JACOB\'s PROJECT.doc

CHAPTER ONE
BACKGROND INFORMATION
1.1 INTRODUCTION
Organizational effectiveness could be dependent on the impact of social
responsibilities an organization is able to ensure. The organizations'
level of interaction with her host communities, in relation to their goals
and objectives brings about relative goodwill. Corporate social
responsibility is the recognition that organizations have significant
influence on their host communities in which they are established and as
well operate, such as providing them with good roads, portable drinking
water, primary health centres, protection and improving environment,
provision of technical and vocational centers, all to better the society.

Profit oriented motive (Economic Motive) is the sole aim of every
organization, which has led to an increasing rate of industrial activities
and exploration of the natural environment which is in turn creating a high
level of pollution and degradation subjecting the host communities into
life threatening environment conditions. Therefore, Corporate Social
Responsibilities (CSR) should be a prerequisite to any progressive desiring
establishment towards their organizational effectiveness. Government
agencies and private owned tertiary institutions should make their place of
work pacific both to them and their host communities.

Rockson Engineering Company Limited is a leading 100% indigenous Nigerian
company established in 1999 to provide a broad spectrum of services and
expertise to the Energy and Oil & Gas (onshore and offshore) sectors. Its
mission is to provide services and expertise that enhance our customer's
plant and facilities at optimum cost-of-ownership whilst striving to retain
an environmental equilibrium. She is ideally placed to undertake projects
throughout West Africa. This broad capability enables us to offer our
customers the full range from Design, Engineering, Procurement,
Construction, Installation and Commissioning to Maintenance Management.
Her branch offices in Abuja and Lagos, and the Headquarters situated in 267
Trans-Amadi Industrial Layout Port Harcourt, Rivers State Nigeria
Tel.:+23484461012, 461020, 461021 Fax:+2348461024. She is well placed to
undertake projects both nationwide and throughout West Africa. In addition,
Rockson International Group Ltd with Hansworth Ltd (located in London) and
E.J. Imperial Services International Inc (located in the USA) provide
coordination services for procurement of materials, equipment and technical
manpower services plus liaison with overseas sub-contractors, design houses
and other affiliates.
Her highly qualified engineers and management have successfully completed
and are presently engaged in ongoing projects within the Energy and Oil &
Gas sectors (both onshore and offshore) particularly in power generation
and power transmission.
She is a leading engineering, procurement and construction company with the
capability of carrying out the design, engineering, procurement,
installation and commissioning of Power Generation, Transmission and
Distribution, Oil & Gas Facilities, and Civil Engineering.
The company has the expertise and resources to construct and commission
major power plant projects - both Simple Cycle and Combined Cycle: Eleme
Power Station, Trans Amadi Power Station, Omoku Power Station, Eleme Power
Station, Trans Amadi Power Station, Alaoji Power Station, Alaoji Power
Station, Gbarain Ubie Power Station , Egbema Power Station, Omoku Power
Station, and Ethiope IPP Project.
Hence, it becomes a duty saddled on the organization to be actively
responsive to to their stakeholders through the provision of social
amenities to enable them actualized their predetermined goals and
objectives efficaciously.



1.2 Statement Of Problem
Corporate Social Responsibility has had a divergent opinion as a concept.
Some authors believe that it is not necessary while some said it is. These
widely polarized viewpoints have not added impetus the issue of corporate
social responsibility since it is rather an ethical issue than economic.
But companies have continued to have shockdown by their host communities,
hence they extend that the organization are not discharging their
responsibilities to their host communities. This lack of trust and
cooperation have made companies experience loss of output, manpower,
decrease in productivity, dwindling goodwill, reduced sales volume and
dissatisfaction among mambers of the communities thereby being eluded
peaceful co-existence. Against this purview, the study wants to determine
if there is a relationship between corporate social responsibilities
implementation and organizational effectiveness which has the following
indicators like productivity, sales volume, market share, peaceful co-
existence, increase in output, etc.


1.3 PURPOSE OF THE STUDY
The purpose of this study is to determine the effect of Corporate Ssocial
Responsibility on organizational effectiveness, with particular reference
to Rockson Engineering Company, Port Harcourt. While the specific
objective are::
1. To determine if corporate social responsibility has effect on
productivity of the company.
2. To determine if corporate social responsibility has effect on
profitability.
3. To determine if corporate social responsibility has effect on
peaceful co-existence.
4. To determine if corporate social responsibility has effect on
output.
5. To determine if corporate social responsibility has effect on market
share.


1.4 Research Questions
1. To what extent does implementation of corporate social responsibility
affect productivity?
2. To what extent does corporate social responsibility affect
profitability?
3. To what extent does corporate social responsibility affect peaceful co-
existence of the host communities?
4. To what extent does corporate social responsibility affect market
share of the company?
5. To what extent does corporate social responsibility affect goodwill of
the company?
1.5 Research Hypotheses
Ho1: There is no significant relationship between corporate
social responsibility implementation and productivity of firm.
HO2: There is no significant relationship between corporate
social responsibility and goodwill of the company.
1.6 Scope Of Study
The scope of the study is Rockson Engineering Company Limited, Port
Harcourt. It does not extend to any other company in South South Nigeria.



1.7 Significance Of Study
The findings of this study will help in achieving peaceful co-existence
between the company and host communities. It will also enrich literature on
corporate social responsibility. It will also help companies to implement
their corporate social responsibility to host communities. Stakeholders and
students will gain a lot from this work in terms of agenda setting and
implementation.

1.8 OPERATIONAL Definition of Terms
The following terms were operationally used in this work:-
1. Corporate Social Responsibility: These are those amenities expected of
organizations to provide to their host communities in which they
operate to enhance their effectiveness.
2. Effect: A change or changed state occurring as a direct action by
somebody or something else.
3. Conflict: Is the situation in which there are opposing ideas,
knowledge, views, opinions, feelings or wishes between two or more
parties having dealings together.
4. Organizational Effectiveness: This is the willingness or ability
which an organization has to employ and meet their targeted
objectives/goals.
5. Host Communities: This is the total numbers of individuals within a
certain geographical zone where an establishment or organization is
sited.
6. Exploitation: Is the act to which establishments or organizations
are selfishly utilizing natural endowment of its host communities
without ensuring their wellbeing or compensation them.



















CHAPTER 2
REVIEW OF RELATED LITERATURE
2.1 Introduction
This chapter reviews few existing literature works related to corporate
social responsibilities (CSR). The history, concepts, principles and
arguments for, and against corporate social responsibilities are
considered. Then the stakeholders' concept, which is central to the
corporate social responsibility construct was explicated and its
contemporary social issues.
2.2.1 The History of Corporate Social
Responsibility (CSR)
Corporate Social Responsibility Concept is relatively new, though the
phrase has been in use since the 1960s. It is probably accurate to say that
societies at all point in time have some degree of expectations that
organizations would act responsibly by some definitions depending on their
different economic, legal, ethical, and discretionary expectations placed
on them.
The great economist and philanthropist Adam Smith in the eighteenth century
expressed the classical model of business where he opined that needs and
desires of society could best be met by the uncontrolled interaction of
individuals and organization in the market place. By acting in a self-
interested manner, individuals would produce and deliver the goods and
services that would earn them a profit, and also meet the needs of others.
His point of view over 200 years ago still forms the basis for free market
economies in the twenty-first century. Indispensably, Adam Smith stated
that for free market to be perfect, participants in the market place must
act honestly and justly towards all concerned for a better achievement.

In the study of Adam Smith, his postulation was borne out of the
introduction of new technologies to enhance effective and efficient
production of goods and services after the industrial revolution especially
in the Europe, and United States. People obtained jobs that earned them
more pay than ever before as the standard of living greatly improved. Large
organizations developed and acquired great power and their founders and
owners became some of the richest and most powerful men in the world. In
the late nineteenth century, many of these individuals believed and
practiced a philosophy that came to be called "Social Darwinism" which
means the idea that the principles of natural selection and survival of the
fittest are applicable to business and social policy. This type of
philosophy justified aggressive, unfair, even brutal competitive strategies
and did not allow for much concern about the impact of the successive
corporation on employee, the community, and the larger society. Thus,
although many of the great tycoons of the late nineteenth century were
among the greatest philanthropists, of all time, their giving was done as
individuals, not as representative of their companies, but the company that
made them rich were practicing business methods that by today's standard it
is seen as exploitation of workers.

Backlash against large corporations began to gain momentum around the
beginning of the twentieth century. Big businesses were criticized for
antisocial and anticompetitive practices. Laws and Regulations were enacted
to rein in the large corporations and to protect employees, consumers, and
society at large. An associated movement sometimes called the "Social
Gospel" advocated greater attention to the working class and the poor. The
labour movement also called for greater social responsiveness on the part
of business. Between 1900 and 1960, the business world gradually began to
accept responsibilities other than making profit and obeying the law.
Between 1960s and 1970s, the civil right movement and environmentalism
affected society's expectations of business. Based on the general idea that
those with great power have great responsibilities many called for the
business would be more proactive in leasing to cause societal problems and
starting to participate in solving societal problems, Kreitner, (2009).

Society began to expect business to voluntarily participate in solving
problems whether caused or not caused by them, as legal mandates increased
on business in relation to equal employment opportunity, product safety,
worker safety and the environment. This was as a result of the view that
corporations should go beyond their economic and legal responsibilities and
accept responsibilities related to the betterment of the society. This view
of corporate social responsibility (CSR) is the prevailing view in most of
the world today.

2.2.2 The Concept of Corporate Social Responsibility (CSR)
The concept of Corporate Social Responsibility (CSR) is embodied with;
I. An obligation, beyond that required by the law and economics, for a
firm to pursue long term goals that are good for society.
II. The continuing commitment by business to behave ethically and
contribute to economic development while improving the quality of life
of the workforce and their families as well as that of the local
community and society at large
III. About how a company manages its business process to produce an overall
positive impact on society, Otuya and Precious, (2013).

2.2.3 The Meaning Of Corporate Social
Responsibility
Otuya and Precious, (2013). Corporate Social Responsibility means
conducting business in an ethical way and in the interests of the wider
community. It means responding positively to emerging societal priorities
and expectations. It also means a willingness to act ahead of regulatory
confrontation. It means the balancing of shareholder interests against the
interests of the wider community. Corporate Social Responsibility means
being a good citizen in the community.

2.2.4 Distinction Between Corporate Social
Responsibility And Business Ethics.
There is a clear overlap between Corporate Social Responsibility (CSR) and
business ethics as both concepts concern values, objectives and decision
based on something than the pursuit of profits. To be candid, socially
responsible organization must act ethically. The distinctive feature
between them is that ethics concern individual actions which can be
assessed as right or wrong by reference to moral principles, while
Corporate Social Responsibility concerns the organization's obligations to
all stakeholders – and not just shareholders, Nwanchukwu, C.C. (2009).

5. Dimensions Of Corporate Responsibility
There are four (4) dimensions of corporate responsibility namely;
1. Economic Responsibility. It is a duty of a corporate responsible
organization to earn profit for owners which are the establishers.
2. Legal Responsibility. A corporate responsible organization is obliged
to comply with the law (society's codification of right and wrong).
3. Ethical responsibility. Organizations are not expected to act just for
profit but doing what is right, just and fair to all concerned.
4. Voluntary and philanthropic Responsibility. It is the duty of
organization to promote human welfare and goodwill. Therefore being a
good corporate citizen contributing to the community and the quality
of life.

2.2.6 The Corporate Responsibility View
Corporate Responsibility opined organization that she does not have an
unquestioned right to operate in society. Therefore those managing business
should recognize that they depend on society, as they relies on inputs from
society and on socially created institutions. Hence, there should be a
social contract between business and society involving mutual obligations
that society and business recognize that they have to each other, Harold

2.2.7 Principles Of Corporate Social
Responsibility
Fajimi, (2007), classified two broad principles on which social
responsibility is based as stated below:
1. Charity Principles: Under this principle the belief is that is that
kindness should be shown to other people at all times. The principle
requires the more fortunate members of the larger society to help
those that are less fortunate like those unemployed, the handicapped
and the elderly people. The less fortunate people can be aided
directly or indirectly through churches, mosques, settlement houses
and so on. Those that are wealthy consider on their own how much
assistance to render or gift giving voluntarily. Business
organizations as well as private individuals that make thousand of
Naira of profit annually are expected to give this assistance for the
welfare of the poor ones.
2. Stewardship Principle: This requires business organization and wealthy
individuals to see themselves as ordinary caretakers of their
property. Aaron, (2007), stated that the rich hold their wealth
(money and material) in trust for the rest of the society and are
expected to use it for any purpose that the society deems legitimate.
Decision made by business organization affects members of the public
either positively or negatively, therefore organizations should go
beyond requirements by law and economics, all for the betterment of
the society.



2.2.8 The Stakeholder Theory
A stake implies that one has an interest or share in the organization and
her operations. Post Lawrence and Weber (2002) stated that stakeholders are
individuals and groups that are affected by an organization's policies,
procedures and actions.

The basic premise is that business organizations have responsibility to
various groups in society (the internal and external stakeholders) and not
just the owners/ shareholders. The responsibility includes a responsibility
for the natural environment. Therefore it is expected that decisions should
be taken in the wider interest and not just the narrow shareholder
interest, Otuya and Precious, (2013).

The stakeholders of corporate social responsibilities are the owners,
employees, customers, community, business partners, local government, state
government, federal government, competitors, media, trade and industry,
civil institution and group, regulatory bodies, and the future generation.
It is obvious the internal and external stakeholders are affected by the
organization's policies, procedures and actions directly or indirectly.

2.2.9 Arguments For A Socially-Responsible
Behavior Among Organizations
1. Scholars in this field have argued that the exhibition of a socially-
responsible behavior among organization is an ethical thing to do, as
it improves the Business public image giving her mega esteem in
return, Shane (2003). The involvement in corporate social
responsibility helps to avoid excessive regulation by government
towards the organization. For example, Dangote's Group of Company has
less interference by the Nigerian government due to her effective
participation in developing her country philanthropically.
2. Corporate social responsibility yields profitable measure to the
organization, that is, there is every expectation as the community
grows in standard, organizations are bound to reap the fruit of their
labour but it may suffix in a very long time.
3. It improves social environment to the organization, creating an
atmosphere of intimate relationship between the firm and her host
communities.
4. It attracts more investors to the establishment, increases employee
motivation in the organization, and help to correct social problems
caused by the business.

2.2.10 Arguments Against Corporate Socially-
Responsible Behavior Among Organizations
On the contrary, criticism was laid upon corporate social responsibility
as some scholars saw it as a detriment resulting to the following:
1. The primary task of business is to maximise profit by focusing
strictly on economic activities, where Social involvement could reduce
economic efficiency, Heinz, et. al., (2008). Many Nigerian enterprises
are small in size and their financial strength precludes the
consideration of social responsibility as a task that must be
seriously considered. Some of the other large companies are owned by
foreign firms whose main pre-occupation is profit maximization as they
see CSR as a patriotic gesture best undertaken by businessmen to help
their country, Nwachukwu, C. C. (2009).
2. Social involvement can create a weakened international balance-of-
payment situation. The cost of social programmes, the reasoning goes,
would have to be added to the price the product. Thus, socially
involved companies selling in international markets would be at
disadvantage our position when competing with companies from other
countries that do not have this social cost to bear, Heinz, et. al.
(2008)
3. Business has enough power, and additional social involvement would
further increase in its power and influence such as Dangote's Group of
Companies, whose influence is significant to the Nigerian economy.
4. Business manager lack the social skills to deal with the problems of
society as they know little or no social responsible knowledge about
their society, they only center on the ethics of business which may
lead to a shipwreck in growth, survival, and expansion.
5. Involvement in social activities could adversely affect the economic
health of business enterprise. It is contrary to the basic function of
the business. For example business enterprise may want to maximize
market share with the objective of the organization. Many companies
involve themselves in social activities because of the tax exemptions
or the income spent on special purposes.








2.2.11 Benefits Organization Can Derived From
Corporate Social Responsibility Behavior
The following are seen to be the benefits organizations can derive
involving herself in a corporate social responsibility behavior:
1. It aids the attraction and retention of staff to the organization
2. It attracts green and ethical investment to the organization
3. It attracts ethically conscious customers to the business
4. It can lead to a reduction in costs through re-cycling to the
organization
5. It differentiates the firm from its competitor and can be a source of
competitive advantage
6. It can lead to increased profitability in the long run to the
organization




2.2.12 Business Benefits Of Corporate Social
Responsibility
Corporate social responsibility (CSR) isn't just about doing the right
thing. It means behaving responsibly, and also dealing with suppliers who
do the same. It also offers direct business benefits, helping to build a
reputation as a responsible business, with a distinguished competitive edge
with her business counterparts. Organizations often favor suppliers who
demonstrate responsible policies, as it has a positive impact on how they
are perceived by customers.

Some customers do not just prefer to deal with responsible organizations,
but insist on it. SHELL Oil Company of Nigeria for instance place a strong
emphasis on her suppliers where they must be registered, and as well
observed all protocols due for a reliable supply of materials to her
organization. In essence, trust for standard materials is welcome, as it
boosts her products and services utilization effectively and efficiently,
Otuya and Precious, (2013).

2.2.13 Understanding The Environmental
Impact Of your Organization
Your organization affects many different people - employees, customers,
suppliers and the local community. It also has a wider impact on the
environment. Even the simplest energy efficiency measures, like switching
off lights and equipment when they aren't needed, makes a real difference.
Reducing the use of water also directly cuts your costs. Minimizing waste
can also make a big difference. Simple steps like reducing the amount of
paper you waste can immediately cut costs. You can save even more by
thinking about waste implications when you design new products and
production processes. Caring about the environment can increase revenue
too. Many customers prefer to buy from responsible organization.

There are all sorts of ways in which you can reduce the environmental
impact of your business such as:
1. Creating recyclable products.
2. Sourcing responsibly (eg using recycled materials and sustainable
timber)
3. Minimizing packaging.
4. Buying locally to save fuel costs
5. Creating an efficient (and fuel-efficient) distribution network
6. Working with suppliers and distributors who take steps to minimize
their environmental impact
You could reduce the environmental impact of your organization by using
environmental assessment techniques such as lifecycle assessment and
setting up an environmental management system.

2.2.14 Measuring The Effectiveness Of Corporate Social Responsibility
Corporate social responsibility (CSR) should be measured effectively to
enhance costs efficiency and boost sales. However, there are other
significant benefits which organizations sometime forget about, as they are
slightly harder to measure. Benefits such as improved reputation, stronger
customer loyalty and motivated employees should not be overlooked, and can
in fact be measured. e.g, improved motivation and reinforcement could lead
to reduced absenteeism and increase staff turnover and productivity.

2.2.15 Identifying And Measuring Indicators Of Success
An organization would identify and measure her success through the
following indicators:
1. Benchmarking her business against others, as some of the published CSR
reports of Nigerian's and Non-Nigerian's Organizations are online.
2. Using the key performance indicators (KPIs) to measure her
environmental performance.
3. The Community Mark standard lets her measure community involvement.
It's worth remembering that measurements will probably only show the
immediate impact of CSR. The biggest benefit can be the long-term
improvement in your reputation.


2.2.16 Dealing Responsibly With Customers And
Suppliers
Organizations are expected to work effectively with her customers and
suppliers to enable her achieve her designed goals and objectives both
ethical and corporate social responsibilities effectively and efficiently.
The following can be seen as measures in dealings with:
Customers
1. Make sure brochures are written in plain English, telling the truth
without hiding anything in the 'small print'.
2. Be open and honest about your products and services. Tell customers
what they want to know, including what steps you take to be socially
responsible.
3. If something goes wrong, you should acknowledge the problem and deal
with it.

In return, organization can expect customers to reward her with their
loyalty. Listening to consumers can also help organization improve her
products and services you offer them.

Suppliers
An organization choosing her suppliers carefully can be an important part
of her approach to corporate social responsibility (CSR). e.g, using her
local suppliers as much as possible can help her support her host community
and also reduces the energy wasted and carbon emissions from deliveries.
1. Organizations should examine their suppliers in terms of proficiency
in health, safety and environmental practices when selecting them for
employment.
2. Organization's reputation can be damaged by being associated with
businesses that abuse the rights of their own workers or their local
environment.
3. Organizations should audit their suppliers to ensure that they follow
responsible working practices. e.g, asking them about their attitudes
to CSR might be revealing.
4. Organizations should also treat her suppliers fairly, particularly
smaller businesses that rely on them. e.g, being paid on time can make
a big difference to them.

2.2.17 Working With The Local Community
Organization working with her local community brings a wide range of
benefits to both herself and the host community. For many organizations,
local customers are an important source of sales. By improving her
reputation, she may find it easier to recruit employees. A good
relationship with local authorities can also make her life easier. e.g,
some local authorities prefer to award contracts to organization with a
record of community involvement.

There are many ways to get involved. Some organization chooses to support a
local charity, or sponsor a local event. It makes commercial sense to get
involved in an activity related to your product. This lets you use your
expertise as well as showing the human face of your business. For example,
some restaurants such as Pepperoni and Klimajaro which provides food to
local homeless groups and events, while builders may give free labor and
materials to community projects. Look for opportunities that will directly
benefit you - for example, by generating publicity, or improving the
neighborhood around your premises.

Many businesses involve their employees in working with the local
community. For example, you might support charities chosen by employees.
Some businesses encourage employees to volunteer for community activities
and also give them paid time off for this. As well as improving your
community relations, this can help motivate employees and can help develop
their interpersonal and team participation skills.
You could also give your employees the option of making regular charitable
donations which are deduced 'at source' from their pay, Harold, (2002).

Business in the Community (BITC) has developed the Community-Mark standard
to help businesses get the most of our community involvement such as
Nigerian Agip Oil and Gas Company (NAOG) which involves herself in the
provision of scholarship, good roads, electricity, employment, potable
water, health service centre, and community development, all to facilitate
a conducive operation of the business in her site of location.

2.2.18 Community Justice Projects
The government's community justice initiative helps businesses work with
local agencies to improve the quality of life in their local area. This can
benefit your business in a number of ways. For example, if your business is
suffering because of damage to your property or the surrounding area, the
community justice team can work with you to address this.
Your business could take a pro-active approach to dealing with local crime
by supporting recent offenders or your local community justice team. She
could:
1. Offer offenders work experience or training as part of a sentence or
on a voluntary basis.
2. Provide financial or practical resources to the local community
justice team.
3. Get involved with local regeneration projects
4. Support staff who volunteer in the criminal justice system, e.g. as
mentors, special constables, youth offender panel members, or in
victim and witness support.

2.2.19 Contemporary Social Issues on Corporate Social ResponsibilitY
Contemporarily, corporate social responsibilities have concern to
environmental protection and the wellbeing of employees, the communities,
and the civil society in general. Reasons been, corporations can no longer
act as isolated economic entities operating in detachment from broader
society as the traditional views about competitiveness, survival and
profitability are being swept away. The driver of businesses towards
corporate social responsibilities as identified by Goldsmith and Carter,
(2010):
1. The shrinking role of government. In the past government have
relied on legislation and regulation to deliver social and
environmental in the business sector. Shrinking government
resources, coupled with a distrust of regulations, has led to the
exploration of voluntary and non-regulatory initiatives instead.
2. Demands for greater disclosure. There is a growing demand for
corporate disclosure from stakeholders, including customers,
suppliers, employees, communities, investors, and activist
organizations.
3. Increased Customers Interest. There is evidence that the ethical
conduct of organizations exerts a growing influence on the
purchasing decisions of customers, they (the customers) perceive
social performance.
4. Growing Investors Pressure. Investors are changing the way they
assess organizations' performance, and are making decisions based
on criteria that include ethical concerns.
5. Competitive Labour Market. Employees are increasingly looking
beyond paychecks and benefits, and seeking out employers whose
philosophies and operating practices match their own principles. In
order to hire retain skilled employees; organizations are being
forced to improve their working conditions.
6. Supplier Relations. As stakeholders are becoming increasingly
interested in business affairs, many organizations are taking steps
to ensure that their partners conduct themselves in a socially
responsible manner. Some are introducing codes of conduct for their
suppliers; to ensure that other organizations' policies do not
tarnish their reputation, Nweke, (2006).


2.2.20 Core Areas Of Corporate Social
ResponsibilitY In Some Organization
Some of the responsibilities organizations do indulge themselves for the
betterment of their host communities are:
1. Provision of good roads.
2. Provision of health care services.
3. Provision of admission to brighter future children.
4. Provision of portable water.
5. Provision of employment opportunity.
6. Provision of social and recreational facilities to keep the body fit.
7. Provision of electricity.
8. Provision of skills acquisition and empowerment.
9. Involvement in the cultural and festive event of her host community.
10. Participating in community sanitation and project.


2.3 Summary Of Review
The review of the literature can be said that organizations have moral,
ethical, and philanthropic responsibilities in addition to their
responsibilities to earn fair return for stakeholders with all due
compliance with the law, as it is a continuing commitment for she to behave
ethically and contribute to economic development while improving the
quality of life of her workforce and their families as well as of the
community and society at large.

Corporate Social Responsibilities benefits an organization as it aids in
the attraction and retention of staff, attracts green and ethical
investment to the organization. Attracts ethically conscious customers to
the business, can lead to a reduction in costs through re-cycling to the
company, differentiates the organization from its competitor and can be a
source of competitive advantage, and can lead to increased profitability in
the long run to the organization effectively and efficiently, giving her
host community and other stakeholders a breath of life to welfare
accessibility of concerned.

















CHAPTER THREE
Research Methodology
3.1 Introduction
This chapter explained the various method and steps that was employed in
carrying out this study. Some of the steps were based on the designing,
structuring and administration of the questionnaire mainly for collection
and proofing statistical techniques to analyze the data and to show the
relationship that exist between the variables of the study.

3.2 Research Design
The study adopted a survey research design which enabled the researcher to
elicit responses through questionnaire and interview.

3.3 Research Population
This is the total population of employees in the organization (Rockson
Engineering Company, Port Harcourt, Rivers State). From the information
available to me, it shows that the total population of the organization
under study was 200 which include employees and management.

3.4 Research Sample/ Sampling Techniques
A sample is a representation of the population. Considering the large
population of the study, a sampling technique Yaro Yemen's was adopted to
determine the sample size of 133.

3.5 Instrumentation

The instrument used for this study is the questionnaire. It was well
structured such that it elicited the required responses on aided. It was
also stated in ordinal form.
3.6 Validity Of Instrument
The validity here entails the degree or extent to which the instrument
measures what it is supposed to measure. Against this break drop, the
research supervisor authenticated or validity the instrument before it was
used.

3.7 Reliability Of Instrument
A test-retest was carried out as to achieve the reliability of instrument.
Spearman Brown propel formula was used to achieve a coefficient of 0.91
which indicated a high reliability.

3.8 Administration Of Instrument
The questionnaires were distributed using the simple random sampling
technique to 133 members of staff which comprised management and employees
of the organization studied and they were completed and retrieved within
the time interval of two (2) weeks.


3.9 Method Of Data Analysis
The data was analyzed using Chi-Square (X2) a non-parametric statistical
tool.
The formula is stated thus;


Where:
X2 = Chi-Square value sought for
fo = Observed frequency
fe = Expected frequency
The critical value or table value is derived by using the formula:
(R-1) (C-) at 0.05 level of significance
Where; R = Number of rows, C = Number of columns.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction
The data for the study was gotten through questionnaires. A total of one
hundred and thirty three (133) respondents were administered questionnaires
as these 133 comprises of management and employees of the firm studied.
Management were given fifty (50) questionnaires while employees were given
eighty three (83).

4.2 PRESENTATION AND ANALYSIS OF DATA
Table 4.1: Questionnaire Administration and Retrieved
Rate
"Respondents "No. Distributed "No. Retrieved "Percentage "
" " " "Retrieved "
"Management "50 "43 "40.9% "
"Employees "83 "62 "59.1% "
"Total "133 "105 "100% "


Source: Survey Data, 2013.


From the table above, one hundred and thirty three (133) questionnaires
were distributed and one hundred and five (105) were completed and
retrieved. Management out of 50 distributed retrieved 43 which represent
40.9% of the entire respondents, while employees out of 83 distributed
retrieved 62 which represent 59.1%.

Table 4.2: The extent implementation of CSR affect
Productivity
"Response Pattern "Frequency of Response "% Response "
"Great extent "55 "52% "
"Considerable extent "32 "31% "
"Moderate extent "14 "13% "
"Little extent "4 "4% "
"Total "105 "100% "


Source: Survey Data, 2013
Table 4.2 above, 55 respondents out of 105 which represent 52% said
implementation of corporate social responsibility affects productivity to a
great extent, 32 respondents out of 105 which represent 31% said it affect
to a considerable extent, 14 respondents out of 105 which represent 13%
said it affect to a moderate extent, while 4 respondents out of 105 which
represent 4% said implementation of CSR affects productivity to a little
extent.


Table 4.3: The extent CSR affects profitability
"Response Pattern "Frequency of Response "% Response "
"Great extent "70 "67% "
"Considerable extent "15 "14% "
"Moderate extent "15 "14% "
"Little extent "5 "5% "
"Total "105 "100% "


Source: Survey Data, 2013
Table 4.3 above shows that 70 respondents out of 105 which represent 67%
said corporate social responsibility affects profitability to a great
extent, 15 respondents out of 105 which represent 14% said it affect to a
considerable extent, 15 respondents out of 105 which represent 14% said it
affect to a moderate extent, while 5 respondents out of 105 which represent
5% said CSR affects profitability to a little extent.

Table 4.4: Extent CSR affects peaceful co-existence of host
Communities
"Response Pattern "Frequency of Response "% Response "
"Great extent "55 "52% "
"Considerable extent "45 "43% "
"Moderate extent "3 "3% "
"Little extent "2 "2% "
"Total "105 "100% "


Source: Survey Data, 2013
Table 4.4 above indicated that 55 respondents out of 105 which represent
52% said corporate social responsibility affects peaceful co-existence of
the host communities to a great extent, 45 respondents rated at 43% said it
affects to a considerable extent, 3 respondents rated at 3% said it affects
to a moderate extent and 2 respondents which represent 2% said corporate
social responsibility affects co-existence of the host community to a
little extent.

Table 4.5: The extent CSR affects market share of the
Company
"Response Pattern "Frequency of Response "% Response "
"Great extent "57 "54% "
"Considerable extent "38 "36% "
"Moderate extent "8 "8% "
"Little extent "2 "2% "
"Total "105 "100% "


Source: Survey Data, 2013
Table 4.5 above stated that 57 respondents out of 105 which represent 54%
said corporate social responsibility affects market share of the company to
a great extent, 38 respondents out of 105 which represent 36% said it
affect to a considerable extent, 8 respondents out of 105 which represent
8% said it affect to a moderate extent, while 2 respondents out of 105
which represent 2% said of CSR affects market share of the company to a
little extent.
Table 4.6: Extent CSR affects goodwill of the company
"Response Pattern "Frequency of Response "% Response "
"Great extent "59 "56% "
"Considerable extent "25 "24% "
"Moderate extent "16 "15% "
"Little extent "5 "5% "
"Total "105 "100% "


Source: Survey Data, 2013
Table 4.6 above indicated that 59 respondents out of 105 which represent
54% said corporate social responsibility affects goodwill of the company to
a great extent, 25 respondents out of 105 which represent 24% said it
affect to a considerable extent, 16 respondents out of 105 which represent
15% said it affect to a moderate extent, while 5 respondents out of 105
which represent 5% said of CSR affects goodwill of the company to a little
extent.

TEST OF HYPOTHESES
Null Hypothesis (H01): There is no significant relationship
between Corporate Social Responsibility
implementation and productivity of firm
Statistical Tool: Chi-Square (X2)
Level of Significance: 0.05
Degree of Freedom: (R 1) (C 1)
Rejection Region: Reject H0, if X2 calculated is greater than X2
critical otherwise accept.
Table 4.7: Chi-Square Contingency Table 1
" Response "GE "CE "ME "LE "Total "
"Pattern " " " " " "
"Management "15 "20 "7 "1 "43 "
"Employees "15 "12 "7 "3 "62 "
"Total "55 "32 "14 "4 "105 "


Source: Survey Data, 2013
Calculation of Expected Frequency (Fe)


Where: RT = Total row
CT = Total column
GT = Grand Total
Fe1 = Fe5 =

Fe2 = Fe6 =

Fe3 = Fe7 =

Fe4 = Fe8 =

Table 4.8: Relationship between CSR implementation and

Productivity

"Fo "Fe "Fo Fe "(Fo Fe)2 " "
"15 "22.53 " 7.53 "56.70 "2.515 "
"20 "13.10 "6.9 "47.61 "3.634 "
"7 "5.73 "1.27 "1.612 "0.231 "
"1 "1.63 " 0.63 "0.396 "0.243 "
"40 "32.48 "7.52 "56.55 "1.741 "
"12 "18.40 " 6.4 "40.96 "2.225 "
"7 "8.26 " 1.26 "1.587 "0.226 "
"3 "2.36 "0.64 "0.409 "0.173 "


X2 = 10.98





To get the critical value of X2 we need to get the degree of freedom.

(R 1) (C 1)

(4 1) (2 1)

3×1 = 3

At degree of freedom 3 and at 0,05 level of significance

X2 critical is 7.815

Therefore, X2 calculated > X2 critical

X2 cal 10.98> 7.815

Decision Rule: Since X2 calculated is greater than X2 critical,

we reject the H0 and accept the Ha which states that there
is significant relationship between corporate social
responsibility and productivity of firm.

Conclusion: It was concluded that implementation of corporate

social responsibility has a lot of significant effect
on productivity.
















Null Hypothesis (H02): There is no significant relationship

between Corporate social Responsibility and
goodwill of the company.


Statistical Tool: Chi-Square (X2)
Level of Significance: 0.05
Degree of Freedom: (R 1) (C 1)
Rejection Region: Reject H0, if X2 calculated is greater than X2
critical otherwise accept.
Table 4.9: Chi-Square Contingency Table 2
" Response "GE "CE "ME "LE "Total "
"Pattern " " " " " "
"Management "19 "17 "6 "1 "43 "
"Employees "40 "8 "10 "4 "62 "
"Total "59 "25 "16 "5 "105 "


Source: Survey Data, 2013
Calculation of Expected Frequency (Fe)


Where: RT = Total row
CT = Total column
GT = Grand Total
Fe1 = Fe5 =

Fe2 = Fe6 =

Fe3 = Fe7 =

Fe4 = Fe8 =



Table 4.10: Relationship between CSR and

Goodwill of the firm

"Fo "Fe "Fo Fe "(Fo Fe)2 " "
"19 "24.15 " 5.15 "26.52 "1.093 "
"17 "10.24 "6.76 "45.69 "4.452 "
"6 "6.55 "-0.55 "0.302 "0.045 "
"1 "2.05 " 1.05 "0.102 "0.537 "
"40 "34.84 "5.16 "26.62 "0.764 "
"8 "14.75 " 6.75 "45.56 "3.083 "
"10 "9.45 "0.55 "0.302 "0.033 "
"4 "2.95 "1.05 "1.102 "0.373 "


X2 = 10.38



To get the critical value of X2 we need to get the degree of freedom.

(R 1) (C 1)

(4 1) (2 1)

3×1 = 3

At degree of freedom 3 and at 0,05 level of significance

X2 critical is 7.815

Therefore, X2 calculated > X2 critical

X2 cal 10.38> 7.815

Decision Rule: Since X2 calculated is greater than X2 critical,

we reject the H0 and accept the Ha which states that there
is significant relationship between corporate social
responsibility and goodwill of the company.

Conclusion: It was concluded that corporate social

responsibility has a lot of significant impact on the goodwill
of company.


4.3 SUMMARY OF FINDINGS:
The presentation and analysis of the data have been carried out in this
chapter. The tables facilitated the relationship that exists between
corporate social responsibility and a company's productivity and goodwill.
Interferences were made from the table analyzed to suggest possible the
relationship. Hence, a good corporate social responsibility has been
suggested by the analysis.
Finally, the testing of the null hypotheses from the table is based on the
research data, using the Chi-Square statistical tool which has proved
otherwise by its rejection, but alternatively:
1. There is significant relationship between corporate social
responsibility implementation and productivity of firm.
2. There is significant relationship between corporate social
responsibility and goodwill of the company.









CHAPTER FIVE
DISCUSSION OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 INTRODUCTION
This chapter summarizes the research work; it also draws appropriate
inference based on the findings of the study. It was concluded with
appropriate recommendations.

5.2 DISCUSSION OF FINDINGS
Based on the analysis of the data collected in course of this study, it was
found that Rockson Egineering Company is expected to effectively involve
herself in corporate social responsibility to enhance her productivity,
profitability, reputation, peaceful co-existence, market share, etc. These
findings are in line with Heinz et. al., (2008), who asserted that
Corporate social responsibility yields profitable measure to the
organization, that is, there is every expectation as the community grows in
standard, organizations are bound to reap the fruit of their labour but it
may suffix in a very long time. He went further to state that it improves
social environment to the organization, creating an atmosphere of intimate
relationship between the firm and her host communities.

Moreover, the study reveals that corporate social responsibility is very
good for business to adhere to, as she does not have an unquestioned right
to operate in society. Therefore those managing business should recognize
that they depend on society, as they relies on inputs from society and on
socially created institutions. Hence, there should be a social contract
between business and society involving mutual obligations that society and
business recognize that they have to each other, Pender, (2006).

5.3 CONCLUSIONS
Based on this research finding, the research was concluded that corporate
social responsibility implementation by Rockson Engineering Company leads
to organizational effectiveness such as profitability, productivity,
goodwill, output, market share, etc. Its patent, responsive organization
boom in business because her survival lies in her effectiveness (doing what
is right). Evidence has shown vividly that Rockson Engineering Company is
responsive to corporate social responsibility.


5.4 RECOMMENDATIONS
Imperatively on the basis of this study, the following are hereby
recommended:
1. Corporate bodies such as Rockson Engineering should make annual budget
for corporate social responsibility to enable her achieve her primary
aim of business (profit motive).
2. Rockson Engineering should consistently implement her corporate social
responsibility to her stakeholders to preclude her from conflict and
promotes a conducive environment for her business.

5.5 LIMITATIONS OF STUDY
The following challenges were encountered in course of this research, such
as: time frame for the study and its submission, data generation
difficulty, financial constraint of sourcing out for relevant literature
and visiting the organization, negative attitude of respondents in giving
out relevant information for the enablement of the purpose upon which the
study researches on. However, these limitations does not influence or
invalidate the findings of this study, therefore it is, an acceptable
academic standard.

5.6 AREA FOR FURTHER RESEARCH
This study was considered for further carrying of research in areas of
corporate social responsibility on organizational effectiveness by the
researcher in other business organizations such as: Telecommunication
industries, educational institutions, etc. to understand on a better
platform, the relationship and difference that exist between an
organization's corporate social responsibility and her effectiveness.





BIBILOGRAPHY
Aaron, B. G. (2007). Business And Its Corporate Social
Responsibility. Tokyo-Hill: Kogakusha Limited.


Fajimi, J. A. (2007). Business Social Responsibility, An Aid To
National Development. Journal of Business Management; 5(1): 161-167.
Federal Polytechnic: Nekede.

Goldsmith, M., And Carter, L. (2010). Best Practice In Talent
Management: How The World Leading Corporation Manage, Develop And
Retain Top Talent. San Francisco:
Pfeiffer.


Harold, J. L. (2002). Applied Organizational Change In
Industrial, Structural, Technical And Human Approaches. New York:
Wiley.

Heinz, W., Mark, V. C., and Harold, K. (2008). Management: A
Global And Entrepreneurial Perspective. New Delhi: Tata McGraw-Hill.

Kreitner, R. (2009). Kreitner Management. New York: Houghton
Mifflin.

Nwachukwu, C. C. (2009). Management Theory And Practice.
Nigeria. Onitsha: Africana FEP Limited.


Nweke, O. (2006). Public Relations Concepts And Strategies. Enugu: Hanson
Pal Agency Limited.

Pender, R. K. (2006). Corporate Social Responsibility, Issues And
Challenges. New York: Prentice Hall.

Post Lawrence, A. T. and Weber, J. (2005). Business And Society. Boston:
McGraw-Hill.

Shane, S. (2003). A General Theory Of Entrepreneurship: The
Individual-Opportunity. Nexus: Edward Elgar.

Thom-Otuya, V. C., And Opuwari, P. (2013).Entrepreneurship:
Start And Manage Your Business. Port Harcourt: Quality Digital Press.



































APPENDIX I


Department of Management, Faculty of
Business Studies,
Ignatius Ajuru University of Education,
P.M.B 5047, St John's Campus,
Port Harcourt,
Rivers State.


26th June, 2013.
Dear Respondent,

APPEAL FOR RESPONSE TO QUESTIONNAIRE

I am a final year (B. Sc Ed) student of the aforementioned institution
carrying out a research on the topic "EFFECT OF CORPORATE SOCIAL
RESPONSIBILITIES (CSR) ON ORGANIZATIONAL EFFECTIVENESS" and your
organization is selected as my scope of study.

You have been chosen as one of my respondent to supply answers to the
questionnaire attached based on your opinion. This work is purely an
academic exercise and any information given will be treated with absolute
confidentiality, as well aid my facilitation to the work.

Thanks for your compliance and co-operation.

Yours faithfully,

Jacob, Madighi
(Researcher)



APPENDIX II

SECTION A: BIODATA

A. Name: …………………………………………………………………

B. State of Origin: ……………………………………………………..

C. Local Government Area: ………………………………………….

D. Qualification: (a) M.Sc/P.hd (b)B.Sc/B.ed/B.Tech (c) HND (d) NCE/ND
(e) WAEC/NECO

E. Sex: (a) Male (b) Female

F. Length of Service (a) 6 years and above (b) 3 to 5 years (c) 1 to 2
years

G. Department: ………………………………………………………..

H. Position: (a) Top Staff (b) Middle Staff (c) Lower Staff


SECTION B:


Please, kindly tick ( ) in options provided for your responses.


GE = Great Extent, CE = Considerable Extent, ME = Moderate Extent, LE =
Little Extent


1. To what extent does corporate social responsibility affects
productivity? (a) GE [ ] (b) CE [ ] (c) ME [ ] (d) LE [ ]


2. To what extent does corporate social responsibility increase market
share? (a) GE [ ] (b) CE [ ] (c) ME [ ] (d) LE [ ]


3. To what extent does corporate social responsibility promote peaceful
co-existence of the host community? (a) GE [ ] (b) CE [ ] (c) ME [
] (d) LE [ ]


4. To what extent does corporate social responsibility promote goodwill
of the company? (a) GE [ ] (b) CE [
] (c) ME [ ] (d) LE [ ]


5. To what extent does corporate social responsibility enhance
profitability? (a) GE [ ] (b) CE [ ] (c) ME [
] (d) LE [ ]


6. To what extent does corporate social responsibility promote sales
volume? (a) GE [ ] (b) CE [ ] (c) ME [ ] (d) LE [ ]


7. To what extent does corporate social responsibility increase output?
(a) GE [ ] (b) CE [ ] (c) ME [ ] (d) LE [ ]


8. To what extent does corporate social responsibility discourages
government regulation and intervention? (a) GE [ ] (b) CE [ ]
(c) ME [ ] (d) LE [ ]


9. To what extent does corporate social responsibility promote winning of
contract? (a) GE [ ] (b) CE [ ] (c) ME [ ] (d) LE [ ]


10.To what extent does corporate social responsibility


aid easier recruitment of employees? (a) GE [ ] (b) CE [ ]
(c) ME [ ] (d) LE [ ]