This action might not be possible to undo. Are you sure you want to continue?
By *Akhuemonkhan, I. A., *Raimi, L. and **Ogunjirin, O. D.
*Centre for Entrepreneurship Development **Department of Social Science Yaba College of Technology, Nigeria
• In the face of dwindling financial resources in the treasury of governments, the complementary role of business organisations in combating social problems is becoming an acceptable norm in both developed and developing nations. On the strength of the foregoing reality, this paper examines the prospect of utilising corporate social responsibility and entrepreneurship (CSRE) as antidotes for mitigating the incidences of poverty, insecurity and underdevelopment in Nigeria. The paper derives its theoretical foundation from the stakeholder, instrumental and legitimacy theories, which all justify the use of CSRE for actualisation of Tripple Bottom Line (that is, the social, economic and environmental concerns of business organisations).
previous research works. it was discovered that CSR and Entrepreneurship could be potent antidotes for poverty. Office of the Millennium Development Goals. The paper therefore boldly recommends that policymakers reinvent CSRE as development mechanisms through a sound partnership between government. On the strength of the data sourced and analysed. . advocacy groups and business corporations in Nigeria. relevant online databases and media reports on the subject matter.Abstract • Based on the foregoing approach. National Bureau of Statistics. relevant qualitative and quantitative data were extracted from the reports/publications of Central Bank of Nigeria. The qualitative and quantitative data were streamlined and subjected to content analysis and econometric analysis respectively on the basis of which informed conclusions were drawn. insecurity and underdevelopment in Nigeria.
Country Profile • Nigeria is a coastal country blessed with a population of over 150 million citizens. • Investment thrives in Nigeria despite rising incidences of corruption and mismanagement of oil resources by the ruling elites (DFID.00 billion. Nigeria and Egypt) – countries with GDP of over USD100. Watts. Studies indicate that average return on investment (ROI) stood at 20% per annum. . who spread across thirty-six (36) states and a federal capital territory at Abuja (Alkali. 2008). • Nigeria is part of the SANE (South Africa. 2009). Algeria. Egypt. 2008). 2000. Kenya and South Africa) – nations describe as having huge untapped markets for foreign direct investment (Alkali. • Nigeria is part of the NEKS (Nigeria.
cornering of state resources and bad governance. . • State of underdevelopment caused by infrastructural decay/neglect. 2001:157. Boko Haram terrorists and Niger-Delta militants.Challenges • Nigeria faces multidimensional challenges. • Insecurity of lives & properties engendered by Armed Robbers. • Rising incidence of unemployment because of unplanned efforts towards human capital development (Awopegba. viz: • Scourge of poverty as a result of political corruption.
insecurity and underdevelopment that have assumed endemic status in Nigeria.Objective of Research This research attempts to reinvent corporate social responsibility and entrepreneurship as antidotes for mitigating the incidences of poverty. • . .
(2010:13) encapsulated “.. In other words..Review of Literature I • Corporate Social Responsibility • The working definition corporate social responsibility in this paper is the United Kingdom perspective. corporate social responsibility is viewed as the voluntary actions that business organisations initiate. beyond compliance with minimum legal requirements. which Forstater et al.as how companies address the social. to address both its own competitive interests and the interests of wider society including host communities in the forms of welfare support services and palliatives.. environmental and economic impacts of their operations and so help to meet our sustainable development goals. .
2007. In this paper. . development.” It is a process of idea discovery. 2010). technology adoption and innovation as well as poverty alleviation. job creation. Naudé. entrepreneurship is defined as a resource and a process exploited by individuals as business opportunities for the creation and nurturing of new businesses in enabling market (Baliamoune-Lutz. • Brixiova (2010:440) views entrepreneurship “as a key driver of economic development through fostering growth.Review of Literature II • Entrepreneurship • According to Penrose (1995:3) entrepreneurship is „a slippery concept‟. evaluation and exploitation.
that is. Knox and Maklan 2004). . long term profitability et cetera (Ismail. 2004). Instrumental theory: CRSE is reinvented as a strategic instrument for boosting shareholder's wealth. 2009.Theoretical Framework Stakeholder Theory: CSRE is reinvented as socio-economic obligations of business to diverse socio-economic needs of their multiple stakeholders in the environments where they operate (Ismail. image.. competitive advantage. 2009. 2007:246). market share. perceptions.‟‟ (Jamali et al. “playing by the „„rules of the game. Legitimacy Theory: CSRE is reinvented as a legal obligation expected of a law-abiding business organisations. reputations. Garriga and Mele. stock rating.
Theoretical Framework II Insecurity Poverty Unemployment Development Corporate Socially Responsible Entrepreneurship .
cultural.Poverty in Nigeria • Onibokun and Kumuyi (1996) argues that poverty describes a situation where people are forced live with paucity of vital resources or a situation where they are made to endure „harsh and inhospitable environments‟ occasioned by breakdown of economic. . and social systems and the impact of bad governance. • As we speak official data indicates that the poverty situation of Nigerians is deteriorating on account of corruption. ecological. demographic. infrastructural decay. unemployment and bad governance.
National Land Development Authority (NALDA). Green Revolution. Agricultural Credit Guarantee Scheme (ACGS). Community Banks Program. Roads. Family Support Program (FSP). and Rural Infrastructure (DFRRI). Presently. Agricultural Development Programs (ADP). Small Medium Enterprises Development Agency of Nigeria (SMEDAN). Family Economic Advancement Program (FEAP). Directorate of Food. River Basin Development Authorities (RBDA). People‟s Bank of Nigeria (PBN). Nigeria runs Economic Transformation Agenda/Vision 20:2020/MDGs. 7-Poing Agenda. National Poverty Eradication Program (NAPEP). Low Cost Housing Scheme. Rural Banking Program (RBP). Rural Electrification Scheme (RES).Poverty Reduction Efforts • Failed poverty reduction programmes include: Operation Feed the Nation (OFN). National Directorate of Employment (NDE). Family Economic and Empowerment Program(FEEP). Better Life Program (BLP). .
4 70.7 14.6 65.4 54.6 14.7 21.9 Poverty Index 65.Poverty Scourge & Unemployment Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Unemployment Rate 13.0 51.4 11.9 19.6 65.9 12.4 54.6 12.8 13.6 55 69 72 .3 12.1 23.5 54.
National Drug Law Enforcement Agency (NDLEA). . In order to forestall insecurity and threats to lives and properties in Nigeria. 2002). instability and threat to self-image lives and properties (Wikipedia. Nigeria Police Force (NPF).Insecurity in Nigeria • Insecurity is a negative feeling of general fear. 2012). and Ministry of Internal Affairs (MIA) and Defense Intelligence Agency (DIA) is mandated to keep the country safe(Gbanite. Nigeria Customs Service (NCS). the National Security Agency (NSA) comprising of the National Intelligence Agency (NIA). State Security Service (SSS). Nigeria Immigration Service (NIS). constant phobia. unease and nervousness that often trigger a sense of vulnerability.
the issue of threat to lives and properties continues to reoccur unabated in Nigeria. . 2008). Despite the huge spending on security in Nigeria.Insecurity in Nigeria II • In meeting the commitment to engender peace and security. The data on crime rate speaks better. More than triple this amount is earmarked to curb the insurgency of Boko Haram in Nigeria.3 million] to military authorities for the purpose of maintaining security of lives and properties. specifically preservation of oil installations in the NigerDelta (Courson. the federal government dole out monthly the sum of 150 million naira [$1.
0 126.2 147-0 151.156 117202 135.9 138.8 .257 174.2 158.412 138.588 155.265 Industrial Growth 130.8 118.040 93.539 176.001 124.593 162.8 120.Why Insecurity is rising? Year 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Crime/Insecurity 275.968 128.817 90.2 119.9 144.1 145.234 153.6 138.6 117.
2012:21). Another perspective is that “development is the process of bringing about physical transformation of the society. One perspective defines development as “a multidimensional process bringing about radical changes in institutional.Nigeria’s Level of Development • Development has many perspectives. On the basis of the two perspective. social and administrative structures. which consequently leads to improvement in the standard of living and welfare of the masses of the people.” (Raimi and Ogunjirin. Nigeria is a developing nation though rich in oil and with rising GDP. 2010). prevalent customs and beliefs” (Sanusi. . as well as fundamental changes attitudes.
. and ruinous economic policies. a the poor performance that put the country at 156th position out of 187 nations assessed (UNDP. • Roy (2010:49) assert that developing nations reflect: “Widespread poverty.Nigeria's score on the Gender-related Development Index (GDI) is 0. pandemic diseases such as HIV/AIDS and malaria. inadequate resources.. corruption. 2012).459. wars and other forms of civil strife such as ethnic cleansing.. tribal tensions. 2011.. Its human development index (HDI) for 2011 was 0. Raimi et al.Worsening Development Indicators I • Nigeria‟s development indicators are abysmally poor.456 or 139th out of 157 countries for which there is data. • UNDAF (2009:8) indicates that: “.” . poorly trained labour supplies..
2012). Sweeny. The qualitative data collected were subjected to content analysis (Sweeny. 2009. 2009. . Raimi and Ogunjirin. Poverty and Development from the publications of Central Bank of Nigeria (CBN). 2010). Onoja and Agumagu.Materials/Methods • The methodology employed is the planned and systematic collection of qualitative and quantitative data on Corporate Social Responsibility. Insecurity. National Bureau of Statistics (NBS) et cetera on the subject matter. Howitt and Cramer. 2006. while the quantitative secondary data were subjected to econometric tests on the basis of which conclusions were drawn (Gujarati. 2009.
Error 22582468 185040.7 527745.4167 0.3 944763.337591 Prob.17 10.0375 .0245 0.9 16909. 0.9750 0.570599 0.66394 Std.561935 t-Statistic 0.7460 0.331510 -0.841161 2.6 4.6180 0.0 181327.511974 -0.60 -152525.Findings/Results Variable Constant IGR POVR UNEM CSR TC Coefficient 11561638 -61342.1 367526.032040 2.
The estimated β1 coefficient is -152525. • GDP-Total Crime Link: The second result indicates that there is a positive significant relationship between gross domestic product (GDP) and total crime rate (TC) at 5% level of significance.Findings/Results II • GDP-Poverty Link: The first result indicates that there is a negative relationship between gross domestic product (GDP) and poverty rate (POV) at 5% level of significance. .66394. • GDP-Unemployment Link: There exists a positive relationship between gross domestic product (GDP) and unemployment rate (UNEM) on the basis of the utilised data. The estimated β3 coefficient is 94428390.3. The estimated β2 coefficient is 10.
. The estimated β4 coefficient is -61342.17. • GDP-Corporate Social Responsibility Link: The econometric result indicates that there is a significant positive relationship between gross domestic product (GDP) and corporate social responsibility (CSR) at 5% level of significance.60. The estimated β5 coefficient is -16909.Findings/Results III • GDP-Industrial Growth Link: The econometric result indicates that there is a negative relationship between gross domestic product (GDP) and industrial growth rate (IGR) at 5% level of significance.
insecurity and underdevelopment. poverty cycle and create direct and indirect jobs for the hopeless youth in Nigeria . • The entrepreneurship culture and accelerated industrial development in Nigeria should be boosted through unified tax system as opposed to multiple taxes. • The Central Bank of Nigeria should ensure that the interest rates charged by all the banks are business-friendly.Recommendations • The nation‟s Economic team should reinvent corporate social responsibility (CSR) and entrepreneurship as development mechanisms for redressing socio-economic problems of poverty. terrorism. This pragmatic move promote entrepreneurship thereby dousing crime rate. gansterism. This can be actualised by pegging national interest rate at one digit rate as obtainable in different parts of the world.
• There should be a legislation to prevail on businesses to imbibe the principle and practice of corporate social responsibility. • It is suggested that the government and organised private sector organisation cooperate to accelerate growth of industrial sector through integrated measures. • CSR programmes should focus youth empowerment.Recommendations • Mechanised farming at three levels of governments should be vigorously embraced through public private partnership as policy tool for providing employment for Nigerians. . the governments and interest groups should develop sincere political will to implement the recommendations of several panels. integration of hosts into their chain supply and infrastructural development. • For dousing the threat of insecurity in Nigeria. police support for crime prevention.
(2008) Bank of Industry (BOI) Limited. Working Paper No.. September 15. E. Nigeria. M. ICER Working Paper No. 440–451.s html. pp. K. Reforms and Development: Empirical Evidence‟.g77. G. and George. 60A Working Paper of the: Corporate Social Responsibility Initiative. Forstater. M. Courson. 22(3). 38/2007. P. O. Baliamoune-Lutz. (2008). In UNIDO (2008). Z.Available on http://www. in the Washington Post. S. M.. (2001) Human Capital Development in Nigeria: A Socio-Economic Analysis. African Development Review. Available online on link http://www. Chen Xiao Hong..3 million] to the military every month. (2010) Corporate Responsibility In African Development Insights From An Emerging Dialogue.Key References Alkali. Accesses on March 2012. Y. pp.pdf. .org/pgtf/finalrpt/INT-08-K05-FinalReport. Excerpt from Boom to Bust in Nigeria written by Will Connors. Guang. Nigerian Journal of Clinical and Counselling Psychology: 7 (1/2). Federal government contributes 150 million naira [$1. Awopegba. Zadek. (2010) Unlocking Productive Entrepreneurship in Africa‟s Least Developed Countries.Y. 2008. Turin..ocnus.Strengthening of capacities of private sector agencies and NGOs in selected African countries through regional networking and ECDC/TCDC supporting Women and Youth Entrepreneurship (WED/YED). 157-167.net/artman2/publish/Africa_8/From_Boom_to_Bust_in_Nigeria_printer. „Entrepreneurship. Brixiova. M. (2007). The Institute Of West‐Asian and African Studies of The Chinese Academy Of Social Sciences.
U. D. (2006) Corporate Social Responsibility (CSR): Theory and Practice in a Developing Country Context.htm New Jersey. Vol.A. D.com/publications/max/national_security. 10. 72. Howitt. Ismail. and Mirshak. 22(5): 508–516. 2(9) pp. Jamali.UluslararasıSosyalAra_tırmalarDergisi (The Journal of International Social Research). Available on http://www. Knox. 53. pp. S. (2002) National security and intelligence in Nigeria under democracy: The way forward. and A. CASSAD Monograph Series No.S. (2004) Corporate Social Responsibility:Moving Beyond Investment Towards Measuring Outcomes. (2010) Introduction to Research Methods in Psychology. Source: European Management Journal.Key References Garriga. and Maklan. (2009) Corporate Social Responsibility and Its Role in Community Development: An International Perspective. E. (2004) Corporate social responsibility theories: Mapping and territory. . Onibokun. M. New Jersey: Prentice Hall. A. Journal of Business Ethics. R.3rd edition. pp. 243– 262. Gbanite. 199-209. S. M. Kumuyi (1996) Urban Poverty in Nigeria: Towards Sustainable Strategies for its Alleviation. 51-74.kwenu. Journal of Business Ethics. D.K. D. and Mele. and Cramer.
Convocation Lecture Delivered at the Igbinedion University Eighth Convocation Ceremony. Washington & Lee School. (2010). Available on http://hdrstats. 2012.org/en/countries/profiles/NGA.undp. E. Dublin. Dublin Institute of Technology. L. (2009) A Study of Current Practice of Corporate Social Responsibility (CSR) and an Examination of the Relationship between CSR and Financial Performance Using Structural Equation Modeling (SEM).ng. D. Growth Prospects for the Nigerian Economy. Oxford: Oxford University Press.undp.Doctoral Thesis. L.html. T.pdf. held from July 23-26. Lagos Nigeria.Accessed on July 13.Available onhttp://www. Raimi. Roy. . United Nations Development Assistance Framework (2009) Nigeria UNDAF II. Edo State. (1995 ) The theory of the growth of the firm (3rd edition). International Journal of Civil Society Law. 8(3) July. (2010) Trends in Global Corporate Social Responsibility Practices The Case of SubSaharan Africa. 48-64. Sanusi. Presentation at Yaba College of Technology Conference & Research Fair.Key References Penrose.org/documents/UNDAF_Nigeria_2009. United Nations Development Programme (2011) Report on Human Development Index (HDI). (2012) Corporate Socially Responsible Entrepreneurship (CSRE): A novel management practice for stimulating the Millennium Development Goals (MDGs) and Other Development Blueprints (ODBs) in Nigeria. L. Sweeney.S. A. pp. Okada.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.