Abstract
The study evaluates the Impact
of Corporate Social Responsibility on Profitability in the Nigerian
Banking Industry with reference to First Bank of Nigeria Plc. The study
helps to identify the usefulness of corporate social responsibilities
(CRS) to public and private-owned enterprises. The objective of the
study was achieved from First Bank of Nigeria Plc financial statement
and annual report data collected were tabulated and analyzed with SPSS
version 17.0. The main findings of this research show that there is a
positive relationship between Corporate Social Responsibility and
profitability and that there is a positive strong relationship between
the bank and CSR. It also depicts that Corporate Social Responsibility
has a significant impact on the profitability of the bank. It was
recommended that corporate organizations should intensify efforts to
educate the public on their primary responsibilities, various
commitments to other stakeholders and operational financial limitations.
By doing so, the public will begin to show understanding and
appreciation of the efforts and contributions of such organizations.
This would stem cases of incessant bashing with its accompanying
damages.
...
Table of content
Title page i
Approval page ii
Dedication iii
Acknowledgements iv
Abstract v
Table of contents vii
CHAPTER ONE
INTRODUCTION
1.1 Background of the study 1
1.2 Statement of research problem 3
1.3 Objectives of the study 4
1.4 Research questions 5
1.5 Statement of hypothesis 5
1.6 Significance of the study 7
1.7 Scope of the study 8
1.8 Limitation of the study 8
CHAPTER TWO
LITERATURE REVIEW
2.1
Conceptual framework of corporate social
responsibility 9
2.2 History of corporate social responsibility 13
2.3 History of first bank of Nigeria plc 14
2.4 Theoretical frame work of CSR 16
2.5 The concept of CSR in the Nigerian
banking sector 19
2.6 Theories of value orientation of CSR 19
2.7 Challenges of CSR in the Nigerian
banking sector 24
2.8 The impact of CSR 25
2.9 Empirical review 25
CHAPTER THREE
RESEARCH METHODOLOGY
3.1
Design of study 27
3.2
Sources and instruments of data collection 27
3.3 Research population and sample size 27
3.4 Techniques of data analysis and
justification 27
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1
Data presentation 29
4.2
Data analysis and interpretation 30
4.3 Test of hypotheses 34
4.4 Summary of findings 36
CHAPTER FIVE
SUMMARY, CONCLUSION, RECOMMENDATION
5.1
Summary 38
5.2
Conclusion 39
5.3 Recommendation 39
Bibliography 41
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Corporate social responsibility
(CSR), in all its shades, is a fast growing concept with little attention paid
to its linguistic undertone. It is not uncommon in the literature, and in
practice, for CSR discourse to be
overly constructed along such moral ends as philanthropy (Carroll, 2012) and
altruism (Lantos, 2011). Despite the need for business to be morally conducted,
one of the primary concerns in CSR
debates is whether organizations pursue it for economic reasons or simply
because doing so has intrinsic merit. Unfortunately there have been few or no
empirical tests in support of the intrinsic merit motive, which makes CSR practice susceptible to the popular accusation
of being a gimmick for profitable public relations and marketing strategies.
The emergence of 'strategic' CSR
(Lantos, 2011) or 'strategic' philanthropy (Porter and Kramer, 2012), as a
comfortable cover for firms to further their natural quests for profit and
self-interest, is thought not to be only self-defeating, but provides
anti-corporatists with ready-made tools to quickly uncover the activities of
these firms and eagerly shame them as 'hypocrites'. Moreover, as CSR continues to make in-road into the business
arena, the harder its proponents are pressed to provide business exemplars
justifying its continued legitimacy as a business practice. The CSR skeptics go down this 'business-case' route
because of their seeming belief that the quest for 'strategic' CSR will inevitably evoke the old dilemma of
possible tradeoffs between material profit and normative morality i.e. being
good for goodness sake. Notably, in such instances, "when commercial
interests and broader social welfare collide, profit comes first" (The
Economist Jan 22, 2012). But why is this, the case? This study will argue the
case that it is difficult to disentangle CSR,
in its present conceptualization, from the grips of spin because it is already
caught up in the dual logics of intellectual rationalism (i.e. profit
maximization) and emotional rationalism (i.e. benevolence). Most of the
attempts to promote CSR, nowadays,
are efforts to reconcile these dual and often hostile logics; as such, they
have continued to meet overt and sublime oppositions and reconstructions.
Surprisingly, these logics have continued to be treated as a unified logic
despite the fact that they are dialectically opposed to each other. Therefore,
the continuous tension between the normative and instrumental perspectives to CSR tends to suggest that either the current
capitalist system is unfit for normative CSR,
as it is propagated, or CSR needs
to be reconstructed in a practicable way to be meaningful to managers in their
day-to-day pursuits of organizational goals and objectives.
1.2 STATEMENT OF THE PROBLEM
Over the past ten years or so,
corporate social responsibility (CSR)
has blossomed as an idea, if not as a
coherent practical programme. CSR
commands the attention of executives everywhere - if their public statements
are to be believed - and especially that of the managers of multinational
companies. But what does it all amounts to, really? The general public, oddly
enough, are disappointed. They are starting to suspect that they have been
conned. Civil-society advocates of CSR
increasingly accuse firms of merely paying lip-service to the idea of good
corporate citizenship. Firms are still mainly interested in making money, they
note disapprovingly, whatever the CEO
may say in the annual report. When commercial interests and broader social
welfare collide, profit comes first. CSR
was always intended to be more about how companies conduct themselves in
relation to "stakeholders" (such as workers, consumers, the broader
society in which firms operate and, as is often argued,' future generations)
than about straightforward gifts to charity. Seen that way, donations, large or
small, are not the main thing. Many of these are expressly intended to help
profits as well as do goods. It is unclear whether this kind of CSR quite counts. Some regard it as "win-win",
and something to celebrate; others view it as a sham, the same old tainted
profit motive masquerading as altruism. This study shall examine the corporate
social responsibility of Nigerian company In order to detect the exact motive
of this practice.
1.3 RESEARCH QUESTIONS
This research work shall be guided by
the following research questions:
i.
What
is the relationship between corporate social responsibility and financial
performance of First Bank of Nigeria?
ii.
What
is the impact of corporate social responsibility on the employee commitment of
First Bank of Nigeria?
iii.
What
is the impact of corporate social responsibility of First Bank to the
community?
1.4 OBJECTIVES OF THE STUDY
The objective of this study is to
examine the impact of Corporate Social Responsibility of First Bank of Nigeria
Plc. visa-a-visa its profitability. The study is also geared towards achieving
the following specific objectives:
i.
To
investigate the relationship between corporate social responsibility (CSR) and
financial performance.
ii.
To
examine the impact of corporate social responsibility of the employee
commitment.
iii.
To
examine corporate social responsibility of First Bank of Nigeria (FBN) Plc. to
the community.
1.5 STATEMENT OF HYPOTHESES
Following hypotheses are tested
Hypotheses
Ho1: Corporate Social Responsibility
has no significant effect on the financial performance of First Bank of
Nigeria.
Ho2: Corporate Social Responsibility
has no significant effect on the employee commitment of First Bank of Nigeria.
Ho3: corporate social responsibility
has no significant effect on the community.
1.6 SIGNIFICANCE OF THE STUDY
This study is significant in the
followings ways:
It would analyse the practice of
corporate social responsibility and try to discover its real essence;
It shall disentangle the relationship
between corporate social responsibility practice and the performance of firms.
It would also help to explore the impact of
corporate social responsibility on employees' commitment if at all there is a
relationship between the two concepts in reality.
1.7 SCOPE OF THE STUDY
The scope of this research would
encompass the practice of corporate social responsibility and its impacts. The
impacts of social services by corporation shall be examined in relations to
financial performance employee commitment, and community development. The study
shall focus on First bank of Nigeria Plc. From 2010 to 2017.