THE EFFECTIVENESS OF BUSINESS SOCIAL RESPONSIBILITY ETHICS IN THE MULTINATIONAL CORPORATIONS ( A STUDY OF GUINNESS BREWERIES PLC)

ABSTRACT

This research study is on the effectiveness of business social responsibility  ethics  in  multinational corporations  especially  Guinness Breweries PIc. The study used both primary and secondary sources of data collection. Statistical tools as frequency distribution, tables, percentages, and chi-square (X) were used in the analysis of data and test of hypotheses. The research among others made the following finding, that there is no significance relationship between provision of organizational social responsibility and their performance of the duties. In other words, social responsibility rendered by an organization may not be used to determine its efficiency and effectiveness. That inadequate resource (human and non- human) do not permit organizations of fully executing their social responsibility to their host communities. That the effectiveness of organizational social responsibility does not allow them maximum profit.   The research made the following recommendations based on statement of the problem, that execution of projects should be based on their priority. Hostility of communities to organizations should be discouraged. Resources (both human and financial) should be adequately provided for smooth discharge of organizations social responsibility by concerned individuals and bodies.

CHAPTER ONE INTRODUCTION

1.1    Background of the Study

Organizations  are  established  to  perform  certain  tasks  that  could improve the lots of their customers. In other words organization’s aim is to  effectively  provide  goods  and  services  to  customers  and  in  the process make profits. In trying to satisfy their customer’s organization users resources in their production environment and dispose waste to it. To the effect, they are expected to render certain humanitarian (socially responsible) services as a way of compensation to their host communities.

Social responsibility of a business organization according to Ugwunna (1999:63) is the provision of certain social and economic need the community was such organization performs operations. This provision is undertaken  by  business  organization  even  when  they  are  incurring losses. Contributing Keith and Robert (1975:38) argued that social responsibility involves objective concern for the welfare of the people within which organization conducts its tasks.

The opinion of Koontz et al (1980:103) is that business social responsibility   consists   of   an   obligation   to   a   decision   maker   or organization to make policies or plans that could protect and improve the welfare of the society and business own interest. Thus, for social responsibilities of an organization to be effective certain ethics, moral action,  absolute  standards,  adequate  information,  inter-relationships

should be established by parties concerned. In other words, ethics involves controls of pollution in the environment positive responsiveness providing for the  less privileged, managing  the poverty  levels of the disadvantaged and other efforts that could better or improve the lives of all in the lost communities.

Specifically, Ugwunna (1999:64) opined that business ethnics are guidelines as to what is right and moral in social, cultural and economic relationship. An example is a stamen as to whether it is morally good or legitimate to give or accept bribery in this society. It is the view of the researcher in this study that since social responsibilities of business and other  organizations  strategically  positive  them,  (i.e  its  merits  out weighted the demerits) it should be adopted and practiced.

The   analysis   of   business   social  responsibilities   above   confirmed business owners of sacrifice or assistance extend it to their last communities that guarantee a mutual relationship and benefits. Often times, this provision from a business to its environment may/may not have direct reward and effect to the business. In this process, business organizations  identifies  with  the  society.  In  brief,  business  social responsibilities have the capacity of improving the quality of life.

The   opinion   of   George   (1985:153)   is   that   in   determining   the effectiveness   of   social   responsibility   of   a   business   organization,

consideration need be given at the right time, in the right place and to the right person(s). In so doing organizations should consider the needs and interest of others that are directly or indirectly affected by the given actions. By the words of Onuoha (1998:414) effective business social responsibility consist of the public expect actions from business on social of the action. Accordingly, social responsibility involves the creation of a better environment for a business operation. It also assists business to avoid or reduce government regulation; hence business could grow both in social and economic powers. Infact, if provides a favourable public image that benefits stakeholders and the concerned business.

1.2    Statement of the Problem

In real term, the attempt of determining the effectiveness of social responsibilities of a corporate organization such as manufacturing multinational or national firm anchors on the ability of such business to meet up with the expectations of its environment (ie externally). Organization existence in its environment cannot easily boost its effectiveness if there is hostility and conflict between them and the host community.  The interaction and other exchange processes between the external public or domain of the organization influence the degree of its growth and productivity.   Also, the organization living in turbulence or

violate prone environment sustain vandals of various kind, thefts of their equipment and difficulty in completing their project or total abandonment.

Thus, the organization in certain situation surfers the problem posed by incessant, negative and obnoxious policies of the government in their attempt to execute their activities.  And the extents of completion of their projects are tantamount to the atmosphere of harmony and peaceful co- existence between them and the host community.   Atimes, the land owner claims are too exorbitant and the compensations they sort for are unattainable.

1.3    Objectives of the Study

The main purpose of this study is to appraise corporate social responsibilities on the host communities. Other objectives of the study include;

1.      To determine the hostility or conflicts in the host communities of an organization  are  as  a  result  of  some  set  backs  or  inability  to meeting up with business social responsibilities.

2.      To evaluate the extent of vandalisation and theft of installations or facilities of organizations on delay or outright none completion of some embarked project to host communities of firms.

3.      To assess the instability and inconsistencies of a government and her policies towards execution of projects.

4.      To  determine  the  level  of  completion  of  firms  in  an  industry towards satisfying their host communities in services delivery.

5.      To  appraise  land  ownership  claims  of  host  communities  on freehold of land to executing social responsibility of organizations.

1.4    Research Question

The following research questions serves as a guide to this study:

1.      Does the existence hostilities and conflicts in the host communities of the organization affect operations and services rendered by them?

2.      To what extent do vandalization and theft of installation affect the completion of the organization projects?

3.     Does the instability and inconsistencies in government policies affects/influence the social responsibility of organization to its host communities?

4.      Is there any relationship between completion of the firms projects and satisfaction of their host communities?

5.      To what extent is the land owners’ claim of the host communities affecting the social responsibilities of the organization?

1.5. Research Hypotheses

Considering statement of the problem and purpose of the study, the following hypothesis was formulated to guide this study.

Hypothesis I

Ho:  There is no significant relationship between provision of organizational social responsibility and their performance of duties.

HI:  There  is  significant  relationship  between  provision  of organizational social responsibility and their performance of duties.

Hypothesis II

Ho:  Adequate resources (human and non human) do not permit organizations to fully execute their social responsibility to the host communities.

HI:  Adequate  resources  (human  and  non  human)  permits organizations to fully execute their social responsibility to the host communities.

Hypothesis III

Ho:    The effectiveness of organizational social responsibility negatiyely affects its profit maximization.

HI:    The effectiveness of organizational social responsibility positively affects its profit maximization

1.6.   Significance of the Study

The outcome of this study will benefit the government, business organizations   host   communities   to   business   organizations,   and academic institutions.

To the government, this study will be very necessary .for her to assess and regulate the activities of business organizations especially those that provides goods and services. There will be a meaningful development when there is a compromise between business firms’ and government. This is because the activity of one will complement the other. However, this study will enable government assess business for tax purposes and for adequate in the utilization of resources aimed at growth and development  of  the  entire  economy.  Government  could  through  this study regulate (controlling) the production and socially responsiveness of business in harmful products. In other words, the study will benefit the government in planning, coordinating and controlling business in their duties and responsibilities.

To   the   business   organizations,   this   study   is   inevitable   in   their assessment of their potentials and strategy to realizing their organizational goals: In this regard, policies are adjusted for both within the organization and outside it for the purpose of meeting expectations

‘from them.

To the host communities, the privilege and non-privilege (minorities and majorities) are helped through reconciling their developmental projects. Communities are developed socially, economically and politically. Business social responsibility has benefited host of communities through education, health, agriculture, technology, etc.

To the academic institutions, this study will add to the existing ones and serve as reference materials for further research studies.

1.7    Scope of the Study

The scope of this study covers conceptually all those activities that help in determining the effectiveness of business social responsibility ethics in multinational firm such as “Guinness Breweries Plc Lagos.

In other words, the degrees of precision were achieved through the target parties like, the management of Guinness Lagos, shareholders and customers.  And this is attainable through the conduct of interviews across the section of the respondents or various cadre of the population.

Further, the study will concentrate on the management plans, and controls  that  effectively  aimed  on  how  business  social  responsibility ethics through the organization stakeholders can satisfy and achieve their goals.

1.8    Limitations of the Study

In the course of accomplishing this research study, many constraints surfaced as impediment to its complete success, if not for persistent efforts and courage employed.

Firstly, there were the constraints of obtaining data from respondents. Many of them were not readily willing to respond to interviews. Some were  scared  in  releasing  tact  and  figures  necessary  for  this  study because of being victimized by their organizations.

Another constraint however, is the short period or time frame for the completion of the study.

There is also the inadequate finance for the study. Moreso is the hostility of some communities around the firm in granting interviews. The short comings not with standing, sufficient data were successfully collected for the study.

1.9    Brief History of Guinness Nigeria Breweries Plc

The company started operations in Benin in 1974. Its head office is at

24, Oba Akran. Avenue Ikeja; other offices of the company are at Ogba, Lagos and Benin. The principal activities of the company continue to be brewing, packaging and marketing of Guinness Stout, Malta Guinness, Harp  larger  Beer,  Satzenbrau  larger Beer  and  Gordon’s  Spark.  The

company has the policy of equipping all employees with the skills and knowledge required for successful performance of their jobs. This entails identifying  the  training  needs  of  employees  and  prioritizing implementation of plans to address such need consistent with the requirements of the business. Moreso so, all efforts in the company are geared towards providing a safe and conducive working environment for employees.

Guinness Nigeria has remained steadfast in her responsibilities to the people and Government of Nigeria with manifest contributions to employment sports health, education and environment. The company made a cash donation of five million naira to help affected persons in the recent bomb blast explosion in Lagos. The company’s goods citizenship was also extended in sports (both international and local). These include football, handball, table tennis, polo, golf etc which serves as a benchmark for other corporate bodies. The company also has proved a worthy leader in the health sector through its Guinness Eye Hospital in Lagos.

1.10  Definition of Terms

In this study, the following words means, and social responsibility – this involves all the activities of organizations in which their limited resources are expended, appear less economically attractive and viable but are socially desirable by members of the society.

Corporate Social Responsibility – Is defined as operating business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business, Sanusi (2008).

Corporate Governance- is the set of processes, customs, policies, laws and institutions affecting the way a corporation is directed, administered or controlled. Corporate governance also includes the relationships among the many players involved (the stakeholders) and the goals for which the corporation is governed, Ezigbo (2007).

Work Ethics – is rooted within the realm of morality, rights and virtue, hence every action taken at work must be situated within 1he realm of morals, rights and virtue Effiong (2001).

Corporate  Purpose  –  is  the  umbrella  that covers  the  organization’s vision, mission, goals and Objectives, Osaze (2004).

Business Environment – is the sum total of the of the physical and social forces as well as institutions that are relevant to organizational goal setting and attainment, Akinmarin (2001).

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