TABLE OF CONTENTS
Title page – – – – – – – – – i
Certification – – — – – – – – – ii
Approval – – – – – – – – – iii
Dedication – – – – – – – – – iv
Acknowledgments – – – – – – – – v
Table of contents – – — – – – – – vi
List of Table – – – – – – – – – viii
Abstract – – – – – – – – – xi
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study – – – – – 1
1.2 Statement of problem – – – – – – – 2
1.3 Objectives of the Study – – – – – 3
1.4 Research Question – – – – – – 3
1.5 Hypotheses of the Study – – – – – 4
1.6 Significance of the Study – – – – – – 4
1.7 Scope of the Study – – – – – – – 5
1.8 Limitation of the Study – – – – – – 5
1.9 Definition of Terms – – – – – – 5
1.10 Historical Background of the Selected Companies – – – 7
References – – – – – – – 9
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Introduction – – – – – – – – 11
2.2 Definition of Corporate Social Responsibility – – 11
2.3 Drivers of Corporate Social Responsibility – – – 14
2.3.1 Changing Environment – – – – – – 14
2.3.2 Globalization and Technology – – – – – – 14
2.3.3 New Pattern of Consumption: Emergence of „Conscience Consumers‟ 15
2.3.4 Trend: Affluence – – – – – – – 16
2.4 Planning and Implementing Corporate Social Responsibility – 16
2.5 Marketing in Corporate Social Responsibility – – – 17
2.6 Consumers and Corporate Social Responsibility – – – 21
2.7 Social Marketing Concept – – – – – 23
2.8 Societal Marketing Concept – – – – – 26
2.9 Emergence of Ethical and Social Responsibility – – – 27
2.10 Goals of Corporate Social Responsibility – – – – 28
2.11 Pitfalls of Effective Corporate Social Responsibility in Nigeria – 31
2.12 Summary – – – – – – – – 32
References – – – – – – – – 34
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction – – – – – – – – 38
3.2 The Study Area – – – – – – – 38
3.3 Population of the Study – – – – – – 38
3.4 Research Design – – – – – – – 39
3.5 Sampling Procedure – – – – – – – 39
3.6 Sources of Data – – – – – – – 39
3.7 Administration Questionnaire – – – – – – 39
3.8 Determination of Sample Size – – – – – 39
3.9 Questionnaire Allocation – – – – – – 40
3.10 Pilot Survey – – – – – – – – 41
3.11 Validity of Research Instrument – – – – – 41
3.12 Reliability of the Research Instrument – – – – 42
3.13 Statistical Method of Data Presentation and Analysis – – 42
References – – – – – – – – 43
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction – – – – – – – – 44
4.2 Data Presentation – – – – – – – 44
CHAPTER FIVE: SUMMARY, CONCLUSIONS
5.1 Introduction – – – – – – – – 68
5.2 Summary of Findings – – – – – – – 68
5.3 Conclusion – – – – – – – – 69
5.4 Recommendation – – – – – – – 60
5.5 contributions to knowledge – – – – – – 70
5.6 Area of further Research – – – – – – 71
Bibliography – – – – – – – – 72
APPENDIX – – – – – – – 77
QUESTIONNAIRE – – – – – – – 78
LIST OF TABLE
4.2.1 Gender – – – – – – – – 44
4.2.2 Age – – – – – – – – – 4
4.2.3 Marital Status – – – – – – – – 42
4.2.4 Staff – – – – – – – – – 43
4.2.6 Education Qualification – – – – – – 43
4.2.7 Designation – – – – – – – 43
4.2.8 Staff‟s level — – – – – – – – 44
4.2.9 The level of the companies involvement in corporate social responsibility -45
4.2.10 Corporate Social responsibility practices benefits the companies in the area of
survival and suitability – – – – – – 46
4.2.11 Ways through which corporate social responsibility can be
used by the companies – – – – – – 46
4.2.12 The cost incurs on the corporate social responsibility practices prove
efficiency and effectiveness – – – – – – 47
4.2.13 Determination of efficiency and effectiveness – – – 47
4.2.14 Corporate social responsibility practices can be used as a tool for marketing
one company‟s products – – – – – – 48
4.2.15 Capacity this can be advised – – – – – – 48
4.2.16 Does Pitfall of Corporate Social Responsibility has any impact on marketing a
company product – – – – – – – 49
4.2.17 Amount your Company voted for Corporate Social
Responsibility Practices yearly – – – – – 49
4.2.18 Company customers/Distributors – – – – – 50
4.2.19 The rate of the involvement of the company in those corporate social
responsibility practices – – – – – – 51
4.2.20 The Corporate Social Responsibility practices by the company commensurate
with the value parting from the society by the company – – 51
4.2.21 Corporate Social Responsibility practices affect the live of the people in the
environment positively – – – – – – 52
4.2.22 The way it affects the live of the people – – – – 52
4.2.23 Corporate Social Responsibility practices, do you think that it can be
stimulated by any other factor other than ethical considerations –
This study is based on the assessment of corporate social responsibility practices of
the indigenous manufacturing companies in Enugu Metropolis in Enugu State. This
study was conducted based on the issues and agitations that surrounded the
Practices of Corporate Social Responsibility by some business organizations in the
Enugu metropolis even where the practices are available they are still at a crawling
stage. The objective of the study is to assess the impact of corporate social
responsibility on manufacturing companies. To this end, data were gathered from
both the primary and secondary sources. The primary sources comprised of survey
instrument and observation. While the secondary sources were text books, journals
and publications from both Anammco and Emenite. The population of the study is
one thousand one hundred and fifty three (1,153) but the sample size is two hundred
and ninety seven (297) which was determined with the use of Cochran’s formular for
the determination of sample size.
However, out of the 297 sample size, two hundred and sixty eight respondents were
found useful for the study. A descriptive statistic technique was also adopted for the
study and the statistical tools for the test of the formulated hypotheses were the
Multiple linear regression analysis, T-test and Z-test tools were used in testing the
hypotheses, with the aid of the SPSS software. The study revealed that corporate
social responsibility is yet to be recognized as a marketing tool or strategy for
marketing Anammco and Emenite products. The amount usually put into corporate
social responsibility by the companies is small to execute big projects for the benefit
of the companies and stakeholders. Besides, it was identified that the forms of
corporate social responsibility the companies employed were charity, donation,
welfare packages, medical services, sponsorship and scholarship award whereas
many more suppose to be incorporated such as research grant, entrepreneur
training, infrastructural development, etc. Also, there is no drive other than ethical
consideration that pushes the manufacturing companies in Enugu Metropolis to the
corporate social responsibility practices. And there is no significant relationship
between the companies corporate social responsibility practices financial cost and
benefits derived from it. Finally, the finding also revealed the corporate social
responsibility practices by the companies is low generally.
1.1 Background of the Study and History of Selected Companies
Today, increasing numbers of companies are beginning to appreciate the rising
importance of Corporate Social Responsibility (CSR). They can no longer overlook
societal expectation. Corporate Social Responsibility is rapidly becoming one of the
principles and important priorities which modern businesses should adopt regardless
of their size and type (Jiyoung, 2007:7). Recently, businesses are expected to take
account not only of their economic interests but of their societal and environmental
impacts as well. They are responsible for delivering sustainable development where
they operate – locally, regionally and globally.
Corporate social responsibility goes beyond the old-fashioned and altruistic
philanthropy of the past. Instead, now it is an all year round responsibility for
business. In spite of mixed evidence on the financial impact of corporate social
responsibility, the largest and most powerful global corporations embrace it as their
core business principle. Hardelman and Arnold, (1999:35) explained that Corporate
Social Responsibility seems to be something of a holy grail to invigorate the business
only if they can discover it. In his view corporate social responsibility is very elusive.
How to integrate corporate social responsibility into business is one of the biggest
challenges that today‟s business face.
In the past decades, there has been a significant change in the relationship between
business and society. As witnessed by governments‟ lack of capability to solve social
problems, the public‟s expectation for business has begun to increase (Smith et al,
2001:107). In Nigeria, business organizations are expected to be socially responsible
to the environment they operate. Thus, many companies see themselves as caught
between social demanding and maximizing short-term profits (Porter and Kramer,
Therefore, this prompt the enactment and implementation of CSR bill to enforce the
practices of corporate social responsibility by the companies and by Nigerian.
Government as published in Nigerian daily independent newspaper 29th January,
In this millennium, however, the demands for corporate social responsibility have
become more specific and more imperative than they used to be; the public began to
demand that businesses make social issues a part of their strategy (Lantos, 2001:600).
Not only general business associations, but the World Business Council for
Sustainable Development (WBCSD) and the Business for Social Responsibility (BSP)
Promote Corporate Social Responsibility. A number of organizations have started to
rank companies on the performance of their corporate social responsibility and these
rankings have had a significant effect on both the publics and investors. As a result,
Corporate Social Responsibility has become a priority for business, i.e. it is no longer
a business option but a fundamental (Smith, 2003:56).
History of the Selected Companies
1.1.1 Anambra Motor Manufacturing Company
Mercedes Benz ANAMMCO Limited was incorporated on January 17, 1979 and the
plant was commissioned on July 8, 1980 by the First Executive President of Nigeria,
Alhaji Shehu Shagari. It started official production in January 1989, and has to date
made an enviable mark in the nation‟s transportation industry, adding over 30,000
vehicles to it.
The company is a joint venture between the Federal Government of Nigeria and
Daimler Benz Ag/Mercedes Benz Ag of Germany. The plant has an installed
production capacity of 7,500 commercial vehicles (Truck Assembly), however,
unfortunately, due to the general economic downturn in the country, ANAMMCO‟s
current capacity utilization is put at a little over 15% of her installed capacity. For this
reason, between the period of 1981 when the started production to 1994, ANAMMCO
can just boast of having added only about 20,000 vehicle made up of Trucks and
Buses to the nation‟s transport sector. The company has since diversified to the
production of buses. She also has a network of over 36 after-sales services points and
spare part supply depots.
1.1.2 Emenite Company Limited
Emenite Limited was incorporated in the month of October 1961 as Turners Asbestos
Cement Nigeria Limited. On the 22nd March, 1976, the name was change to turners
building products Emene Limited as a result of indigenization decree. The
significance of that changed the Head office which was formerly in Lagos was
changed to Emene. Then, on the 24th March, 1988, the company started answering
the name Emenite Limited. This change was occasioned by the subsequent sale of the
foreign partners share i.e. (Turner and Newall) to Eteroutremer S.A., presently known
as Elex Group who now holds the majority of shares and consequently controls the
affairs of the company as of now.
The company – Emenite Ltd is in business producing Asbestos Cement Building
Products, presently changed to Fibre Cement Building Products because of the
negative connotations which the word “Asbestos” has among the publics. The
company‟s product lines consist of the following: corrugated roofing sheets, ceiling
boards; flower pots and water pipes which are presently out of production.
1.2 Statement of Problem
Many companies see themselves as caught between social demanding and maximizing
short term profits (Porter and Kramer, 2002:80). Although, it is believed that
stakeholder value is hardly compatible with Shareholder value, today‟s businesses
have a fiduciary duty to shareholders and at the same time a social responsibility to
stakeholders. So far it is widely accepted that being responsible means a cost rather
than financial benefit (Jiyoung, 2007:17). Possessing a strong Corporate Social
Responsibility profile means a cost rather than as asset that can be invested in.
However, the growth in socially responsible investments and in Corporate Social
Responsibility awareness assures organizations that the future champions will be
those who proactively balance short-term financial goals to meet shareholder
demands, with building long-term sustainability to satisfy stakeholder demands.
Consumers make a purchasing decision according to a company‟s corporate
reputation.. Apparently, it seems like today‟s companies are caught in a morality.
Being moral involves costs, thus morality demands the price of resources of
companies. On the other hand, are consumers willing to pay premium prices caused
by corporate social responsibility investment? Research shows that not many of them
are (Smith, 2005:62). If so, how can companies recover the loss caused by (CSR)?
How do companies reconcile this negative financial impact caused by (CSR)? What
role can Corporate Social Responsibility play in the life of business organizations?
Can it reconcile the gap between social needs and their virtue of capitalism?
Therefore, this study intends to do an assessment of Corporate Social Responsibility
practices of selected indigenous manufacturing companies in Enugu Metropolis in
1.3 Objectives of the Study
Generally, the objective of the study is to assess the Corporate Social Responsibility
of the selected companies in Enugu Metropolis in Enugu State. However, the specific
objectives are as follows:
- To ascertain whether the selected companies engage in the Corporate Social
- To determine if cost is more valuable other than financial benefit.
- To ascertain if corporate social responsibility can be used as a tool for marketing
their company‟s products.
- To determine if there is a significant relationship between organizational morality
and Corporate Social Responsibility.
- To determine if pitfalls of corporate social responsibility have an impact on the
marketing of company‟s product.
- To determine if there are any other factor that stimulate company‟s to practice
corporate social responsibility other than ethical consideration
- To determine if companies assets are used to assess the impact of their Corporate
- To identify the benefits ANAMMCO and Emenite derived in their practice of
Corporate Social Responsibility.
1.4 Research Questions
(1) Do the selected companies engaged in the practice of corporate social
(2) Do cost more valuable other than financial benefit?
(3) Do companies use corporate social responsibility practices as a tool for
marketing their company‟s products?
(4) What is the relationship between organizational morality and Corporate Social
(5) Do pitfalls of corporate social responsibility had an impact on the marketing
of company‟s product?
(6) Do any other factor stimulated companies to practice corporate social
responsibility other than ethical consideration?
(7) To determine if companies asset are being used to assess the impact of their
corporate social responsibility
(8) What benefits do the selected companies derive in their practice of Corporate
1.5 Hypotheses of the Study
- Ho: Companies did not engage in the corporate social responsibility
- Ho: There is no significant relationship between the companies
Corporate Social Responsibility Practices financial cost and benefits
derived from it.
- Ho: Companies did not use corporate social responsibility practices as
a tool for marketing their company‟s products‟.
- Ho: There is no significant relationship between organizational
morality and corporate social responsibility.
- Ho: The pitfalls of corporate social responsibility have no impact on
the marketing of company‟s product.
- Ho: Corporate social responsibility cannot be stimulated by any other
factor other than ethical consideration.
1.6 Significance of the Study
Globally, Corporate Social Responsibility Practices is another functional area of
managing and marketing the activities of business organizations to maximize
shareholders/investors value and stakeholders/public value. Therefore, this study will
benefit the following:
Government: In the area of infrastructural development which some governments
have low capacity to discharge, through Social Responsibility Practices business
organizations come to the aid of the governments.
Public/Stakeholders: The stakeholders as a result of the relationship between the
business organizations and society and for the sake of promoting loyalty with the
customers, business organizations are therefore rendering some social responsibility
services to improve the standard of living of their customers.
Business Organizations: The Corporate Social Responsibility Practices may be used
as a marketing tool to achieve long-term sustainability of companies and survival in
the environment with which they operate.
1.7 Scope of the Study
This study is restricted to the Corporate Social Responsibility Practices in Anambra
Motor Manufacturing Company (ANAMMCO) and EMENITE Company Limited in
Enugu Metropolis in Enugu State in Nigeria.
1.8 Limitations of the Study
In the process of carrying out this study the researcher encountered the following
Financial Constraint: The researcher was faced with the problem of transport fare
from one company to the other in searching for relevant information and
administration of questionnaire both in the pilot survey and the real field survey.
Time Constraint: The time allocated to this study was not enough, despite that the
researcher managed to complete the research work and delivered the desirable
Scarcity of Materials: The researcher faced a lot of stress in the process of gathering
materials for this study as a result of dearth material in the areas because much
emphasis is yet to put on it. However most authors have not treated the topic
1.9 Definition of Terms
For the purpose of clarification and understanding of this research, some concepts
required conceptual definitions. Below are some of these concepts:
Marketing: Marketing, therefore, is the anticipation of needs and wants and
providing such needs and wants at the time they are wanted. When, where that are
wants, how they are wanted and at the price they are wanted at a profit (optimal
profit) (Onah and Thomas 2004:4).
Management: Management is the careful or judicious manipulation of all the factors
employee on the production of goods and services that are needed by human beings in
any society for whom the good and services are meant, in such a way that the
producer and the consumer get their optimum satisfaction from action of production
or services (Iwu 1998:3).
Metropolis: Metropolis is defined as urban city: The urban environment is large,
intensively developed and typically noisy. Also people in the urban built environment
are typically engaged in the secondary and tertiary services. Conceptually, the urban
environment is a reflection of the cumulate totality of man‟s occupancy of the land as
has been made possible by the level of his technology. The urban built environment
can be perceived from the stand point of its physical structures, its amenities and
facilities. It goods and services and it characteristic problems. It may also be
perceived from the stand point of the life styles that have evolved as a result of its
“artificiality”, the crime problems, the traffic congestion problems, the insecurity, its
cultural mix and heterogeneity, its solid waste problems, it environmental pollution,
its noise and various institutional and personal devises to cope with these „problems.
The urban built environment may also be seen from the stand point of its unique
opportunities its unique collection of goods, its superior educational institutions,
health, recreational and other amenities and it rare blend of services. (Obasikene at el
Public: according to Black (1989:11) stated that the publics of an organizations are
those who are impacted upon by the activities of the organization and or those whose
activities, on the other hand, impact or could impact upon the organization.
Organization: This is a combination of people or individual efforts working together
in pursuit of certain common purposes called organization goals (Akpala, 1990:2).
Social Responsibility: According to International Finance Corporation (2000:137)
Social Responsibility is the commitment of business to contribute to sustainable
economic development by working with employees, their families, the local
community and society at large to improve their lives in ways that are good for
business and for development.