CORPORATE SOCIAL RESPONSIBILITY AND ORGANISATIONAL PERFORMANCE IN THE BANKING INDUSTRY
The concept of business has changed from profit making activities to social welfare activities where businesses are not only responsible to its shareholders but also to all of its stakeholders. The main force that drives companies to adopt corporate social responsibility is CSR?s financial benefits (Rapti and Medda, 2012). Nicolau (2008) defined socially responsible companies as those which in profit-making operational decisions, considers the full scope of environmental impact and balances the needs of stakeholders.
This research study sets to investigate cooperate social responsibility and organisational performance in the banking industry- Skye Bank, Eruwa
OBJECTIVES OF THE STUDY
1) To investigate the effect of Philanthropic CSR activities on organizational performance
2) To investigate the effect of Ethical CSR activities on organizational performance.
3) To investigate the effect of Environmental focused CSR activities on organizational performance.
4) To investigate the effect of government policy and priority on organization performance.
SCOPE OF THE STUDY
This study focuses on Banking Industries in Nigeria with particular emphasizes on Skye Bank Eruwa.
SIGNIFICANCE OF THE STUDY
The significance of the study include the following
1) The study will create awareness on the importance of corporate social responsibility
2) The awareness on corporate social responsibility information will be enhanced.
3) Confidence of Stakeholders of corporate social responsibility information will be enhanced.
This study will help to improve the knowledge and managerial practices.
1) What is the effect of Philanthropic CSR activities on organizational performance?
2) What is the effect of Ethical CSR activities on organizational performance?
3) What is the effect of Environmental focused CSR activities on organizational performance?
4) What is the effect of government policy and priority on organization performance?
Statement of the problem
There is no evidence about the relationship between corporate social responsibility and organization performance that include financial and non-financial performance. In spite of the existing of some literature about the role of corporate social responsibility in the aspects of environment and society, there is a significance gap about how corporate social responsibility improves organization performance due to lack of documented evidence of the benefits hence the researcher focus was to find out the effect of CSR on organization performance based on selected commercial bank as we find out whether these institutions realize any benefits from the much they spend
Disclosure of CSR is voluntary so there is no standard rule of the regulator which can be used as reference to measure Corporate Social Responsibility.
H1: There is positive and significant relationship between CSR and ROA.
H2: There is positive and significant relationship between CSR and ROE.
H3: There is positive and significant relationship between CSR and Net Profit.
H4: There is positive and significant relationship between CSR and EPS.
H5: There is positive and significant relationship between CSR and financial performance.
DEFINITIONS OF TERMS
Business Policy: It is the active process of guiding and directing the course of an organisation towards the attainment of objectives
Environment: The environments of an organization are those elements, institutions, organisation and systems whose activities and services are essentially for the effective performance of the organization but are not subject to its control
Social Responsibility: this is the reactive responsiveness to an organization?s obligatory operational activities like economics productive and legal requirement to its stockholders and stakeholders
Performance: Refers to the quality and quantity of work produced
Productivity: A measure of production efficiency, a ratio between output and input.
2.0 Literature Review
Corporate social responsibility
Many research (Richard and Okeye, 2013; Olayinka and Temitope, 2011; Amole et al, 2012; and Amaeshiet al, 2006) have been done on Corporate Social Responsibility (CSR) in Nigeria especially in oil and gas, manufacturing and telecommunication sector but few in banking sector and their result is inconclusive and there is need to further investigate the impact of CSR on organization performance. Therefore, this research study sets to investigate cooperate social responsibility and organisational performance in the banking industry with particular reference to Skye Bank, Eruwa.
3.1 Research Methodology
This chapter entails the research design and methodology that will used to find out cooperate social responsibility and organisational performance in the banking industry. It also spells out nature of variables to be used, research design, sampling techniques, types of data, data collection methods.
This study examines corporate social responsibility (CSR) in Nigeria in the light of legal regulations, case laws and governmental policies. It would examine the existing role that the Nigerian law plays for the sustenance of the practice of CSR among its companies. A review of the literature of CSR reveals a dearth of knowledge on CSR policies and practice in Nigerian Organizations. The study identifies how Nigeria views CRS, the growing importance of the CSR provided for by the laws and the emerging patterns of CSR in Organizations operating in Nigeria.
Lastly, the article explores the forces driving or constraining or helping to shape the forms of CSR is understood and experienced in Nigeria. In addition, the study shows that environmental institutions affect how CSR is appreciated and utilized. The article suggests some policy implications in the form of support for CSR policy in the context.