RESEARCH PROPOSAL ON

CORPORATE SOCIAL RESPONSIBILITY AND ORGANISATIONAL

PERFORMANCE IN CADBURY NIGERIA PLC, OGUN STATE
INTRODUCTION

Background to the Study

Corporate social responsibility (CSR) has become a deck in corporate policies of

multinational corporations (MNCs) in recent time, owing to the growing concern of

government policy makers, agitation of host communities and environmental degradation

effect of operation of most of the multinational companies around the world. The term

Corporate Social Responsibility (CSR) as posited by Olaroyeke and Nasieku (2015)

encompasses a variety of issues evolving around companies’ interactions with society. It

refers to sets of actions that appear to further some social good, beyond the interests of

the firm and that is required by law. Important in this definition is that CSR activities are

on a voluntary basis, going beyond the firm’s legal and contractual obligations. As such it

involves a wide range of activities such as being employee-friendly, environment-

friendly, and respectful of communities where the firms’ plants are located, and even

investor friendly (Akinleye & Adedayo, 2017).

Engaging in the corporate social responsibility now is a key theme for many large

corporations - and even small companies are looking for ways to improve their public

image portfolio by announcing their involvement in various projects. The point that

businesses operate not only to meet the demand concerning the corporate social

responsibility (CSR) or corporate citizenship, but also the challenges especially that

experienced by new communication channels such as the social media and new

communications to a key audience, in corporations and government offices, that have

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different roles than corporations. Faced with a range of internal and external stakeholders

needing more to show credibility, accountability and transparency in their operations, just

as many companies responded with more voluntary participation, in partnership with,

which could be called a business or legal partnership (Amadi & Bayo, 2020).

In order for organizations to survive in the competitive marketing environment, they need

to note that their long term survival partly depends on their ability to confront social and

environmental issues by being socially responsible. In recent years, research has revealed

the importance of Corporate Social Responsibility (CSR) and its significant impact on

organizational performance. The concept, Corporate Social Responsibility (CSR), has

been defined in different ways and by various scholars (Ogunsanwo & Ajayi, 2018).

A business organization is primarily established to create values like profit by producing

goods and services which society demands as a measure of good organization

performance. The primary stakeholders of corporate organizations are the owners who

risk their money to establish and run the business. Therefore, the business has the

responsibility of maximizing the wealth of the owners and other stakeholders such as the

employees, the customers, the community and the government in responding to their

demands. In short, a business organization is basically established for the purpose of

making profit for its owners, and this differentiate a business from other non-profit

making ventures (Odunsi, Adeaga & Odeniyi, 2019).

Engaging in the corporate social responsibility now is a key theme for many large

corporations - and even small companies are looking for ways to improve their public

image portfolio by announcing their involvement in various projects. The point that

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businesses operate not only the demand concerning the corporate social responsibility

(CSR) or corporate citizenship, but also the challenges especially that experienced new

communication channels such as the social media and new communications to a key

audience, especially in corporations and government offices, which have different roles

than corporations. Faced with a range of internal and external stakeholders needing more

to show credibility, accountability and transparency in their operations, just as many

companies responded with more voluntary participation, in partnership with, which could

be called a business or legal partnership.

Odunusi, Adeaga and Odeniyi (2019) opine that organizational performance refers to the

extent to which a firm is able to accomplish its stated objectives which can be with area

of market share, turnover, innovation, productivity, profitability, customers‟ satisfaction

and so on. Turnover is the actual sales value of a firm. Innovation is the modification of

an existing product into a new product. Productivity is a measure of how well a firm is

performing which also serves as an indicator of the efficiency and competitiveness of a

firm in the production and marketing of goods and services. Profitability refers to the

capacity of firm to generate profit.

Profitability which is one of the indicators of organizational performance has two types of

ratio namely return on sales, and return on investments (Peavier, 2012). Return on sales

refers to a firm's ability to transform sales into profits. While return on investments

measures the overall ability of a firm to generate shareholders' wealth. When an

organization have good performances, then it can get involved in social corporate

responsibility, as social responsibility constitute cost to the organization. Hence, for the

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purpose of this study, profitability and business patronage and turn over were used as a

measure of organization performance. In effect the performance of a business is

determined by the level of profit generated, sales turnover and market patronage among

others. Therefore, the concept of Corporate Social Responsibility seems to be at variance

with the primary objective of establishing a business hence some critics see it as mere

pretence or ploy. Bana, Shaker and Husam (2019) therefore, saw the emergence of

Corporate Social Responsibility as a comfortable cover for firms to further their natural

quest for profit and self-interest.

As stated by Kofi Ana (cited in Muhammad, Faisal and Waleed, 2018) that we have to

choose between a global market driven only by calculations of short term profit, and one

which has human face; between a world which condemn a quarter of the human race to

starvation and squalor, and one which offers everyone at least a chance of prosperity, in a

healthy environment. Between a set fish, free for all in which we ignore the fate of the

losses, and a future on which the strong and successful accept their responsibilities

showing global vision and leadership. The business organization therefore, to some

critics, are not trusted as to their ultimate reason for corporate social responsibility.

Zwain, Lim and Othman (2017) also saw the emergence of Corporate Social

Responsibility or strategic philanthropy as though not to be only self-defeating, but

provide anti corporatist with readymade tools to quickly uncover the variety of these

firms and eagerly shape them as hypocrites. Hence, the concept of corporate social

responsibility seems to run at cross purpose with the basic objective of setting up a

business. Bowen recognized that business men should make decisions which are

generally desirable for the values of society.

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According to Uchehara (2019) the business enterprise is besieged by popular

misconceptions as well as by legal, religious and academic theorists anxious to prove that

business seeks only self-serving aggrandizement, i.e. to maximize its profits and to do so

at any cost to the consumers, the community and the environment. Dornbin (2012) stated

that some individuals and business are tempted to act unethically, particularly in the short

term, where there is a short opportunity to “make a killing” all in desperation for profit or

good performance.

Statement of the Problem

Over the years, managers of corporations have neglected the problems created by

corporate firms to their host community. These problems pose a lot of threat and often

make life unbearable for the community. An example of these problems is the on-going

crisis in the Niger Delta region which has led to the destruction of lives and property.

There are accusations from the youths in these areas that corporations misdirect their

efforts and resources that they should have used to develop the community to bribe

opinion leaders in order to overlook their responsibility to the community, and these have

caused lots of acrimonies between the two parties, community and the firm. Problems

identical to this can also be identified in other areas and in other communities across the

country where large corporations are located (Nasieku, Togun & Olubunmi, 2014). The

privilege given to organizations to operate in the society stems from the act that society

believes that there is a mutual interdependency existing between them, that is, the

organization and the society. It is discovered that there exists a relationship between

organizations and their host community and this relationship has become increasingly

important (Malik, Ali, & Ishfaq, 2015).

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In an ever competitive business environment, the focus of every organization is to

develop a good and lasting relationship with customers and society at large which will

ensure long-term business sustainability (Ojo, 2008). Some organizations have

understood and embraced the concept of corporate social responsibility as a means of

improving their performance. Others however, do not buy the idea behind “Doing better

at doing Good” and they see it as having a negative impact on organizational

performance. To them, CSR drains the company’s financial resources and therefore they

ignore their responsibility towards society or simply refuse to engage in CSR. But over-

reliance on financial performance alone does not capture the full impact of CSR on the

firm’s overall performance. And most firms, too that are busy seeking short-term

financial benefits; tend to ignore the strategic value of CSR to them (Eze & Okoye,

2013). The issue at hand is therefore, to make corporate organizations understand how

social responsibility impact on business performance at various levels. It is however not

clear how MTN has used CSR in its efforts to impact on its customers and surrounding

community. Hence, based on the gap identified in literature, the study sought to examine

the impact of corporate social responsibility on organisational performance.

Objectives of the Study

The objective of this study is to examine impact of corporate social responsibility (CSR)

on organisational performance. However, the specific objectives of the study are to:

(i) examine the relationship between economic social responsibility and

organisational performance of Cadbury Nigeria.

(ii) evaluate the relationship between ethical social responsibility and organisational

performance of Cadbury Nigeria.

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 (iii) determine the relationship between legal social responsibility and organisational

performance of Cadbury Nigeria.

Research Questions

This study attempts to the find solutions to the following questions, which had prompted

the research.

(i) What is the relationship between economic social responsibility and organisational

performance of Cadbury Nigeria?

(ii) Is there any relationship between ethical social responsibility and organisational

performance of Cadbury Nigeria?

(iii) What is the relationship between legal social responsibility and organisational

performance of Cadbury Nigeria?

Research Hypotheses

This research study shall be guided by the following formulated hypotheses, the null

hypothesis have therefore been stated:

Hypothesis One

Ho: There is no significant relationship between economic social responsibility and

organisational performance of Cadbury Nigeria.

Hi: There is significant relationship between economic social responsibility and

organisational performance of Cadbury Nigeria.

Hypothesis Two

Ho: There is no significant relationship between ethical social responsibility and

organisational performance of Cadbury Nigeria.

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Hi: There is significant relationship between ethical social responsibility and

organisational performance of Cadbury Nigeria.

Hypothesis Three

Ho: There is no significant relationship between legal social responsibility and

organisational performance of Cadbury Nigeria.

Hi: There is significant relationship between legal social responsibility and

organisational performance of Cadbury Nigeria.

Significance of the Study

This study is carried out to ascertain the relationship between corporate social

responsibility and firm performance, with emphasis on review of literatures.

Following the increasing number of researchers and the quest of business practitioners to

explore avenues that will contribute to their profit profile, this study assembled results of

previous studies and stressed the need for businesses (large and small) to embark on

corporate social responsibility. Therefore, this study will be significant to researchers

who will have access to results of previous studies which will aid their studies. Further,

this study will be of significance to business practitioners who will understand that

discharging corporate social responsibility, could bring about improved firm

performance.

The study will create a foundation in risk management for academicians upon which

related and indepth analysis can be based on manufacturing organisation are among the

biggest contributors to the exchequer in form of taxation and this study forms a basis for

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assessing the liquidity position of the oil and gas companies for the tax authorities and

policy makers.

The study contributes to research in the study area and apply this research to carry out

further studies in the same area or related area by serving as a theoretical base for the

research to be carried out.

Scope to the Study

This study will cover impact of impact of corporate social responsibility on

organisational performance. However, the study will cover issues bordering around

economic, ethical social, legal social responsibility and organisational performance.

Independent Variable Dependent Variable

 Economic Social Responsibility

 Ethical social responsibility Organisational Performance

 Legal social responsibility

Limitation of the Study

It is imperative to note that the research findings will only reveal the view of the

organization under study. Therefore, it is cannot to be assumed to be generally applicable

to all organizations. However, the limitation of this research work was the dearth of

related literature in the field of the subject matter, finances and time constraint. Secrecy

and confidentiality is another limiting factor; this is a situation where those interviewed

are unwilling to release information they considered highly confidential which will be of

great assistance to the research work.

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Operationalization of Terms

CSR: refers to strategies that companies put into action as part of corporate governance
that are designed to ensure the company's operations are ethical and beneficial for
society.
Economic Social Responsibility: refers to the ability of an organisation to abide by the
set standards of ethical and moral regulations
Ethical Social Responsibility: is concerned with ensuring an organization is operating in
a fair and ethical manner.
Legal Social Responsibility: refers to the positive and negative responsibilities sited by
the laws and rules of society on organizations.
Organisational Performance: Measuring actual results or outcomes against
intended outcomes or outputs (or goals and indicators). In this study, the performance
indicators included suspected improprieties, quick response, improvement of sales.

Methodology
The methodology dealt with the methods and procedures used in conducting this research

work. It will consist the research design, population of study, sample size and sampling

technique, test of validity and reliability, method of data analysis, limitation of the study

and the method of data collection.

Research Design

The research design will adopt for this work is descriptive research. The survey method

will be used to determine are significant relationship in the variables under consideration

since descriptive survey generally varies to collect information and inferences drawn

about the opinion of the entire population. It is on the basis of the above reasons that the

survey research design will be considered most appropriate for this study. The study

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design will enable the researcher to gather relevant data for better understanding,

interpretation and explanation.

Population of the Study

The population of the study is however a census of all items or subject that has

knowledge of the phenomenon being studied. The target populations are employees of

Cadbury Nigeria Plc, Ogun State. The entire staff in the branch becomes the effective

population for the study. The population consists of both male and female staff classified

as Management, Supervisors and junior cadre. However, the staff strength of Cadbury

Nigeria stood at two hundred and thirteen (213) (https://mtnonline.com, 2020).

Sample Size and Sampling Technique

In selecting the sampling size for this study, the Yamane’s formula was employed. The

Taro Yamane’s formula as expressed by Israel (1992) is denoted by:

n = N .
1 + N (e)2
Where:

n = Sample size

N = Population

e = Significant level (95%)

n = 213 = 213 = 142

1 + 213 (0.05)2 1 + 0.5

Based on the Yamane’s formula computed above, the sample size for this study is one

hundred and forty (140) participants from Cadbury Nigeria. The simple random

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technique was used for this study, this was to give every member of the population equal

chance of been selected.

Method of Data Collection

The major sources of data collection for this project are primary and secondary. The

primary method of data collection involved questionnaire and the secondary method

involved library textbooks, academic journals and computer search through the internet.

Data Collection Instruments

The research instrument used for this study is the questionnaire, the questionnaire is a set
of questions that is designed and administered to obtain information from the respondent.
The questionnaire was divided into two sections (A and B).
The section A of the questionnaire contained the personal data of respondents. The B
section of the questionnaire contained answers using the likert 5 point rating scale
(Strongly Agree = 5, Agree = 4, Undecided = 3, Disagree = 2, Strongly Disagree = 1).
This questionnaire is aimed at eliciting responses from various respondents.

Validity and Reliability of the Instrument

To ensure validation of instrument, the draft of the research instrument will be given to
research specialist and experts who will make amendments and corrections where
necessary to the research work. The instrument will be presented to the supervisor for
final scrutiny and for criterion related validity.
The reliability on the other hand is concerned with the consistency with which the
instrument will be measured, to measure whatever it ought to measure. Test retest
reliability will be conducted within two weeks interval to establish its reliability. The
reliability will be exercised among few employees after which the main conduct of the
instrument will be administered.

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Method of Data Analysis
This section entailed the analysis of data and interpreting data collected from the
population sample. Data will be analysed using inferential and descriptive statistics. The
descriptive statistics involved frequency table, likert scale while the hypotheses will be
tested using Pearson Moment Correlation Technique.

Organisation of the Study

This research study consists of five chapters;
Chapter one centres on introduction, background to the study, statement of the problem,
objectives of the study, research questions and hypotheses, scope and limitation of the
study, definition of terms and organisation of the study.
Chapter two consists of review of related literature in the area relevant to this research
work, the review includes the conceptual framework on risk management, the theoretical
review was hinged on two theories which includes contingency theory and agency theory,
the study also made reference to the studies conducted by other authors the empirical
study section.
Chapter three focuses on the research methodology used in carrying out the research of
the study, they include research design, population of the study, sample size and sampling
technique, method of data collection, research instrument, administration of the
instrument, validity and reliability of the research instrument as well as the method of
data analysis.
Chapter four focuses on detailed analysis and interpretation of analysis presented.
Chapter five draws conclusion on the subject matter. It comprises the summary,
conclusion and recommendation of this research work.

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