THE IMPACT OF SOCIAL RESPONSIBILITY ON CORPORATE PROFITABILITY (A CASE STUDY OF 7UP BOTTLING COMPANY 9TH MILE ENUGU)
In the past, 7up Bottling Company 9th Mile Enugu separated sally to maximize profit in order to maximize the shareholders wealth. This objective has been subject to criticisms by these who strongly believed that, it create income and power inequality, determining working environment notes in industrial unrest and increase in government restriction to mention just a few of these social problems.
The study attempted to determine the relationship between social responsibility and corporate profitability of 7up Bottling Company Data were collected through the use of self-administered questionnaire and analyzed. The result of the analysis showed the active involvement of participating respondents in social responsibility. Hence, the study serves as an eye-opener for organization that are yet to engaged in social responsibility.
1.0 INTRODUCTION OF THE STUDY
Management literature in recent years has includes a considerable amount of debate regarding the impact of social responsibility on corporate profitability in Nigeria organizations. Socially responsible actions are not undertaken to improve profit performance at the short-run but to meet some social needs and aspirations. Business operates in environment where certain factors such as cultural norms, social activities, political, economics and natural factors, influences it. This factors has to be considered so as to be socially responsible.
The importance of the impact of social responsibility has been viewed by some business organizations such as the restoring of Leki Beach in Lagos by Chereon (Nig) Limited, the sponsoring of many sports activities by some Nigerian organizations even in restructuring of housing properties are all charged as been socially responsible to it host communities.
All the above mentioned organizations must have gone beyond the objectives for which it was established. A lot of organizations have been socially responsible to it host town for purpose of bringing development to such communities. For instance, provision of good road, pipe borne water, installation of electricity and other welfarism measures taken to boast the morale of such communities within its operating environment.
Meanwhile, it is on this background that the research has been tried to examine the extent that 7up Bottling Company, 9th mil branch, Enugu. Has gone in responding to its social responsibilities, it has been observed that the existence of some of this business organizations has done some harm to the environment such as pollution. The government also creates agencies such as the Federal Environmental Protection Agency (FEPA) by decree 58 of 1988 to serve as a watchdog of the environmental standards in the society.