EFFECTS OF SOCIAL RESPONSIBILITY ON BANKING INDUSTRY (A CASE STUDY OF UNION BANK NIGERIA GARDEN AVENUE ENUGU)

CHAPTER ONE:

Introduction                                                                                                                                                                                   1

• Background of study 1
• Statement of problem 4
• Objective of research 5
• Scope and delimitation of study 6
• Research questions 6
• Significance of study 8
• Definition of terms. 9

CHAPTER TWO

 Review of literature                                                                          11

• Concepts of business objectives 12
• Understanding business social responsibility 18
• Neglect of social responsibility by Nigeria

Government/Companies                                                                   22

• Making Nigeria business organisation socially

responsible issues and prospects                                           24

• Arguments for and against business social responsibility. 27
• Union bank social responsibility profile 34
• Summary of the related reviewed literature. 39

CHAPTER THREE

 Methodology                                                                                    41

• Research design 41
• Area of study 41
• Population for study 42
• Sampling and sampling technique 42
• Research instrument 43
• Validity and reliability of instrument 44
• Method of data collection 45
• Method of data analysis 45

CHAPTER FOUR

Data presentation and results                                                            47

CHAPTER FIVE

Discussion, implication, recommendations and conclusion               70

• Discussion of results/finding                                                   70
• Implication of study                                                                71

5.3     Recommendations                                                                             72

5.4     Conclusion                                                                              73

5.5     Suggestion for further study                                                    73

5.6     Limitation of the study                                                            74

Appendics                                                                                         75

References.                                                                                        76

 

 

 

 

 

LIST OF TABLES

 

Table 1       4.1 –  consideration of policy effects in its

operating areas

Table 2       4.2-   Contribution towards social programmes

Table 3       4.3 –  Factors mitigating effective social

responsibility

 

Table 4       4.4 –  Effects of non-performance of social

responsibility

 

Table 5       4.5 –  The extent in which union bank and

other business organization have done

towards social responsibility in the

operating area.

 

Table 6       4.6-   The effective community development

policy.

 

Table 7       4.7-   Contribution towards alleviating the

sufferings of the masses in the

operating area.

 

Table 8       4.8-   Most profitable organisation lack

interest on the community they

Operate

 

 

ABSTRACT

 

This study focuses on an investigation of social responsibility on banking industry.

It was established that most companies operating in Nigerian do not consider social responsibility and obligations towards the community in which they operates. The specific objectives of the study were:

1. To ascertain whether companies actually consider the effects an intended policy decision will have on the life of the communities in which they operate.
2. To ascertain whether companies should be socially responsible to the communities in which it operates .
3. To examine the factors which are responsible for the ineffectiveness of the performance of corporate social responsibilities in Nigeria.
4. To find out whether non-performance of social responsibilities by companies in its operating areas can have adverse effects on its turnover, profitability, growth and survival.

To achieve the above stated objectives, data were collected through the use of questionnaire which was administered to one hundred staff and customers of union bank were.

Data collected were analysed using weighted mean and ranking order method of analysis.

Base on the analysis, a number of findings were made:

1. Union bank and other business organizations have not done much towards social responsibility in the area in which they operates.
2. The bank does not have an effective community development policy.
3. The bank does not contributes adequately towards social programmes that are geared towards alleviating the sufferings of the masses, especially in their operating areas.
4. It is discovered that most profitable organisation back interest on community.
5. The findings also revealed that the major factor that mitigate contributions by corporate organizations towards social programmes is the pursuance of profit maximization is the only relevant objective of a business.

The recommendations arising from the findings were:-

1. Union bank should embrace corporate social performance as a strategic and key managerial function by establishing and finding a special unit to carry out community development.
2. Union bank should not consider profit maximization as the only and major objective of the organisation.
3. The Government should evolve appropriate legislation that would compel corporate organisations to contribute certain percent of their profits towards social responsibility.
4. A social work committee should be set up on permanent basis to administered the fund to be paid into special account by corporate organisation towards social responsibility projects.

CHAPTER ONE

Social responsibility on banking industry concerning the organisation and relationship between the company and the society or communities in which they operate. It deals with how they show responsible on the aspect of work they are operating with people and community. It lay emphasis on the negative effect some of the companies with have if they do not be socially responsible on the operating area. Example discharge of social responsibilities can create instability in operating environment of the companies, thereby having serious negative effect on the companies turnover, profitability, growth and survival etc. It also deals with how the government should be responsive in the areas of its operation.

CHAPTER TWO:

It deals with the objective which any organisation established to purse. The objectives include economic and social objective which relate to the goals of the firm with respect to the goods and services to be produced and distributed to the public from which the organisation will earn revenue. It also deals with the arguments for and against social responsibility business. Argument for social responsibility is where it is good for an organisation to be socially responsible than facing government stringe regulations which may have negative effects on the operation of that business, including a close down threat. This chapter state the history of Union Bank Nigeria Plc with reference to Garden Avenue branch Enugu.

CHAPTER THREE

It states about the area of the study which is based on Union Bank Nigeria Plc Garden Avenue branch Enugu including the staffs population. It requires the administrative of questionnaire by certain categories of official. It include the data analysis.

CHAPTER FOUR:

These deals with the presentation of data generated through the administration of questionnaires to a sample population. It required research question, which is to what extent does the Union Bank Nigeria Plc considers policy effects on the life the people in the area in which it operates? And it will be shown in the table. Some other question will be asked.

CHAPTER FIVE:

It states the findings whether Union Bank Nigeria Plc and other business organisation have or have not done much towards social responsibilities. It includes implications of the study recommendation and conclusion

 

CHAPTER ONE

 

INTRODUCTION

• BACKGROUND OF STUDY

Social responsibility on banking industry concerning the organisation and relationship between the company and the society or communities in which they operate. It deals with how they show responsible on the aspect of work they are operating with people and community.

The aim of this chapter is to evaluate the extent to which the performance of a social responsibilities programmed by business from affecting its achievement of its corporate objective, profitability, growth and survival.

The chapter is based on the hypothesis r belief that the extent to which an organisation recognized or is socially responsible determine the level achievement in terms of profitability, growth and survival in ever, changing economic, political and technological environment in which it operates as an entity.

Conventionally, the responsibility or aim of the business firm has been to produce and distribute economic goals and services in return for a profit. Because of the increasing size and complexity of society’s needs this definition or perception of business role is no longer to enable. Decision concerning the direction and operation of the economy and its business entities have social consequences that can no longer be ignored.

Successful performance of the economic role has ceased to be the only kind of social responsible behaviour which society required of the business firm. Beyond this, we have become increasingly concerned with the preservation and enhancement of:

1. Our physical resources on this planet
2. Our human resources.

Concerning our physical resources on this planet, it has become only two apparent in recent years that our physical resources of air, land and water are being seriously threatened by an uncontrolled pursuit of economic goals. This ecology and pollution abatement have come to be a prime additional social responsibility of business.

Regarding our human resources, with the labour union movement of the 1930 and 1940s and the civil right of the 1950s and 1960s society members have demonstrated the marked interest in the utilization enhancement of human resource particularly, those characterized as minority groups, culturally disadvantage handicapped etc.

The manager of a business firm has an important and indiscapable responsibility in helping the firm’s management to recognize, define and this enlarged concept of its social role. Managerial capability in terms of abilities to direct the firm toward economic goals is no longer sufficed.

The modern manager in our complex society cannot enclose herself or himself in a “cultural economic cocoon” impervious to the pressing none economic needs of society. In essence, profitability is an essential ingredient for continued existence and survival of business forms. The pursuance of profitability as basic or plausible objectives of the firm is justifiable under the following grounds:-  According to Pandey I.M (1981: 5)

1. Ground’s of rationality which requires an individual performing economic activities as being rationally earned at utility. Maximization ensures economic natural selection and in the end only profit maximizing firms survived.
2. The firm by pursuing its objective of profit maximization also maximizes social economic welfare.

In spite of the above it is originals that only socially responsible firms survived in the area of their operations as those who do not meet the social obligations imposed by their operations in the area are interrupted with violent and disruption of their operations. The violent demonstration and chasing out of oil companies in the Niger Delta region and shell BP company, an oil company operating in the River state, is a case in point.

The point being made here that for an organisation to achieve whatever objectives it was established to achieve such organizations must remain socially responsible to the needs of the communities in which it operate.

 

• STATEMENT OF PROBLEM

In spite f the importance attached to the concept of business social responsibilities all over the world, the following problems still persist:

 

• Most policy decisions by companies operating in Nigeria are taken without regards to the effects they will have on the lives of the people in the area in which they operate provided such policy will maximize the companies for the ineffectiveness in the performance of corporate social responsibilities in Nigeria.
• Majority of companies operating in Nigeria do not consider social responsibilities as a managerial function and as such they regard it an obligation not as a right of the society or community in which it operates.

 

• OBJECTIVES OF RESEARCH

Based on the problems identified, the objectives of research are as follows.

• To ascertain whether companies actually consider the effects an intented policy decision will have on the life of the communities in which they operate.
• To find out whether companies should be socially responsible to the communities in which they operate.
• To examine the factors which are responsible for the ineffectiveness of the performance of corporate social responsibilities in Nigeria.
• To know whether discharge of social responsibilities by companies in its operating areas have serious negative effect on its turnover, profitability, growth and survival.

 

• SCOPE AND DELIMITATION OF STUDY

The study is concerned with the effects of social responsibility on banking industry in Union Bank Nigeria Plc Garden Avenue Enugu.

 

• RESEARCH QUESTIONS

Having listed the problems and the objectives of study, it is relevant to provide some questions that will guide the researchers in discussing the issues involved in this study. The following questions has being designed for the purpose.

1. Does Union Bank of Nigeria Plc considers the policy effects on the life of the people in the communities in which its operate?
2. Should Union Bank Nigeria Plc be socially responsible?
3. What are the factors that initiate against effective performance of social responsibilities by Union Bank Nigeria Plc?
4. To what extent will the non-performance of social responsibilities effects the turnover, profitability, growth and survival of Union Bank Nigeria Plc?
5. To what extent does Union Bank and other business organisation have done much towards social responsibility in the area in which they operate?
6. Does Union Bank Nigeria Plc has an effective community development policy?
7. Does the Bank contribute adequately towards social programmes that are geared towards alleviating the sufferings of the masses, especially in the operating areas.
8. Does most profitable organisations lack interest on communities they operate.

 

 

 

• SIGNIFICANCE OF STUDY

Significance of study means the importance of the research to lost of users and the general public. The organisation exist in order to serve some segments of the society such as to make profit, grow and survive. The groups which business much serve include stock holders the employees, the customers, the general public and communities in which they operate.

The study will help the policy makers (Top management) to be aware of the needs to create conducive working environment and societal hatred by discharging its social responsibilities and be part of the societal problems, including the problem of pollution caused by its operational activities.

Particularly, the personnel manager of an organisation should occupy a unique position and he or she is seen to be primarily responsible for seeing that the human resources of society utilized in the company are protected, preserved and in helping the company’s management to recognize define and fulfil the societal obligations due from it.

The research will also be of immense benefits to the federal states and local governments in these ways.

Firstly, as the government of the day, it has responsibility for the development of the various communities.

Secondly, the government are also to be socially responsible in the areas of its operation.

The shareholders, employees and the general public will also stand to benefit from the study in their various thinking about the company and its responsibilities.

Finally, this study will provide a secondary date materials for future researchers on the issue of social responsibility concepts.

 

• DEFINITION OF TERMS

This means that some terms which feature in this work required some explanations.

1. BANKING: This means the business activity of bank to render services to the public.
2. SOCIAL RESPONSIBILITY – refers to a person’s obligation to evaluate in the decision making process, the effects of both his personal and institutional decision and actions on the whole social system. The substance of social responsibility arises from concern for the ethical consequence of ones act as they might affect the interest of others.

Social responsibility as interest in, and commitment to the aims, objectives and aspiration of the wider society in which the business functions. It refers to the philosophy that people (in business) must not only mind their own business, but must help to mind business of the wider society. Nwandu, Ani and Agbo (200: 182-183)

3. BANKING INDUSTRY- This means a company established in a particular area to render services to the customers.

Example:    To pay cheque

To receive customer’s money

Duty of care

To pay agreed interest on deposits.

To keep the affairs of the customer secret etc.

 

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