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Dissertation Declaration
I also clarify that I have taken a copy of the dissertation, which I will retain until
after the Board of Examiners has published the results, and which I will make
available on request in pursuance of any appropriate aspect of the marking
and moderation of the work within the University Regulations.
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List of Figures and Tables
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Abstract
Stakeholders demand corporate social responsibility globally,
increasingly in the 21st century due to the effect of business activities on the
environment. However, multinational companies have applied the social and
economic tool into their businesses. This begs the question, what roles do the
small businesses have in the forward integration of corporate social
responsibility. This paper discusses this question in respect of how it impacts
the effectiveness of organisations if adopted, particularly from the perspective
of small firms in Nigeria petroleum industry.
The findings show that, the decision makers of these small firms
control the decision to adopt the corporate social responsibility and
organisational effectiveness which is seen differently from each
management’s point of view as shown in both literature review and findings.
That is, the owners and managers decide on the system that works for them
as long as they achieve organization’s objectives, therefore, that working
system is an organisational effectiveness tool.
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Acknowledgement
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Chapter 1
1.1 Introduction
According to Ashraf et al (2012) and Ekuma (2015) 21 st century
marked the high point of which organisational effectiveness is important for
firms to operate and compete effeciently in the global business environment
due to the dynamic nature of most industries. This is due to most successful
firms finding out that, meeting their objectives and goals with the attitude of
the end justifying the means is becoming insufficient as stated by Martz
(2013) and Mitchell et al (2011), and that the process leading up to the
production and delivery of goods and services should be focused on, as this
influences the transactions through the consideration of the employees
decision, safety and welfare, customer relations such as consideration of
feedbacks and market research, also the ethical side of every stage of the
processes leading to the finished goods and services that satisfy the
consumers (APHSA, 2012) and Ashraf et al (2012). However, the
consideration of these factors that influence the processes that drives
organisational effectiveness particularly in the 21st century business world is
corporate social responsibility (Doda, 2015). As a result Aguinis et al (2012)
and Kotler et al (2011) stated that, the ability for a firm to integrate corporate
social responsibility into their business activities would have an effect on
effectiveness within the organisation. However the extent to which the impact
is evidently seen depends on the firms’ handling of the situation as stated by
Ekuma (2015), which can be as a philanthropic activity, a business strategy or
doing what is right by the stakeholders (Kotler et al, 2011).
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effectiveness, the link between both subjects through theories and practical
examples towards contribution to existing gaps in the field. Chapter 4
describes the methodology approach applied to the study, the evaluation of
reason behind the chosen research method, sample and sampling method,
research setting and data gathering method. More also, this chapter entails
the ethical, reliability and validity nature of such study as this dissertation.
Chapter 5 detailed the findings gathered from the respondents interviewed
and evaluated in the discussion. This is done accordingly to the objectives of
the study. Chapter 6 and chapter 7 discuss the summary of the study and
recommendation applicable to study respectively. Chapter 8 is a personal
development plan about the researcher’s present situation, goals and
objectives and attaining this targets.
Background
1.3 The small sized organisations in Nigeria
As discussed by CMI (2013) and Smith (2013) small businesses
consist of less than a thousand employees. However, Olabisi et al (2011) and
Mottershead et al (2015) claimed that the size of a business is difficult to
distinguish because; factors such as revenue, asset, size and investment
expenditure are quantitative in nature, requiring the public to possess specific
knowledge to compare the identified firms. Although Olabisi et al (2011)
further argued that, small businesses in an industry such as the petroleum
industry in Nigeria employees fall between 11 to just over 100’ in correlation
with the national classification established by (MSME, 2014) and (Ayyagari et
al, 2011). Furthermore, according to Baumann-Pauly et al (2011) and Pratten
et al (2014) these small businesses lack the capability to effectively attain
competitive advantage as much as larger businesses in relation to the
adoption of CSR towards the acquisition of increased customer base due to
the fact that, decades of business operation majorly controlled by
multinational organisations created a particular culture in the present business
climate in the Nigeria petroleum industry whereby; larger firms are effectively
edging out smaller competitors with the adoption of corporate social
responsibility as an economic tool (Quairel-Lanoizelée, 2011).
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1.4 Statement of problem and significance of study
Some firms and stakeholders alike seek the improvement of
organisational effectiveness in the Nigeria petroleum industry due to
continuous increase in negative externalities experienced by the environment
form the operations of the small retailers and larger firms geographically.
Moreover, small firms are of greater concern due to personal connections with
the local population and expectations to do business without hurting the local
areas, which these stakeholders reside. However, these small firms
contemplate on the benefits such as profit, skill set, public image and cost
reduction towards the competitiveness against larger firms that seem to have
less connection to particular stakeholder, hence, the less scrutiny into their
business operations.
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1.9. Summary
This chapter introduces the study with a background about existing
understanding of the topic and variables, which are, corporate social
responsibility, organisational effectiveness and the relationship between both
variables. As detailed in the structure of the dissertation, this chapter details
the statement of problem and significance of study, context of study, aim of
research, research objectives and overview of methodology as insight to the
rest of the study.
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Chapter 2: Literature review
2.1 Introduction
Although Rotberg (2015), Hagher (2011) and United States Institute of
Peace (2011) agreed on the notion that the Nigeria petroleum industry is tied
to a substantial amount of corruption, it has been drastically reduced and fight
against corruption has been increasingly evident in the affairs of the country in
the 21st century. However, Donwa et al (2015), Mohammed (2013) and Ihua
(2010) on the other hand stated that, the small firms in the Nigeria petroleum
industry operate in an economy with constant practice of uncertainty in
political affairs, mismanagement of governance and the economy, externally.
As a result, Dalberg (2011) stated the need to focus on these particular firms
due to their numbers in the economy, which is over 90% (Beck and Cull,
2014). Therefore, this chapter aims to discuss the current situations these
small firms are in, the effect of these situation of their ability to be effective in
the industry and economy overall, also the social and economic tool that can
help reach this target. This is underpinned with models that provide methods
to reaching the target and others that support the small firms’ current methods
of surpassingly achieving their goals.
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firms as major competitors with the capability over smaller firms and in order
to minimize this competitive advantage, seek to adopt the same economic tool
while simultaneously guiding their operations with positive repercussions on
the environment (Jackson and Apostolakou, 2010).
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reflects the reason firms set up shop, which is to earn profit and stakeholders
expect this to serve as incentive for firms to effectively produce products and
services of a certain quality that satisfies the need of the market. Secondly,
the legal responsibility level shows that, firms should be willing to comply with
the law, as this is required to integrate corporate social responsibility into
business activities. (Klonowski, 2014) and (Velentzas et al, 2010). According
to Schwartz (2011) the ethical responsibility stage is most important to
stakeholders as an appropriate initiative of this role by firms protect their rights
morally. As a result, it is expected that firms, show great concern for dealings
with shareholders, employee, customers and environment in general (Gond et
al, 2010). As stated by Lim (2010) this level of activity is less important to
incorporate corporate social responsibility because, it functions to polish the
ethical activities that is, even after meeting the ethical obligation, some
stakeholders desire betterment of livelihood from organisations through
activities such as charity givens and employment creation. In a nutshell, firms’
adoption of corporate social responsibility depends on how adequate each
stages of the hierarchy are carried out as this eventually leads to a more
productive and profitable outcome for concerned businesses.
Value
Belief
Assumptions
Figure 2. Proposed model of CSR
In the light of establishing the notion that if small firms in Nigeria integrate
corporate social responsibility into heir business, it will influence effectiveness,
the criticism of the Carroll’s model of CSR adopting theories such as
Legitimacy model of CSR, Stakeholder model of CSR and Signaling model of
CSR aims to argue the notion.
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2.6 Legitimacy model of CSR
According to Deegan et al (2011) and Summerhays et al (2012) this
model of corporate social responsibility is applied to possibility of adopting
corporate social responsibility due to the fact that is establishes the
connection between firms, the industry in which they operate and the society
at large through a social obligation which the firms are held accounted for
towards the industry, the industry of collective organisations towards the
society (Degan, 2013). However, Belal (2012) and Wangombe (2013) stated
that, this model basically explores the concept of achieving organisational
goals with not necessarily ethical means, as long as, it yields favourable
outcome in form an acceptable illusion of balanced ethical approach whereby,
the society seems to accept the firms’ supposed code of ethics even though
the process involved is vague.
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Firm
Primary Stakeholders:
employees, investors,
suppliers, customers
and the society
Secondary Stakeholders:
Government, rivals and the
media
Franch et al (2010) and Eshun et al (2011) also backs this notion up with
referencing the same allocation of the members the primary and secondary
stakeholders group consist of, and that, their importance stems from the fact
that, the primary faction is directly influencing the operation of the business
through the skills, infrastructures, materials, demography, market, laws and
tax policies. While the secondary stakeholders are usually affected more by
the operation of the firms because this group are more of the general public
that are less likely to transact with the concerned firms therefore, have less
influence on the survival of said businesses (Franch et al, 2010). Although
there seems to be a divide in the target to which firms create value, the
assumption is that, the relationship firms establish with stakeholders should
be treated as a section of the firms’ operation that is regularly accessed for
new developments, maintained and improved upon if necessary. However,
the divide helps the new development part in the sense that, there are more
stakeholders taking into consideration whom are relevant in a more effective
tackling of social problems. More also in contrast to Franch et al (2010) and
Eshun et al (2011)’s argument, Mole et al (2013) and Sanda et al (2011) claim
that complication is most likely to arise in the process of adopting the
freeman’s stakeholder value model of dividing the targets and focusing on
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them with certain approach. This is because, the priorities and organisational
goals as small firms are limited to certain level of competencies (James et al,
2014).
2.9 Summary
This chapter emphasized on several important points relevant to this
study such as, the need to fully comprehend the link between the variables of
the study, that is, corporate social responsibility and organisational
effectiveness due to their importance in the 21 st century society. However, the
generally accepted measurement of organisational effectiveness is non-
existent. More also the theoretical perspectives that establish the relationship
between the variables of the study, establish the implications for small
retailers in the Nigeria petroleum industry if the relationship is exploited.
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Chapter 3: Methodology
3.1 Introduction
This chapter of the paper shows the sole purpose of analyzing the
methods and ways of study adopted in the light of establishing a connection
between the implementation of corporate social responsibility and
organisational effectiveness of an organisation, particularly if small firms in the
Nigeria petroleum industry carry out the implementation. In addition, this
chapter aims to present the selected samples, the methods adopted in the
choice of selected samples and the mechanisms applied during the gathering
of data. Furthermore, this chapter also includes the research design, analysis
of gathered data and forms of data gathered.
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normality of interpreting every data collected from a primary source such as
an interview, which is adopted in this study. Whereas, quantitative approach
to research design as stated by Karlsson et al (2011) stands out for its
objectivity in nature through the interpretation of collected data in form
statistics which is adopted for hypotheses tests (Castellan, 2010).
The problem this study explores is the notion that, corporate social
responsibility has an impact on organisational effectiveness, particularly if
adopted by small firms in Nigeria, a notion backed up by (Olusanya et al,
2012) and (Igwe et al, 2015). However, due to the quantitative approach
adopted, the studies accounted for problems from a statistical point of view of
small firms in Nigeria generally, which are more complicated to small retailers
in the petroleum industry and requires more personal information from the
reality of owners and managers directly. Hence, the study is approached with
Mahmood et al (2013)’s argument that the adoption of qualitative research is
necessary to address such issue on a more direct level. That is, little or no
study explore the gap in relation to the small firms in the petroleum industry as
stated by Frynas (2013) and those that do base this on a quantitative
approach which is the reason for adopting qualitative approach in this study
as to situate the argument that quantitative approach lacks the capability to
decipher attitude, beliefs and suggestions of the respondents (Ellis, 2016),
(Zikmund et al, 2012) and (Taylor, 2013). Furthermore, since the objectives of
the study is to investigate and understand the reality these small firms face
when it comes to corporate social responsibility, organisational effectiveness
and a link of both, Öberseder et al (2011) and Thiel (2016) stated that, the
usage of qualitative design is best to measure the capability of small firms to
adopt corporate social responsibility to influence organisational effectiveness
since there are no established measurement for firms in the petroleum
industry as stated by Oladimeji et al (2012) and numeric indicators for how
effective small organisations in Nigeria are after adopting corporate social
responsibility is rarely published for public knowledge as stated by Usman et
al (2015) and Uwuigbe (2012). That is, the reality the owners and mangers
face, from the responses should be used as the measurement for the problem
statement as stated by Rich et al (2014) and Cary (2014) which correlates
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with the grounded theory provided by Tavallaei et al (2010) which allows for
the study to adopt open ended interview questions to support the
measurement of the problem in this research as long as other measurement
or theories are achieved from the analysis of the findings.
3.3 Sample
The sample used in this paper involved the participation of 5 different
managers and 5 owners of small businesses in the Nigeria petroleum
industry. According to Mason (2010) and Baker et al (2012) extensive
research shows that, several authors while engaging in analysis equipment to
estimate minimum sample size for an interview in a subsequent manner,
concluded that, participants few as 3 remains valid for consensus and sample
size much as 10 in an interview is used by several researchers in several
studies which makes the sample size chosen for the study appropriate
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because as stated by Barnett et al (2012), the number of targeted participants
are minor concerns for qualitative research studies but key to attaining a
diverse sample for solely quantitative measures which is irrelevant to this
study (Charan et al, 2013). Naturally, interviews are carried out in an in-depth
manner to expatiate on the subject for possibility of discovering up-to-date
theories, subject matter and links (Edwards et al, 2013) and (Turner, 2010).
Moreover, the selection of 10 participants for the interview, is subjected to
acquisition from several diverse locations around the country, difference in
size and industry age or experience of each firm which as stated by Gearity
(2011) and Alvesson (2011) satisfies the level of saturation, which both
authors define to be a level where all the questions initially presented to
participants is adequate, resulting in no need for further investigation.
3.3.1 Sampling
The sample indicated in this paper involves the selection of various
managers and owners major regions in Nigeria, that is, northern, southern,
eastern and western locations with one small firm having multiple branches
across these regions. This was possible with input of family connections to
this particular industry, in which, over 16 samples and 30 samples were
offered for the qualitative research, but streamlined to 10, based on relevance
and determination to acquire accurate data. This size of the sample employed
proves relevant since the purpose of the paper is to investigate the areas the
interviews were applied. More also, the convenience sampling favoured this
research since the most important participants are located in the rural areas
where small retailers set up and exploit the most even though Suen et al
(2014) stated that more qualified individuals tend to be excluded when
convenience sampling is adopted. That is, adopting random sampling
provides less bias views and reaches a wider population as stated by Finch
(2013). However in the case of this study, the time allocated to undertake the
research and cost of making international calls constrained the ability to adopt
the random sampling (Etikan et al, 2016). Besides, the major targets of this
study are rural area occupants, which the study already achieved from the 10
participants that happened to be reached conveniently.
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In addition, Mason (2010) and Baker et al (2012) stated that, qualitative
interviews are made up of little sample size. Hence, the sample excluded the
rest of the 6 out of the offered 16 in regions within the major locations.
Particularly, due to the externalities impacted on the society, the petroleum
industry in Nigeria, which is relevant to the study as indicated all through this
paper with an overall objective to satisfy stakeholders since the ability to keep
stakeholders satisfied hails from environmental and economic factor such as
capability to incorporate corporate social responsibility into business activities.
However, these are best exemplified when the owners and mangers of these
small businesses are determined to prioritize organisational effectiveness.
Hence the adequacy of the petroleum industry to aid the identification of how
important improving organisational effectiveness is especially if corporate
social responsibility is considered in such context. In addition, the interview
included open-ended questions with the aim of getting an overview and extra
comment about the understanding of the issue and getting an idea of factors
influencing the views of the respondents.
Furthermore, the interview was conducted over the phone since the
interviewees are located in Nigeria while the interviewer studies in the United
Kingdom. More also, the question asked were about organisational
effectiveness and corporate social responsibility. As a result, the collected
data was detailed and relevant to information provided by journals in respect
of the subjective social responsibility that the owners and managers
experience and a potential effect on effectiveness within the firm. Moreover,
journals and interviews aided the captivity of various ideas from each
participant’s point of view on the phenomenon that is, implementing corporate
social responsibility. In order to ensure the validity and accuracy in the data
collected, some of the interview questions are derived from a similar method
in existing journals in which Holtschneider (2015) and Floyd (2015) set their
questions for a similar topic area. In addition, through these questions, the
owners’ and managers’ view on the capability and competency to adopt such
a phenomenon were obtained.
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3.5 Data Analysis
The analysis approach in this study is a descriptive one for organising
the collected data. According De Hoyos et al (2012) and Lambert et al (2012)
the justification for this approach is based on the notion that when inductive
approach to research is adopted, the collected data needs to be organised
categorically. As this is the case in this study, the exploratory open-ended
interview responses were arranged to align with the set research objectives.
More also, the category in which the responses are arranged in this study is a
narrative approach which as stated by Robert and Shenhav (2014) is open in
nature but allows for underlining of level of importance of points relevant to
the research objectives even though the only criticism found is stated by
Hunter (2010) claiming that, narrative approach is exclusively subjective and
difficult to measure quantitatively which is good for the purpose of this study
as identified by Robert and Shenhav (2014), quantifying is a less viable option
for a research of this magnitude. In addition to this, Kalogeras (2014) stated
that, narrative approach to this study could measure the real life problems
such as the organisational effectiveness form the perspective of the
participants which supports the grounded theory by Tavallaei et al (2010) in
the research design that the data gathered may become viable as a measure
for the variables (Kelly, 2010).
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August 10, 2016 and August 23, 2016 with 20 to 40 minutes conversations,
depending on the respondent’s capability to answer the questions openly
3.6 Ethics
In order to ensure an ethical groundwork, each participant was given a
form of consent, which was collected prior to the distribution of interview
questioning which can be seen in Appendix A section. This action is backed
up by Oates et al (2010) and Roache (2014) to signify that, potential
respondents need to be informed prior to any study with the aim of the
research, benefits and rights. That is, respondents were aware of the
voluntary state and have the option to cease progression at any period.
Furthermore, anonymity was prioritized throughout the research, which
established the reason for labeling participants as owners and manager 1 to
10.
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3.8 Pilot interviews
In order to ensure less or no issue with obtaining accurate data and
having a clear picture of the interview questions to be used for the actual
study, one pilot test was carried out with two supervisors and a manager
which resulted in two bias responses and one acceptable response. Although
due to time constraint, there was an addition on two questions and other sub
questions to the interview used for the collection of data.
3.9 Summary
The exploration of this study is undertaken based on a qualitative
approach with the support of the grounded theory and inductive approach,
which allows for measuring proposed variables of the study based on the
reality of the business operations. As a result, a convenience sampling of 10
respondents in the Nigeria petroleum industry were gathered for interviews
from majorly, rural areas of the country. The interviews carried out were
guided by the notion to remain categorical to align the responses with the
research objectives.
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Chapter 4: Report findings and Evaluation of findings
4.1 Introduction
As shown in the literature review chapter of this paper, a standard
measurement of the variables in this study are non-existent which beckons
the reason behind the evaluation of the owners and managers’ perspective
because it is stated in chapter 2 that the measurement of the variables is cut
according to each firm’s situation (Lawler et al, 2011) and (Haid et al, 2010).
Therefore, this chapter aims to explore the understanding and situation of
owners and managers of small firms in the Nigeria petroleum industry and in
order to do this, the interview questions were modified from existing literatures
such as Holtschneider (2015) and Floyd (2015) to align with the research
questions in the same order stated in chapter 1.
Furthermore, as stated in the methodology chapter, respondents are
5 owners and 5 managers of small retailers in the Nigeria petroleum industry
due to their decision-making status in the company. Therefore, the open-
ended interview best explores the perception and reality of the firms’ decision-
makers because, the owners and managers are conditioned to express
opinions and experience in detail about the reality they faced when dealing
with organisational effectiveness, corporate social responsibility and their
relationship at any particular period in time. Based on the discussion in the
literature review section to structure the interview using the research
questions, the responses were categorized with the same method by
structuring the report findings and discussion under this chapter based on the
three objectives explored in this study. In addition to this, data analysis is
done descriptively in the sense that, enough time was ensured to note down
all statements for further evaluation in order to obtain accurate information
necessary for the study.
4.2 Demography
The participants of this study including 5 owners and 5 managers of
small retailers in the Nigeria petroleum industry are the demography variable
for this study which is based on the ability include small companies with
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different sizes and experience which, is the number of years they have been
in their positions, the industry and are aware of a portion of the topic. As a
result, several participants with over a decade and less that oversee
employees ranging from 5 to 95 employees were involved. Moreover, having
at least one woman was a target in a men dominated sector. However, two
women were found. The sample in the table below shows the demography
targeted for the interview including (8 men 2 women) with an average of 10
years in the industry.
Table 1
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world, in which, several answers were given. These answers as noted,
showed that the participants understood the phenomenon and discussed
scenarios in their business activities which corporate social responsibility is
hypothetically applied. Moreover, some of the participants describe business
situations in which being socially responsible had an impact on customer
relation, public image and avoiding fines. This means that corporate social
responsibility is the ability of people to identify the need for respectful, ethical
and diligent approach in relation to dealing with another party in order to avoid
or minimize externalities or negative repercussions. However the sub-themes
for this question based on Carroll’s CSR model are CSR for profit, CSR for
stakeholders and CSR for both profit and stakeholders.
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4.4 Limitations faced by small firms in the adoption of corporate
social responsibility
In order to understand the limitations or factors that affects the
possibility of firms adopting corporate social responsibility, the owners and
mangers of the small firms in the Nigeria petroleum industry were asked to
give examples of situations where corporate social responsibility has or might
fail them because this seems to be a major limiting factor along with decision
makers’ priorities to the adoption of corporate social responsibility. The aim of
this question as shown in Appendix B was to understand if there are more
complex powers in play because evidence in the stakeholder theory of the
literature review section as an instance, show that there are benefits to
adopting corporate social responsibility. However, the responses form the
interviewees suggest that the owners and managers are resistant to change
in general especially if the bigger firms are not taking on the initiative to
integrate the change first, as this might result in no difference between those
firms who have adopted the initiative and others who refuse to. That is, more
spending just to keep the same level or less competitiveness in the market in
a situation where proper implementation is not in place.
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“in my first two years as a manager, i employed undergraduates and
graduates in attempt to boost the company’s capability, they ended up leaving
after a short while which disrupted the stable feeling the company used to
have”
To support manager 5, owner 2 stated that,
“since I entered the industry, I have set up over 10 retailing outlets which
some failed to progress because I was trying to do something different from
the already successful one in the light that, if I did something different such as
emulating retailers in the developed countries I would then transfer the
innovation to my entire organisation. This did not work because I should have
known that it is adamant to have an aligned overall values and goals in all
aspects of the business”
More also, owner 1 and manger 3 alike expressed the opinion that this
successful integration of corporate social responsibility is possible in the
future because we are in an age where people are becoming aware of it. An
example from the statement of manager 1 was that,
“sometimes there are some people who come around the workplace to seek
finance for the repair of the roads that lead to and from the retail outlets
because, this people believe the petroleum trucks are responsible for the
initial damage”
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Manager 4 said that,
“he and his employer alike took note of times when they were under scrutiny
from specific activities and decided to keep the people who helped them out
of the issue on retainer”
4.6 Limitations
This study was limited to particularly specific locations due to the
number of employees available. In addition, attempts were made to involve a
sample that cuts across several local regions, but small sample of 10
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interviewees was obtained which is due to the size of the small firms in the
Nigeria petroleum industry, location, disinterest, privacy concerns, availability
physically to take part in the study, literacy and the time limit set for the
completion of the study which some potential participants could not fit into,
some potential participants were unable to be reached.
4.7 Discussion
4.8 Summary
This chapter of the study analyzed the correlation between corporate
social responsibility and organisational effectiveness. However, the
management, due to what works for them as an organisation defines the
relationship and the form it takes in each firm, which in the case of the Nigeria
petroleum industry, is the current situation that keeps them healthy financially
as a small business can be in such industry. That is, the stakeholders due to
their size have less impact on this relationship. As a result, even though the
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awareness of corporate social responsibility is there, the influence of
leadership in these small firms hinder the possibility to adopt corporate social
responsibility, which will ultimately a future research to if effectiveness within
small organisation is adamant when corporate social responsibility is adopted.
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Chapter 5
5.1 Conclusion
The aim and objective in which this research set to achieve have been
accomplished in sections consisting of a literature review chapter to analyze
the existing studies and models in the subject area, a methodology section
that details the methods adopted through interviews for research to attain the
outcome evaluated in the findings. Particularly, the research established that,
small firms in the Nigeria petroleum industry understand the impact of
corporate social responsibility even though most of them view the
phenomenon as a drive for undesirable change at a certain period in time.
Additionally, the study showed the importance of these small firms,
collectively as an organisation and industry adopting corporate social
responsibility for the potential improvement of their effectiveness such as
being ethical in the processes that lead up to delivering what the environment
need. Although, the impact of corporate social responsibility on organisational
effectiveness of a firm is indicated in the study, the findings illustrate the
respondents’ answers identifying their capability to meet organisational
targets with current balance within the workforce and relationship mostly with
the locals as enough criteria to be effective as a small firm in the Nigeria
petroleum industry.
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corporate social responsibility. As a result, these firms are expected to
understand and follow the law even though making profit is fundamental to
their objectives as the society approves of firms that show the initiative of
being responsible in an ethical manner which can be in acts of improving
quality of livelihood by giving back to the society through charities,
employment and infrastructures. However findings in the literature review
criticized any situation where the Carroll’s model of CSR is implemented due
to legitimacy concerns, that is, if small firms in the Nigeria petroleum industry
adopt the Carroll’s model of CSR into business operations, there is no
evidence that supports the right reason for doing so since economic, legal,
philanthropic and ethical approach of the model have one common factor in
correlation, which is to increase the wealth of the concerned firms. As this
factor supports the current business situation in the industry and economy
alike whereby, profit is prioritized over the respect to do right by stakeholders.
However, if these firms are willing to align the economic, legal, philanthropic
and ethical approach of Carroll’s model with their goals, the signaling theory
suggests that welfare of stakeholders should be included in the decision to
adopt corporate social responsibility through any model possible due to the
fact that, the stakeholder theory sheds light into a probability of uproar against
the methods in which a particular firm decides to transact in the economy. As
a result, the stakeholder theory assumes that these small firms will have it
easier to adopt corporate social responsibility if there is a grouping for the
level at which the stakeholders are important to the business for specific
economic and social service to satisfy each targets. This is further due to the
21st century dynamics of people becoming aware of direct and indirect effect
of the operations of business on their livelihood thereby demanding that firms
take this into perspective by reviewing the methods in which they produce and
deliver goods and services from caring for the staff directly and indirectly
producing the products and services to the materials that go into the
productions, the location in which extractions and company infrastructures are
placed, finally the effect on stakeholders, that is, less or no negative
externalities that in turn causes harm to the public environment within the
country and globally. Hence, stakeholders’ uproar tends to lead to scrutiny of
company’s dealings, loss of finances, less support from stakeholders and
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closure in the long run in an ideal economy. The implication of these methods
to adopting corporate social responsibility as shown in the literature review is
that, small firms in the Nigeria petroleum industry will begin to re-evaluate
goals and objectives of the organisation to cover future situations such as the
employment of experts to aid the integration of corporate social responsibility
into the culture of the company thereby requiring staff to diligently work
towards the improvement on the quality of communications among each
other, improvement throughout the production processes and service delivery
to customers in order to portray an effective system whereby the needs of the
stakeholders reflect as a deciding factor considered in every area of the
business activity.
Finally, this study has established a ground and method for these small
retailers in the Nigeria petroleum industry to integrate corporate social
responsibility into their business activities because it matters to long term
existence in the 2ist century where stakeholders are the most important
factors contributing to how effective an organisation is. Although this is
explained with exiting theories and numerous studies emphasizing the
unlimited benefits over drawbacks if corporate social responsibility is adopted
by firms of any size, the economy in which such firm operates in is major
factor for the extent to which corporate social responsibility is taken seriously,
especially, in a developing economy such as Nigeria’s where as sated in the
literature review if the study is made up of inadequate systematics from the
industry dealings with the government to social and economic exploitation of
the population in most geographical areas. That is, corporate social
responsibility will be a means to an end for these small firms.
55
Chapter 6: Recommendation
56
knowledge or have an idea of the level at which these set of people can be
taught from. In addition to this, the government bodies need to create the
awareness of accepting change in business situations, particularly among
these small firms due to lack of adequate knowledge, necessity to operate in
a 21st century industry and surroundings which hinder proper distribution of
information to the small firms from larger firms and government bodies. That
is, these small firms need to know that, resisting change for being comfortable
go against one of the major importance of running a business, which is, taking
risks as stated by Wambugu et al (2015) to be a major driving force for a
small business to compete in the business environment as it will ultimately
improve effectiveness. The government bodies and other bodies responsible
for easing businesses in a particular economy into a more effective method of
operating in the 21st century should seek the transfer of knowledge and
information on easing a developing economy and the firms operating in it into
effectiveness of an organisation through change and methods of change, both
economically and socially. This should be particularly directed to the small
firms since connection to the international market is non-existent or less
visible in operation compared to larger firms that posses more capabilities to
create such network in the foreign markets. This can ultimately lead to the
creation of agencies that continuously monitor, update and organise wide
reach of the knowledge to every part of country. That is the creation of private
and public consultants that are experts in the field of managing organisational
effectiveness, training concerned firms the integration of social and economic
tool such as corporate social responsibility into business activities. As a
result, these small firms will be able to establish a network within the industry,
economy and in the foreign market due to the new found understanding of
how sharing knowledge and information works in the modern business
environment.
58
6.2 Recommendation for further research
According to Forstater et al (2010) and Muthuri (2012) there is need for
economies such as Nigeria’s to begin campaigning for the possibility of
corporate social responsibility being a way forward to satisfy stakeholders.
Therefore, it is adamant for scholars in this field to investigate in further
studies by address the factors influencing the possibility of widespread
corporate social responsibility and organisational effectiveness in the Nigeria
petroleum industry and the overall economy., particularly where small firms
are involved because small firms are considered as key players of any 21st
century developing economy (Robu, 2013) and (Pandya, 2012). Moreover,
this study addressed a qualitative measure of opinions and attitude towards
the notion of changing current organisational effectiveness possibly with the
adoption of corporate social responsibility. Instead, further research should
establish key indicators for measuring effectiveness in order to simplify the
notion that corporate social responsibility influences organisational
effectiveness to small firms in a numeric outlook as financial statements
showing the movement of transaction to depict success or failure helps to
signify the benefits to reluctant firms in situations whereby developing
economies such as Nigeria’s is concerned.
60
Chapter 7
61
in me finding some stimulating studies that led streamlined my options for the
dissertation topic.
62
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Appendix A
Consent form
Introduction
My name is Isaac Adesina Akanni. I am currently studying an MBA: FINANCE
course in the Business and Law department at the University of Sunderland.
The purpose of this form is to inform you about the study which is to
understand if organisational effectiveness will be impacted in a business
situation where corporate social responsibility is adopted and invite you to get
involved as respondents.
Method
As a participant of this study, this consent form is to be signed then, an
interview and questionnaire can be given to appropriate individual.
Advantage of study
The outcome of this study is key to the understanding of corporate social
responsibility and how it can potentially impact organisational effectiveness if
adopted by small retailers in the Nigeria petroleum industry as this could
potentially lead to competing better with larger firms.
Confidential statement
Any form of information provided by participants will be treated as anonymous
and remain confidential.
Rights as individuals
This study is voluntary based.
Consent
It will be appreciated if the participant could please pen their signature in the
box and date below.
Signature of respondent
Date:
Signature of researcher
Date:
84
Appendix B
Interview questions
2. How long have you held the position you are in for?
3. What does corporate social responsibility mean to you with at least one
example?
85