DETERMINE THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON FIRM’S PROFITABILITY, A CASE STUDY OF UNICEM LTD CALABAR

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ABSTRACT

This study was carried out to determine the impact of corporate social responsibility on firm’s profitability, using UNICEM Ltd, Calabar as a study. The study examined and identified problems associated with firms’ performance as a result of carrying out corporate social responsibility activities. The study adopted the survey research design and a sample size of 371 was obtained using Taro Yamane model for sample size determination. Data used for the study was basically obtained from primary sources. Three hundred and seventy one questionnaires were administered to the staffs and management of Niger mills Plc, Calabar. The data collected were analyzed using Pearson product moment correlation model with the aid of the Statistical Package for Social Sciences (SPSS) computer program. The results of the analyzes revealed that there is a significant relationship between corporate social responsibility and improved performance of an organization (r = 0.788, α = 0.05); there is a significant relationship between corporate social responsibility and the performance of an organization (r = 0.727, α = 0.05); and that there is a significant relationship between firm’s core values and compliance with corporate social responsibility (r = 0.734, α = 0.05). The result indicated that the practice of corporate socials responsibility is an integral factor in increasing the performance of organizations. The study recommended that companies should engage in corporate social responsibility not only to improve their performance, but to also strengthen their legitimacy, reputation, and building competitive advantage.

LIST OF TABLES

Table                                                                                                                       Pages

Table 4.1         Distribution of Respondents according to gender                              36       

Table 4.2         Distribution of Respondents according years of service                    36

Table 4.3         Distribution of Respondents according

To marital status                                                                                  37

Table 4.4         Distribution of Respondents according

to Highest academic qualifications                                                     37

Table 4.5         Distribution of Respondents according

to occupation                                                                                       37

Table 4.6         Distribution of Respondents according to waste

disposal and profitability of Unicem                                                   38

Table 4.7         Distribution of Respondents according to CSR

and profitability of Unicem                                                                 39

Table 4.8         Distribution of Respondents according

to Model Summary                                                                              44

Table 4.9         Distribution of Respondents according to ANOVAa                        45       

Table 4.10       Distribution of Respondents according

to coefficients                                                                          45

Table 4.11       Distribution of Respondents according

to Model Summary                                                                              46

Table 4.12       Distribution of Respondents according to ANOVAa                        47

Table 4.13       Distribution of Respondents according  to coefficients                     47

TABLE OF CONTENT

CONTENT                                                                                                    PAGE

CERTIFICATION                                                                                         I

DECLARATION                                                                                           II

DEDICATION                                                                                               III

ACKNOWLEDGEMENT                                                                             IV

ABSTRACT                                                                                                   V

LIST OF TABLES                                                                                         VI

TABLE OF CONTENT                                                                                 VII

CHAPTER ONE: INTRODUCTION 

  1.       BACKGROUND OF THE STUDY                                                 1         
    1.       STATEMENT OF THE PROBLEM                                                 3
    1.       OBJECTIVES OF THE STUDY                                                       5
    1.       RESEARCH QUESTIONS                                                               5
    1.       RESEARCH HYPOTHESES                                                            5
    1.       SCOPE OF THE STUDY                                                                  5
    1.       SIGNIFICANCE OF THE STUDY                                                  6
    1.       ORGANIZATION OF THE STUDY                                               7
    1.       OPERATIONAL DEFINITION OF TERMS                                  8
    1. HISTORICAL BACKGROUND OF UNICEM                              9

CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL FRAMEWORK

2.1       THEORETICAL FRAMEWORK                                                     11

2.1.1    STAKEHOLDER THEORY                                                             13

2.1.2    LEGITIMACY THEORY                                                                 15

2.2       CONCEPTUAL FRAMEWORK                                                      18

2.2.1    CONCEPT OF CORPORATE SOCIAL RESPONSIBILITY                    19

2.2.2    MEASUREMENT OF CORPORATE SOCIAL RESPONSIBILITY        20

2.2.3    MEASUREMENT OF FIRMS’ PROFITABILITY                                    21

2.3       CORPORATE SOCIAL RESPONSIBILITY AND THE

 FIRMS’ GOING CONCERN                                                                       24

2.4       EMPIRICAL STUDIES ON CORPORATE

SOCIAL RESPONSIBILITY                                                                       25

CHAPTER THREE: RESEARCH METHODOLOGY

3.1        RESEARCH DESIGN                                                                                 30

3.2       POPULATION OF THE STUDY                                                                 30

3.3       SAMPLE SIZE AND SAMPLE SIZE DETERMINATION                       30

3.4       SAMPLING PROCEDURE AND SAMPLING TECHNIQUES               31

3.5       METHOD OF DATA COLLECTION AND DATA

COLLECTION SOURCES                                                                           31

3.6       INSTRUMENT DEVELOPMENT                                                               32

3.7     INSTRUMENT VALIDATION                                                                     33

3.8     INSTRUMENT RELIABILITY TEST                                                           33

3.9     MODEL SPECIFICATION                                                                            34

3.10     LIMITATION OF THE STUDY                                                                   35

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION

OF FINDINGS

4.1       DATA PRESENTATION                                                                              36

4.2       DATA ANALYSIS                                                                                       40

4.3       TEST OF RESEARCH HYPOTHESES                                                       44

4.4       DISCUSSION OF FINDINGS                                                                     48

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1       SUMMARY OF FINDINGS                                                                        50

5.2       CONCLUSION                                                                                 51

5.3       RECOMMENDATIONS                                                                   52

5.4       SUGGESTION FOR FURTHER STUDIES                                    53

            REFERENCES                                                                                  54

APPENDIX                                                                           

DETERMINE THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON FIRM’S PROFITABILITY, A CASE STUDY OF UNICEM LTD CALABAR