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DETERMINANT OF CORPORATE SOCIAL RESPONSIBILITY: A QUOTED SELECTED COMPANY IN NIGERIA

  • Type:Project
  • Chapters:5
  • Pages:69
  • Methodology:chi-square
  • Reference:YES
  • Format:Microsoft Word
(Accounting Project Topics & Materials)
DETERMINANT OF CORPORATE SOCIAL RESPONSIBILITY: A QUOTED SELECTED COMPANY IN NIGERIA

ABSTRACT
The broad objective of the study is to examine the determinants of corporate social responsibility of corporate entities. Specifically, the study examines the relationship between company size, profitability, industry type, firm’s origin and corporate social and environmental responsibility measured by extent of reporting on such items. The cross-sectional research design is adopted for the study. The population consists of all quoted companies in the Nigerian capital market while a sample of 20 companies was examined for 2010 and 2011 financial year. Secondary data from financial statement of the sampled companies was used for the study. The data analysis techniques used is multi-variate regression analysis using the ordinary least squares techniques. The study findings indicate that a negative relationship is observed between the extent of corporate social and environmental items disclosed and Firm Size. The effect of industry of operation shows a negative relationship. The effect of company Origin was found to be positively related to the extent of environmental disclosures by companies. Finally, profit is found to be positive and significantly related to the extent of corporate social and environmental disclosure by companies. The study concludes that firm –specific characteristics influences their level of corporate social and environmental responsibility .It is recommended that further studies should evaluate the influence of other corporate factors on corporate social and environmental reporting.
TABLE OF CONTENT
CHAPTER ONE: Introduction                        
1.1     Introduction                                   
1.2     Statement of the Research Problem.                   
1.3     Objectives of the Study.                         
1.4     Statement of Hypothesis                         
1.5.     Scope of the Study                               
1.6    Relevance and Significance of the Study              
1.7    Limitation of the Study                          
CHAPTER TWO: Literature Review                    
2.0    Introduction                                   
2.1    The concept of corporate social responsibility              
2.2    Determinations of a corporate environmental responsibility behaviour of firms                                    
2.3    Review of related studies                          
2.4    Theories of corporate social responsibility             
CHAPTER THREE: Methodology and Model Specification
3.1     Introduction                                  
3.2     Research Design                              
3.3     Population and Sample                          
3.4     Sampling Technique                          
3.5     Sources of Data                              
3.6     Data Analysis Method                           
3.7     Model Specification                              
CHAPTER FOUR: Presentation and Analysis of Result
4.1     Introduction                                  
4.2     Presentation and Analysis of Result                      
CHAPTER FIVE: Summary of Findings, Conclusion and Recommendation
5.1     Summary of Findings                               
5.2     Conclusion                                
5.3     Recommendations                             
    Bibliography                                   
CHAPTER ONE
INTRODUCTION
1.1    BACKGROND OF THE STUDY
Business and academic researchers have shown increasing levels of interest in Corporate Social Responsibility (CSR) during recent years. The theme of environmental and special responsibility appears in a number of political and legal documents and is gaining ever greater importance at the international level. Today, corporate leaders face a dynamic and challenging task in attempting to apply societal ethical standards to responsible business practice and incorporate societal and environmental concerns as part of the overall objective of business. Corporate social Responsibility (CSR) provides strategic framework for achieving sustainability (Valor, 2005). Owing to the range of definitions, the notion of CSR has led to the emergence of a variety of perspectives. However, the most common used definition of CSR is that given by the commission of the European community’s in 2001. According to the commission, corporate social responsibility is the integration of social and environmental concerns by companies in their business operations and in their interaction with their stakeholders on a voluntary basis. it related to complex issues such as environmental protection, human resources management, health and safety at work, relations with local communities, relations with suppliers and consumer.
A dominant view on the drivers of corporate social responsibility in today’s contemporary corporate setting is the institutional theory. According to the theory, organizational behaviour is conditioned by the expectations stemming from the institutional environment. Institutional theory is concerned with examining and explaining how institutionalized norms and pressures affect social change among organizations. The institutional framework emphasizes the importance of regulatory factors that affect firms’ decision to adopt a specific organization practice. In this context, firms are responding to the coercive action of regulators or activist. Failing to respond to these pressures endangered significant risk to a firm’s legitimacy and viability. Specifically, with regards to two institutional mechanisms; legal/political and labour market, Prior literature has identified that it is expected that firms will have better corporate social responsibility practice in less corrupted countries for several reasons. First, in countries with high corruption some firms will engage in unethical practices to reduce their cost, or to increase their market share though briberies. This will force other companies to also engage in unethical practices in order to survive the competition. Second, the benefits to firms for good CSR practices might be lower in more corrupted countries.  With regards to the role of labour market institutions, Freeman, Harrison and Wicks, (2007) notes that it is expected that the power of the labour force and the presence of labour unions will influence likelihood that a firm will engage in socially responsible behaviour. Specifically, companies with high degree of union power will perform better on the social and environmental scores since powerful unions may push for more benefits for employees, perhaps more attention to employee health and safety provisions, more workplace amenities, possibly more socially responsible policies for local communities from which the labour force may originate, and they may even increase overall awareness of the firm’s environment policies to audiences outside the firm itself.
In the Nigerian corporate environment, corporate social responsibility is largely discretionary even in the presence of several   institutions that ideally should stimulate increased social responsibility by Nigerian companies. Consequently, it is the focus of this study to attempt an explanatory analysis of the role of institutions such as the capital market, labour unions, government regulatory institution and the legal institutional in influencing companies CSR  practices amongst companies in Nigeria.
1.2    STATEMENT OF THE RESEARCH PROBLEM
There are several legislations that incorporate within their provision certain expectations that directly or indirectly regulate the observance or practice of CSR. For instance, Section 279 (4) companies and Allied Matter Act 1990, pint out the responsibility of a company to social welfare employees, National Environmental Standard Regulation Enforcement Protection. However, it must be noted that corporate social responsibility practices is voluntary. However, a fundamental gap exist in our knowledge and understanding of the drivers of corporate social responsibility practices and more specifically, scholars to date have not yet understood the role of institutions structures in influencing corporate social responsibility at the level of the firm. Whereas the issue of firm specific determinants of corporate Social and Environmental Practices has received at least some attention in prior literature (Mgbame, 2012, Campbell 2007, McWilliams and Siegel, 2001), no empirical study exist to the best of the researchers knowledge that identifies the drivers of the variation in firm’s social performances; particularly those drivers that lie beyond the firm’s own boundaries. Thus, this study we fill this gap in our knowledge.
1.3    RESEARCH QUESTIONS
The following research question will form the focus of the study
1.    Does the capital market as an institution play any significant role in influencing firm’s corporate responsibility practices in Nigeria?
2.    Do labour unions play any significant role in influencing firm’s corporate responsibility practices in Nigeria?
3.    What role does the legal system play in influencing firm’s corporate responsibility practices in Nigeria?
1.4    RESEARCH OBJECTIVES
The research objectives are stated as follows:
1.    To examine if the capital market as an institution play any significant role in influencing firm’s corporate responsibility practice in Nigeria.
2.    To examine if labour unions play any significant role in influencing firm’s corporate responsibility practices in Nigeria?
3.    To examine what role does the legal system play in influencing firm’s corporate responsibility practice in Nigeria?
4.    To examine the role of regulatory institutions in influencing firm’s corporate responsibility practices in Nigeria.
1.5    RESEARC HYPOTHESIS
The research hypotheses are formulated as follows;
H1: capital market as an institution does not play any significant role in influencing quoted firm’s corporate responsibility practice in Nigeria
H2: labour unions do not play any significant role in influencing firm’s corporate responsibility practice in Nigeria.
H3: the legal system does not play any significant role in influencing firm’s corporate responsibility practice in Nigeria.
1.6    SCOPE OF THE STUDY
The scope of the study covers the subject matter of the research which is focused in examining the role of institutional factors in influencing company’s corporate social responsibility practice. The study is restricted to companies in Edo State with particular emphasis on public liability companies.
1.7    SIGNIFICANCE OF THE STUDY
The research study  intends  to identify  various sources of financing available  to  the government  of Nigeria through  taxation  as well as  consider  the limitations of  each sources  and  also  reveals the benefits  associated with  them. The  study  is  fashioned  to serve as a  contribution  to aid  government on  how  to effectively utilize the pool  of  resources available  to them  through  taxation.  It is also  to provide  a  reference point  for future  research work.  It  will also be significant to  tax payer ,  tax officers  companies  and the general public  on  tax issues.    
1.8    LIMITATION OF THE  STUDY
Due to the fact that no study is perfect, some of the limitations to the study are:
i.    Low response rate by respondents
ii.    The  inability  to obtain a  completely random  sample
iii.    The imprecise  measurement  of variable
REFFERENCE
Branco J Rodreque F (2006) “ influence of the economic and social system on corporate social ranking” mimeo, university of Toulouse.
Campbell J L 2007. Why would corporation behave in socially responsible way? An institution theory of corporate social responsibilities. Academy of management review. 32(3):946
M C William A, seigel (2001) : corporate social responsibility: a theory of the firm perspective. The academy of management review 26(1)177-127.
Mgbame C.O (2012): environmental accounting audit in selected; company in Nigeria. Unpublished.PHD thesis submitted to the university of Benin.
Peter Pand  Crammar D W(2012) varieties of campitalism and institutional complementaries in the  macro economy, an empirical analysis, MP;JG  discussion paper 04/5 www.mpifg.de.
Smith R W (2013) ‘narrative disclosure in annual reports’ journals of business research, vol 11,pp.49-60.
Valor, M.T. (2005) “The institutional determinants of social responsibility Journal of Business Ethics, Vol. 20, pp.163 – 179

DETERMINANT OF CORPORATE SOCIAL RESPONSIBILITY: A QUOTED SELECTED COMPANY IN NIGERIA

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Details

Type Project
Department Accounting
Project ID ACC1662
Price ₦3,000 ($9)
Chapters 5 Chapters
No of Pages 69 Pages
Methodology chi-square
Reference YES
Format Microsoft Word

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    Details

    Type Project
    Department Accounting
    Project ID ACC1662
    Price ₦3,000 ($9)
    Chapters 5 Chapters
    No of Pages 69 Pages
    Methodology chi-square
    Reference YES
    Format Microsoft Word

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