OVERVIEW OF ETHICS AND SOCIAL RESPONSIBILITIES OF BUSINESS ORGANISATION IN COMMUNITY DEVELOPMENT

A CASE STUDY OF DANGOTE FLOURMILL

BY AJULO, ANTHONY OLABODE

BEING A PROJECT SUBMITTED TO THE DEPARTMENT OF MANAGEMENT AND ACCOUNTING IN PARTIAL FULFILLMENT FOR THE AWARD OF A MASTER IN BUSINESS ADMINISTRATION (MBA) DEGREE

2012.

CERTIFICATION
I certify that this research work was carried out by Ajulo, Anthony Olabode (ADP09/10/EX/MBA/0871) of the Department of Management an Accounting, Faculty of Administration, Obafemi Awolowo University, IleIfe under my supervision

Dr.J.O. Adetayo

Prof

Asaolu

Co-ordinator Supervisor Date:________________ Date_____________

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DEDICATION This project is dedicated to the Almighty God who has been my strength, provider, protector and my all in all throughout the period of my programme. Also to my wonderful parents who have been pillars of support to date. One cannot ask for greater favour from God than to be blessed with parents like you both. Thank you for all the love, prayers and support you both gave to me all through.

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ACKNOWLEDGEMENT Many people have provided me with invaluable aid in bringing this project into existence. Therefore, the success of this project should not be attributed to my effort alone as the researcher, but also to the following people who have immensely contributed in various ways. Without their individual supports, this work would not have materialized or yielded any success.

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I am grateful for the patient and fatherly advice of Dr.J.O. Adetayo, my supervisor. Your advice saved me a lot of trouble during the research work. I am forever grateful for this. I also like to acknowledge my parents and siblings for their unflinching support and prayers, the task of travelling on one of the most dangerous road in Nigeria on weekly basis is no small feat, and therefore I thank you for your prayers and support. I also like to appreciate my colleagues who made this program a memorable experience for me, thank you Ngozi Nwaoha, Aramide Adebisi, Wale and Dare; God bless you all for your love and support.

TABLE OF CONTENTS TITLE PAGE CERTIFICATION DEDICATION ACKNOWLEDGEMENT i ii iii IV

TABLE OF CONTENTS LIST OF TABLES ABSTRACT CHAPTER ONE: INTRODUCTION 1.1 1.2 1.3 1.4 1.5 1.6 Background of the study Statement of the problem Objectives of the study Justification of the study Scope and limitation of the study Operational definition of terms

v viii ix

1 3 5 5 6 7

CHAPTER TWO: REVIEW OF THEORETICAL LITERATURE 2.0 2.1 2.2 2.3 2.4 Introduction CSR and Productivity
Carrolls Pyramid of Corporate Social Responsibility Implicit versus `Explicit Corporate Social Responsibility

10 11 21 23 26

Ethics and CSR the Nigerian Perspective

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2.5

Conclusion

35

CHAPTER THREE: RESEARCH METHODOLOGY 3.1 3.2 3.3 3.4 3.5 3.6 Introduction Study population Data collection instruments Sampling procedures Method of administering questionnaire Method of data analysis 37 37 38 38 39 39

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION

4.1

Presentation of Data and analysis

41

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

Introduction 5.1 Summary of findings

vii

59 59

5.2 5.3

Conclusion Recommendation Bibliography Appendix

61 62 65 68

LIST OF TABLES
PAGE 4.1 4.2 4.3 4.4 4.5 4.6 4.8 4.8 Age of Respondent Educational distribution of Respondent Marital Status of Respondent Organizational status of Respondent Religion of Respondents Income level of Respondents Awareness of respondents about CSR company have responsibility to contribute to society
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39 40 41 41 42 43 43 44

4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20

Dangote Carries out CSR activities to its immediate community Some activities of Dangote have negative impact on environment Non-monetary incentive like promotion enhances workers productivity workers in decision making enhances workers productivity

45 46 47 48

Relationship between workers and their boss enhances workers productivity 49 Dangote operates in environmentally responsible manner Dangote CSR facilitate rapport between it and Stakeholders Dangote involvement in CSR increases its brand awareness Dangote involvement in CSR increases its positive perception CSR has led to higher turnover for Dangote over the years Dangote involves in activities that improve the life of the people Profit of Dangote has reduced by involving in CSR 54 55 56 50 51 52 53

ABSTRACT
This study assessed respondents opinion on ethics and social responsibilities of business organization in community development using Dangote Flourmills. It evaluated the awareness of respondents and their expectations as it regards to corporate social responsibilities. It also looked into the ethical issues that organizations faces in its quest to be socially responsible.

Primary and secondary sources of data collection were used for the study. Primary data were collected through the administering of questionnaire and observation. The study population

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comprised of 220 respondents. 200 questionnaires were properly filled and returned. Descriptive statistical procedures were used to analyze the data generated for this study. The results showed that more than 78% of the respondents stated that organizations such as Dangote flour mills has a responsibility to contribute to the society in which they exist, perhaps more revealing is the fact that more than 58% of the respondents stated that the CSR activities of Dangote Influence their choice of buying their products. A twist in the study however, showed that 58% of the respondents stated that some activities of Dangote flour mills have negative impact on the environment. This signals a new era of massive environmental awareness among the populace. Hence, organizations must take their ethical and corporate social responsibilities serious. Furthermore, 80% of the respondents revealed that the Company is involved in activities that improve quality of life of the community. The study also revealed that 87% of the respondents do not agree that Dangote flour mills profit is increasing because of CSR. The study concluded that the location of Dangote flour mill has contributed to the development of the local community as a result of productive development initiative of the company. Also, the study showed that even though some activities of Dangote flour mills have a negative impact on the environment it was revealed that Dangote flour mills operates in an environmentally friendly manner.