THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON CHURCH GROWTH
ABSTRACT
INTRODUCTION AND THEORETICAL FRAMEWORK
The concept of corporate social responsibility (CSR) is not new; discussion about it began since the 1950s and has since continued to grow in importance and significance. It has been subjected to a lot debate, comment, and research. In spite of the seeming endless discussion about it, it has seen a lot of development in both academic and practitioner communities all over the world (Carroll and Shabana, 2010). CSR is a concept whereby organisations commit to improve their environmental and social performance beyond legal obligations. It is a commitment to improve the well being of a community through contributions of corporate resources (Charkraborty, 2010). In the religious sphere however CSR is often geared towards reducing the crime rate and improving the moral standard of the society (Francis, 2008).
Most observers will agree that religious institutions are woven deeply into the physical and social fabric of the community. In nearly every neighborhood and suburbs we find temples and churches. Churches are perhaps the oldest and most ubiquitous form of urban community (McRoberts, 2005). The church as an organization also engages in social responsibility for ‘profits’ in many forms which is not widely different from secular organizations. It from this perspectives that church also carries social responsibility as a business strategy for image building and church growth and other opportunities.
Theoretically this thesis uses the McIntosh (2003) definition of CSR to show how CSR affects organizational performance using this organizational performance as a proxy for the growth of churches and the Utilitarian Theories Managerial Theory Relational Theory to explain the necessity for church involvement in CSR.
McIntosh (2003) definition of CSR
McIntosh (2003: 27) defines corporate social responsibility as the role, scope and purpose of business, asserting that “this is not a debate over private property rights, but a concern with how we manage the planet” and that “whether corporates like it or not (they) are public culture” and thus are subject to public scrutiny.
In so far as the position goes that profitability is primary for every organisation, a few arguments can be put forward for CSR; the first being that social responsibility has the potential to increase profit (Crane & Matten, 2004: 41). Secondly, in a world where skilled personnel have open employment markets and greater mobility, firms have to compete to attract and maintain the best reputation. Firms that are perceived as ‘caring’ may appeal to the humanity in all of us, and so be attractive to new recruits, and also be able to maintain loyalty. Thirdly, customers or clients must be kept happy and since people are increasingly aware of human rights and global which leads to increase customers and patronage, CSR may present an answer. Fourth, social actions can strengthen relationships with government, and prevent legislative amendments that may not bode well for corporations. Finally, Crane and Matten (ibid: 42) note that dealing with current social challenges can create better, more stable environments which will have long-term positive pay-offs for business.
The above mentioned impacts of CSR could be applied to a churches considering variables such as profitability to be church financial status, firm’s reputation as church reputation and increase in customers and patronage as church membership growth.
Utilitarian Theories
In the utilitarian theories, corporations or organizations serve as a segment of the economic system in which the aim is for increased profit. The concept of CSR originates from the idea of business responsibility that is rooted in ethics and moral integrity towards the community. Utilitarianism could also be argued in terms of instrumental theories in which involvement in social responsibility is a means of wealth generation. Investment in CSR ultimately provides communities with resources and infrastructure to alleviate the condition of people in need in the community. The utilitarian theory can be further divided into social cost theory and functionalist theory. The social cost theory defines “CSR as a mere means to an end, which leads to the fact that social power of corporation is materialized specifically in its political friendship with society” (Ismail, 2009, p. 201).
Therefore, organizations need to embrace social responsibilities and rights to engage in social partnership. The functionalist theory considers the organization as an investment entity which focuses on the economic goal of profiting stakeholders and investors. The goal of CSR is, therefore, described as a weapon to seek balance between profit making and social engineering (Ismail, 2009, p. 201).
Managerial Theory
Managerial theory is an internal dynamic within an organization that analyzes organizational participation in CSR. While the utilitarian theory centers on external organizational decision making, the managerial theory capitalizes on in-house rationale for CSR (Seechi, as cited in Ismail, 2009, p. 202), which is based on the premise that business relies on society for its development and viability. Managerial theory is clearly explained in three ways. The first is Corporate Social Performance (CSP), which is further measured in five categories, which, according to Ismail, are as follows:
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 stakeholder. (Ismail, 2009. 202)
The second application of managerial theory is Social Accountability, Auditing and Reporting (SAAR). SAAR amplifies the duty of organizations towards social performance with strict accounting and auditing. According to Ismail (2009), “Seechi (2005) further elaborates that SAAR are strictly related to social performance through accounting, auditing and reporting procedures” (p. 202). Businesses use this process to justify and regulate involvement in community development.
The third application of managerial theory relates to the expected commitment of multinational companies to CSR (Seechi). It is morally incumbent on multinational organizations or companies to demonstrate ethical engagement towards the communities where they are located by intentionally providing basic infrastructures for the welfare of the local population. Such initiatives will heighten corporate reputation, increase level of community acceptance and support from stakeholders. Multinational corporations should take actions that go beyond profit making to avoid “protests, demonstrations, boycotts, strikes, and other negative actions against the employers” (Seechi). The three applications are unique but interrelated practices that define and measure CSR activities of an organization or firm towards the community.
Relational Theory
The relational theory’s postulation is grounded on organization-environment affair. As expected there should be a form of dialogue, interaction, or rapport between an organization and the community. There should be an existing or agreed on obligation between an organization and the immediate society. The two entities should have a form of social compact that justifies the level of social power the organization or company is able to muster. Relational theory is further subdivided into four categories, namely: business in society, stakeholder approach, corporate citizenship, and social contract (Ismail, 2009, p. 203).
Business in society is the understanding that business exists in society not just for the obvious reason of profit making but also to appreciate the reason behind its geographic and social presence. The physical environment where a business is located should benefit tangibly in the form of the company’s participation in improving the well-being of the society.
The stakeholder approach views an organization as a social web with multiple interests where both individuals and firms adopt altruistic tendencies towards the community. Organizations focus on integration of social demands, while individuals seek for the good of the society (Ismail, 2009, p. 203). These are supported by the work of Mitchel, Agle, and Wood (1997) 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 (Ismail, 2009, p. 203).
Statement Of The Problem
The Church is expected to be a social pioneer its social responsibility needs to be considered as part of pioneering social role considering the fact that The Church is designed as part of the human community to respond first to God-in-Christ. The Church is the most sensitive and responsive entity in every society. The Church hears the Word of God, sees his judgments, and has the vision of resurrection. This unique role of the Church makes it the pioneer part of society that responds to God on behalf of the whole society. As pioneer group, for example, the Israelites were chosen by God to lead all nations to him. Jesus also displays the same responsibility in his obedience to God by sacrificing himself for the redemption of humankind. Following this the General Overseer of the church redeemed Christian church of God, Pastor Enoch Adeboye, disclosed this while presenting report of its Corporate Social Responsibility (CSR) activities august 2013. Ever since there have been projects spread over 353 communities in 255 local governments of the nation. Geared towards increasing CSR. Projects included construction of free community schools, provision of free potable water, scholarship for indigent students and patrol vans for police stations, among several others (Adewumi, 2015).
Notwithstanding, Corporate Social Responsibility (CSR) activities are no longer only charitable events but tools for boosting positive image of an organization and organizational profitability. Misam (2012), confirmed that the concept of churches has changed from only spiritual activities to social welfare activities where churches are not only responsible to its members but also to the immediate society.The findings of Rapti and Medda 2012, revealed that the main force that drives organisations to adopt corporate social responsibility is CSR’s financial benefits. Nicolau (2008) defined socially responsible organisations as those which in profit-making operational decisions, considers the full scope of environmental impact and balances the needs of stakeholders. Maigan and Ferrell, (2004) described corporate social responsibility as an instrument to increase organisations’ legitimacy in the eyes of their stakeholders and to develop positive social responsibility images to burnish their reputations.
Many research (Richard and Okeye, 2013; Olayinka and Temitope, 2011; Amole et al, 2012; and Amaeshiet al, 2006) have done on CSR in Nigeria especially in oil and gas, manufacturing and telecommunication sector but few in the religious sector and their result is inconclusive and there is needs to further investigate the impact of CSR on church growth. Therefore, this research study sets to investigate the impact of CRS on church growth with particular reference to RCCG region 2.
Purpose of the study
The purpose of this study is investigate the impact of CRS on church growth with particular reference to RCCG region. The project also examined the extensive prospects that are available through the adoption and investment in CSR programs that extends the church’s identity and presence. Specifically the study seeks to :
- Determine the level of awareness of CSR of pastors in RCCG in region 2
- Examine if there is a positive relationship between CSR and church growth in terms of membership increase in the church
- Determine if CSR has a significant impact on church growth in terms of membership increase in the church
- Investigate the after effect of CSR on church in terms of financial growth in the church
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THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON CHURCH GROWTH
