AN APPRAISAL OF SOCIAL RESPONSIBILITY PRACTICES IN NIGERIA CORPORATE ORGANIZATIONS
(A STUDY OF INNOSON TECHNICAL AND INDUSTRIAL COMPANY LTD)
ABSTRACT
This study was on An Appraisal of Social Responsibility Practices in Nigeria Corporate Organizations (A Study of Innosson Technical and Industrial Company Ltd). The objectives of the study included to: ascertain the effect of provision of health centres to the host community on the level of acceptance of Innonsson Technical and Industrial Company Limited, determine the relationship between provision of bore-hole to the host community and profit of Innosson Technical and Industrial Company Limited, identify the impact of award of scholarship to the indigenes of the host community on cost of operation and evaluate the relationship between cleaning up the environment and extent of state of hygiene of Innosson Technical and Industrial Company Limited. The population of the study was 602 while the sample size of 240 was determined by using the Taro Yamane’s formula. The sources of data were both primary and secondary sources. The hypotheses were tested by using the chi-square statistical tool. The findings included that provision of health centres to the host community has a positive effect on the level of acceptance of Innosson Technical and Industrial Company Limited, provision of bore-hole to the host community has a positive relationship with profit of Innosson Technical and Industrial Company Limited, award of scholarship to the indigenes of the host community has a positive impact on cost of operation of Innosson Technical and Industrial Company Limited and cleaning up the environment has a positive relationship with extent of state of hygiene level of Innosson Technical and Industrial Company Limited. The researcher concluded that corporate social responsibility practices are vital for a cordial relationship between the organization and the host community. The study recommended that management of Nigerian corporate organizations should strive to improve the health of members of the host community by providing health centres to their host, management of Nigerian corporate organizations should attend to water need of the people by providing bore-hole to their host community, the firms should improve on the education of the host community through the award of scholarship to the indigenous people of the host community and Nigerian corporate organizations should always maintain a high standard of hygiene by cleaning up the environment of their host community.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1     Background of the Study                        
1.2     Statement of the Problem                        
1.3     Objectives of the Study                         
1.4     Research Questions                            
1.5     Statement of Hypotheses                         
1.6     Significance of the Study                        
1.7    Scope of the Study                             
1.8    Limitations of the study    
1.9    Profile of Innoson Technical and Industrial
Company Limited                            
1.10    Operational Definition of Terms                    
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework                        
2.1.1 Concept of Social Responsibility                
2.1.2 Arguments for and Against Business
Social Responsibility                         
2.1.3 Argument against Social Responsibility            
2.1.4 Factors Motivating the Adoption of Social
Responsibility                                
2.1.5 Benefits of Social Responsibility to Organizations    
2.1.6     Benefits of Social Responsibility to Individual        
2.1.7 Effects of Social Responsibility on Host
Communities                                
2.1.8 Concept of Health Centre                
2.1.9 Acceptance                                
2.1.10 Bore-Hole                                
2.1.11 Scholarship                                
2.1.12 Cost of Operation                            
2.1.13 Equipment Operating Costs                    
2.1.14 Hygiene                                    
2.2     Theoretical Framework of the Study                
2.2.1 Integrative Theory                            
2.2.2 Instrumental Theory                        
2.2.3     Corporate Social Performance Theory            
2.3    Empirical Review                              
2.3.1 Effect of Provision of Health Centre to the
Host Community on the Level of Acceptance
of an Organization                            
2.3.2 Relationship between Provision of Bore-Hole to the
Host Community and Profitability of the
Organization                                
2.3.3 Impact of Award of Scholarship to the
Indigenes of the Host Community on Cost of
Operation                                    
2.3.4    Relationship between Cleaning up the Environment
and Extent of State of the Organization            
2.4 Summary of the Empirical Review                 
2.5     Gap in the Review of Related Literature             
CHAPTER THREE: METHODOLOGY
3.1    Research Design                            
3.2    Sources of Data                            
3.2.1    Primary Sources                            
3.2.2 Secondary Sources                            
3.3    Area of the Study                            
3.4     Population of the Study                        
3.5    Sample Size Determination                     
3.6     Instruments for Data Collection                
3.7    Validity of the Instrument                     
3.8    Reliability of the Instrument                    
3.9     Methods of Data Presentation and Analysis        
CHAPTER FOUR: DATA PRESENTATION, ANALYSES AND DISCUSSION OF FINDINGS
4.1    Distribution and Return of Questionnaire         
4.2    Bio-Data                                    
4.3     Data Relating To Research Questions            
4.3.1 Research Question One                            
4.3.2 Research Question Two                        
4.3.3 Research Question Three                        
4.3.4 Research Question Four                        
4.4    Test of Hypotheses                            
4.4.1 Test of Hypothesis One                        
4.4.2 Test of Hypothesis Two                        
4.4.3 Test of Hypothesis Three                        
4.4.4 Test of Hypothesis Four                            
4.5    Discussion of Findings                         
4.5.1 Discussion Based on Hypothesis One            
4.5.2: Discussion Based on Hypothesis Two            
4.5.3: Discussion Based on Hypothesis Three            
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                         
5.2     Conclusion                                 
5.3     Recommendations                             
5.4    Contribution to Knowledge                     
5.5     Suggestions for Further Research                
List of References                             
Appendix                                    
Questionnaire                                
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The history of social responsibility could be traced to 5000 years in ancient Mesopotamia around 1700BC. Then, King Hammurabi introduced a code in which builders, inn keepers or farmers were put to death if their negligence caused the death of others, or major inconvenience to local citizens (Umeadi, 2014). In ancient Rome, Senators grumbled about the failure of businesses to contribute sufficient taxes to fund their military campaigns, while in 1622, disgruntled shareholders in the Dutch East India company, started issuing pamphlets complaining about management secrecy and self enrichment.
With industrialization, the impacts of business on society and the environment assumed an entirely new dimension (Ahmed, 2010). The “corporate paternalists” of the late nineteenth and early twentieth centuries used some of their wealth to support philanthropic ventures. By the 1920s, discussions about the social responsibility of business had evolved into what we can recognize as the beginnings of the “modern corporate social responsibility movement” (Ahmed 2016).
At an earlier point in history, societal expectations from business organizations did not go beyond efficient resources allocation and its maximization (Adeyanju, 2012). But today, expectations have moved beyond profit maximization to being socially responsible to its society.
Today’s heightened interest in the role of business in society has been promoted by increased sensitivity to the awareness of new environmental and ethical issues. It means that our society has become increasingly concerned, that greater influence and progress by firms has not been accompanied by equal effort and desire in addressing important social issues including problems of poverty, drug abuse, crime, improper treatment of workers, faulty production output and environmental damage or pollution by the industries, as it has overtime been reported in the media (Wadike, 2013). It is therefore very essential for all to realize that the public outcry for increased social responsibility will not disappear if business organizations fail to respond to the challenges these had posed on the society.
Holt and Wigginton (2015), define social responsibility as an organization’s obligation to conduct business in such a way as to safeguard the welfare of society while pursuing its own interests. Therefore, most business organizations, though established for profit making, should develop a system of identifying their different stakeholders, their interests, and find a way to manage them in order to enhance smooth operations in their localities.
Ojo (2012), posits that there is need for mutual understanding to exist between institutions of any kind and the society where they operate. Put succinctly, organizations should relate their operations and policies to the social environment, in ways that are mutually beneficial to the company and society. It is therefore believed that social involvement create favorable public image, as a result, corporations have had to be socially responsible in order to operate successfully, without violence arising from the communities in which it operates (Okoye, 2011). However, the general belief is that both business and society gain when firms actively strive to be socially responsible; that is, the business organizations gain in enhanced reputation, while society gains from the social projects executed by the business organization (Nwachukwu, 2011).
Only in business and particularly Nigerian business, can we hope to tackle the major challenges facing developing societies today. The economic realities ahead are such that social needs can be financed increasingly only if their solution generates commensurate earning say firms involved in social responsibility are actually not regretting because of the increase it has made on their sales leading to profit and how they have impacted on the environment.
The significance of social responsibility as a vital tool for the societal progressives cannot be over emphasized. This can be seen from the points of view of showing concern for the welfare of the community in order to reap peace, competence and cheaper manpower, a platform for a better community; by making the host community worthy of livelihood in terms of infrastructural development; and by boosting their image, reducing advert cost, gaining an edge over competitors, and making their name (the organization) a household name in the society. It is based on this background that the study appraised social responsibility practices in Nigerian corporate organizations with Innoson Technical and Industrial Company Limited as a case study.
1.2 Statement of the Problem
Ideally, corporate organizations are supposed to seriously consider social responsibility. This is because there so many benefits inherent in adopting good corporate social responsibility, which includes a cordial relationship between the organization and the host community.
Unfortunately, some corporate organizations in Nigeria do not take social responsibility as a priority. This has resulted in vandalization of the properties of the organization and has equally affected their competitive advantage.
Failure to engage in social responsibility practices could cause an organization to have low patronage of its products. Any organization that does not engage in social responsibility practices is likely to have issues with the host communities. This will ultimately result in low patronage of the organization’s products. Furthermore, any organization that does not engage in social responsibility practices may likely have its facilities/equipment vandalized by the host communities. This is because the host communities could be seeing the organization as being exploitative and this will create tension between the host communities and the organization.
Finally, any organization that does not engage in social responsibility practices could have a decline in their net profit. This is because the members of the host communities may not allow the organization to operate at full capacity. Incidences like kidnapping of the organizational members may also be on the increase.
1.3 Objectives of the Study
The broad objective of the study was to appraise social responsibility practices in Nigerian corporate organizations. The specific objectives included to:
1.    Ascertain the effect of provision of health centres to the host community on the level of acceptance of Innoson Technical and Industrial Company Limited.
2.    Determine the relationship between provision of Bore-hole to the host community and profit of Innoson Technical and Industrial Company Limited.
3.    Identify the impact of award of scholarship to the indigenes of the host community on cost of operation of Innoson Technical and Industrial Company Limited.
4.    Evaluate the relationship between cleaning up the environment and extent of state of hygiene of Innoson Technical and Industrial Company Limited.
1.4 Research Questions
Based on the objectives of the study, the following research questions were raised.
1.    What is the effect of provision of health centres to the host community on level of acceptance of Innosson Technical and Industrial Company Limited?  
2.      What is the relationship between provision of Bore-hole to the host community and profit of Innosson Technical and Industrial Company Limited?
3.    What is the effect of award of scholarship to the indigenes of the host community on cost of operation of Innosson Technical and Industrial Company Limited?
4.    What is the relationship between cleaning up the environment and extent of state of hygiene of Innosson Technical and Industrial Company Limited?
1.5 Statement of Hypotheses
Based on the research questions, the following hypotheses were formulated
i.    Provision of health centres to the host community has a positive effect on the level of acceptance of Innosson Technical and Industrial Company Limited.
ii.    Provision of Bore-hole to the host community has a positive relationship with profit of Innosson Technical and Industrial Company Limited.
iii.    Award of scholarship to the indigenes of the host community has a positive impact on cost of operation of Innosson Technical and Industrial Company Limited.
iv.    Cleaning up the environment has a positive relationship with extent of state of hygiene level of Innosson Technical and Industrial Company Limited.
1.6 Significance of the Study
The research study would be beneficial to the management of Innoson Technical and Industrial Company Limited as it would help them improve on their social responsibility practices. The researcher would benefit from this research work as it is a partial requirement for the award of a Bachelor of Science (B.Sc) Degree in Business Administration. The university would benefit as this research work increases its data bank. Finally, this research work would serve as reference material for further research on this topic.  
1.7 Scope of the Study
This study covered the effect of provision of health centres to the host community on the level of acceptance of an organization, the relationship between provision of Bore-hole to the host community on profit, the impact of award of scholarship to the indigenes of the host community on cost of operation and the relationship between cleaning up the environment and state of hygiene of the organization. The organization covered is Innoson Technical and Industrial Company Limited and the time scope is between 2010-2017.
1.8 Limitations of the Study
The study encountered some impediments. They included uncooperative attitude of the respondents of Innoson Technical and Industrial Company Limited. Moreover, the location of Innoson Technical and Industrial Company Limited is at the outskirt of Enugu, so it was not easy for the researcher to visit the organization frequently.    
1.9 Profile of Innoson Technical and Industrial Company Limited
Innoson Technical and Industrial Company Limited Produces plastic products in the country. Products include chairs, jerry cans, drums, motorcycle parts etc. Innoson Technical and Industrial Company Limited is a subsidiary of Innoson Group of Companies and was incorporated in 2002 with its Head Office/Factory situated at plot W/L Industrial Layout, Emene, Enugu State, Nigeria. Full scale operations and production commenced in October, 2002. It is an indigenous blue chip company engaged in the manufacturing of plastic chairs, tables, trays, plates, spoons, cups Jerry cans of different sizes and many other allied products.
Since inception, this company ranks the biggest plastic industry in Nigeria. It produces the highest quality range of plastic products of international standard and has production over 10,000 pieces of chairs and tables per day. Due to the rapid demand of these products, the company’s twelve production lines of injection moulds have since been increased with tremendous and near perfect production lines of international standard.
It was also established to further consolidate our leading position in the motorcycle industry by producing the motorcycle plastic requirement of Innoson Technical and Industrial Company Limited which is a sister company. This effort was in direct response to the Federal Government policy direction towards encouraging private sector as the engine of growth for the economy.
The company has an annual turnover of 3.6 billion naira. The company also has a foreign partner in China named CRETEC Industries Company. Innoson technical and industrial company Limited has over six hundred (600) indigenous staff and few expatriate workers. The directors of the company include Chief Dr. Innocent Ifediaso Chukwuma- CEO, Chief Gabriel Chukwuma – Director, Mrs. Ebere Chukwuma –Director, Christopher Ubah – General  Manager, Nnamdi Onusogu – General  Manager, S.O George – Business Development manager, Andrew Audu Dibal – General Manager, Engr. Kankan Kelvin Zhao-Head of Operations. Stephenie Mary Gbulie- Head Human resources. Chisom Ndefo- Manager finance. Ulonnam Naths Nwoko- Head Internal Audit, John Alobele- Sales Manager, Nze Charles Aniekwilo- Company Secretary.   
1.10 operational Definition of terms
Social Responsibility: This is an organization’s obligation to conduct business in such a way as to safeguard the welfare of society while pursuing its own interests. It involves the provision of health centres, bore-hole, scholarship to the indigenous of the host communities and cleaning up the environment.
Host Community: This is the community that harbors a corporate organizations, saddled with corporate social responsibility.
Corporate Organization: This is a limited liability company having full legal capacity with centralized management.