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IMPACT OF SOCIAL RESPONSIBILITY ON BUSINESS PROFITABILITY

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND TO THE STUDY

A business organization is set up primarily to produce goods and services to the entire community with view to know the environment in which the goods and services are produce and the existence of social responsibility on business profitability. It has been asserted that people want social and economic justification from the existence of a business enterprises these justification result consumption of the consumers and the maximization in organization profit. Human resources are used in the production of goods and services there should be consideration of conduction from the organization and management if they want to realize full potential in there work.

The performances of this employees will determine the effectiveness of the product in the society they exit in order to make sure that people are employees to contribute their maximum usefulness to the productively objective certain things need to be done to ensure profitability on business. Among the various that generated so much heat record times is the question of social reasonability. It also include what should be the social obligation of such firm in order to maximize profit, this issues has become much more important since at clear to general public that firms must rendered or contribute quota to the community in order to safe guard the image and goods will of the firm.

1.2   PURPOSE OF THE STUDY

The main purposes of the study are as follows:

What are the impacts and effect of social responsibility. Is there any benefits divided from beings socially responsible. To make recommendation and suggestion on how to improve on the performance of the organization. 

1.3   SIGNIFICANCE OF THE STUDY

Social responsibility on society enhance in organization is a significant at the time a properly constructed socially activities will have an immediately of impact in host community, the generation of profitability maximum an in the longer the customer loyally to the organization is another measure to ensures that the present of an organization in any community is not misunderstood by the community members. Thereby results in hostility and prejudice on the other hand also is the need for good employees relations it is the duty of any organization to help is staff members to perform their role with optimum efficient.

A business organization, like other legitimate set up is given freedom to exist and to operate toward some legitimate objective; the opportunity cost of is contribution of such organization to the development if its society. Today it is clear that the terms of the changing substantial and important ways. Business is being asked to assume broader responsibilities to society than ever before to serve a wider range of human value.

1.4   SCOPE OF THE STUDY                             

The scope of this study focuses and center around Nigeria. Bottling Company Plc, been one in the business, similarly it as also in the particular focus the public affair department responsible in dealing with Company Host Communities. It’s very important to note that this department will be the only arm of the company that will serve to a large extent of a purpose on this research work.

1.5   LIMITATION OF THE STUDY

1.  Financial constraint and times were the most serious limitation of the study these two factors make it impossible for the study of cover all categories of Nigeria Bottling Company in all only bottling plant was covered.

2.  The research cover only a branch office i.e. Coca-Cola Bottling Company Lagos. How socially responsible the plants was and its impact on business profitability. The research did not extend to braches of Coca-Cola bottling company.

1.6   RESEARCH HYPOTHESIS

To make this study a successful one, it would be better to put in place testing of the hypothesis.

1.  Ho: There is no significant relationship between social responsibility and business profitability   

  H1: There is significant relationship between social responsible and profitability on business   

2. Ho: There is no significant relationship between social responsibility on the business and organization profitability

  H1:There is significant relationship between social responsibility on business and organization profitability

1.7     HISTORICAL BACKGROUND OF NIGERIA BOTTLING COMPANY

Nigeria bottling company, the largest of non-alcoholic beverage in Nigeria has its operation dated November 1951 when it was incorporated as a subsidiary of A.G. Leventis Group and given the franchise to bottle and sell Coca-Cola products in Nigeria. In 1972, it became a public with its shares listed on the floor of the Exchange. NBC kicked off as a family business and has metamorphosis into a soft drinks company. It is a subsidiary of the Coca-Cola Hellenic Bottling Company (CCHBC), the emerging company in the merger of Hellenic Bottling Beverage Company Plc in 2000. NBC is capitalized to the time of #62.33bn (US$556.50) with outstanding shares of 1.3bn and accounts for about 8.72 percent of industry market capitalization.

Analysis of shareholdings reveals that CCHBC has a controlling equity stake of 55.81 percent through Molio Soft Drinks S.A. Luxembourg and 10.62 percent through CCBC service limited Ireland while the remaining holdings directors and other shareholder. From a single manually operated bottling facility with a production capacity of a few dozen cases per day within the basement of Mainland hotel in Oyingbo, Lagos  in 1953, NBC currently  operates 13 bottling plants with over 80 distribution warehouses, 250,000 sales outlets and a 6,000 employees across the country. Inception and he second largest in the African continent commanding average annual sales of 1.8 million bottles up to 1.0 million cases in 1960. with 5 subsidiaries and 4 associated companies, NBC manufactures and sells over 33 brands: Coca-Cola, Spirte, Schweppes, Soda water, Crest, Eva water, Cappy juice, 5 Alive etc.

1.7.    DEFINITION OF TERMS

In carrying out survey on a particular project some of the following key items have to be defined and it is as follow:

Impact: This is the effect of what the situation being about on a particular issue of discussion.

Social Responsibility: Is an ethical or ideological theory that an entity whether it is a government, corporation organization or individual has a responsibility to society at large

Profitability: Refers to motive behind setting up an organization, also the aim of any establishment is to maximize profit.

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