FULFILLMENT OF SOCIAL RESPONSIBILITIES AS A BUSINESS SURVIVAL STRATEGY (A CASE STUDY OF SEVEN UP BOTTLING COMPANY PLC NINTH MILE CORNER, AMEKE NGWO)

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FULFILLMENT OF SOCIAL RESPONSIBILITIES AS A BUSINESS SURVIVAL STRATEGY (A CASE STUDY OF SEVEN UP BOTTLING COMPANY PLC NINTH MILE CORNER, AMEKE NGWO)

CHAPTER ONE

1.1 BACKGROUND OF THE STUDY

In the early 1990’s, the mission of business was primarily economic. But within the past few decades there have been pronounced changes in the views of many business managers about their social responsibilities, which have paralled and partly reflected the changing priorities and expectations of society about business social functions. This is because business relies on the society for existence. In view of this, the interrelation between organizations and their environment has become increasingly important. The society managers and organizations are quite aware and conscious of this inter-dependence. As a result of this, organizations especially ins the business sector are no longer viewed as totally private endeavours there are free to pursue their own ends as long as they break no law. Instead, their actions are seen as having public return to owners and the outcome of the motion is a rising public domour for social responsibility on the part of business as well as other social organization by the business people have the task of knowing what to do to unreel the demand of various claimants for social responsibility. All these claims have made the issue of social responsibility a concern for the business generally.

Social responsibility is essentially concerned with public interest. It is the intelligent and objective concern for the welfare of the society which restrains individual and corporate behaviour from ultimately destructive activities, no matter how immediately profitable and which leads in the direction of positive contribution to human betterment.

The idea of social responsibility recognizes that each person is attached to an extended social system on which he or she is partly dependent. Consequently, certain obligation or social responsibilities arise from this attachment. Business people should also consider the needs and interest of others that might be affected by their actions.

Public needs have changed and this has led to changed expectations. Society gave business its charter to exist and the charter can be amended or revoked at any time that business fails to love up to society expectations and need.

The creation of a better social environment benefits both society and business. The society gains through better neighbourhoods and employment opportunities cleaner and safer neighbourhoods on the other hand mean a more stable community in which to operate. Fewer unemployed persons reduce the chance of social unrest’s and provide additional incomes to purchase the firm’s product or services. It is better than they (society) should reap from the surplus generated by the organization in which they have given their best.

1.1 BRIEF HISTORY OF THE CASE STUDY

Organization is a multinational company and are establish in many part of the world including Nigeria.

The company went on to create more branches. One of these branches is resided in Enugu State, Udi local government area of Ameke Ngwo, along Nsukka express road. It was established in the year 2001.

Over the years, the company diversified and expanded it operations to the production and marketing of drinks. This product include 7up, pepsi cola, mirinda, team.

The company is fully committed to backward integration and self sufficiency and has made considerable progress in its effort towards satisfying customers need.

7up Nigeria Limited range of quality products id distributed and sold at uniform and affordable prices all over the country through an established and tested distributors, supervised by a well trained sales force.

The company has a direct staff of about 980 in this sites and various distribution points throughout the city.

The company’s goal is to lead in all its core markets it’s fast moving consumer’s product and achieve strong profitable growth by being the best at identifying and meeting consumer’s need through delivery of superior value products.

The company shall leverage its heritage for its employees and environment sustaining positive partnership with its suppliers and customers whilst maintaining high ethical standard in corporate behaviour and will represent a secure valuable and growing asset to its stake holders.

7up Nigeria limited has been dedicated to the production of top quality brands for Nigerian for over many years.

1.2 STATEMENT OF THE PROBLEM

This study titled “Fulfillment of social responsibilities as a business survival strategy” attempts to determine how an organisation such as 7up bottling company plc fulfilling its obligation to the necessary stake holders can serve as a strategy for carrying out effective business activities peacefully.

Most times, all these claims made by the various stakeholders are two much on the organizations in that organizations cannot solve all society’s problem with their limited resources, yet they are expected to get actively involved in getting them solved. In trying to ease the load, most organization indulge in some unethical acts which most time fire back at them. In the case of the organizations social responsibility to the government, which include paying of tax and other financial obligation. Most times organizations neglect this obligation and allow these financial obligation to accumulate. Government enact rules and regulations which seem to be costly to business and restrict flexibility in decision making.

In trying to avoid the wrath of the regulations on them most organisation give part of the accumulated financial obligations to some set of people as bribe which of course will not be recorded anywhere.

But in the long run, when the records will be reviewed those organisations will still be seen as owing.

Likewise, in the community, most times organizations or firm are given a particular area or zone where they site their organizations or firms. But most times, some organisations bribe their ways and site their firm in the residential area. Their waste products pollute the environment which can cause hostile actions from the community and which will affect the organisation because the organisation needs a conducive environment for its activities.

The stakeholders makes ambiguous claims which the organisations cannot solve with their limited resources.

Most organisation indulge in some unethical acts which most times fire back on them.

Government enact rules and regulations which seems to be costly to business.

4. Some organisations site their firms in the residential area and their waste products pollute the environment.

1.3 OBJECTIVES OF THE STUDY

The primary purpose of this study is to determine and identify the impact of fulfillment of social responsibility in 7up bottling company plc.

In more specific terms, other purposes include:

To find out whether fulfillment of social responsibility can contribute to business survival.

To find out modalities adopted by 7up bottling company plc fulfilling its social responsibility to its environment.

To determine the importance derived from the fulfillment of social responsibility.

To determine the various ways by which organisations can carry out their social responsibilities to their environment.

To identify the adverse effects of non-fulfillment of social responsibilities.

To proffer to problem area where deficiency in the fulfillment of social responsibility dominates and also proffer ideas that will help 7up bottling company plc in fulfilling its social responsibility to its various stakeholders.

1.4 RESEARCH QUESTIONS

Fulfillment of social responsibility has contributed greatly to business survival of organisations especially for organisations with long term plan. This is so because if an organisation folds up before the long or medium run because of a hostile environment caused by non fulfillment or social responsibility all the efforts geared towards survival in the long run becomes frailties.

In view of this study, the following questions should be asked to address the following central issues.

How does the organisation utilize the usefulness of fulfillment of social responsibilities?

To whom is the organisation socially responsible?

What do the organisation and its environment expect from each other.

How does the environment define social responsibility?

What particular responsibility should be given priority?

What is the need of social responsibility to organisations?

Why is social responsibility regarded as a business survival strategy?

1.5 HYPOTHESIS FORMULATION

Hypothesis as we all know is an intelligent guess. A tentative statement, and a conjectural statement of the relationship between two variables. Therefore the hypothesis of this study were stated as follows:

Ho: Social responsibility has not helped in development of host community.

Hi: Social responsibility has helped in development of host community

Ho: Social responsibility has not improved seven up bottling company service to customers.

Hii: Social responsibility has improved seven up bottling company service to customers.

Ho: Seven up bottling company has not contributed in solving unemployment problem in the host community.

Hiii: Seven up bottling company has contributed in solving unemployment problem in the host community.

1.6 SIGNIFICANCE OF THE STUDY

In essence, research work is aimed at serving certain significance in relation to individual, group of individuals or a particular event.

The significance lies in the fact that the success of an organisation in business survival in its environment. The business survival is dependent to a large extent on fulfilling the organisations social responsibility to its environment.

The community, managers and organisations are conscious of the spirit of give and take existing between the business and its environment and demand strongly that the role of business should not only concentrate on rendering services to customers and paying dividends to shareholders but also should focus attention to the needs and aspirations of factors within its environment. As a result of the above, fulfillment of social responsibility is very significant towards the survival of business.

Seven up bottling company plc should be socially responsible to its stakeholders in order to enjoy business survival. The result of the study is significance to both the organisation and its environment. It will enable the organisation after carrying out its social responsibility to boldly demand and enjoy the obligation of the environment to the organisation.

1.7 SCOPE OF THE STUDY

This study is aimed at investigating the fulfillment of social responsibility by an organisation to its environment. The aim and objective of the researcher is to discover the effects of fulfillment of social responsibility by some organisations to their environment. It is narrowed down to the activities of seven-up bottling company plc as a case study. The study goes further to bring into focus some of the problem associated with non-fulfillment of social responsibility by an organisation to its environment.

1.8 LIMITATION OF THE STUDY

Not withstanding the area of the study covered during the research was greatly affected by certain constraints, which become unavoidable within the time limit.

Time Constraint: The research was constrained by the time limit. This posed a threat to the successful coverage intended in the course of this study.

Cost factor: It is not usual that the prevailing economic predicament posed to a great extent, a problem in procuring the whole material. Information needed and other relevant statistical data. However, the researcher was able to scale through the hurdle in availing herself of the relevant data contained herein.

Notwithstanding the foregoing limitation associated with this study, the project was well conceived and concluded to serve the purpose for which it is intended for.

1.9 DEFINITION OF THE TERMS

Social Responsibility: This is an attempt by business organisation to compensate and live up to its obligation to those who have helped in one way or the other.

Stakeholders: These are the various groups to which an organisation is socially responsible.

Organisation: This refers to seven up bottling company plc.

Back fire: The organisation later suffer the consequence of non-fulfillment of social responsibility.

Unethical: Not a moral act or an underived behaviour.

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