or brand equity.
2. Increased customer loyalty and sales
Customers of a firm that practices CSR feel that they are helping the firm support good causes.
3. Operational cost savings
Investing in operational efficiencies results in operational cost savings as well as reduced environmental impact.
4. Retaining key and talented employees
Employees often stay longer and are more committed to their firm knowing that they are working for a business that practices CSR.
5. Easier access to funding
Many investors are more willing to support a business that practices CSR.
6. Reduced regulatory burden
Strong relationships with regulatory bodies can help to reduce a firm’s regulatory burden.onomic responsibility initiatives involve improving the firm’s business operation while participating in sustainable practices – for example, using a new manufacturing process to minimize wastage.
CSR activities;
1. Abolishing poverty, malnourishment and hunger, improvising health care which includes preventive health care and sanitation and making available safe drinking water.
2. Improvement in education which includes special education and employment strengthening vocation skills among children, women, elderly and the differently-abled and livelihood enhancement projects.
3. Improving gender equality, setting up homes and hostels for women and orphans.
4. Introducing the measures for reducing inequalities faced by socially and economically backward groups.
5. Safeguarding environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining a quality of soil, air and water which also includes a contribution for rejuvenation of river ganga.
6. Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional arts and handicrafts.
7. Areas for the advantage of skilled armed forces, war widows and their dependents.
8. Training to stimulate rural sports, nationally recognized sports, paralympic sports and olympic sports.
9. Contribution to the prime minister’s national relief fund or any other fund set up by the central government for socio-economic development providing relief and welfare of the scheduled castes, the scheduled and backward classes, minorities and women.
10. Contributions or funds provided to technology incubators are approved by the central government.
11. Rural development projects.
12. Disaster management, including relief, rehabilitation and reconstruction activities.
13. Slum area development
Reason for introduction of CSR for companies
We live a dynamic life in a world that is growing more and more complex. Global-scale environment, social, cultural and economic issues have now become part of our everyday life.
Boosting profits is no longer the sole business performance indicator for the corporate and they have to play the role of responsible corporate citizens as they owe a duty towards society.
The concept of corporate social responsibility (CSR), introduced through companies act, 2013 puts a greater responsibility on companies in Nigeria to set out a clear CSR framework.
Many corporate houses like tata and birla have been engaged in doing CSR voluntarily. The act introduces the culture of corporate social responsibility (CSR) in Nigeria corporate requiring companies to formulate a CSR policy and spend on social upliftment activities.
CSR is all about corporate giving back to society. The company secretaries are expected to be known about the legal and technical requirements with respect to CSR in order to guide the management and board.
Importance of corporate social responsibility:
1. It encourages customer loyalty;
People are giving to charitable organizations in high numbers. Millennials are especially active. To attract customers and keep their loyalty, corporations need to pay attention to what customers care about. If a customer feels like they are living out their values by supporting a certain business, they are more likely to stick with the brand. They’ll feel a sense of pride when buying from the business and are more likely to recommend it. Loyal customers are the best marketing a company can get.
2. It gives businesses a competitive edge;
Customers care about a business’s part in social issues and they will be loyal to corporations they believe align with their values. That means corporations that cater to these customers have a competitive edge over companies that don’t. They might offer the same products and services, but the fact that they are making corporate responsibility a priority makes them more appealing. Drawing that distinction is essential for marketing purposes.
3. Corporate responsibility makes employees happier and more fulfilled;
Research shows that employees of businesses that prioritize csr are happier and more fulfilled. 80% of employees report feeling more purpose when they believe their work makes a difference in the world. That sense of purpose is essential to employee loyalty and dedication. When personally fulfilled, people are less vulnerable to fatigue and stress. They’re also more likely to stay with the company.
4. It makes a business more sustainable;
When a corporation decides to make corporate responsibility a focus, it needs to be more innovative and creative. It can’t be “business as usual.” Nurturing innovation and creativity forces a company to stay relevant and adjust according to what customers want. These days and for the foreseeable future, customers want social responsibility. The ability to adapt is important for longevity and sustainability.
5. Customers are willing to pay more;
Corporate responsibility is great for business in a few ways. One of them is that companies can charge more for their products and services. A nielsen global survey of corporate social responsibility revealed that more than half of the surveyed customers are willing to pay more if the company is committed to corporate responsibility.
6. It attracts more investors;
Investors care about a business’s sustainability, customer loyalty, and competitiveness. There are also many eager to support companies that work to make the world better. Corporations that commit to social change and are willing to adapt are very attractive to investors. Incorporating CSR is an effective way to attract socially-minded investors as well as those thinking about long-term financial success.
7. Corporate responsibility attracts more employees;
The generations that really care about social justice and social change will make up the majority of the workforce. 66% of people surveyed in the nielsen global survey of corporate social responsibility prefer to work for companies that prioritize corporate responsibility. By embracing that, a corporation can attract the best employees and keep them, making the business stronger.
8. Corporate responsibility can reduce costs;
Making money has been the primary goal of “business as usual,” but corporate responsibility doesn’t mean a company sacrifices profits. In fact, it can reduce costs. Since general mills installed an energy monitoring system, they’ve saved millions of dollars each year. While equipment can cost a company initially, it saves money in the long-term. When reduced costs and higher-priced products are combined, companies can make a very good profit by being socially responsible.
9. Corporate responsibility opens up new opportunities/markets;
There are a lot of markets that haven’t been tapped into because traditional business thinking doesn’t see them as “profitable.” With social activism on the brain, corporations can open new doors into neglected areas and causes. In considering social impact as well as profit, corporations can find a balance and set themselves apart from the crowd. Consumers will appreciate that a corporation is thinking about where it can help and not only about profits.
10. Corporate responsibility makes the world a better place;
Businesses, especially big corporations, can change society in significant ways. They have a lot of influence, so they can not only raise awareness of issues, they can play an essential role in progress. Addressing climate change is a prime example of where corporations can take charge. By taking responsibility for their impact, corporations can help the world become a healthier, happier place.
CSR is an immense term that is used to explain the efforts of a company in order to improve society in any other way.
CSR improves the public image by publicizing the efforts towards a better society and increase their chance of becoming favourable in the eyes of consumers.
CSR increases media coverage as media visibility throws a positive light on the organisation.
Csr enhances the company’s brand value by building a socially strong relationship with customers.
Csr helps companies to stand out from the competition when companies are involved in any kind of community.
Challenges in implementing corporate social responsibility (CSR) in Nigeria:
The challenges in implementing CSR in Nigeria will be discussed in details in the sub-headings below.inability of Nigeria government to enforce CSR into law
Since the emergence of CRS in Nigeria, there is no law in place by the Nigeria government in the area of CSR.
1. Ensuring law and order, security, provision of public infrastructure and other basic amenities.
2. Corruption and selfishness
Nigeria is a country blessed with abundance of natural and human resources, as a result attracts, the activities of multinational companies who explore these resources to increase the wealth of the nation as well as transform the economic and social environment for the betterment of the
Common. Apart from increasing the wealth of the nation, most of these companies enshrine in their policy the responsibility of providing some social services to the society they directly affect through their CSR. It is quite pathetic when the level of corruption in Nigeria poses a major challenge to these companies in implementing CSR. Without regards for morals and humanity, when the resources meant to be used for implementing CSR to improve the lives of people in the society gets to the hands of the leaders of these communities, they are siphoned and used for their selfish and personal aggrandisement. No wonder the renowned writer and
Novelist achebe(1998) stipulated that, corruption in Nigeria has passed the alarming and entered the fatal stage, and Nigeria will die if we keep pretending that she is only slightly indisposed.
3. Lack of interest in implementing CSR. Foreign and local companies in Nigeria lack the necessary drive and impetus to effectively
Carryout CSR because they are not mandated by the laws of the Nigeria to do so, as a result, these companies see CSR as not a responsibilities or obligatory which they must implement, but do it out of their own volition. It is only when CSR is backed by the laws of Nigeria that companies that tap its resources will then see it as obligatory, or otherwise faces the consequences of the law.
4. Negligible or non-existent benefits: social responsibility should result in positive outcomes for both the business and the community. However, often the results falls heavily in favour of the business involved. Businesses invest a comparatively small amount into community projects and then use their effort to promote their brand and gain access to markets all around the country.
5. Political and social insecurity: one of the fundamental factors that motivate companies (whether a foreign or local) to do, business in Nigeria is the availability of political as well as social security. Suffice to state that the rate of social and political insecurity in the country manifested in the boko haram insurgency has done more damage than good to the economy of the nation. In fact the insurgence has eaten so deep into the fabrics of the society to the extent that fear of bombing and kidnap has become the other of the day. Foreigners doing business in Nigeria sleep with one eyes open and do their business with fear, while does who intend coming into the country have totally jettisoned the idea into thin air. With this pathetic and horrible situation on ground, companies will find it very challenging to engage in CSR for fear of not maximising profit which is to the detriment of its stakeholders and the organisation as a whole
Ways Nigeria can fight the challenges of csr:
With the above discussed challenges which hinder the effective implementation of corporate social responsibility in Nigeria, the following recommendations stand to be made.
1. The government of Nigeria should put into law, which is providing a legal framework for companies on corporate social responsibility. This will make CSR to be taken seriously and seen as obligatory as against non-obligatory.
2. Federal government agencies who are charged with the responsibility of implementing and enforcing CSR should maintain a high moral and ethical standard to ensure its effectiveness.
3. Federal government should provide enabling social and political environment to motivate companies in Nigeria to carry out sustainable social responsibility to improve the lives of Nigerians.
4. Nigerian government should pass into legislation that would promote the interest of the government of the region. Legislation that would make the companies to pay heavy penalties for identified damages to the eco-system.
5. The federal ministry of environment and other agencies saddled with the responsibilities of enforcing environmental laws in Nigeria should adequately be funded to be able to manage the activities of the government.
6. The government of Nigeria should try as much as possible to domesticate international corporate responsibility instrument, which include the organisation for economic and development (oecd), the 1988 ilodeclaration on fundamental principles and rights at works, guidelines for multinational enterprises and the united nation (un) global compact.
7. Finally, government should facilitate the process of passage of the response, compensation, and liability for environmental damage (recled) bill, the Nigerian environmental bill and the petroleum industry bill by the legislature arms of the government, the national assembly, into law. The bills if eventually made law would no doubt stimulate CSR in Nigeria
Some examples of companies that practice CSR in nigeria:
In the manufacturing sector, we have;
1. Unilever is said to reach over 20 million people annually through its CSR operations. The company has been known to donate to the education sector of the economy through its ‘adopt a school program’ geared towards boosting primary schools. It organizes the ‘unilever sustainable living young entrepreneurs award’. It also implemented the ‘unilever women empowerment program’. As regards to health, the company came together with sightsavers international and the sokoto ministry of health to fight trachoma.
2. The British American tobacco Nigeria established the ‘British American tobacco foundation’ geared towards the implementation of community enhancement projects in Nigeria. Dangote group has been known for its humanitarian supports to victims in the north and donations to universities.
3. In the telecommunications sector, airtel has been known to collaborate with unilever to promote oral hygiene among students.
Mtn established the ‘mtn foundation’ which cuts across economic empowerment, education, health, and works against poverty. Etisalat established the lagos business school CSR centre and is known to have established an initiative to fight malaria as well as the ‘ebola virus containment and awareness initiative.’
4. In the banking sector, zenith bank is known for ‘zenith philanthropy’ geared towards giving philanthropic aid to various sectors of the country. Uba has the ‘uba foundation’ that cuts across education, environment, special projects and economic empowerment.
First bank of Nigeria is known for its contribution towards the Lagos business school as well as its contributions towards the emergency unit of the sickle cell center.
5. In the oil sector, shell petroleum development company of Nigeria in partnership with Africare started the ‘africare malaria health integrated project’ and it also established the ‘secondary school scholarship scheme’ to help students pay through school in the Niger delta region of the country.
6. The federal government introduced education tax in Nigeria because they felt companies were giving less than they were getting from the community. From my personal research, i found out part of the reason why the federal government introduced the education tax is because they felt that the private companies were beneficiaries of the best intellectual minds in the society. Hence the federal government felt that the companies should contribute towards the development of education as they foresaw that they could no longer cater for it financially in the nearest future.
Some examples of corporate social responsibility practice by international companies:
1) BMW
Bmw holds its pride in being one of the most socially responsible companies in its industry. Bmw has set the bar high with a goal of helping over one million people by 2020. They plan to do this by creating programs such as “the schools environmental education development project” to help raise awareness of social and environmental issues. Bmw’s key to CSR success has always been alignment. They’re a great example of corporate social responsibility because of their balance between a good business model and helping social causes.
2) LEVI STRAUSS & CO.
Levi’s is another company that focuses its efforts on CSR. Levi’s approach is to reduce their environmental footprint by acting in human rights and environmental causes. Just like bmw’s program, levi’s has a “worker well-being initiative” that is aimed to help improve the life of their employees. Levi’s has also trademarked their “water<less” campaign by using less water when manufacturing their products. They have saved over one billion liters of water and hope to better improve their manufacturing process by 2020.
3) SURVEYMONKEY
Surveymonkey, best known for their survey creation software, has created a giving back program to better improve their social responsibilities. They have done this by engaging in an innovative way to give back. Instead of giving out prizes to survey takers, surveymonkey donates 50 cents for every survey completed. This donation goes to the survey takers charity of choice. The company has donated over one million dollars to organizations such as boys & girls club of America and the humane society. Surveymonkey’s example of corporate social responsibility stretches far beyond just engagement. They focus on bettering society as a whole, thus giving the company a good reputation.
4) STARBUCKS COFFEE
Since the beginning of its existence in 1971, starbucks coffee has always focused on ethical and social responsibilities. Starbucks aims at creating a product that is not only beneficial to its customers, but also to the environment. With the start of the c.a.f.e. Program, starbucks has set guidelines to increase product quality, social and economic responsibility, and environmental management. Partnering with ethos water, starbucks is helping bring clean water to over one billion people who don’t have access to it. What separates starbucks from its competitors is that they focus on society before themselves. Giving back to the community is a great factor to why the brand is so well known. It goes to show that companies with great giving programs are valued more than ones that don’t.
5) BEN & JERRY’S
Founders of ben & jerry’s, ben cohen and jerry greenfield, have always been focused on giving back in any way possible. At the same time they have kept true to themselves the value of connecting the company with its employees. To accomplish various CSR goals, ben & jerry’s created the “ben & jerry’s foundation.” The company has set the bar high by giving 7.5% of its pretax profits to charitable organizations around the world. Ben and jerry’s strives “to show a deep respect for human beings” whether they work for the company or not. They have donated over two million dollars to multiple organization it the hopes to have a positive impact on society.
6) INNOVATION: JOHNSON & JOHNSON
An excellent example of CSR is global giant johnson & johnson. They have focused on reducing their impact on the planet for three decades. Their initiatives range from leveraging the power of the wind to providing safe water to communities around the world. Its purchase of a privately-owned energy supplier in the texas panhandle allowed the company to reduce pollution while providing a renewable, economical alternative to electricity. The company continues to seek out renewable energy options with the goal to procure 35% of their energy needs from renewable sources.
7) GOOGLE;
Google is trusted not only for its environmentally friendly initiatives but also due to their outspoken ceo sundar pichai. He stands up against social issues including president donald trump’s anti-muslim comments. Google also earned ri’s highest CSR score much in part due to their data center using 50% less energy than others in the world. They also have committed over $1 billion to renewable energy projects and enable other businesses to reduce their environmental impact through services such as gmail.
8) COCA-COLA;
Coca-cola’s massive fleet of delivery trucks contributed 3.7 million metric tons of greenhouse gases to the world. They have made major changes to their supply chain practices including investing in new alternatively fueled trucks. Their initiatives are intended to create a 25% reduction in their carbon footprint by 2020.
9) FORD MOTOR COMPANY;
Ford plans to reduce their greenhouse gas emissions using their ecoboost engine to increase fuel efficiency. It also plans to introduce 40 electrified vehicles (electric and hybrid) by 2022, in an investment of $11 billion. According to ford: “we’re all in on this and we’re taking our mainstream vehicles, our most iconic vehicles, and we’re electrifying them. If we want to be successful with electrification, we have to do it with vehicles that are already popular.”
In addition, american ford dealerships rely on wind sail and solar pv systems to power their locations greatly reducing their use of electricity.
5 & 6. NETFLIX & SPOTIFY
From a social perspective, companies such as netflix and spotify offer benefits to support their employees and families. Netflix offers 52 weeks of paid parental leave, which can be taken at any time whether it is the first year of the child's life or another time that suits their needs. This compares to 18 weeks at other tech companies.
Spotify offers a similar program, although for a shorter duration of 24 weeks of paid leave.
Argument in Favour of Corporate Social Responsibility
1. Public Requirements:
Business can exist only with public support and only if business fulfills needs of society. One of main arguments for social responsibility is that public expectations from business have changed. Therefore if business wishes to remain in existence for a long term it must respond to society’s needs and give society what society wants.
The business must come up to expectations of public for its survival since the demand for products or services arises from customers who are a part of society. Since business is a part and parcel of society, it must think of its responsibilities.
2. Favourable For Business:
Performance of social obligation by business will not only be in the interest of society but in its own interest also. The firm which is more responsive to improvement of community quality of life will as a result has better community in which it conducts its business.
People with healthy environment, good health and education will make them good customers and employees. Recruitment of labour will be of higher quality. Turnover and absenteeism will be reduced. The society may reject an enterprise which does not care for social welfare. Crime rate will also decrease as a result of social improvements.
3. Moral Justification:
Nowadays modern industrial society faces many serious social problems as a result of emergence of large companies. Therefore these large corporations have a moral responsibility to solve these problems. Also business which is using so many resources of our economy has responsibility to devote some of these resources in overall development of society.
4. Socio-Cultural Norms:
In a country like India where social and cultural values have long and rich heritage, a business promoting social equalities, healthy employer-employee relations and consumer service will enjoy better social position. A business working against traditional values will face criticism from society.
5. Business Can Shoulder Responsibility:
Many people who feel frustrated with failure of other institutions in handling social problems are turning to the business for their solution to social problems. In such a situation, it becomes the duty of business to come upto expectation of public and fulfill its responsibilities towards society.
6. Responsibility Must Correspond With Power:
Business enjoys social power to a great extent. So they do affect economy, minorities and other social problems. Business should perform equal amount of social responsibility to match their social power. If they don’t then it will reflect their irresponsible behaviour, which will ultimately affect the natural growth.
7. Public Image:
Only that firm can enjoy better reputation in public which supports social goals. Each firm seeks an enhanced public image so that it may gain more customers, better employees, more responsive money markets etc. It is possible only if business performs its responsibilities towards society whole-heartedly which will result in raising the value of shares and debentures held by the owners.
Argument Against Corporate Social Responsibility:
1. Business is an economic activity:
It is argued by the opponents of social responsibility that basic function of a business enterprise is to look into economic viability of its operations. It is for the Government to look after interests of the society. The prime responsibility of assuming social responsibility should, therefore, be of the Government and not of the business enterprises.
2. Quantification of social benefits:
What measures social responsibility and to what extent should a business enterprise be engaged in it, what amount of resources should be committed to the social values, whose interest should hold priority over others (shareholders should be preferred over suppliers or vice versa) and numerous other questions are open to subjective considerations, which make social responsibility a difficult task to be assumed.
3. Cost-benefit analysis:
Any social-benefit programme where initial costs exceed the benefits may not be taken up by enterprises even in the short-run.
4. Lack of skill and competence: Professionally qualified managers may not have the aptitude to solve the social problems.
5. Transfer of social costs:
Costs related to social programmes are adjusted by the business concerns in the following ways:
(a) High prices:
The costs are passed to consumers by increasing prices of goods and services.
(b) Low wages:
If managers maintain the level of prices, the social costs may be reflected in reduction of wages.
(c) Low profits:
If wages are stabilized, profits would be reduced, which will lower dividends to the shareholders. Low profits will reduce managers’ desire to further engage in corporate social responsibility
6. Sub-optimal utilisation of resources:
If scarce resources are utilised for social goals, this would violate the very purpose of existence of an organisation
Question
All business organization operate within an environment that tale input from the environment and give output to the same environment. Discuss with good examples corporate social responsibility (CSR) of business.
Conclusion:
In conclusion, corporate sustainability has a huge role to play in the development of Nigeria. Also, it would be a good practice for small and medium enterprises to join the train and become more sustainable like the multinationals. As they can contribute to areas such employee engagement, and employee volunteering. The standard of corporate sustainability in Nigeria might not reflect that of the western world, but corporate sustainability can be used to effectively tackle our current socio-economic development challenges. Therefore, corporate sustainability, remains an ideal and assured means of securing the Nigeria with a better tomorrow.
Reference;
• how social responsibility promotes businesses
Https://elearning.scranton.edu/resource/business-
businessleadership/five-ways-corporate-social-responsibility-promotes-sustainable-business
•business benefits of corporate social responsibility
Https://cleartax.in/s/corporate-social-responsibility
•challenges and solution of corporate social responsibility in nigeria
Https://smallbusiness.chron.com/grants-small-business-improve-environment-14807.html
•types of corporate social responsibility
Https://online.hbs.edu/blog/post/types-of-corporate-social-responsibility
•examples of corporate social responsibility
Https://digitalmarketinginstitute.com/blog/corporate-16-brands-doing-corporate-social-responsibility-successfully
•roles of corporate social responsibility
Https://medium.com/@ebukaeddow/the-role-of-corporate-sustainability-in-nigeria-today-86878ca9cc76
•examples of corporate social responsibility
Https://blog.involvesoft.com/5-examples-of-socially-responsible-companies
•types of corporate social responsibility
Https://www.investopedia.com/articles/investing/100515/three-pillars-corporate-sustainability.asp
•examples of corporate social responsibility https://link.springer.com/chapter/10.1007/978-3-319-21641-6_17
TABLE OF CONTENTS
(I) INTRODUCTION
(II) MEANING OF CORPORATE SOCIAL RESPONSIBILITY
(III) OBJECTIVES OF SOCIAL RESPONSIBILITY OF BUSINESS
(IV) TYPES OF CORPORATE SOCIAL RESPONSIBILITY
(V) BUSINESS BENEFITS OF CSR
(VI) ACTIVITIES OF CSR
(VII) REASONS FOR INTRODUCING CSR TO FOR COMPANIES
(VIII) IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY
(IX) CHALLENGES IN IMPLEMENTING CORPORATE SOCIAL RESPONSIBILITY (CSR) IN NIGERIA
(X) WAYS NIGERIA CAN FIGHT THE CHALLENGES OF CSR
(XI) SOME EXAMPLES OF COMPANIES THAT PRACTICE CSR IN NIGERIA
(XII) SOME EXAMPLES OF CORPORATE SOCIAL RESPONSIBILITY PRACTICE BY INTERNATIONAL COMPANIES
(XIII) CONCLUSION
(XIV) REFERENCES
