Corporate Social Responsibility From A Nigerian Perspective Business Essay


In Corporate Social Responsibility in Nigeria: western mimicry or indigenous practices. An interview states that it is necessary mainly to remind the companies which make huge profits from Nigeria that their customers are not only economic clients but social beings with social needs which can be enhanced by the corporate social responsibility activities. While this comes across as a reasonable expectation, it will be worthwhile to situate it within the context offered by the Nigerian corporate governance framework for such social orientations. Unfortunately, this will be hard to achieve as long as the institutional framework places more emphasis on firms as private actors, with private rights mainly embedded in contracts (license of operation), and less emphasis on firms as fabrics of the society with the purpose of providing some social benefits (i.e. employment, productivity, economic growth, sustainability, etc) (Fannon, 2003).

The article "An assessment of the impact of corporate social responsibility on Nigerian society", discusses the revisit of Carroll's CSR pyramid from a Nigerian perspective, stating that in Nigeria, economic responsibility still get the most emphasis while philanthropy is given second highest priority, followed by legal and then ethical responsibilities. According to the report of (Pedersen and Huniche, 2006) below are the reasons for this:

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Firstly, the socio-economic needs of the Nigeria societies in which companies operate are so huge that philanthropy has become an expected norm. Companies also understand that they cannot succeed in societies that fail.

Secondly, many Nigerian societies have become dependent on foreign aid and there is an ingrained culture of philanthropy in Nigeria.

A third reason, according to the report, is that CSR is still at an early stage in Nigeria, sometimes even equating philanthropy.

It is important to stress that in Nigeria philanthropy is more than charitable giving. HIV/AIDS is an example where the response by business is essentially philanthropic but clearly in companies own economic interests. The low priority for legal responsibilities is, according to the study, not due to the fact that Nigeria companies ignore the law but the pressure for governance and CSR is not so immense. Ethical perspective seems to have the least influence on the CSR agenda. This is not to say that African businesses are unethical.

The article "Corporate Social Responsibility Practices in Mobile Tele-Communications Industry in Nigeria" again presents that many organizations in Nigeria are driven by the need to make more and more profits to the detriment of all the stakeholders. Some do not adequately respond to the needs of host communities, employees' welfare (cheap labour often preferred), environmental protection and community development. Research has shown that CSR can increase profitability, sustainability, integrity and reputation of any business that includes it in its policy. However CSR involves the commitment shown by companies to contribute to the economic development of a local community and the society at large. The adoption of CSR policy should not be driven or motivated by increased profit. Rather, giving back to the society that gave to the business first should be the motivating factor (Nkanga, 2007).

In "Corporate Social Responsibility and Profitability of Nigeria Banks", questions have been asked;

(a) Is there any relationship between Corporate Social Responsibility and Banks profitability? (b) What impact does Corporate Social Responsibility have on the bank's profitability?

To shed light on the above designed questions, it can be traced to the issue of heavy shortage of power supply in Nigeria; while most organizations have to alternate power supply rather than the relatively cheaper National grid (PHCN). This and some other issues have been militating against efficient operation of business organization in Nigeria. For this purpose, firms have to factor the cost of fueling the alternative source of power which is pricey among others (like LPFO/Blackoil, AGO/diesel and GAS) into their factors of production or operations as in the case of banks. It's evident that the above stated issues, has effect on banks and its customers' habits as well, while the growing demands for clear and hard facts about the social and environmental performance of banks by an increasingly well-informed variety of stakeholders have made corporate social responsibility (CSR) the vogue. All of these, in a country with high shortage power supply. Banks are worried by this because; with the modern day banking hardly could any bank function without power supply and least to operate its technological gadget that aids the effective and efficient (Amole, 2012).

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"Corporate Social Responsibility Disclosures by Environmentally Visible Corporations: A Study of Selected Firms in Nigeria" further investigate into the lacking disclosures of corporate social responsibility & corporation environmental reporting among listed firms in Nigeria. According to (Gray, Owen and Adams, 1995), businesses in the form of corporations operate within the framework of a social systems and thus despite the limited mandatory reporting requirements, literatures on corporate social disclosures suggests that an increasing number of companies in developed economies are now providing corporate social responsibility disclosures at varying levels.

"Environmental Issues and Corporate Social Responsibility: The Nigeria Experience", talks about the environmental degrading in Nigeria, whereby making environment worse in quality or to pollute it directly or indirectly, via substances, or energy into the environment resulting in deleterious effect of such a nature as to endanger human health, harm living resources, ecosystem and material property and impair amenities or interfere with other legitimate uses of the environment (Ajayi and Adesina, 2005; Slack, 2006). This is where Nigerian's government has failed, to look into the supporting CSR initiatives. Inclusive, Koontz and Weihrich (1988) argued in favour of social involvement of corporate organizations stating that corporate social responsibility is the creation of a better social environment benefits both society and business. Society benefits through better economic conditions and employment opportunities, while corporate organizations gain from a better community, since the community is the source of its human and natural resources and the consumer of its products and services.

"Contributions of Corporate Social Responsibility to Agriculture and Rural Development" reviews the ineffectiveness of the Nigerian government's based on CSR practices on supporting agricultural operations and development. In as much as CSR is seen as "corporate "philanthropy'' it is not usually applied to agricultural and rural development in Nigeria. So therefore, CSR interventions should be developed with full cognizance given to the agricultural and rural development policies. The interventions will be expected to help address some of the agricultural and rural development challenges (Mafimisebi,, 2010).

"Oil Companies and Corporate Social Responsibility in Nigeria an Empirical Assessment of Chevron's Community Development Projects in the Niger Delta" presents the problems of insufficient CSR efforts in regards to development to the communities. Inclusive, the delicate tension, agitation and crises in the oil communities have persisted regardless of different hard work by the government to generate a peaceful atmosphere between the host communities and the oil companies, yet the host communities remain hostile and constantly at variance with the oil multinationals (Alabi, 2012)