EVALUATION OF CORPORATE SOCIAL RESPONSIBILITY

ON COMMUNITY DEVELOPMENT

(A STUDY OF GLOBALCOM NIGERIA LIMITED)

BY

FEMI MICHAEL BAMIDURO

12D/27BA/327

MAY, 2015

1
 EVALUATION OF CORPORATE SOCIAL RESPONSIBILITY

ON COMMUNITY DEVELOPMENT

(A STUDY OF GLOBALCOM NIGERIA LIMITED)

BY

FEMI MICHAEL BAMIDURO

12D/27BA/327

A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENTS FOR THE AWARD OF DEGREE OF BACHELOR OF
SCIENCE IN BUSINESS AND ENTREPRENEURSHIP, SCHOOL OF BUSINESS
AND GOVERNANCE, COLLEGE OF HUMANITIES, KWARA
STATE UNIVERSITY, MALETE, KWARA STATE, NIGERIA.

May, 2015

2
 CERTIFICATION
This is to certify that this study titled: ―Evaluation of Corporate Social Responsibility on
Community Development‖ was carried out by Femi Michal Bamiduro, in the Department
of Business and Entrepreneurship Kwara State University, Malete, Kwara State, Nigeria

Dr. Issa Abdulraheem ………………………………….

Supervisor Signature / Date

3
 DECLARATION

It is hereby declared that this research was undertaken by Femi Michael Bamiduro. This
project report is based on his original study, in the Department of Business and
Entrepreneurship, School of Business and Governance, College of Humanities, Kwara
State University, under the supervision of Dr. Issa Abdulraheem. Ideas and views of
this research work are products of the original research undertaken by Bamiduro Femi
Michael, and the views of other researchers have been duly expressed and
acknowledged.

Bamiduro Femi Michael …………… ………………….

Researcher Signature / Date

Dr. Issa Abdulraheem …………… ………………….

Supervisor Signature / Date

Prof. S.O Otokiti ……………………………….

Head of Department Signature / Date

………………………… ……………………………….
External Examiner Signature / Date
4
 DEDICATION
This thesis is dedicated to my Lord and Saviour the source of my wisdom JESUS
CHRIST for remaining faithful to His Covenant, My Parents Mr and Mrs Bamiduro who
believe in my dream.

5
 ACKNOWLEDGEMENTS
In preparing this thesis, I received valuable assistance and support from several persons to
whom I hereby express my sincere gratitude.
First, I owe a great deal of Glory to Almighty God, my creator and the giver of wisdom and
sincere gratitude to my Parents Mr and Mrs Bamiduro who make me to be educated in my
generation. My appreciations to my HOD a person of Professor Sunday Oyewole Otokiti who
make me believe in myself through effective pedagogy and his fatherly advice, my sincere
gratitude to my supervisor Dr. Issa Abdulraheem who have always been there for me
academically, morally and intellectually, Big thanks to Dr. Hakeem Ajonbadi for giving me
adequate attention whenever the needs arise. Dr. Folashade Suleiman you are best of your kind,
you sincerely help me without any iota of compromise I pray may God reward you big time. I
want to use this medium to say a big thanks to my friends who have always have interest in my
success Nojeem, Adenuga, Peter, Mr Hammed, Rukayat, Arike, Sofiat, Seun, Fawaz, Tina and
Grace you guys are awesome, it‘s such a privilege to have you around me. I also appreciate my
siblings (Toyin, Shola, Joshua, Pelumi and Mariam) who have always been optimistic about my
success. Folashademi Mi you have a special place in my heart, Great shout out to my family
who have been supporting me financially in the cause of my academic pursue Brother Tope,
Aunty Seun, Iya Queen and my big grandma, thanks so much for your love, prayer and support,
I pray may you all live long to reap the fruit of your labour.
To those that have contributed in one way or the other to the success of my academic pursue
whom name has not been mentioned, I also say a big thank you, I pray may you all excel in all
ramification of life.
I am eternally grateful to you all.

Femi Bamiduro

May, 2015.

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 ABSTRACT
The purpose of the paper is to understand the various CSR activities carried by companies in
Nigeria and how these CSR programs develop the community of the company„s. Hundred and
thirty three (133) questionnaires were administered by the researcher to staff of Globalcom Nig
Ltd and their customers, which made up of top management staff, middle management staff and
junior staff and various Glo subscriber. Out of the 133 questionnaires administered, ninety
seven 97 were completed and retrieved. Secondary data for the study were obtained from the
internet, journals; The regression analysis table was used. From the result obtained the F
calculated is greater tabled value thus, reject null hypothesis (H0) and accept alternative (H1).
This means that, the relationship is significant at about 70% confidence level. This confirms that
there is a positive relationship between Corporate Social Responsibility and community
development. From the study it was also clear that most customers are not aware of CSR and
even understand the meaning. The study was however, limited to finding out exact extent to
which Globalcom CSR develop the community in which they operate, the result therefore, shows
that CSR contribute to the development of the community. For academic and industry discourse
it is recommended that further study should be conducted to establish the real extent to which
CSRs contribute to the development of the community. Also further research should be
conducted to know the real intent of various organization that embark on CSRs and how this
program have impacted the society and its corresponding value generation for the company.

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 TABLE OF CONTENTS
Cover Page………………………………………………………………………..….. i
Certification………………………………………………………………………….. ii
Declaration…………………………………………………………….…………….. iii
Dedication………………………………………………………..………………….. iv
Acknowledgements………………………………………………………………….. v
Abstract….………………………………………………….……………………….. vi
Table of Contents……………………………………………………………………. vii-x
List of Tables………………………………………………………………………… xi
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study………………………………………………………… 1
1.2 Statement of Research Problems………………………………………………… 2
1.3 Objectives of the Study……………………………………………….................. 3
1.4 Research Questions………………………………………………………………. 3
1.5 Hypotheses Formulation………………………………………………………… 4
1.6 Significance of the Study……………………………………………................... 4
1.7 Research Methodology…………...……………………………………………… 5
1.8 Limitation of the Study…………………………………………………………... 6
1.9 Outline of the Study……………………………………………………………… 6
1.10 Operationalization………………………………………………………………. 7
1.11 Definition of Terms……………………………………………………………… 8
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction…………………………..………………………………………. 9
2.2 CONCEPTUAL FRAMEWORK
2.2.1 Concept of Corporate Social Responsibility……………………………....... 9

2.2.2 Evolution of Social Responsibility……………………………..…………… 13

2.2.3 Characteristics of Corporate Social Responsibilities………………….……. 16

2.2.4 Arguments for Social Responsibility………………………………............... 16
2.2.5 Arguments Against Social Responsibility…………………………............. … 17

8
2.2.6 Role of CSR In Community Development…………………………………. 18
2.2.7 Competitive Strategy………………………………………………….......... 19
2.2.8 Business Ethics……………………………………………………………… 20
2.2.9 Community Development…………………………………………………... 23
2.2.10 Education Initiatives………………………………………………….......... 25
2.2.11 Social Welfare………………………………………………………………. 26
2.2.12 Social Welfare Discourse……………………………………………........... 27
2.2.13 Organization and Social Welfare Initiatives……………………………….. 28
2.3 THEORETICAL FRAMEWORK
2.3.1 Theories of Corporate Social Responsibility………………………………. … 30
2.4 Empirical Framework………………….……………………………………. 41

2.5 Literature Gap……………………………………………………………….. 42

CHAPTER THREE: Research Methodology
3.1 Introduction……………………………………………………………………… 43
3.2 Research Method……………………………………………………………..….. 43
3.3 Research Design…………………………………………………………............. 43

3.4 Population of Study……………………………………………………............... 44

3.5 Sample Size Determination………………………………………………………. 45
3.6 Sampling Technique……………………………………………………………… 46
3.7 Research Sample Frame………...………………………………………………... 46

3.8 Sources of Data and Procedure for Data Collection…………………………….. 47

3.9 Research Instrument……………………………………………………………… 48

3.10 Validity of Research Instrument………………………………………………… 48

3.11 Reliability of Research Instrument………………………………………………. 49

3.12 Ethical Consideration……………………………………………………………. 49
CHAPTER FOUR: PRESENTATION, ANALYSES AND INTERPRETATION
OF RESULT
4.1 Introduction……………………………………………………………………… 50
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4.2 Presentation of Data……………………………................................................ 51

4.3 HYPOTHESIS TESTING

4.3.1 Restatement of Hypothesis…………………………..……………………… 71

CHAPTER FIVE: DISCUSSION, CONCLUSION AND RECOMMENDATIONS

5.0 Introduction……………………………………………………………..……….. 82
5.1 Findings – CSR impact on Community Development……………………………………………. 82
5.1.1 Summary of Theoretical Findings…………………………………………….. 82
5.1.2 Summary of Empirical Finding……………………………………………….. 85
5.2 Conclusions…………..………………………………………………………….. 86
5.3 Recommendations……………………………………………………………….. 87
5.4 Suggestions for Further Research……………………………………………….. 88
REFERENCES…………………………………………………….…………………. 89

APPENDICES…………………………………………………...…………………... 96

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 LIST OF TABLES
Table 2.1: Utilitarian, Managerial and Relational Theories of CSR……………………….… 30

Table 2.1.1: Corporate Social Responsibilities Theories and Related Approaches…………… 30

Table 3.1 Population ………………………………………………………………………. 44
Table 3.2 Sample Size Table……………………………………………………….……… 47

Table: 4.1.1 Questionnaire Administered to Globalcom Staff and Its Subscriber……………. 50

Table 4.2.1: Respondents Sex ………………………………………………………………… 52

Table 4.2.2: Respondents Marital Status……………………………………………………… 52
Table 4.2.3: Respondents Age………………………………………………………………… 53

Table 4.2.4: Respondents Qualifications……………………………………………………… 53

Table 4.2.5: Respondents Professional Qualifications……………………………………….. 54

Table 4.2.6: Respondents Work Experience ………………………………………………… 54
Table 4.2.7: what do you think about Globalcom embarking on CSR............................... … 55

Table 4.2.8: what impact has the project / program had on the community…………………. 56
Table 4.2.9: Globalcom business ethics improve the community in which they operate……. 56

Table 4.2.10: Community is not developed as a result of business ethics adopted by Globalcom 57

Table 4.2.11: There is a great change in the community based on the program adopted by

Globalcom……………………………………………………………………. 57

Table 4.2.12: Globalcom education initiatives promote literacy level in the community,

hence bring about community development………………………………… 58

Table 4.2.13: Education initiatives is one of the impetus for positive change in the community 58

Table 4.2.14: Globalcom embark on competition and it bring about positive change in

the Community…………………………………………………………….. 59

Table 4.2.15: Inter-competition have significant effect on community development………… 60

Table 4.2.16: Social welfare is one of the factors that develop the community……………… 60
Table 4.2.17: Community is development based on social welfare that Globalcom embark on… 61
Table 4.2.18: Respondents Sex………………………………………………………………….. 62

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Table 4.2.19: Respondents Marital Status Table 4.2.20: Respondent Age……………………… 63
Table 4.2.20: Respondent Age…………………………………………………………………… 63
Table 4.2.21: Which of these other network do you use aside from Glo……....................... 64
Table 4.2.22: Are you aware that Globalcom embark on any program that are
Beneficial to the people of your community…………………………………. 64
Table 4.2.23: What impact has the project / program had on the community…………………. 65
Table 4.2.24: Globalcom business ethics improve the community in which they are operating… 65
Table 4.2.25: There is a great change in the community based on the program
adopted by Globalcom………………………………………………………….. 66
Table 4.2.26: Globalcom education initiatives promote literacy level in the
community hence, Bring about community development…………………….. 67
Table 4.2.27: Education initiatives is one of the impetus for positive change in the community 67
Table 4.2.28: Globalcom embark on competition and it bring about positive change in community 68
Table 4.2.29: Inter-company competition have significant effect on community development…… .68
Table 4.2.30: Globalcom competition is effective and bring about competitive edge its Competitors69
Table 4.2.31: Social welfare is one of the factors that develop the community…………………… .70
Table 4.2.32: Community is developed based on the social welfare Globalcom embark on…………70
Table 4.3.1 Descriptive Statistics……………………………………………………………… 72

Table 4.3.2 Model Summary……………………………………………………………….…. 72

Table 4.3.3 ANOVA………………………………………………………………………….. 73

Table 4.3.4 Coefficients ……………………………………………………………………… 73

Table 4.3.5 Descriptive Statistics …………………………………………………………… 74

Table 4.3.6 Model Summary ……………………………………………………………….. 75

Table 4.3.7 ANOVA ………………………………………………………………………… 75

Table 4.3.9 Coefficients……………………………………………………………………… 76

Table 4.3.10 Descriptive Statistics ………………….............................................................. 77

Table 4.3.11 Model Summary ………………………………………………………………. 77

Table 4.3.12 ANOVA ………………………………………………………………………. 78

Table 4.3.13 Coefficients …………………………………………………………………… 78

Table 4.3.14 Descriptive Statistics …………………………………………………………. 79

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Table 4.3.15 Model Summary ……………………………………………………………… 79

Table 4.3.16 ANOVA………………………………………………………………………. 80

Table 4.3.17 Coefficients ………………………………………………………………….. 80

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 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Business is essential for the development and wellbeing of a society. However, business
does not just exist, it largely depends on a numbers of stakeholder, which comprises
employees, customers, investors, interest groups and community at large. An extensive
and critical debate about the role and conduct of business, and their associated corporate
social responsibilities in the community, is taking place among academics and
practitioners alike (Aras & Crowther, 2007).
Today, the level of demand goes beyond the direct impact of the organizations
business to also incorporate how corporations can contribute to societal and
environmental causes. For corporations, these activities are manifested through the
concept of Corporate Social Responsibility (CSR). The European Commission defined
CSR in 2011 as ―A concept whereby companies integrate social and environmental
concerns in their business operations and in their interaction with their stakeholders on a
voluntary basis. However, from a corporate perspective, it is difficult to measure if these
changes can have a positive impact on community. Instead, these contributory practices
are mainly measurable from a philanthropic perspective. ―Business is not divorced from
the rest of the society.
The practice of CSR got quick evolution in the last 40 years but it appears longer
before then. Prior before the advent of CSR, what we use to know is philanthropy.
Therefore, concept of corporate social responsibility is a direct involvement in the
community affairs. The continued acceptance of a company and its survival depends to a
large extent on its demonstration on awareness of the problem of the society and
14
willingness as well as its capacity to contribute to the problems. A company should be a
responsible member of the society in which it operates.

According to Ango (2012) ―Business is a component of the society, as such, it must

subject itself to the fair requirements of the society, for, their relationship is paramount
and reciprocal (the business needs the society just as the society needs the business)‖.
The focus of this research will therefore, be to Evaluate the Impact Measurement of
Organization CSR on Community Development. (A study of Globalcom Ltd, Ilorin
Branch).

1.2 Statement of Research Problem

With the new competent and competitive players, the Nigerian Organization system is
now driven by advanced competition brought about by globalization, deregulation of
financial services, recent multitude of Multinational Company, Chief Executives,
astronomical development in Information and Communication Technology (ICT), among
others, to render services according to cost-benefit criteria. This has affected organization
customers' habits as well, while the increasing demands for clear and hard facts about the
social and environmental performance of Nigeria by an increasingly well-informed breed
of stakeholders have made corporate social responsibility (CSR).

Nigeria organization perceive the practice of Corporate Social Responsibility as a

corporate philanthropy aimed at addressing socio-economic development challenges.
However, some companies sees the practice of CSR as a means of enhancing market
share, avoiding tax and hence competitive strategy. It is however, obvious that despite
the practice of CSR by Nigeria organizations, the community in which they operate still
remain back ward in term of employment, opportunity, social welfare, infrastructural
development e.t.c.

15
 It is against this mendacity background that, there is the need to find out may be
organization really carry out their CSR as ought to be or they use it as competitive
strategy to obtain large market share and if they truly carry out their CSR generously,
then what impact does this practice have on the development of the community in which
they operate.

1.3 Research Objective

The main objective of this study is to evaluate the effect of Organization Corporate Social
Responsibility on Community Development (A Study of Globalcom Telecommunication
Nig Ltd). But specifically, the study will sought to achieve the following objectives:
1. To examine the extent to which organization Business Ethics enhance education
initiative in their home community.
2. To establish the relationship between Business Ethics and social welfare of the
home communities.
3. To determine the effectiveness of Competition towards Education Initiatives.
4. To know the contribution of organization competition toward the enhancement of
social welfare.

1.4 Research Question

The study intend to find answers to the following questions

1. To what extent does organization Business Ethics enhance education initiatives in
their host communities?
2. What is the relationship between Business Ethics and social welfare of the host
communities?
3. Does organization competition has any effect on education initiatives?

16
 4. To what extent does organization competition contribute towards the enhancement
of social welfare?
1.5 Research Hypothesis
Hypothesis I
Ho: Business ethics does not enhance education initiatives in the
community.

Hypothesis II
Ho: There are no relationship between business ethics and social welfare of
the communities.

Hypothesis III
Ho: Competition effect is insignificant on education initiative of the host
communities.

Hypothesis IV
Ho: Organization competition does not contribute significantly to the
enhancement of social welfare.

1.6 Significance of the Study:

The study of social responsibility of a business organization is hoped to be of benefits

not only to student‘s businessmen, government, customers, community, stockholders,
academics, but the whole society. The study also highlight the problem associated with
social responsibility and make use of the analysis to improve the working situations
thereby minimizing the problems associated with social responsibility conflict in the
organization and its environment as well.
17
 Finally, the study inform all at large, the need for effective corporate social
responsibility not only to the firm, but to the society at large.

1.7 Research Methodology

Research Philosophy: The philosophy of this research is Ontology (Account for the
nature of the realities) and since it is a study of Globalcom in Kwara State, it utilize the
Realistic philosophical approach (Realism). Realism is based on the belief that a reality
exists that is independent of human thoughts and beliefs.
Research Strategy and Methods: This research work employed mixed method approach
which comprises both survey and observation keeping in mind the aim and nature of the
study. This intensive study provide empirical evidence of how Organization Corporate
Social Responsibility have an effects on the community development in Kwara State with
concentration on Globalcom Nig Ltd in Ilorin metropolis.
Research Design: This research use multiple method which comprise both survey and
observation. Information were gathered using structured questionnaires (close ended
questionnaires in order to curtail/restrain the respondents from derailing from expected
results) and in-depth interview. Aside the primary data sources that were adopted, other
relevant secondary data like CSR report of the organization overtime, books, journals,
published articles relating to Corporate Social Responsibility and Community
development in Nigeria. The adopted design permit for review and changes in the
research procedure for gathering relevant data. This research will be cross-sectional (i.e
the questionnaires will be distributed once).
Population and Sampling Procedures: The study population is very large, therefore
sample determination were used, hence structure the population into two, (the
organization and its customer) the researcher choose to use one organization in Ilorin
(Globalcom Ltd) the organization staff is 40 which comprises top level management,
18
middle level management and the lower level management, it is assume that Globalcom
subscriber in Ilorin Constitute about 38% of Ilorin phone users therefore, all the customer
were unable to reach as only 160 customer were used for the purpose of this study, which
make the total population to amount to 200 in all. So far the whole population can not be
reach due to time and other constraint, 133 sample size were then used, this serve as a
good representation of the population
Validity and Reliability of the Research: In order to validate the authenticity of the
findings of the research, face to face interview (with operational workers) as well as
observation method was employed. Report on their Corporate Social Responsibility over
time was also analyzed to see how often the Globalcom practice CSR. This report was
compared with past CSR report to authenticate the research findings. In the course of the
research, other methods of validating the research was also employed.

1.8 Limitations of the Study

The nature of the study would have had more credibility, studying a wider range of
organizations. However due to constraint of time and resources, this were not possible.
Also, accessing proper data for analysis from companies is another challenge.

1.9 Outline of Chapters

Chapter 1 – Introduction

The chapter one discuss what the research is all about, the method adopted and the
summarization of the whole research, such as method, population, sampling, analysis of
data, the concept of Corporate Social Responsibility and how this impact the
development of the community in which organization operate.

19
Chapter 2 – Literature Review

This chapter criticize the literature on the concept of CSR and cite different authority that
have contributed their knowledge to the concept of Corporate Social Responsibility,
including their view, opinion, conceptual, theoretical and empirical frame work of
different scholars on the topic that is proposed to be research.

Chapter 3 – Research Methodology

This chapter include research method and design, population and sample size, sample
techniques and procedure, research sample frame, collection of data, research instrument,
validity of research instrument, reliability of research instrument and ethical
consideration.

Chapter 4 - Data Presentation, Analysis and Interpretation

This discuss data presentation and how is being analyzed, questionnaire, descriptive
statistic, presentation and analysis of research question, test of hypothesis and empirical
result and interpretation of result.

Chapter 5 – Summary, Recommendation and Conclusion

This include summary, Findings, conclusion and recommendation.

1.10 Operationalization of Construct into Variable

X= Corporate Social Responsibility Y= Community Development
X1=Business Ethics Y1= Education Initiatives

X2-Competitive Strategy Y2=Social Welfare

Where Y Solely Depends on X

20
Therefore, the above construct variable was op-rationalized into research objective,
research question and research hypothesis, for the sake of this research, the researcher
were restricted to the following variable under each construct X1-Y1, X1-Y2, X2-Y1,
and X2-Y2 respectively.

1.11 Definition of Terms

Organization- This can be define as a group of people gathered together in pursue of a
specific goal through pools of resources so as to achieve a define goal.
Corporate Social Responsibility: The European Commission defined CSR in 2011 as
―A concept whereby companies integrate social and environmental concerns in their
business operations and in their interaction with their stakeholders on a voluntary basis.
Community: Community could be define as group of people with a shared identity.
Development: Development‖ is a process that increases choices. It means new options,
diversification, thinking about apparent issues differently and anticipating change
(Christenson et.al., 2006). Development involves change, improvement and vitality – a
directed attempt to improve participation, flexibility, equity, attitudes, the function of
institutions and the quality of life. It is the creation of wealth – wealth meaning the things
people value, not just dollars (Shaffer, 2002).
Community Development: Community development is a process that increases choices.
It creates an environment where people can exercise their full potential to lead productive,
creative lives. – Ron Shaffer (pers. com.).

21
 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter is for the review of relevant literature and opinion of different authorities
that have written to the concept of Corporate Social Responsibility in order to ascertain
their various views about the philosophy of Corporate Social Responsibility and how this
philosophy contribute to the development of the community. The review comprises of
conceptual framework, theoretical framework and empirical framework. The conceptual
framework looked at different concept of Corporate Social Responsibility and its
variables such as, Business Ethics and Competitive Strategy, while the concept of
Community Development shall comprises, Education Initiatives and Social Welfare.

2.2 Conceptual Framework

2.2.1 Concept of Corporate Social Responsibility

The issue of corporate social responsibility (CSR) has been debated since past decade.
Analyses by Sochi (2007) and Lee (2008) reported that the definition of CSR has been
changing in meaning and practice. The classical view of CSR was narrowly limited to
philanthropy and then shifted to the emphasis on business society relations particularly
referring to the contribution that a corporation or firm provided for solving social
problems. In the early twentieth century, social performance was tied up with market
performance.
The pioneer of this view, Oliver Sheldon (1923, cited in Bichta, 2003), however,
encouraged management to take the initiative in raising both ethical standards and justice
in society through the ethic of economizing, i.e. economize the use of resources under the
name of efficient resource mobilization and usage. By doing so, business creates wealth
22
in society and provides better standards of living. The present-day CSR (also called
corporate responsibility, corporate citizenship, responsible business and corporate social
opportunity) is a concept whereby business organizations consider the interest of society
by taking responsibility for the impact of their activities on customers, suppliers,
employees, shareholders, communities and other stakeholders as well as their
environment.
European Commission (2011) are of the view that the concept of CSR is a
situation where by companies integrate social and environmental concerns in their
business operations and in their interaction with their stakeholders on a voluntary basis,
following increasingly aware that responsible behavior leads to sustainable
business success. They further about managing change at company level in a socially
responsible manner which can be viewed in two different dimensions:
a) Internal – socially responsible practices that mainly deal with employees and related to
issues such as investing in human capital, health and safety and management change,
while environmentally responsible practices related mainly to the management of natural
resources and its usage in production.

b) External – CSR beyond the company into the local community and involves a wide
range of stakeholders such as business partners, suppliers, customers, public authorities
and NGOs that representing local communities as well as environment. A company
should focus on areas such as economic, environmental and social when developing
sustainability strategy (Szekely & Knirsch 2005).

In the business, CSR is concerned with employment, lifelong learning,

consultation and participation of workers, equal opportunities and integration of people
towards restructuring and industrial change. Basically, the formation of policies is
influenced by the authority employment strategies, the initiative on social responsible

23
restructuring, the initiatives to promote quality and diversity in the workplace and health
and safety strategy. The social issues include the benefits offered in terms of training
related to safety, health and environment, donations, education scheme, medical benefits
and others. (Chamhuri & Wan Noramelia 2004). Ibeanu (2006) earmarked that, a
business organization is simply an entity whose basic purpose is to provide goods and
services in whatever form that the society finds itself in operation. Andabai (2010) also
confirmed that, it is an organ of the society empowered by the laws of the society which
gives its existence. As an organ of the society, performing social functions, it is legally
and normally liable for carrying out a duty in any area of one‘s operations (Rodney 2001).

This obligation denotes responsibility to the business enterprises as an organ of

performing societal functions and responsibilities to their communities. Edem (2004)
looked at social responsibility as a crucial function a manager should perform to enhance
the welfare of the communities in which they operate because social responsibility create
peaceful atmosphere for articulation of companies policy and operation. Magdoff (2002)
views social responsibility as a term often used to indicate demands not necessarily
directly related to the concerns of the firm‘s traditionally accepted financial beneficiaries,
that is, stock holders, creditors, suppliers and employees. Kehinde (2007) sees social
responsibility from the semantic concept of social responsiveness which incorporated the
idea of a company responding to its multiple constituencies in such a way as to enhance
the long-term achievement of the organization.

According to Bright (2010), ―the concept of social responsibility as an

organizational ethics is faster becoming a custom and an important concept that virtually
every enterprise is being required to adopt as business practice‖. Sherlock (2007)
observed that, this concept is better appreciated and understood when looked at various
reports from Fast Moving Consumer Goods (FCMG) in Nigeria. Andabai (2010) stressed

24
that, in the Western world, the case is not different as business enterprises are responsible
to their areas of operations due to negative effect or impacts generated as a result of such
business operations and developing countries like Nigeria, and the concept is gradually
taking root. However, Andabai (2010) concluded that, it is the aim of this study to assess
the level of social responsiveness in the light of recent hostilities and un-ending demands
made by the various communities in Nigeria.

Based on the above various definitions of Corporate Social Responsibilities [CSR],

by different authorities, each considered valuable in their own right and designed to fit
the specific organization. The majority of definitions integrate the three dimensions to the
concept, that is, economic, environmental and social dimensions. CSR had also been
commonly described as ―a demonstration of certain responsible behavior on the part of
public and the private [government and business] sectors toward society and the
environment‖. On the contrary, some authority are of the view that CSR is just a mere
strategy that organization is using to gain more market share, avoid tax and competitive
edge (Otokiti, oral presentation Aug, 2014). CSR also means addressing the legal, ethical,
commercial and other expectations society has for business, and making decisions that
fairly balance the claim of all key stakeholders. In its simplest terms, it is: ―what you do‖,
―how you do it‖ ―and when and what you say‖. In this sense, CSR is viewed as a
comprehensive set of policies, practices and programs that are integrated into business
operations, supply chain, and decision making processes throughout the company and
wherever the company does businesses that are supported and rewarded by top
management. In lieu with above different view of concept of CSR, it is obvious that the
concept is generally accepted as a situation where by companies integrate social and
environmental concerns in their business operations and in their interaction with their
stakeholders on a voluntary basis, following increasingly aware that responsible behavior
leads to sustainable business success, (European Commission 2011 et al).
25
2.2.2 Evolution of Social Responsibility

The theme of CSR had a quick evolution in the last forty years but it appeared longer
before. Around literature different authors (e.g. Joyner & Payne, 2002; Chirieleison,
2004) tried to analyze the historical evolution of this concept, indentifying, in their
opinion, the main interpretations and theories relevant to the CSR topic. Joyner and
Payne (2002), in particular, think that the first author who indentified the concept of
social responsibility in companies is Chester Barnard (1938); in the text The Functions of
the Executives, he pointed out the importance and the influence that the external
environment can have on the decision-making processes of which a manager is
responsible. In particular, Barnard said that the, one who has the leadership, necessarily
has to consider how the success of a company depends also on the moral incentives he
can bring to it. Subsequently, Joyner and Payne (2002) underline the work of Herbert
Simon (Administrative Behavior, 1945 cited in Delick 2010, who recognized that all the
organizations have to be responsible against their community, beyond the constraints
imposed by the law. According to Simon, many firms can be considered of public interest
and of primary importance for investors and owners; that is why companies have to
establish relationship of trust with their communities. On the other hand, Chirieleison
(2004) agree that the first considerable contribution about the topic, it is to be attributed
to Howard Bowen (2007), who gave a meaning of CSR related to the ―businessman‖
rather than to the whole organization (here CSR was referred to as social responsibility
rather than corporate social responsibility). Even if this thought is still focus on
managers‘ responsibilities instead of on the responsibilities of a company in its complex,
this consideration is relevant since it recognizes firms as power entities able to influence
the life of the society. The author gave a first definition of CSR saying that companies
have the obligation ―to pursue those policies, to make those decisions, or to follow those
lines of actions which are desirable in terms of the objectives and values of society‖.
26
Thanks to Bowen‘s contribution the ‗50s are recognized as the modern era of CSR
(Carrol, 2007); in this period CSR entered with full rights in the academic and managerial
literature. Hereafter Carroll, Joyner and Payne agree on attributing a key role in the
development of the concept of CSR to Peter Drucker who was the first to use the
expression ―social responsibilities of business‖. Unlike Bernard and Simon who put more
attention on the ethical and moral dimensions of people behavior inside organizations,
Drucker focused more on CSR. In the text The Practice of Management (1954) he
classified the ―public responsibility‖ as one of the eight primary objectives a company
must have. Talking about management, he stated: “it has to consider whether the action
is likely to promote the public good, to advance the basic beliefs of our society, to
contribute to its stability, strength, and harmony” (Drucker, 1954). As noticed before, the
early scientific debate was focused on businessmen‘ responsibility rather than on that of
the whole company; managers were seen as the one able to influence the external context,
with duties that go beyond the classical ones (production function, making profit,
distribution of goods and services). Between the early ‗60s and the end of the 70s the
expression ―corporate social responsibility‖ is finally established. In those years, there
was a turning point in the debate about social responsibility; this was mostly due to the
work of Milton Friedman (1962, 1970) cited in carrol (2007) who considers the profit
maximization as the one and only duty of managers and companies. This concept is the
pillar of the Neo-Classical view of which Friedman is considered the progenitor (e.g.
Carroll, 2007;Preston & Beurden & Gossling, 2008).With extreme harshness he states
that: ―few trends would so thoroughly undermine the very foundations of our free society
as the acceptance by corporate officials of a social responsibility other than to make as
much money for their shareholders as they possibly can” (Friedman, 2003). In his vision
it is deeply rooted the primacy of the economic sphere as the sole duty of corporations, as
he points out: ―there is one and only one social responsibility of business – to use its
27
resources and engage in activities designed to increase its profits so long as it stays
within the rules of the game, which is to say, engages in open and free competition
without deception or fraud‖(Friedman, 2003). Friedman does not deny the existence of
social problems, but he claims that they should be dealt by states and governments
(Margolis & Walsh, 2002); in his opinion if managers wish to pursue some social good,
they should do it as individuals and not as executives, meaning that they should not uses
shareholders‘ money for their own objectives (Friedman, 2003). Friedman‘s rigid point of
view was gradually overtaken by other authors, as Davis, Frederick, McGuire and in
particular Freeman, who recognizes broader responsibilities than the economic ones and
those established by law.
Davis has a name for his ―Iron Law of Responsibility‖ in which he underlines the strict
link between business power and social responsibility: ―social responsibilities of
businessmen need to be commensurate with their social power‖ (Carroll, 2007). In
particular he states that if a manager avoids making decisions in a social responsible
matter this could lead to a corrosion of his own power. Davis further proposes the idea
that making social responsible decisions can contribute to generate economic advantages
in the long run. He was a forerunner but in that time this idea sounded like something
unacceptable. Frederick, on the other side, emphasizes the role of a company against the
environment in which it operates. He affirms that: ―social responsibility in the final
analysis implies a public posture Toward society‟s economic and human resources and a
willingness to see that those resources are utilized for broad social end and not simply
for the narrowly circumscribed interest of private persons and firms” (Frederick, 1960)
cited in Anguff (2011). As a support to Frederick‘s perspective, we can quote McGuire
contribution as well (Carroll, 2007); he reiterates the needs for organizations to consider
not only the economic and legislative duties but also the responsibilities that go beyond
these duties. There are several authors that, in order to limit the area of interest of CSR,
28
tried to identify the behavior that a company should follow to be socially responsible.
Davis (2012), for example, analyzes the pros and cons of the undertaking of social
responsibilities, arguing that CSR begins when the law ends.
According to Carroll, the concept of CSR should embody four dimensions; only in this
way it would be possible to have a complete definition and a clear understanding of the
concept. The four dimensions are represented as a four layers pyramid (Figure 2a), where
the layers, as said above, are: the economic one, the legal one, the ethical one and the
philanthropic (discretionary) one. As Carroll says in the paper ―all of these kinds of
responsibilities have always existed to some extent, but it has only been in recent years
that ethical and philanthropic functions have taken a significant place”.

2.2.3 Characteristics of Corporate Social Responsibilities

The European Foundation for Quality Management [EFQM] presents some common
characteristics for CSR which are:
• Meeting the need of current stakeholders without compromising the ability of future
generations to meet their own demand.
• Adopting CSR voluntarily, rather than as legal requirement, because it is seen to be in
the long-term interests of the organization.
• Integrating social, environmental and economic policies in day to day business
• Accepting CSR as a core activity that is embedded into an organization‘s management
strategy.

2.2.4 Arguments for Social Responsibility

Changed Public Expectations Of Business: one of the most potent arguments for social
responsibility is that public expectation from business has changed. It is reasoned that the
institution of business exists only because it satisfies the valuable needs of society.
29
Therefore, if business wishes to remain viable in the long run, it must respond to
society‘s needs and give the society what it wants.
Better Environment For Business: social responsibility creates a better environment for
business. This concept rationalizes that a better society produces environmental
conditions more favorable for business operations.
Public Image: another argument in favor of CSR is that it improves public image. Each
individual firm seeks an enhanced public image so that it may gain more customers,
better employees, more responsive money markets and other benefits. A firm which seeks
better public image should support social goals.
Duty To Gratitude: business units benefits from society. On the basis of the commonly
accepted principle that one owes debts of gratitude towards those who benefit us, the
corporation has certain debts that it owes to the society. Hence, in this way we have few
more arguments like business has the resources, balance of responsibility with power,
prevention is better than cure, moral responsibility, let business try.

CHANGED PUBLIC BETTER ENVIRON MENT FOR

EXPECTATIONS OF BUSINESS BUSINESS
PUBLIC IMAGE DUTY TO GRATITUDE

Design By: The Researcher

2.2.5 Arguments Against Social Responsibility
1) Profit Maximization: the first and the most forceful argument disfavoring social
responsibility is that business has profit maximization as its main objective. In fact, the
business is most socially responsible when it attends to its interests and leaves other
activities to other institutions.

30
2) Society Has To The Cost; another argument is that the costs of social responsibility
will be passed on to the society and it is the society which must bear them. Can the
society afford these additional costs?
3) Lack Of Accountability; another point of view is that the businessman have no direct
accountability to the people, therefore, it is unwise to give businessmen responsibility for
areas where they are not accountable. Accountability should always go with
responsibility, and it is poor social Control any other kind of arrangement.
4) Social Overhead Cost: cost on social responsibility is considered to be a social cost,
which will not immediately benefit the business. Why spend money on an object, the
benefits of which will be realized only in the future? It is the heavy social overhead cost
which is one of the reasons for the miserable performance of some of our government
undertakings.

2.2.6 Role of CSR In Community Development

The issue of corporate social responsibility (CSR) has been debated since the 1950s.
Analyses by Secchi (2007) and Lee (2008) reported that the definition of CSR has been
changing its meaning and practice. The classical view of CSR was narrowly limited to
philanthropy and then shifted to, the emphasis on business society relations particularly
referring to the contribution that a corporation or firm provided for solving social
problems. In the early twentieth century, social performance was tied up with market
performance. The pioneer of this view, Oliver Sheldon (1923, cited in Bichta, 2003),
however, encouraged management to take the initiative in raising both ethical standards
and justice in society through the ethic of economizing, i.e. economize the use of
resources under the name of efficient resource mobilization and usage. By doing so,
business creates wealth in society and provides better standards of living. The present-
day CSR (also called corporate responsibility, corporate citizenship, responsible business
31
and corporate social opportunity) is a concept whereby business organizations consider
the interest of society by taking responsibility for the impact of their activities on
customers, suppliers, employees, shareholders

2.2.7 Competitive Strategy

Most scientific works emphasize the voluntary principle of CSR. However some
researchers focusing on the greater importance of social programs maintain that they
become a factor of the company‘s durability and fail to be called voluntary in the full
sense of the word (Zadek, 2004; Nijhof and Bruijn, 2008). Although the idea of the
treatment of the 21 century CSR as a consciously realized and inevitable case of necessity
is based on very different arguments, most of its exponents agree that according to the
final conclusion the programs of corporate social responsibility are ―the key for increase
of companies‘ competitive ability‖ (Vives and Peinado-Vara, 2004). CSR is a mere
strategy that organization used in order to increase their market share and increase their
profitability, it should be something that organization do on a voluntary basis (European
Commission 2011) the absent of which will make it lose its original meaning and hence,
it can be classified as competitive strategy (Ajonbadi 7 th Sep, 2014. Personal
communication). The practice CSR is adopted by organization so as to avoid tax and not
to solely give back to the community some portion of their profit as people thought
(Otokiti 19th Aug, 2014 Oral Presentation). However in order to convert CSR potential
abilities into real competitive advantages, it is important to find out what possible ways to
do it. Most researchers compatibly state that participating in CSR work is useful not only
for society but also for corporations. It is stated that
CSR practice gives additional advantages to business:
• Provides with the society‘s favour and lowers the risks of business operations;

• Forms the image of the corporation and improves its reputation;

32
 • Stimulates the organization‘s innovation and creative work;

• Helps to find easier ways to attract external sources of sponsorship;

• Broadens markets and makes situations for sales increase;

• Helps to attract positively motivated employees, enhances the value of human

capital;

• Stimulates the organization‘s culture;

• Lowers expenditures, stimulates production and income increase, enhances the

efficiency of work.

Such declarative statements require more thoughtful analysis and solid reasoning

Based on the different scholars views about CSR as competitive strategy, it is now
obvious that adoption of CSR practice by different organization in Nigeria is for the sake
of themselves and not the community. Therefore, I solemnly agree that Corporate social
responsibility is competitive strategy.

2.2.8 Business Ethics

The term "business ethics" is used in a lot of different ways. Business ethics is a form of
applied ethics (Broni, 2010) that examines ethical principles and moral or ethical
problems that arise in a business environment. Business ethics consists of a set of moral
principles and values (Jones - Parker - Bos, 2005) that govern the behavior of the
organization with respect to what is right and what is wrong (Badiou, 2001; Seglin,
2003). It spells out the basic philosophy and priorities of an organization in concrete
terms (French, 2005) cited in Broni (2010). It also contains the prohibitory actions at the
workplace (Collier - Esteban 2007). It provides a framework on which the organization
could be legally governed. With time, certain moral philosophies have helped in the

33
evolution of four basic concepts of ethics. They are deontologism, relativism, egoism,
and utilitarianism (Kotsiris, 2003).
Business ethics is the behavior that a business adheres to in its daily dealings with
the world (Borgerson - Schroeder, 2008). They apply not only to how the business
interacts with the world at large, but also to their one-on-one dealings with a single
customer (Solomon, 2001). Many businesses have gained a bad reputation just by being
in business (Carr, 1968) cited in Carrol (2008). To some people, businesses are interested
in making money, and that is the bottom line. It could be called capitalism in its purest
form (Antoniou, 2008). Making money is not wrong in itself. It is the manner in which
some businesses conduct themselves that brings up the question of ethical behavior
(Maitland, 2004). Good business ethics (American Psychological Association, 2001)
should be a part of every business (Preuss, 2007).
There are many factors to consider (Michalos, 2010). Many global businesses,
including most of the major brands that the public use, can be seen not to think too highly
of good business ethics (Maitland, 2004). Many major brands have been fined millions
for breaking ethical business laws (Cory, 2005:9). Money is the major deciding factor
(Seglin, 2003). Business ethics can be applied to everything from the trees cut down to
make the paper that a business sells to the ramifications of importing coffee from certain
countries (Aiken, 2011). In the end, it may be up to the public to make sure that a
company adheres to correct business ethics (Clarke, 2004). Simultaneously, pressure is
applied on industry to improve business ethics through new public initiatives and laws
(e.g. higher tax for luxurious vehicles). Businesses can often attain short-term gains by
acting in an unethical fashion (Sunstein, 2002).
As a corporate practice and a career specialization, the field is primarily
normative. In academia descriptive approaches are also taken. The range and quantity of
business ethical issues reflects the degree to which business is perceived to be at odds
34
with non-economic social values. Historically, interest in business ethics accelerated
dramatically during the 1980s and 1990s, both within major corporations and within
academia (Cory, 2005:11). For example, today most major corporate websites lay
emphasis on commitment to promoting non economic social values under a variety of
headings (e.g. ethics codes, social responsibility charters). In some cases, corporations
have redefined their core values in the light of business ethical considerations.
Some researchers believe that business ethics is really about the law: if it is legal, it
is ethical. Others think business ethics consists of empirical studies of the conditions that
promote ethical behavior of employees. Still, others contend that ‗business ethics‘ refers
to an analysis of the roles various business ―stakeholders‖ should play in determining
business decisions (Roper, 2005). Business ethics is concerned with truth and justice and
includes aspects which the society expects, such as fair competition, social
responsibilities and corporate behaviours to stakeholders (Ango, 2010). Business has the
responsibility to its stakeholders (both internal and external); Appleby (1994) opined that,
business cannot avoid the facts that its responsibility for industrial and commercial
direction is mainly its responsibility to society. Corporate Social Responsibility (CSR) is
about the contribution a company makes to society through its core business activities, its
social investment and philanthropy programs (Ojumu, 2007). Stakeholder theory is
considered as ―a necessary process in the operationalization of corporate social
responsibility, as a complimentary rather than conflicting body of literature (Matten,
2003).
The concept of business ethic are view subjectively by different authorities but the
common definition among them encompasses morality and ethics of business which state
that –morality is concerned with the norms, values and beliefs embedded in social
process which define right and wrong for an individual or a community. Ethics on the
other hand is concerned with the study of morality and the application of reasons to
35
elucidate specific rules and principles that determine right and wrong for a given situation
(Crane 2000). Therefore, for the sake of this research I admit to the concept of Crane as
outline in the last paragraph.
2.2.9 Community Development
First of all community is generally defined as a group of people sharing a common
purpose, who are interdependent for the fulfillment of certain needs, who live in close
proximity and interact on a regular basis. There are shared expectations for all members
of the group and responsibility taken from those expectations. The group is respectful and
considerate of the individuality of other persons within the
community. In a community there is a sense of community which is defined as the
feelings of cooperation, of commitment to the group welfare, of willingness to
communicate openly, and of responsibility to and for others as well as to one‘s self. Most
important their existing community leaders who are responsible for the success of any
community event, depending on the needs of the community, and the individual‘s own
feelings.
Community development (CD) refers to initiatives undertaken by community with
partnership with external organizations or corporation to empower individuals and groups
of people by providing these groups with the skills they need to effect change in their
own communities. These skills are often concentrated around making use of local
resources and building political power through the formation of large social groups
working for a common agenda. Community developers must understand both how to
work with individuals and how to affect communities' positions within the context of
larger social institutions. CD is the process of developing active and sustainable
communities based on social justice and mutual respect. It is about influencing power
structures to remove the barriers that prevent people from participating in the issues that
affect their lives. Community workers facilitate the participation of people in this process.
36
They enable linkages to be made between communities and with the development of
wider policies and programs.
CD expresses values of fairness, equality, accountability, opportunity, choice,
participation, mutuality, reciprocity and continuous learning. Educating, enabling and
empowering are at the core of CD (Federation of Community Development Learning,
2009). CD is the combined processes, programs, strategies, and activities that make a
community sustainable as compared to economic development which is the marketing of
its potential for growth followed by local efforts to act on opportunities. The entire set of
approaches to community development practice may be considered a specialized form
addressing, coordinating and building the social infrastructure at a location. Community
Glossary, 2009) define CD as a process of challenging the undesirable and unacceptable
disparity of conditions and infrastructure that negatively affect the quality of life in a
place where people live and work. It functions best as process in locations where all strata
of society and citizenry are engaged with sense of community solidarity.
In relation to the people definition of CD, it is essentially both an educational and
organizational process. Another term closely related to CD is community work, which is
about the active involvement of people in the issues that affect their lives and focuses on
the relation between individuals and groups and the institutions which shape their
everyday experience. It is a developmental process that is both a collective and individual
experience. Community development is a group of people in a community reaching a
decision to initiate a social action process to change their economic, social, cultural and
environmental situation – Christenson et. al. (2009). Community development is a
process that increases choices. It creates an environment where people can exercise their
full potential to lead productive, creative lives. – Ron Shaffer (pers. com.).
Community development is a process where people are united with those of
governmental authorities to improve the economic, social and cultural conditions of
37
communities and communities are integrated into the life of the nation enabling them to
contribute fully to national progress. – (United Nations, from Biggs, 2009). Community
capacity is the combined influence of a community‘s commitment, resources and skills
that can be deployed to build on community strengths and address community problems
and opportunities – (Aspen Institute, 2000).Community vitality is the capacity of the
local socio-economic system to survive and persist in generating employment, income,
and wealth and to maintain if not improve its relative economic position. – Shaffer
(2000). Community economic development is about identifying and harnessing local
community resources and opportunities and stimulating sustainable economic and
employment activity – Kenyon 2004).

2.2.10 Education Initiatives

Organizations have been encouraged by many scholars to develop clear and specific
objectives, duties, and obligations in the markets environment in which they operate
(Moon et al., 2005. ;Welcomer et al., 2003). According to Manakkalathil (2005), these
objectives, duties, and obligations should take into consideration the vested interests of
the community in which they operate. During empirical research in Africa, educational
initiatives were frequently mentioned by interviewees as one of the most important
development initiatives at the local level. For example, a senior mining executive in
South Africa defined corporate social responsibility or investment. He stated:
―Our willingness to plowback into communities so that we can reap that seed in the
future by getting good employees‖ And when asked to mention the areas that were most
critical to his company, he stated: ―Education, skills training, youth training, building
roads for the rural inhabitants and health care.‖ According to this source, the company
provided educational investment or projects because of ―high levels of very poor
education attainment, high levels of illiteracy, limited economic opportunities for people,
38
limited health and social networks and care‖ because of the country‘s past apartheid
policies.
Education initiative as one of various determinant of community development as been
define by different scholars with different meaning. However, some scholars are of the
same opinion that Education Initiative as one of the major determinant of Community
Development is a situation where by an organizations include Education Initiative in their
CSR philosophy so as to alleviate the number of illiteracy in their community in the
nearest future and in turn employ educated oriented personnel which will work
effectively and efficiently towards the achievement of the organization objective.

2.2.11 Social Welfare

Research has suggested that adopting sound corporate social responsibility policies may
not be only socially desirable but also good for business. The public and various
stakeholders have come to expect more from a business (Frooman, 2007). According to
Frooman (2007), stakeholders increasingly are looking to the private sector for help with
a myriad of complex and pressing social and economic issues. Social welfare in this
context refers to rural and social projects provided by organizations, that is, the provision
of projects such as health services, housing, potable water schemes, and agricultural
assistance to the farmers. Looking at these projects, they are often part of the social
infrastructure that should have been provided by governments. One of the reasons for the
organizations action is that some governments in Less Develop Countries (LDCs) ignore
or neglect structural developments because of a lack of proper development plans or
corruption on the part of officials. As is the case in many LDCs, the areas that are
underdeveloped are where most LDCs have large volumes of mineral and oil deposits
and also where the organizations mostly operate in LDCs, one of the major problems
facing organization is to identify the social demands of producing communities and to
39
prioritize these. The notion that some organizations services are taken for granted
supports the work of Barry (2001), who argues that some suggest that good business
ethics requires corporations to subordinate the desire for profit to other considerations. It
has been shown that despite the provision of certain services by organizations, some
communities are still not satisfied with the scale of development initiatives. The main
reason is that they were not consulted before Community Development Initiatives
projects were introduced. They now consult the communities or ask the communities
what they need from the company before any project is introduced.

2.2.12 Social Welfare Discourse

This section examines the reasons that prompted the communities to demand social
welfare projects from the companies. In many LDCs, national and local governments
have taken a more hands-off approach to regulating business because of such things as
changing policies, the globalization of commerce, and shrinking resources. Against this
background, companies are relying less on government for guidance, and instead they are
pursuing their own policies with regard to such matters as environmental performance,
working conditions, and ethical marketing practices. The communities believe they
should have the same facilities that are on offer to the companies workers because the
bulk of profits of the organizations come from their land. The demands of communities
are numerous; organizations are desperately trying to provide them whenever possible. In
LDCs the situation is different, as the communities expect more from the organization
than from their governments, which are supposed to be the sole providers of the welfare
projects. The reason for this is because of the high level of corruption amongst the
government officials in the LDCs (Ajonbadi Oral Presentation 19 Aug, 2014). The
organization are considered to be influential to the government economic policies in the
LDCs.
40
2.2.13 Organization and Social Welfare Initiatives
During the interview with one of the Globacom staff, he were asked to give the reasons
why they make social welfare investments. The answers given were generally similar.
According to a senior executive: There are several reasons. The real reason why we have
it is because most of the people who work in our operations, they live in those
communities, they work in those communities and they want those communities to
prosper. So, one of the major drivers for these community programs comes from our
employees. The second reason very often is depending on the social context: there are
requirements in some countries where we are based where the state is not very strong, the
public finances are not strong; there is need for health, education, things like that, so we
try to do what we can within the governments overall policies. (Akilawon personal
communication, Sep, 2014) The above suggests that companies take responsibility for
governmental functions as a matter of necessity rather than choice. The communities
argue that the wealth being generated should also be used for community development.
Wealth creation is central to the economic role of business, but Business & Society
determines the extent to which this wealth can be enjoyed and the value systems that
surround enterprises. This view is summarized by the comments of two of the most
successful entrepreneurs of their day:
There is but one right mode of using enormous fortunes—namely, that the
possessors from time to time during their own lives should so administer these as to
promote the permanent good of the communities from which they were gathered.
Business only contributes fully to a society if it is efficient, profitable and socially
responsible (Cannon, 2002, p. 33). So the community is not only important to us; it is
essential to us and having a good healthy community is a crucially important part of good
business, and it‘s impossible to operate an effective business in an unstable environment.
(Akilawon personal communication, Sep 4, 2014).
41
2.3 Theoretical Framework
2.3.1 Theories of Corporate Social Responsibility

Since there is a great heterogeneity of theories and approaches of CSR, discussion in this
research is based on a comprehensive analysis by Secchi (2007) and it is compared with
an analysis by Garriga and Mele (2004). Secchi has come up with a group of theories
based on a criterion what role the theories confer to the corporation and society. The
theories are as follows: 1) The utilitarian theory, 2) The managerial theory, and 3) The
relational theory (see Table 1). On the other hand, Garriga and Mele‘s (2004) analysis
maps CSR into four types of territories. They are: 1) Instrumental theories, 2) Political
theories, 3) Integrative theories, and 4) Ethical theories. There are four theory that well
explain the concept of CSR in relation to community development which comprises,
Stockholder Theory, Agency Theory, Stakeholders Theory, Stewardship Theory.

Table 2 describes the theories and the relevant approaches. There is no doubt that some
similarities do exist in both conceptualizations of CSR and the discussion will be based
on emphases and approaches.
Table 2.1: Utilitarian, Managerial and Relational Theories of CSR.
Utilitarian Theory Managerial Theory Relational Theory
Theories on social costs Corporate social Business and society
Functionalism performance Social Stakeholder approach
accountability, auditing Corporate global
and reporting (SAAR) citizenship Social
Social responsibility for contract theory
multinationals
Source: Secchi (2007: 35)
Table 2.1.1: Corporate Social Responsibilities Theories and Related Approaches

42
Types of theory Approaches Short description
Instrumental theories Maximization of shareholder Long term value of
(Focusing on value Strategies for maximization
achieving economic competitive · Social investment in a
objectives through Advantage Cause-related competitive context
social activities) marketing · Firm‘s view on natural
resources and its
dynamic capabilities
Altruistic activities
socially recognized as
marketing tool
Political theories Corporate constitutionalism Social responsibilities of
(focusing on a Integrative social contract businesses arise from the
responsible use of Corporate citizenship social power the firms
business power in the have Assumes that a
political arena) social contract between
business and society
exists The firm is
understood as being like
a citizen with certain
involvement in the
community
Integrative theories Management issues Corporate response to
Public responsibility social and political issues
Stakeholder management Law and the existing
Corporate social performance public policy process are
43
 taken as a reference for
social performance
Balances the interests of
firms‘ stakeholders
Searches for social
legitimacy and processes
to give appropriate
responses to social issues
Ethical theories Stakeholder normative theory Considers fiduciary
(Focusing on the right Universal rights duties towards
thing to achieve a Sustainable development stakeholders of the firm.
good society) The common good This requires some moral
theories Based on human
rights, labor rights and
respect for environment
Aimed at achieving
human development
considering present and
future generations
Oriented towards the
common good of society

Source: Garriga and Mele (2004: 63-64).

44
Utilitarian Theories
In the utilitarian theories the corporation serves as a part of the economic system in which
the function is mechanical i.e. traditionally known as in profit maximization. CSR ideas
emerged after a realization that there is a need for an economics of responsibility,
embedded in the business ethics of a corporation. Hence, the old idea of laissez faire
business gives way to determinism, individualism to public control, and personal
responsibility to social responsibility. Utilitarian could also be taken synonymously with
instrumental theories (Garriga and Mele, 2004; Jensen, 2002) in which the corporation is
seen as only an instrument for wealth creation, and its social activities are only a means
to achieve economic results.
Instrumental theories were also based on the basic idea about investment in a local
community in which Friedman (2003) strongly stated earlier that the investment will be
in long run provide resources and amenities for the livelihoods of the people in the
community. The utilitarian theories are related to strategies for competitive advantages.
The proponents of these theories are, for instance, Porter and Cramer (2002) who viewed
the theories as bases for formulating strategies in the dynamic usage of natural resources
of the corporation for competitive advantages. The strategies also include altruistic
activities that are socially recognized as instruments for marketing. Secchi (2007) further
divides the utilitarian group of theories into two, namely, the social costs of the
corporation and the idea of functionalism. The social cost theory has a basis for CSR in
which the socio-economic system in the community is said to be influenced by the
corporate non-economic forces. It is also called instrumental theory (Garriga and Mele,
2004) because it is understood that CSR as a mere means to the end, which leads to the
fact that the social power of the corporation is materialized specifically
in its political relationship with society. The utilitarian theory, therefore, suggests that the
corporation needs to accept social duties and rights to participate in social co-operation.
45
Within it, the functionalist theory, specifically advocates that the corporation is seen as a
part of the economic system, which one of the goals
is profit making. The firm is viewed as an investment, and investment should be
profitable to the investors and stakeholders. Putting it from the internal point of view of
the firm, CSR was coined as a defense tactic of the industrial system against external
attacks because there needs a balance between profit making and social objectives for the
economic system‘s equilibrium.
Managerial Theory
Secchi‘s (2007) analysis further stresses the logic of managerial theory that emphasizes
corporate management in which CSR are approached by the corporation internally. This
makes the difference between utilitarian and managerial perspective of CSR. This
suggests that everything external to the corporation is taken into account for
organizational decision making. Managerial theories have been divided into three sub-
groups: 1) Corporate social performance (CSP); 2) Social accountability, auditing and
reporting (SAAR), and 3) Social responsibility for multinationals. CSP aims to measure
the contribution the social variable makes to economic performance. Thus, the problem is
that of managing the firm considering social and economic factors together. It is based on
the assumption that business depends on society for its growth and sustainability. CSP of
a corporation is further sub-divided into five dimensions in order to keep detailed
information about its existence in the corporate chains: 1) Centrality measures the way
CSR is compatible with mission of the core goals; 2) specificity gauges the advantages
CSR brings to the corporation; 3) pro-activity that measures the degree of reaction to
external demands; 4) voluntarism that accounts for the discretion the firm in
implementing CSR; and 5) visibility refers to the way the responsible behavior is
perceived by community of stakeholders. As conclusion, the managerial theory generates
interests in the sense that CSR considers socio-economic variables to measure firms‘
46
socio-economic performance, as well as to link social responsibility ideology to business
strategy. Secchi (2005) further elaborates that SAAR are strictly related to social
performance contributions through accounting, auditing and reporting procedures. SAAR
means a firm accounts for its action. By doing so, firms are controlled and regulated in
their actions towards performing their core business while responsible to the relevant
community.
The three activities are separate managerial activities but they are interrelated to
each other. All these contribute to the socially responsible behavior of a firm, which
finally measures the corporations‘ activities that have social impact. Firms are involved
in SAAR activities for communication needs, to have
better stakeholder involvement and for discloser concerns CSR for multinationals
(MNCs) grows as a result of global competitions and challenges they faced. This aspect
of managerial theory comes into being as a result of the responsibility the managers have
to shoulder by defining useful tools about the CSR for the MNCs to survive in foreign
countries. Donaldson (1989, cited in Secchi, 2007: 359) refers to the MNCs as ‗moral
agents‘, analyzed on the basis of the moral values when managers make decision in the
firms, going beyond profit maximization. The logic of CSR for MNCs is also derived
from the fact that when cultural clashes become relevant due to events such as protests,
demonstrations, boycotts, strikes and other negative actions against the employers. The
answer to these actions is the formulation of ‗code of conduct‘ that should be adopted by
MNCs. The success of this initiative, however, depends on client expectation and
corporate reputation; the level of trust, acceptance, and cooperation shown by the
stakeholders and community of workers. Managerial theories are also strongly related to
political theories based on the conceptualization by Garriga and Mele (2004) (see Table
2) and supported by Wood and Lodgson (2002) as well as Detomasi (2008). They stress
that social responsibilities of businesses arise from the amount of social power a
47
corporation has and the corporation is understood as being like a citizen with certain
involvement in the community. The origin of the political power of CSR is based on
Davis‘s (2012) idea who proposed that business is a social institution and it must use
power responsibly. It is also noted that causes that generate the social power are from
inside and outside of the corporation. Detomasi (2008) further argued that strategies firms
choose to adopt CSR initiatives are conditioned in part upon the domestic political
institutional structures present in the home market. Political theories further demonstrate
the links between economic globalization pressures felt by the companies, domestic
political structures where the companies are in, and CSR policies.
Managerial theories are also covered under the integrative theories of Garriga and Mele
(2004), namely, the entities of public responsibility and corporate social performance.
Public responsibility stresses on law and public policy process that are taken as a
reference for social performance, while corporate social performance searches for social
legitimacy relevant to social issues.
Relational Theory
Relational theory has a root from the complex firm-environment relationships. As the
term implies, interrelations between the two are the focus of the analysis of CSR. As
indicated in Table 1, relational theory is further divided into four sub-groups of theories:
1) business and society; 2) stakeholder approach; 3) corporate citizenship; and 4) social
contract. Business and society is proposed to mean ‗business in society‘ in which CSR
emerges as a matter of interaction between the two entities. One of the measures of CSR
is the development of economic values
in a society. Another is a person‘s obligation to consider the effects of his decision and
action on the whole social system. Stated in the form of a general relationship, social
responsibilities of businessmen need to reflect the amount of social power they have.
Stakeholder approach has been developed as one of the strategies in improving the
48
management of the firm. It is also said as a way to understand reality in order to manage
the socially responsible behavior of a firm. The stakeholder approach further considers a
firm as an interconnected web of different interests where self creation and community
creation happen interdependently; and individuals behave altruistically. Based on Garriga
and Mele‘s (2004) analysis, stakeholder approach is both within the integrative and
ethical theories, where the former emphasizes the integration of social demands and the
latter focuses on the right thing to achieve a good society. These are supported by the
work of Mitchel, Agle and Wood (2007) where balances among the interests of the
stakeholders are the emphases; and the work of Freeman and Phillips (2002) that
considers fiduciary duties towards stakeholders of the firms, respectively. Corporate
citizenship of the relational theory strongly depends on the type of community to which it
is referred. It is a path that a corporation may take to behave responsibly.
Fundamentally, it is about the relationship that a corporation develops with its
stakeholders, and therefore, the former has to continuously search for engagement and
commitment with the latter. Corporate citizenship based on Garriga and Mele‘s (2004)
analysis is an approach used under the integrative and political theories and this is
supported by Swanson (2010) and Wood and Lodgson (2002), respectively. Finally, the
social contract theory of the relational group refers to the fundamental issue of justifying
the morality of economic activities in order to have a theoretical basis for analyzing
social relations between corporation and society. Hence, CSR is derived from the moral
legitimacy the corporation achieves in the society and understanding about CSR is
contained in the justification of social actions that legitimize the behavior of the
corporation. Garriga and Mele‘s (2004) analysis puts the social contract theory under the
group of ethical theories, the approaches of which include universal rights (UN Global
Compact, 2009) and sustainable development (WCED, 1987; Korhonen, 2003). Both

49
approaches of CSR are based on human rights, labor rights and respect for the
environment.
Conclusions about the three groups of CSR theories are as follows: Utilitarian is
simplified in its views by the individuals and mechanical from the corporation
perspective, managerial is very organizational oriented and measurable; and relational is
values-based as well as interdependent between the corporation and society. The
allocation of responsibility according to the order of the theories is economic system, the
corporation and the type of the relationship. This conclusion is further strengthened by
another not-so-distant conceptualization about CSR in that the theories are grouped into
instrumental, political, integrative and value based. Instrumental theory is focusing on
achieving economic objectives through social activities; political focusing on a
responsible use of business power in the political arena; integrative concentrating on
drawing together management issues, public responsibility, stakeholder management and
corporate social performance; and ethical theory is emphasizing strategies to achieve a
good society.

As CSR is a business activity, we can assume that the "theory of business" should
offer us the analytical understanding of the concept.
From this perspective, we can distinguish four theories:
· Stockholder Theory,
· Agency Theory,
· Stakeholders Theory,
· Stewardship Theory

50
Stockholder Theory
The initial and most widespread theory is a dominant theory of firms; recognized by
mainstream neoclassical economists, called stockholder theory. This is a simple
assumption that firms play a purely economic role. They are owned and controlled by
"homo economicus" and managed with a view to profit, and this procedure is limited
only by the need to act within the law. According to this theory, perfect competition
eliminates an undesirable form of behavior that depletes the participants and the market
as such. The most famous proponent of this view is
the holder of the Nobel Prize in economics Milton Friedman (Robins, 2008).

Agency Theory
Agency theory or the Theory of the principal - agent comes where there is a separation of
ownership and control of the company. The principal-agent problem can be seen as a
problem that arose as a result of ever expanding possibilities of companies and the
emergence of conflicts between stakeholders. However, this problem appears to be new
and high current, this is considered in Adam Smith‘s
work called An Inquiry into the Nature and Causes of the Wealth of Nations (1776),
which expresses doubts about the value of joint-stock companies, which reduce the
financial incentives to managers in relation to the performance, if the capital is provided
by the owners rather than by managers (Adams, 2008). The problem inheres in the
relationship of management and shareholders when shareholder (principal) hires manager
(agent) to manage the company for him. Shareholders want to lead management of a
company so that they maximize the value for shareholders. But management mostly
wishes to establish a powerful empire by merger or other acquisition, which may interfere
with the interests of shareholders. As a result of separation of ownership from control the
agency costs are arising.
51
 Agency costs relate primarily to large publicly traded companies in particular for two
reasons. The first reason is that the biggest owner of these companies rarely own more
than 50%, so the agency costs usually absent in small family businesses. The second
reason is that in small family businesses are not separated owners from enterprise
management and thus would not create any agency costs. Lack of agency theory is that it
is strictly focused only on two interest groups: the shareholders and management.

Stakeholders Theory
According to this theory, the success of the organization depends primarily on how well
are managed relationships with many key groups, which include customers, employees,
suppliers, financiers and other important community organizations with which it
cooperates. On each of these groups, including those with whom it has no legal
contractual relations is seen as a group with some participation (some stake) in the
activities of the enterprise (Robins, 2008). Stakeholders theory, however, does not list
specific stakeholders. From the perspective of this theory the work of manager is to
support all these groups, carefully align their differing interests that should create the
organization to be a place where shareholders‘ interests can be collectively maximize
gradually (Freeman and Phillips, 2002 in Robins, 2008). This classical theory is by some
authors regarded as outdated. According to Robins, there are two reasons for the failure
of this theory. The first reason is that the stakeholders theory does not help to
management identify who and what groups are or are not stakeholders. This is confirmed
by research of Heugens and van Oosterhout (2002) concerning the relationship of
customers and suppliers, where they focused on identification of borders of management
in the stakeholders‘ concept. Finding was that these boundaries can not be specified. The
second reason for failure of stakeholder theory is that it does not specify how a manager
should compare the competing interests of different stakeholder groups.
52
Stewardship Theory
Stewardship theory, linked to Davis et al. (2012), is separated from the Agency theory
because of the hypothesis that managers should be less individualistic, less opportunistic
and less self-serving than usually happens. On the contrary, managers should be more
collectivist, more pro-organization and more trustworthy. Stewardship theory implies that
managers can better achieve their objectives by serving to the multiple interests of
organization. "Homo economicus" is replaced by a "steward" whose behavior is pro-
organization as well as more collectivistic than individualistic and self-serving (Robins,
2008).

2.4 Empirical Framework

The concept of Corporate Social Responsibility in relation to community development
have been debate among different scholars, which provide empirical evidence that this
topic did not exist in a vacuum. Having go through different scholars reports on the
concept of CSR and Community Development, three out of eight reviewed scholarly
article that interest the researcher is writing bellow for empirical clarification .
Over the years the social involvement of corporate has been increasing. Earlier
corporate entities were mainly focused on their economic objectives – profitability, cost
of production, margins etc. However, these days‘ corporate entities are posed with the
challenge pertaining to the social responsibility of business. Earlier social responsibility
was mainly the concern of universities, non-government organizations, non-profit
organizations, charitable trusts, churches, etc. As such the idea of social responsibility of
business is not new. Prominent business houses such as Tatas, Birlas, and the Bajaj
group, had ingrained contribution to society as a separate mission in their philosophy of
business. Business depends on the society for the needed inputs like money, men and
skills for existence, substance and encouragement once society ceases to have any use for
53
business, it has no place and reason to live. Being so much dependent, business has
definite responsibility towards community development. (Swapna 2011).
Corporate social responsibility (CSR) refers to strategies corporations or how firms
conduct their business in a way that is ethical, society friendly and beneficial to
community in terms of development. This article analyses the meaning of CSR based on
some theories available in literature. It is argued that three theories namely utilitarian,
managerial and relational theories of CSR supported by works of other scholars in the
area could be used to suggest that CSR becomes an international concern due to
globalized nature of business that knows no border. CSR is evolving in its meaning and
practice. The article then discusses the role of CSR in community development because
the very logic of CSR is towards seeing its impact in community socially,
environmentally and economically. Competencies required by CSR managers are also
analyzed in order to have a better understanding of the practical aspects of CSR
(Maimunah 2009).
Another empirical evidence have been showed by (Caterina 2013) which
investigate the strength and direction of the correlation between corporate social
responsibility (CSR) and Community Development. This topic has been long studied by
scholars but an agreement has never been reached. The results of the empirical analyses
so far show the most diverse outcomes: from a negative correlation to a positive one,
including it being neutral. Some of the main issues identified behind this wide range of
results, are linked to the way in which the variables are measured, to the sampling
technique and to the choice of the control variables.

2.5 Literature Gap

 The concept of business ethics
 Rationale behind the Corporate Social Responsibility
54
 CHAPTER THREE
RESEARCH METHODOLOGY

3.1 Introduction

In this chapter the methodological approaches that was used to answer the research
questions and achieve the objectives of the study is discussed. As previously stated, the
primary objective of this research is to examine the practice of Corporate Social
Responsibility on Community Development. It is against this background that the various
methodologies adopted for this study are presented below. This chapter covers the
research methods and strategies, research design, the population of study, sampling
techniques and procedure, sample frame, sources of data and procedure for data
collection, research instruments and design, realities of research instrument, validity of
research instrument and ethical consideration.

3.2 Research Method

The research method that was used in this study is survey as this method is good in
providing empirical evidence of how Organization Corporate Social Responsibility
affects Community in Kwara State with concentration on Globacom Nig Ltd in Ilorin
metropolis.

3.3 Research Design

Traditionally, three methods are commonly in use, namely, survey research, experimental
and Ex Post facto. However, additional non-conventional research methods commonly in
use include non participant and participant observation, action process, axitology,
(Otokiti, 2005). The work also observed that depending on the objectives of the research
and associated problems, research work necessitates the use of one or a mixture of two or
more methods. This research therefore adopted a mixture of methods. This research
55
therefore, use multiple methods which comprise both survey and observation,
information will be gathered using structured questionnaires (close ended questionnaires
in order to curtail/restrain the respondents from derailing from expected results) and in-
depth interview. Aside the primary data, sources that were adopted includes relevant
secondary data like CSR report of the organization overtime, books, journals, published
articles relating to Corporate Social Responsibility and Community development in
Nigeria. The adopted design permit for review and changes in the research procedure for
gathering relevant data, this research will be cross-sectional (i.e the questionnaires will be
distributed once).

3.4 Population of the Study

The study population is very large, therefore sample determination were used, due to the
fact that the population is more than 30 and in that case we study some portion using
random sampling which bring about sample size determination, hence structure the
population into two, (the organization and its customer) the researcher choose to use one
organization in Ilorin (Globacom Nig Ltd) it is assume that the organization staff is 40
which comprises top level management, middle level management and the lower level
management, it is assume that Globacom subscriber in Ilorin Constitute about 38% of
Ilorin phone users therefore, all the customer was unable to reach as only 160 customer
were used for the purpose of this study, which make the total population to amount to 200
in all. So far the whole population can not be reach due to time and other constraint, 133
sample size was then used, this serve as a good representation of the population. The
analysis can be obtain in table 1 bellow.

56
Table 3.1 Population
Population Frequency Percentage %

Globalcom Staff 40 20%

Globalcom Subscriber 160 80%

Total 200 100

Source Field survey (2014).

3.5 Sample Size Determination

A sample is a representation of the population of study (Otokiti, 2005). Since it was not
feasible to get the required information from all units of the populations particularly
where the population is large, we therefore determine the sample size using Slovin‘s
statistical formula to overcome the problem of inadequate representation. Basically,
Slovin‘s Formula is concerned with the application of the normal approximation with a
95 per cent confidence level and 5 per cent error tolerance.

The formula is given as follows:

Where: N= Population

e = Desired margin of error (percentage allowance for non-precision

because of the use of the sample instead of the population).

n = The sample size.

57
 133

Bourley‘s proportional allocation formula were also use to check the accuracy of the
result which yield the same result: (133).

3.6 Sampling Techniques

The sample size for this study is made up of 133 which comprises Globalcom subscriber
and staff of Globalcom Nig Ltd ranging from (top executives, senior and junior staff)
were selected randomly. Stratify sampling technique were also used to select participants
by taking a series of simple random samples from each stratum due to need of analysis.
Two strata was therefore identified as Staff and subscriber of Globalcom. In the first
strata of stratified random sampling, which made up of the staff, 20per cent representing
40 staff, were randomly sampled and the second strata constitute 80per cent, representing
160 different subscriber of Globalcom Nig Ltd.

3.7 Research Sample Frame

Sample frame is the list of sampling entities and properties used as the basis of analysis
such as organization, state, institutions, people, executives and others. By considering
sample frame as an outline description of population (Zikmund, 2000) in this work, the
researcher adopted sample frame as initial factor of survey research because it is expected
to give a rapid picture of close representation of the observable in the study population
(Fawole, Odejide and Olayinka, 2005). The target population (census) of the study is
Staff of Globacom Ilorin branch and Globacom subscriber. 20% of the sample size
58
determination will be distributed to the staff which amount to 27 questionnaire while 80%
of the sample size determination will be administer to the customer which also amount to
106. The table below will explain further.

Table 3.2 Sample Size Table

POPULATION FREQUENCY PERCENTAGE

GLOBALCOM STAFF 27 20%

CUSTOMER 106 80%

TOTAL 133 100%

3.8 Sources of Data and Procedure for Data Collection

Both primary and secondary sources were used for the data collection. The primary data
was obtained mainly with the instruments of questionnaire and interview methods.
Questionnaires was administered to 133 focused personality of the study. Concerning
information on the contributions of CSR and Community Development, secondary data
information was obtained as well from the Globalcom CSR report, other relevant data
from text books, and additional data were sourced from University Library, Internet and
other sources were also used for sourcing the relevant materials. The data collection
technique that were use in selecting the respondents for the study is stratify sampling
method. This method was used because the study population is not homogeneous.
Therefore, they were group into strata, the respondents was then drawn randomly.

59
3.9 Research Instrument
Mixture of research instrument, involving the use of interview and questionnaire, was
chosen because of the nature of this study. A well structured questionnaire was developed
and use to gather information largely from Glo subscriber and executive, senior, and
junior management staff of Globalcom Nigeria Ltd Ilorin branch located at Taiwo Ilorin,
Kwara State.

3.10 Validity of Research Instrument

Validity test were carried out so as to ensure that the research instrument measured what
it was supposed to measure. The four methods of measuring external validity are: face
validity, content validity, criterion validity and construct validity. Face and content
validity were carried out on this work. Content validity measures the appropriateness of
the wording of the instrument and the objectives of the study while the face validity
enables the researcher to make an assertion to claim to have measured what he or she
intended to measure (Stevens, 2010). The validity measurement of this study were
justified using the works of Singleton et al, sited in Chestard (2008). To ensure face and
content validity of the instrument (content-related evidence), The researcher also
confirmed if the format used in designing the instrument is appropriate for obtaining the
information required from the respondents.

60
3.11 Reliability of Research Instrument
Osaze and Izedonmi (2000) define reliability as the consistency between independent
measurement of the same phenomenon, which implies stability, dependability and
predictability of a measuring instrument. They outline three principal methods of testing
reliability measurement instruments namely; Test-re-test alternate form, Split-half
method and Test of internal consistency.

Test-Re-Test Reliability involves the use of same measuring instrument at different time
on the population. The Split-Half method makes use of two different instruments on the
respondents at the same time. The two instruments should be identified and should
measure the variables. The measuring items can be randomly split in half and each half is
treated as an alternative form of same measurement. The other method does not require
splitting or repeating of item. It is called the internal consistency. A scale is considered to
have high internal consistency when its items are highly interrelated.

3.12 Ethical Consideration

This research work did not violate any ethical precept of the organization as confidential
information were used wisely without disclosing it on else, the study organization grant
the researcher to disclose such information. The information that was gathered were
analyzed appropriately without any form of biased and misrepresentation of information.
The researcher also take conscious effort to make sure that the research work conducted
for the purpose of adding to knowledge of Corporate Social Responsibility in relation to
community development. Lastly, the research is not at study organization detriment and
all the information gathered were use for the purpose of this research without violating
the rule.

61
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Introduction

This chapter deals with presentation of results, starting from the return rate of distributed
questionnaire. The description of the participants‘ bio-data information immediately
follows. The hypotheses formulated for this study guided the arrangement of the tables.
Each hypothesis focuses on the variables identified (Corporate Social Responsibility as
independent variables and Community Development as dependent or criterion variable).
A summary of the main findings follows each hypothesis and in addition and where
relevant, selected findings from the personal data collected were used to inform and
contrast the findings.

The questionnaire were structured into two phase, first phase were design for staff
of Globalcom while the second phase was design for Globalcom subscriber so as to
obtain reliable information that will suit the interest of the research. The table below
shows the number of the administered questionnaire and return rate of the questionnaires.

Table: 4.1.1 Questionnaire Administered to Globalcom Staff and Its

Subscriber

Questionnaire Structure Frequency Percentage

Glabacom Staff 27 20

Administered Glo Customer 106 80

Total 133 100

Glabacom Staff 25 20

62
Returned Glo Customer 97 80

Total 122 100

Glabacom Staff 9 82

Not returned Glo Customer 2 18

Total 11 100

Source: Field Survey 2015

4.2 Presentation of Data

Return Rate of Globalcom Staff

Return Rate of Globalcom Customer

From the above computation 27 questionnaires was sent out to Globalcom staff and 25
questionnaires were gotten back from the respondents making 93% also 106
questionnaire was sent out to Globalcom subscriber and 97 questionnaire were gotten
63
back making 92%. The high response rate of 93 per cent achieved on the part of staff
study is due to the two or three repeat calls made on respondents and possible high
interest the respondents had in the study, while the high response rate of 92 per cent on
the part of subscriber is due to the tenacious pleading with student of Kwara State
University.

QUESTIONNAIRE TO THE STAFF OF GLOBALCOM NIG LTD

Table 4.2.1: Respondents Sex
Sex Frequency Percentage (%)

Male 14 56

Female 11 44

Total 25 100

Sources: Field Survey 2015

In terms of sex distribution, the above table shows a predominately male population with
56% and 44% of female population. One can therefore access that male dominated the
staff of Globalcom in Kwara state.

Table 4.2.2: Respondents Marital Status

Marital Status Frequency Percentage (%)

Single 10 40

Married 15 60

Total 25 100

Sources: Field Survey 2015

64
The table above shows that 40% of the respondents are single, 60% of the respondents
are married in Globalcom Kwara State.

Table 4.2.3: Respondents Age

Age Bracket Frequency Percentage (%)

22-26 4 16

27-31 8 32

32-36 5 20

37-41 5 20

42-46 3 12

Total 25 100

Sources: Field Survey 2015

The table above reveals that 4(16%) of the respondent are within the ages of22-26,
8(32%) are within the ages of 27-31, 5(20%) are within the ages of 32-36 and 5(20%) are
within the ages of 37-41 and 3(12%) are within the ages of 42-46. Which invariably
means that people between the age of 27-31 are dominant staff of Globalcom Nig Ltd
Kwara State.

Table 4.2.4: Respondents Qualifications

Qualification Frequency Percentage

SSCE 1 4

HND 7 28

BSC 16 64

65
BA 1 4

Total 25 100

Sources: Field Survey 2015

The table shows that 4% of the respondent have SSCE, 28% of the respondent have
HND, 64% of the respondents have B.Sc, 4% of the respondents have BA. The analysis
on the table shows that majority of Globalcom worker are Bsc holders.

Table 4.2.5: Respondents Professional Qualifications

Professional Qualifications Frequency Percentage (%)

CIM 2 8

ACCA 4 16

MBA 9 36

Others 10 40

Total 25 100

Sources: Field Survey 2015

Table reveals that 2(8%) of the respondents have CIM, 4(16%) have ACCA, 9(36%)
have MBA, and 10(40%) have other qualifications

Table 4.2.6: Respondents Work Experience

Years Frequency Percentage (%)

3 years and below 10 40

5 years 13 52

10 years 1 4

66
More than 10 years 1 4

Total 25 100

Sources: Field Survey 2015

This table reveals that 10(40%) respondents have 3 years and bellow work experience
while 13(52%) have 5 years work experience and 2(8%) respondents have 10 years and
above work experience with Globalcom Nig Ltd Kwara State. This implies that
information obtained from the questionnaire were from staff who have gained sufficient
experiences from Globalcom Nig Ltd, making the information reliable

Table 4.2.7: what do you think about Globalcom embarking on CSR?

Frequency Percentage (%)

Necessary 5 20

Compulsory 5 20

Voluntary 7 28

Beneficial 8 32

Total 25 100

Sources: Field Survey 2015

The above table shows that 20% of the respondents feel that Globalcom embarking on
CSR is necessary, 20% feel it is compulsory, 28% feel it is voluntary and 32% felt it is
beneficial.

67
Table 4.2.8: what impact has the project / program had on the community
Frequency Percentage (%)

Positive Impact 21 84

Negative 0 0

Neutral 4 16

Total 25 100

Sources: Field Survey 2015

The table above reveals that a high proportion (84%) of the respondents felt the impact of
CSR is positive, none of the respondents felt it is negative and 16% felt it is neutral.

Table 4.2.9: Globalcom business ethics improve the community in which they
operate

Frequency Percentage (%)

Disagree 1 4

Agree 12 48

Strongly Agree 12 48

Total 25 100

Sources: Field Survey 2015

Table 9 implies that only 1(4%) disagree that Globalcom business ethics improve the
community in which they operate while 12(48%) Agreed and 12(48%) Strongly Agreed,
this then mean that Globalcom staff agree that the business ethics improve community.

68
Table 4.2.10: Community is not developed as a result of business ethics adopted
by Globalcom

Frequency Percentage (%)

Strongly Agree 1 4

Agree 4 16

Undecided 4 16

Disagree 10 40

Strongly Disagree 6 24

Total 25 100

Sources: Field Survey 2015

The above table shows that 10(40%) respondent Disagree that business ethics adopted by
Globalcom does not develop the community and 4(16%) Agreed, 4(16%) did not decide,
while 6(24%) Strongly Disagree and only 1(4%) agree the consent.

Table 4.2.11: There is a great change in the community based on the program
adopted byGlobalcom
Frequency Percentage (%)

Disagree 1 4

Undecided 6 24

Agree 14 56

Strongly Agree 4 16

Total 25 100

Sources: Field Survey 2015

69
In this table only 4% Disagree while 24% did not decide, 56% Agree and 16% believe
that the
program (CSR) bring about a great change in the community.

Table 4.2.12: Globalcom education initiatives promote literacy level in the

community, hence bring about community development

Frequency Percentage

Undecided 1 4

Agree 14 56

Strongly Agree 10 40

Total 25 100

Sources: Field Survey 2015

Here 56% Agree, 40% Strongly Agree while only 4% remain neutral about the promotion
of literacy as a result of Globalcom Education Initiatives.

Table 4.2.13: Education initiatives is one of the impetus for positive change in
the community

Frequency Percentage (%)

Disagree 1 4

Undecided 2 8

Agree 12 48

Strongly Agree 10 40

70
Total 25 100

Sources: Field Survey 2015

The table above shows that majority 12(48%) Agree that Education initiatives is one of
the driving force for positive change in the community, 10(40%) Strongly Agree, 2(8%)
remain undecided while only 1(4%) Disagree that education initiatives is one of the
impetus for positive change in the community.

Table 4.2.14: Globalcom embark on competition and it bring about positive

change in the Community

Frequency Percentage (%)

Disagree 1 4

Undecided 4 16

Agree 15 60

Strongly Agree 5 20

Total 25 100

Sources: Field Survey 2015

This shows that 1(4%) Disagree, 4(16%) did not decide, 15(60%) Agree while 5(20%)
Strongly Agree that Globalcom competition bring about positive change in the
community in which they are operating.

71
Table 4.2.15: Inter-competition have significant effect on community
development
Frequency Percentage (%)

Strongly Disagree 1 4

Disagree 1 4

Undecided 5 20

Agree 13 52

Strongly Agree 5 20

Total 25 100

Sources: Field Survey 2015

Table 15 shows that majority 13(52%) staff of Globalcom Nig Ltd Agree that Inter –
Company completion that occur between Glo and its competitor have significant effect
on community development and 20% remain undecided, 20% strongly agree, 4%
strongly disagree and remaining 4% disagree.
Table 4.2.16: Social welfare is one of the factors that develop the community
Frequency Percentage (%)

Agree 17 68

Strongly Agree 8 32

Total 25 100

Sources: Field Survey 2015

The table above shows that 17(68%) Agree that social welfare is one of the factors that
develop the community while 8(32%) strongly agree which invariably means non of the
staffs disagree this statement.
72
Table 4.2.17: Community is development based on social
welfare that Globalcom embark on
Frequency Percentage

Disagree 4 16

Undecided 3 12

Agree 11 44

Strongly Agree 7 28

Total 25 100

Sources: Field Survey 2015

This table indicate that majority 44% of Globalcom staff Agree that community is
developed based on social welfare that their company embark upon, 28% strongly agree,
16% Disagree and the remaining 12% remain undecided.

73
 QUESTIONNAIRE TO THE CUSTOMERS OF GLOBACOM NIG LTD

The table shows the suggested answer and the numbers of respondents with the
percentage of the respondent to each.

DESCRIPTIVE STATISTICS:
Table 4.2.18: Respondents Sex
Sex Frequency Percentage

Male 59 61

Female 38 39

Total 97 100

Sources: Field Survey 2015

The table above show that out 97 questionnaire 59 (61%) respondent are male while 38
(39%) are female, therefore, it can be seen clearly that in this particular community where
questionnaire is been administered majority of them using Glo line are male.

74
Table 4.2.19: Respondents Marital Status
Marital Status Frequency Percentage (%)

Single 88 91

Married 9 9

Total 97 100

Sources: Field Survey 2015

The table above shows that 88(91%) of respondents using Glo line in this community are
single while only 9 (9%) of the respondents are married

Table 4.2.20: Respondent Age

Age Frequency Percentage (%)

16-20 22 23

21-25 53 53

26-30 12 12

31-35 6 6

36-40 3 3

41-45 2 2

46-50 1 1

Total 97 100

Sources: Field Survey 2015

75
Table 20 tells us that majority of Glo customer in this community are within the age of
21-25, hence constitute the larger population 53 (53%) of Glo Subscriber in that
community, people within the age of 16-20 constitute (23%) while the only minority in
this context is people within the age 46-50 which constituted only 1%.

Table 4.2.21: Which of these other network do you use aside from Glo?
Frequency Percentage (%)

MTN 67 72

ETISALAT 6 6

AIRTEL 21 22

TOTAL 97 100

Sources: Field Survey 2015

Table 22 shows that 67(72%) of respondent use MTN aside Glo while 21 (22%) use
Airtel and only 6 (6%) use Etisalat as complimentary network.

Table 4.2.22: Are you aware that Globalcom embark on any program that are
Beneficial to the people of your community
Frequency Percentage(%)

Yes 34 35

No 43 44

Neutral 20 21

Total 97 100

76
Sources: Field Survey 2015

Table 23 shows that 35% of respondents aware that Globalcom embark on project that
benefit their community while 44% said they are not aware and only 21% of them
remain undecided.
Table 4.2.23: What impact has the project / program had on the community
Frequency Percentage (%)

Positive 39 40

Negative 10 10

Neutral 48 50

Total 97 100

Sources: Field Survey 2015

The table above shows the level of the impact Globalcom program had on the community
based on respondents perspectives. 39 people says it has positive impact while only 10
people are of the opinion that their impact is negative and 48 are neutral.
Table 4.2.24: Globalcom business ethics improve the community in which they
are operating
Frequency Percentage (%)

Strongly Agree 4 4

Agree 50 52

Undecided 10 10

Disagree 12 12

Strongly Disagree 21 23

77
Total 97 100

Sources: Field Survey 2015

Table 25 shows that majority of respondents Agree that Globalcom business ethics
improve the community in which they are operating the agreed respondents constitute
50%, strongly agree 4%, undecided 10% disagree 12% while strongly disagree constitute
21%.
Table 4.2.25: There is a great change in the community based on the program adopted by
Globalcom
Frequency Percentage (%)

Strongly Agree 11 11

Agree 36 37

Undecided 36 37

Disagree 12 13

Strongly Disagree 2 2

Total 97 100

Sources: Field Survey 2015

This table indicate that 11 (11%) respondent strongly agree that there is a great change in
the community based on the program adopted by Globalcom, 36 (37%) Agree, 36(%)
undecided, 12 (13%) Disagree and only 2 (2%) Strongly Disagree.

78
Table 4.2.26: Globalcom education initiatives promote literacy level in the
community hence, Bring about community development
Frequency Percentage (%)

Strongly Agree 29 29.9

Agree 43 44.3

Undecided 16 16.5

Disagree 7 7.2

Strongly Disagree 2 2.1

Total 97 100

Sources: Field Survey 2015

This table shows that majority of the respondents Agree that Globalcom education
initiatives promote literacy level in the community hence, bring about community
development which constituted 44%, 29% are strongly agree, 16% are undecided while
7% disagree and 2% strongly disagree.
Table 4.2.27: Education initiatives is one of the impetus for positive change in
the community
Frequency Percentage (%)

Strongly Agree 31 32

Agree 42 43.3

Undecided 14 14.4

Disagree 8 8.2

Strongly Disagree 2 2.1

Total 97 100

79
Sources: Field Survey 2015

The above table shows that 31 people strongly agree that education initiatives is one of
the impetus for positive change in the community while 42 agree, 14 remain undecided, 8
disagree and only 2 people strongly disagree the statement.
Table 4.2.28: Globalcom embark on competition and it bring about positive
change in community
Frequency Percentage (%)

Strongly Agree 26 26.8

Agree 45 46.4

Undecided 14 14.4

Disagree 9 9.3

Strongly Disagree 3 3.1

Total 97 100

Sources: Field Survey 2015

Table 29 made us to understand that out of 97 respondents 26 of them strongly agree the
above statement, 45 agree, 14 undecided and 9 disagree while 3 people strongly disagree
that Globalcom embark on competition that bring about positive change in the
community.
Table 4.2.29: Inter-company competition have significant effect on community
development
Frequency Percentage (%)

Strongly Agree 22 22.7

Agree 38 39.2

80
Undecided 20 20.6

Disagree 16 16.5

Strongly Disagree 1 1.0

Total 97 100

Sources: Field Survey 2015

The table above shows that majority of the respondents Agree that inter-company
competition have significant effect on community development which constituted 39%,
while 22.7% strongly agree, 20.6% are undecided, 16.5% disagree while only 1%
disagree this statement.

Table 4.2.30: Globalcom competition is effective and bring about competitive

edge its Competitors
Frequency Percentage (%)

Strongly Agree 29 30

Agree 40 41

Undecided 18 19

Disagree 6 6

Strongly Disagree 4 4

Total 97 100

Sources: Field Survey 2015

This table indicate that 30% of the respondents strongly agree that Globalcom
competition is effective and bring about competitive edge among its competitor, 41%

81
agree, 19% remain undecided while 6% disagree and only 4% strongly disagree the
statement above.
Table 4.2.31: Social welfare is one of the factors that develop the community
Frequency Percentage (%)

Strongly Agree 44 45.4

Agree 43 44.3

Undecided 6 6.2

Disagree 2 2.1

Strongly Disagree 2 2.1

Total 97 100

Sources: Field Survey 2015

Table 32 above shows that majority of the respondents (44) strongly agree that social
welfare is one of the factors that develop the community, 43 respondents agree, 6 remain
undecided, 2 disagree and the remaining 2 strongly disagree.

Table 4.2.32: Community is developed based on the social welfare Globalcom

embark on
Frequency Percentage (%)

Strongly Agree 18 18.6

Agree 27 27.8

Undecided 25 25.8

Disagree 16 16.5

82
Strongly Disagree 11 11.3

Total 97 100

Sources: Field Survey 2015

The table above indicate that majority of the respondents agree that community is
developed based on the social welfare Globalcom embark on which constituted 27.8%
while 18.6% strongly agree, 25.8 remain undecided, 16.5% disagree and only 11.3%
strongly disagree which mean majority of Globalcom subscriber agree the statement.

4.3 HYPOTHESIS TESTING

4.3.1 Restatement of Hypothesis

1. Business ethics does not enhance education initiatives in the community.

2. There are no relationship between business ethics and social welfare of
the communities.
3. Competition effect is insignificant on education initiative of the host
communities.
4. Organization competition does not contribute significantly to the
enhancement of social welfare.

83
Test of Hypotheses and Discussion of Results

Regression analysis was used to measure the impact of the independent variable to the
dependent variable of hypothesis 1, 2, 3 and hypothesis 4 and proper interpretation and
analysis techniques was used to explain the hypotheses testing.

Hypothesis 1

Ho: Business ethics does not enhance education initiatives in the community.

Table 4.3.1 Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Business ethics 122 1.00 5.00 3.8770 1.03315

Education initiatives 122 1.00 5.00 3.5164 .90210

Valid N (list wise) 122

The table above depicts the mean and standard deviation of Business ethics and
education initiatives.

The model summary table below reports the strength of the relationship between the
model and the dependent variable.

Table 4.3.2 Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .677a .427 .221 .79636

a. Predictors: (Constant), Business ethics

84
The correlation between Business ethics and education initiatives is (0.677), meaning that
the relationship between Business ethics and education initiatives are strongly and
linearly correlated. While R squared is (0.427) meaning that (4.27%) of education
initiatives could be explained by Business ethics by the respondent.

Table 4.3.3 ANOVAa

Model Sum of Squares Df Mean Square F Sig.

Regression 22.365 1 22.365 35.267 .000b

1 Residual 76.102 120 .634

Total 98.467 121

a. Dependent Variable: Education initiatives

b. Predictors: (Constant), Business ethics

The ANOVA table shows the F cal to be (35.267) at 0.0001 significance level. Business
ethics enhance education initiatives in the community. This means null hypothesis will be
rejected and alternative hypothesis will be accepted

Table 4.3.4 Coefficientsa

Model Unstandardized Coefficients Standardized T Sig.

Coefficients

B Std. Error Beta

(Constant) 1.903 .281 6.770 .000

1
Business ethics .416 .070 .477 5.939 .000

a. Dependent Variable: Education initiatives

85
The coefficient table above shows the simple model that expresses how business ethics
enhance education initiatives in the community. The model is shown mathematically as
follows; ―Y=a+bx‖ where ―y‖ is Education initiatives and ―x‖ is Business ethics, ―a‖ is a
constant factor and b is the value of coefficient. From this table therefore, Education
initiatives=1.903+0.416Business ethics. This means that for every 100% change in
Education initiatives, Business ethics is responsible for 41.6%.of the change.

Decision

The significance level below 0.05 implies a statistical confidence of above 95%. This
implies that business ethics enhance education initiatives in the community. Thus, the
decision would be to accept the alternative hypothesis (H1).

Hypothesis 2

Ho: There are no relationship between business ethics and social welfare of the
communities.

Table 4.3.5 Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Social welfare 122 1.00 5.00 4.0164 .91799

Business ethics 122 1.00 5.00 4.0082 .95775

Valid N (listwise) 122

The table above depicts the mean and standard deviation of between business ethics and
social welfare.

86
The model summary table below reports the strength of the relationship between the
model and the dependent variable.

Table 4.3.6 Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .566a .434 .127 .85769

a. Predictors: (Constant), Business ethics

The correlation between business ethics and social welfare is (0.566), meaning that
business ethics and social welfare are strongly and linearly correlated. While R squared is
(0.434) meaning that 43.4% of social welfare could be explained by business ethics by
the respondent. `

Table 4.3.7 ANOVAa

Model Sum of Squares Df Mean Square F Sig.

Regression 13.692 1 13.692 18.613 .000b

1 Residual 88.275 120 .736

Total 101.967 121

a. Dependent Variable: social welfare

b. Predictors: (Constant), business ethics

The ANOVA table shows the F cal to be (18.613) at 0.0001 significance level. The
implication is that there are relationship between business ethics and social welfare of the
communities. Thus, the decision would be to accept the alternative hypothesis (H 1) and
reject Null Hypothesis (H0)

87
Table 4.3.9 Coefficientsa

Model Unstandardized Coefficients Standardized T Sig.

Coefficients

B Std. Error Beta

(Constant) 2.609 .335 7.777 .000

1
business ethics .351 .081 .366 4.314 .000

a. Dependent Variable: social welfare

The coefficient table above shows the simple model that expresses how there are
relationship between business ethics and social welfare of the communities. The model is
shown mathematically as follows; ―Y=a+bx‖ where ―y‖ is social welfare and ―x‖ is
business ethics, ―a‖ is a constant factor and b is the value of coefficient. From this table
therefore, job creation=2.609+0.351business ethics. This means that for every 100%
change in social welfare, business ethics is responsible for 35.1% of the change.

Decision

The significance level below 0.05 implies a statistical confidence of above 95%. This
implies that there are relationship between business ethics and social welfare of the
communities. Thus, the decision would be to accept the alternative hypothesis (H1).

Hypothesis 3

Ho: Competition effect is insignificant on education initiative of the host communities.

88
Table 4.3.10 Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Competition 122 1.00 5.00 3.8689 .97022

Education initiative 122 1.00 5.00 3.8443 1.06810

Valid N (listwise) 122

The table above depicts the mean and standard deviation of competition and education
initiative

The model summary table below reports the strength of the relationship between the model and the
dependent variable.

Table 4.3.11 Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .543a .596 .189 .96173

a. Predictors: (Constant), Competition

The correlation between competition and education initiative is 0.543, meaning that
competition and education initiative are strongly and linearly correlated. While R squared
is 0.596 meaning that 59.6% of education initiative could be explained by competition by
the respondent.

89
Table 4.3.12 ANOVAa

Model Sum of Squares Df Mean Square F Sig.

Regression 27.051 1 27.051 29.247 .000b

1 Residual 110.990 120 .925

Total 138.041 121

a. Dependent Variable: Education initiative

b. Predictors: (Constant), competition

The ANOVA table shows the Fcal to be (29.247) at 0.0001 significance level. The
implication is that Competition effect is significant on education initiative of the host
communities. Therefore, we are to accept Alternative hypothesis and reject null
hypothesis

Table 4.3.13 Coefficients

Model Unstandardized Coefficients Standardized t Sig.

Coefficients

B Std. Error Beta

(Constant) 1.959 .359 5.451 .000

1
Competition .487 .090 .443 5.408 .000

a. Dependent Variable: Education initiative

The coefficient table above shows the simple model that expresses how competition
effect is significant on education initiative of the host communities. The model is shown
mathematically as follows; ―Y=a+bx‖ where ―y‖ is Education initiative and ―x‖ is
competition, ―a‖ is a constant factor and b is the value of coefficient. From this table

90
therefore, Education initiative =1.507+0.481competition. This means that for every 100%
change in Education initiative, competition is responsible for 48.1% of the change

Decision

The significance level below 0.5 implies a statistical confidence of above 95%. This
implies that Competition effect is significant on education initiative of the host
communities. Thus, the decision would be to reject the null hypothesis (H0), and accept
the alternative hypothesis (HA).

Hypothesis 4

Ho: Organization competition does not contribute significantly to the enhancement of

social welfare.

Table 4.3.14 Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Competition 122 1.00 5.00 4.2951 .77873

Social welfare 122 1.00 5.00 3.3770 1.23535

Valid N (listwise) 122

The table above depicts the mean and standard deviation of competition and social
welfare.

The model summary table below reports the strength of the relationship between the
model and the dependent variable.

Table 4.3.15 Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

91
1 .739a .515 .107 1.16716

a. Predictors: (Constant), Competition

The correlation between competition and social welfare is 0.739, meaning that
competition and social welfare are strongly and linearly correlated. While R squared is
0.515 meaning that 51.5% of social welfare could be explained by competition by the
respondent.

Table 4.3.16 ANOVAa

Model Sum of Squares Df Mean Square F Sig.

Regression 21.184 1 21.184 15.551 .000b

1 Residual 163.472 120 1.362

Total 184.656 121

a. Dependent Variable: Social welfare

b. Predictors: (Constant), Competition

The ANOVA table shows the F cal to be (15.551) at 0.0001 significance level. The
implication is that organization competition contribute significantly to the enhancement
of social welfare. Thus, we accept alternative hypothesis (H1) and reject Null hypothesis

Table 4.3.17 Coefficientsa

Model Unstandardized Coefficients Standardized t Sig.

Coefficients

B Std. Error Beta

1 (Constant) 1.069 .595 1.798 .075

92
 Competition .537 .136 .339 3.943 .000

a. Dependent Variable: Social welfare

The coefficient table above shows the simple model that expresses how organization
competition contributes significantly to the enhancement of social welfare. The model is
shown mathematically as follows; ―Y=a+bx‖ where ―y‖ is social welfare and ―x‖ is
competition, ―a‖ is a constant factor and b is the value of coefficient. From this table
therefore, social welfare=2.051+0.370competition. This means that for every 100%
change in social welfare, competition is responsible for 37.0% of the change.

Decision

The significance level below 0.01 implies a statistical confidence of above 99%. This
implies that organization competition contributes significantly to the enhancement of
social welfare. Thus, the decision would be to reject the null hypothesis (H 0), and accept
the alternative hypothesis (H1).

4.4 Discussion of results

This study examines the evaluation of corporate social responsibility on community

development (study of Globalcom Nig Ltd at Ilorin) and the variables used for the
independent construct (Corporate Social Responsibility) are Business Ethics and
Competitive Strategy while for the dependent constructs, Education Initiatives and Social
Welfare. The study aimed to see how the program (CSR) adopted by organization
develop the community in which they are operating. Four hypotheses were postulated and
the results derived shows that there is strong and linear relationship between the variables
used to measure the two construct which invariably mean organization corporate social
responsibility have significant impact on community development, however, based on the
information derived from field, some respondents claim that they are not aware that
93
Globacom is doing any program that influence community positively, which means in
spite of the program some member of the community are yet to benefit from it.

94
 CHAPTER FIVE

SUMMARY, FINDINGS, CONCLUSION AND RECOMMENDATION

5.0 Introduction

This chapter contains the discussion of the findings of the study. The hypotheses stated
for the study guided the arrangement of the discussions. This is followed by conclusions
drawn from the findings, recommendations and suggestions for further study.

From this, research findings were divided into two parts, namely (i) Summary of
theoretical findings. (ii). Summary of empirical findings.

5.1 Findings – CSR impact on Community Development

In chapter one and two corporate social responsibility has been defined by many writers
who looked at it from numerous perspectives. The research work was basically conducted
to find out if Globalcom Nig Ltd embarks on CSR, if CSR has any significant impact on
community development and to know if there are challenges faced by Globalcom Nig Ltd
for embarking on CSR. In carrying out the study, primary and secondary sources of data
were made use of in gathering relevant information. From the information gathered, it
was found that as CSR of Globalcom Nig Ltd increases, there was a corresponding
development in community in which they operate.

Therefore, the findings for this study are divided into 2 parts, theoretical findings and
empirical findings. The theoretical findings are abstracted from the literature review in
chapter 2 while empirical findings are derived from data generated from the field survey

5.1.1 Summary of Theoretical Findings

The literature reviewed in the study revealed the following findings:

95
The issue of corporate social responsibility (CSR) has been debated since past decade.
Analyses by Sochi (2007) and Lee (2008) reported that the definition of CSR has been
changing in meaning and practice. The classical view of CSR was narrowly limited to
philanthropy and then shifted to the emphasis on business society relations particularly
referring to the contribution that a corporation or firm provided for solving social
problems. In the early twentieth century, social performance was tied up with market
performance.
The pioneer of this view, Oliver Sheldon (1923, cited in Bichta, 2003), however,
encouraged management to take the initiative in raising both ethical standards and justice
in society through the ethic of economizing, i.e. economize the use of resources under the
name of efficient resource mobilization and usage. By doing so, business creates wealth
in society and provides better standards of living. The present-day CSR (also called
corporate responsibility, corporate citizenship, responsible business and corporate social
opportunity) is a concept whereby business organizations consider the interest of society
by taking responsibility for the impact of their activities on customers, suppliers,
employees, shareholders, communities and other stakeholders as well as their
environment.
European Commission (2011) are of the view that the concept of CSR is a
situation where by companies integrate social and environmental concerns in their
business operations and in their interaction with their stakeholders on a voluntary basis,
following increasingly aware that responsible behavior leads to sustainable
business success. They further about managing change at company level in a socially
responsible manner which can be viewed in two different dimensions:
a) Internal – socially responsible practices that mainly deal with employees and related to
issues such as investing in human capital, health and safety and management change,

96
while environmentally responsible practices related mainly to the management of natural
resources and its usage in production.

b) External – CSR beyond the company into the local community and involves a wide
range of stakeholders such as business partners, suppliers, customers, public authorities
and NGOs that representing local communities as well as environment. A company
should focus on areas such as economic, environmental and social when developing
sustainability strategy (Szekely & Knirsch 2005).

According to Bright (2010), ―the concept of social responsibility as an organizational

ethics is faster becoming a custom and an important concept that virtually every
enterprise is being required to adopt as business practice‖. Sherlock (2007) observed that,
this concept is better appreciated and understood when looked at various reports from
Fast Moving Consumer Goods (FCMG) in Nigeria. Andabai (2010) stressed that, in the
Western world, the case is not different as business enterprises are responsible to their
areas of operations due to negative effect or impacts generated as a result of such
business operations and developing countries like Nigeria, and the concept is gradually
taking root. However, Andabai (2010) concluded that, it is the aim of this study to assess
the level of social responsiveness in the light of recent hostilities and un-ending demands
made by the various communities in Nigeria.

Based on the above various definitions of Corporate Social Responsibilities [CSR], by

different authorities, each considered valuable in their own right and designed to fit the
specific organization. The majority of definitions integrate the three dimensions to the
concept, that is, economic, environmental and social dimensions. CSR had also been
commonly described as ―a demonstration of certain responsible behavior on the part of
public and the private [government and business] sectors toward society and the
environment‖. On the contrary, some authority are of the view that CSR is just a mere
97
strategy that organization is using to gain more market share, avoid tax and competitive
edge (Otokiti, oral presentation Aug, 2014). CSR also means addressing the legal, ethical,
commercial and other expectations society has for business, and making decisions that
fairly balance the claim of all key stakeholders. In its simplest terms, it is: ―what you do‖,
―how you do it‖ ―and when and what you say‖. In this sense, CSR is viewed as a
comprehensive set of policies, practices and programs that are integrated into business
operations, supply chain, and decision making processes throughout the company and
wherever the company does businesses that are supported and rewarded by top
management. In lieu with above different view of concept of CSR, it is obvious that the
concept is generally accepted as a situation where by companies integrate social and
environmental concerns in their business operations and in their interaction with their
stakeholders on a voluntary basis, following increasingly aware that responsible behavior
leads to sustainable business success, (European Commission 2011 et al).
5.1.2 Summary of Empirical Findings
This study examines the evaluation of corporate social responsibility on community
development (study of Globalcom Nig Ltd at Ilorin) and the variables used for the
independent construct (Corporate Social Responsibility) are Business Ethics and
Competitive Strategy while for the dependent constructs, Education Initiatives and Social
Welfare. The study aimed to see how the program (CSR) adopted by organization
develop the community in which they are operating. Four hypotheses were postulated and
the results derived shows that there is strong and linear relationship between the variables
used to measure the two construct which invariably mean organization corporate social
responsibility have significant impact on community development, however, based on the
information derived from field, some respondents claim that they are not aware that
Globalcom is doing any program that influence community positively, which means in
spite of the program some member of the community are yet to benefit from it.
98
5.2 Conclusion
The concept of CSR has become more and more common in business practices and
customers today almost expect companies to be socially responsible. Even though CSR is
very important for companies, it has historically not been a very lucrative approach for
them to involve in these activities. The business of the 21-st century will have no choice
but to implement CSR. Like any successful management strategy, a CSR process needs
both high level management vision and support, and buy-in at all levels of the company.
CSR does not give immediate results. The same CSR initiative will also not work for all
types of organizations. Designing CSR initiative requires careful planning and
implementation mechanism. Corporate organizations should integrate the innovative CSR
strategies into different marketing communication strategies to build and sustain a
competitive advantage. Corporate social responsibility has a significant impact on the
community development, and also have positive impact on the side of the organization
which includes good business relationship, good will among other benefits. In today‗s
competitive market, CSR offer an opportunity for companies to explore other areas of
improving profitability. Customers have become very sophisticated and very much aware
of their environment against the perception that corporate organizations make a lot of
profits, it becomes imperative for these companies to put back into the society through
corporate social responsibility programs. Even though the benefits from CSR are over a
long period of time, it is such that it gives a lot more intangible benefits to the
organizations. Such benefits include, customer loyalty, brand image, improved corporate
image, market share and community presence. Indeed CSR is capital intensive and needs
an extensive program backed by executive support to roll out various CSR programs.
Small and medium enterprises are unable to engage in such ventures due to factors
already indicated in the study such as long return on investments, lack of commitment
from the executive and the expertise to run such programs. Government organizations
99
even though may engage in corporate social responsibility programs it is usually not
capital intensive. Of course these organizations are not income generated but are sub-
vented by the government and so there is not an allocation for the society. CSR activities
are usually donations to deprived communities and groups. As to whether CSR can be a
business strategy for companies to achieve corporate targets and objectives such as
competitiveness in market or market share is another study that can be researched further.

5.3 Recommendations

This section recommends measures to be considered by academia, corporate organization

and stakeholders as well as customers so long as corporate social responsibility is
concerned.
CSR deserves greater attention and more commitment from corporate organizations in
that it guarantees other benefits other than just profits. This offers an opportunity to the
corporate world to think out of the box and explore other potentially viable areas to
improve the company profits portfolio. Corporate organizations stands to gain over a
period of time some leverages other that just products and services they render to the
society.
CSR projects should be well structured and implemented to have maximum impact. This
would enhance the well-being of the beneficiaries. From the survey it revealed that some
customers or inhabitants of a community are not aware of any CSR program ongoing.
Mostly they were unable to connect with the results of the program tends out that the
community expectations are somewhat different form the corporate organization.
Organizations could liase with community authorities to identify areas or opportunities
available to them to better the lives of the people through the provision of some social
amenities. This will go a long way to improve the general living standards of the people.
Corporate organizations should intensify efforts to educate the public on their primary
100
responsibilities, various commitments to other stakeholders and operational/financial
limitations. By doing so, the public will begin to show understanding and appreciation of
the efforts and contributions of such organizations. In most instances if the customers or
the people in the community are involved, monitoring becomes feasible and measurable.
Corporate organization should also involve the community in the planning, formulation,
implementation and evaluation of CSR projects. This will eliminate stakeholder conflicts
that may arise in some societies.

Governments and local authorities should explore the areas where a certain amount of tax
will be used by the organization to undertake community based projects such as schools,
electricity, clean water, jobs and income generating activities. This can be in a form of
tax exemptions granted to these organizations. This will make the corporate organization
be more responsible in the area of work and contribute significantly to national
development.

5.4 Further Research

For academic and industry discussions I recommend that further study should be
conducted to establish the real value and how much CSRs contribute to the development
of the community. Also further research should be conducted to quantify how much or to
what degree these CSR programs have impacted on the society and its corresponding
value generation for the company.

101
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 APPENDIX I
KWARA STATE UNIVERSITY, MALETE

SCHOOL OF BUSINESS AND GOVERNANCE

COLLEGE OF HUMANITIES, MANAGEMENT AND SOCIAL SCIENCE

DEPARTMENT OF BUSINESS AND ENTREPRENEURSHIP

QUESTIONNAIRE FOR STAFF OF GLOBACOM NIG LTD

“Value Creation Through Corporate Social Responsibility in Nigeria Companies – Globacom Nig
Ltd perspective”

Dear Sir/Madam,
This questionnaire is aimed at data collection on the Value Creation through corporate Social
Responsibility in Nigeria companies and how it impacts Community Development. It is aimed at
carrying out research work in partial fulfillment of the requirements for the award of Bachelor of
Science in Business and Entrepreneurship. Please, kindly complete this questionnaire as honesty and
carefully as you can and be assured that information provided will solely be used for the research.
Thank you for your co-operation.
SECTION A:

INSTRUCTION: Please tick (√ ) the correct answers from the options provided below.

1. Sex: Male ( ) Female ( )

2. Marital status: Single ( ) Married ( ) Divorced ( ) Widowed ( )

3. How old are you?..........

5. How long have you been working for Globacom Nig Ltd? 3 years and bellow ( ) 5 years ( ) 10 Years
( ) More than 10 years ( )

6. Educational Qualifications: SSCE ( ) HND ( ) B.sc ( ) BA ( ) Others ( )

109
7. Professional Qualifications: CIM ( ) ACCA ( ) MBA ( ) Others ( )

SECTION B:
INSTRUCTION: Please tick (√ ) the correct answers from the options provided below.
8. What do you think about Globacom embarking on Corporate Social Responsibility?
Necessary ( ) Compulsory ( ) Voluntary ( ) Beneficial ( )
9. What impact has the project / program had on the community.
Positive Impact ( ) Negative Impact ( ) Neutral ( )
SECTION C: In the given section SA, A, U, D, SD have the under listed meaning; SA- Strongly Agree;
A-Agree; U- Undecided; D- Disagree; SD- Strongly Disagree
INSTRUCTION: Please tick (√ ) the correct answers from the options provided below.

SA A U D SD
5 4 3 2 1
10 Globacom Business Ethics enhance education
initiatives in the community in which they operate.

11 Globacom corporate social responsibility activities

improves education initiatives in their host
community.

12 Social welfare is one of the improvements that

Globacom business ethics bring about.

13 Globacom have competitive edge over others by

introducing education initiatives in their business
ethics.
14 Community is developed by the activity of
corporate social responsibility of Globacom Nig
Ltd.
15 Globacome include education initiative to their
business ethics so as to create social awareness

110
 APPENDIX II

KWARA STATE UNIVERSITY, MALETE

SCHOOL OF BUSINESS AND GOVERNANCE

COLLEGE OF HUMANITIES, MANAGEMENT AND SOCIAL SCIENCE

DEPARTMENT OF BUSINESS AND ENTREPRENEURSHIP

QUESTIONNAIRE FOR CUSTOMER OF GLOBACOM NIG LTD

“Value Creation Through Corporate Social Responsibility in Nigeria Companies – Globacom Nig Ltd
perspective”

Dear Sir/Madam,
This questionnaire is aimed at data collection on the Value Creation through corporate Social
Responsibility in Nigeria companies and how it impacts Community Development. It is aimed at
carrying out research work in partial fulfillment of the requirements for the award of Bachelor of
Science in Business and Entrepreneur. Please, kindly complete this questionnaire as honesty and
carefully as you can and be assured that information provided will solely be used for the research.
Thank you for your co-operation.
SECTION A:
INSTRUCTION: Please tick ( √ ) the correct answers from the options provided below.
1. Sex Male ( ) Female ( )

2. Marital status Single ( ) Married ( ) Divorced ( ) Widowed ( )

3. How old are you? ..............

4. How long have you been using your Glo line? 3 years or less ( ) 5 years ( ) 10 Years ( ) More than
()

111
SECTION B:
INSTRUCTION: Please tick (√ ) the correct answers from the options provided below.
5. Which of these other network do you use aside from Glo? MTN ( ) Etisalat ( ) Airtel ( )
6. Are you aware that Globacom embarks on any project / program that are beneficial to the people in
your community? Yes ( ) No ( ) Undecided ( )
7. What impact has the projects / program had on the community? Positive Impact ( ) Negative Impact (
) Neutral ( )
8. Are there other benefits Globacom stands to gain aside community development from the execution
of Corporate Social Responsibility? Large Customer Base ( ) Customer Confidence ( )
Good corporate Image ( ) Profitability ( ) Other Benefits ( )
SECTION C: In the given section SA, A, U, D, SD have the under listed meaning; SA- Strongly Agree;
A-Agree; U- Undecided; D- Disagree; SD- Strongly Disagree INSTRUCTION: Please tick (√ ) the
correct answers from the options provided below.

SA A U D SD
5 4 3 2 1
9 Globacom Business Ethics enhance education
initiatives in the community in which they operate.

10 Globacom corporate social responsibility activities

improves education initiatives in their host
community.

11 Social welfare is one of the improvements that

Globacom business ethics bring about.

12 Globacom have competitive edge over others by

introducing education initiatives in their business
ethics.
13 Community is developed by the activity of corporate
social responsibility of Globacom Nig Ltd.

14 Globacome include education initiative to their

business ethics so as to create social awareness

112
 APPENDIX III
Sex

Cumulative
Frequency Percent Valid Percent Percent
Valid female 11 44.0 44.0 44.0
male 14 56.0 56.0 100.0
Total 25 100.0 100.0

Marital status

Cumulative
Frequency Percent Valid Percent Percent
Valid single 10 40.0 40.0 40.0
married 15 60.0 60.0 100.0
Total 25 100.0 100.0

AGE

Cumulative
Frequency Percent Valid Percent Percent
Valid 22-26 4 16.0 16.0 16.0
27-31 8 32.0 32.0 48.0
32-36 5 20.0 20.0 68.0
37-41 5 20.0 20.0 88.0
42-46 3 12.0 12.0 100.0
Total 25 100.0 100.0

How long have you been working for Globacom Nig Ltd?

Cumulative
Frequency Percent Valid Percent Percent
Valid 3 years and bellow 10 40.0 40.0 40.0
5 years 13 52.0 52.0 92.0
10 years 1 4.0 4.0 96.0
more than 10 years 1 4.0 4.0 100.0
Total 25 100.0 100.0

113
 Educational Qualifications:

Cumulative
Frequency Percent Valid Percent Percent
Valid SSCE 1 4.0 4.0 4.0
HND 7 28.0 28.0 32.0
BSC 16 64.0 64.0 96.0
BA 1 4.0 4.0 100.0
Total 25 100.0 100.0

Professional Qualifications

Cumulative
Frequency Percent Valid Percent Percent
Valid CIM 2 8.0 8.0 8.0
ACCA 4 16.0 16.0 24.0
MBA 9 36.0 36.0 60.0
Other 10 40.0 40.0 100.0
Total 25 100.0 100.0

What do you think about Globacom embarking on Corporate Social Responsibility?

Cumulative
Frequency Percent Valid Percent Percent
Valid Necessary 5 20.0 20.0 20.0
Compulsory 5 20.0 20.0 40.0
Voluntary 7 28.0 28.0 68.0
Beneficial 8 32.0 32.0 100.0
Total 25 100.0 100.0

What impact has the project / program had on the community.

Cumulative
Frequency Percent Valid Percent Percent
Valid neutral 4 16.0 16.0 16.0
positive impact 21 84.0 84.0 100.0
Total 25 100.0 100.0

Globacom business ethics improve the community in which they are operating

Cumulative
Frequency Percent Valid Percent Percent
Valid Disagree 1 4.0 4.0 4.0
Agree 12 48.0 48.0 52.0
Strongly Agree 12 48.0 48.0 100.0
Total 25 100.0 100.0

114
 Community is not developed as a result of business ethics adopted by Globacom

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Agree 1 4.0 4.0 4.0
Agree 4 16.0 16.0 20.0
Undecided 4 16.0 16.0 36.0
Disagree 10 40.0 40.0 76.0
Strongly Disagree 6 24.0 24.0 100.0
Total 25 100.0 100.0

There is a great change in the community based on the program adopted by Globacom

Cumulative
Frequency Percent Valid Percent Percent
Valid Disagree 1 4.0 4.0 4.0
Undecided 6 24.0 24.0 28.0
Agree 14 56.0 56.0 84.0
Strongly Agree 4 16.0 16.0 100.0
Total 25 100.0 100.0

Globacom education initiatives promote literacy level in the community hence, bring about community development

Cumulative
Frequency Percent Valid Percent Percent
Valid Undecided 1 4.0 4.0 4.0
Agree 14 56.0 56.0 60.0
Strongly Agree 10 40.0 40.0 100.0
Total 25 100.0 100.0

Community is developed but not through education initiatives

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Agree 6 24.0 24.0 24.0
Agree 3 12.0 12.0 36.0
Undecided 7 28.0 28.0 64.0
Disagree 6 24.0 24.0 88.0
Strongly Disagree 3 12.0 12.0 100.0
Total 25 100.0 100.0

Education initiatives is one of the impetus for positive change in the community

Cumulative
Frequency Percent Valid Percent Percent
Valid Disagree 1 4.0 4.0 4.0
Undecided 2 8.0 8.0 12.0
Agree 12 48.0 48.0 60.0

115
 Strongly Agree 10 40.0 40.0 100.0
Total 25 100.0 100.0

Globacom embark on competition and it bring about positive change in the community

Cumulative
Frequency Percent Valid Percent Percent
Valid Disagree 1 4.0 4.0 4.0
Undecided 4 16.0 16.0 20.0
Agree 15 60.0 60.0 80.0
Strongly Agree 5 20.0 20.0 100.0
Total 25 100.0 100.0

Inter – company competition have significant effect on community development

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 1 4.0 4.0 4.0
Disagree 1 4.0 4.0 8.0
Undecided 5 20.0 20.0 28.0
Agree 13 52.0 52.0 80.0
Strongly Agree 5 20.0 20.0 100.0
Total 25 100.0 100.0

Inter – company competition have significant effect on community development

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 1 4.0 4.0 4.0
Disagree 1 4.0 4.0 8.0
Undecided 5 20.0 20.0 28.0
Agree 13 52.0 52.0 80.0
Strongly Agree 5 20.0 20.0 100.0
Total 25 100.0 100.0

Social welfare is one of the factors that develop the community

Cumulative
Frequency Percent Valid Percent Percent
Valid Agree 17 68.0 68.0 68.0
Strongly Agree 8 32.0 32.0 100.0
Total 25 100.0 100.0

116
 Community is not develop because of social welfare alone

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Agree 3 12.0 12.0 12.0
Agree 12 48.0 48.0 60.0
Undecided 2 8.0 8.0 68.0
Disagree 5 20.0 20.0 88.0
Strongly Disagree 3 12.0 12.0 100.0
Total 25 100.0 100.0

Community is development based on social welfare that Globacom embark on

Cumulative
Frequency Percent Valid Percent Percent
Valid Disagree 4 16.0 16.0 16.0
Undecided 3 12.0 12.0 28.0
Agree 11 44.0 44.0 72.0
Strongly Agree 7 28.0 28.0 100.0
Total 25 100.0 100.0

117