SlideShare una empresa de Scribd logo
1 de 9
Descargar para leer sin conexión
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.15, 2013
17
Adapting Corporate Social Responsibility Programs to Risk
Management: A Model for Multinational Organizations in
Nigeria
EUGENE NWADIALOR, Ph.D, FCA, FCIT
DEAN
Faculty of Management and Social Sciences, Godfrey Okoye University, Thinkers Corner Enugu
+2348037026544
NICHOLAS N. IGWE, Ph.D, JP, MIMC, MNIM
Department of Business Management , Godfrey Okoye University Enugu
+23408038726688
E-mail: ngozinick@yahoo.com
Abstract
There is a growing recognition of the effects activities of businesses have on stakeholders. Business executives
know that their long term success depends on continued good relations with a wide range of individuals, groups
and institutions. Corporate Social Responsibility (CSR) can impact on risk management positively by providing
intelligence about what these risks are and offering effective means to respond to them. This paper advocates
that by integrating the business sense, learning and innovations garnered from CSR programmes, multinational
companies in Nigeria can better manage risks and subsequently ameliorate the impacts of their economic, social
and environmental activities successfully. The paper recommends that organizational leaders to proactively
manage risks and take advantage of opportunities inherent in the environment to enhance stakeholders
engagement and corporate reputation.
Keywords: Adapting, Corporate Social Responsibility Programs, Risk Management, Manufacturing
Organizations.
1. Introduction
Businesses are an integral part of the communities in which they operate. There is a growing recognition of the
effect that activities of these businesses have on employees, customers, communities, the environment,
competitors, business partners, investors, shareholders, governments and others. It is also becoming increasingly
clear that firms can contribute to their own wealth and to overall societal wealth by considering the effect they
have on the world at large when making decisions (Hohnen, 2007). Good executives know that their long-term
success is based on continued good relations with a wide range of individuals, groups and institutions. Smart
firms know that business can’t succeed in societies that are failing – whether this is due to social or
environmental challenges or governance problems. Again, the general public has high expectations of the private
sector in terms of responsible behaviour. Consumers expect goods and services to reflect socially and
environmentally responsible business behaviour at competitive prices. Shareholders also are searching for
enhanced financial performance that integrates social and environmental considerations both in terms of risks
and opportunities.
Governments, too are becoming aware of the national competitive advantages to be won from a responsible
business sector. At the same time leading industry associations such as the World Business Council for
Sustainable Development, have also suggested that countries as well as companies might gain a competitive
advantage from Corporate Social Responsibility. In some of the developing world, governments and businesses
understand that their respective competitive positions and access to capital increasingly depends on being seen to
respect the highest global standards (International Finance Corporation, 2002). As governments around the world
continue to withdraw from operating business enterprises on the grounds that critics emphasize that government
has no business in business (McGuire, Sundgren and Schneeweis 1988).
There is no way companies can avoid paying serious attention to Corporate Social Responsibility. This is
because the costs of ignoring CSR are simply too high. Companies which have a good reputation risk losing their
hard-earned name when they fail to put systematic approaches in place to ensure continued positive performance.
The effect of a tarnished reputation often extends far beyond one company, entire sectors and indeed nations can
suffer. Therefore business leaders need to understand better the dynamics of their operating environment in order
to manage these related risks effectively. Corporate Social Responsibility (CSR) can play a central role in this
context.
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.15, 2013
18
2. Conceptual Framework
Globally, Corporate Social Responsibility (CSR) is an evolving concept without a clear definition, yet it
describes a set of corporate obligations and practices somewhere on the spectrum between traditional charitable
giving on one hand and merely strict compliance with the law, on the other. While operating definition remains
elusive, the term “CSR” generally refers to a company’s efforts to explicitly involve social and environmental
concerns in its decision-making along with a commitment to increasing the organization’s positive impact on
society (Surdyk, 2006). Wood (1991) states that Corporate Social Responsibility also called corporate
conscience; corporate citizenship, social performance or sustainable responsible business is a form of corporate
self-regulation integrated into a business model. CSR policy functions as a built-in self-regulating mechanism
whereby business monitors and ensures that its activities comply with the spirit of the law, ethical standards and
international norms. Commenting on Corporate Social Responsibility, (Griffin, 2002:111) remarks that
organizations do not have ethics, rather they relate to their environment in ways that often involve ethical
dilemmas and decisions. These situations are generally referred to within the context of the organization’s social
responsibility. Specifically, he defines Corporate Social Responsibility as the set of obligations an organization
has to protect and enhance the society in which it functions. Several inter-governmental bodies, company
federations and non-profit organizations have advanced competing definitions. Among the most influential are:
the World Bank (2004) which sees Corporate Social Responsibility as the commitment of business to contribute
to sustainable economic development working with employees, their families, the local community and society
at large to improve their quality of life in ways that are both good for business and good for development. For
the World Economic Forum,
“Corporate citizenship can be defined as the contribution a company
makes to society through its core business activities, its social investment
and philanthropy programmes and its engagement in public policy. The
manner in which a company manages its economic, social and
environmental relationships as well as those with different stakeholders, in
particular shareholders, employees, customers, business partners,
governments and communities, determines its impact” (2006:10-12).
Business for Social Responsibility (BSR) states that CSR is operating a business in a manner that meets or
exceeds the ethical, legal, commercial and public expectations that society has of business. CSR is seen by
leadership companies as more than a collection of discrete practices and occasional gestures or initiatives
motivated by marketing, public relations or other business benefits. Rather, it is viewed as a comprehensive set
of policies, practices and programmes that are integrated throughout business operation and decision-making
processes that are supported and rewarded by top management (www.bsr.org).
Figure 1: The Global Operating Environment
Source: Kytle, B and Ruggie, J. G. (2005:4)
In a developing country like Nigeria, (Ebhomielen, 2011) states that Corporate Social Responsibility is perceived
as corporate philanthropy. It requires organizations to impact positively on their environments. Companies
traditionally played this role by undertaking community development projects such as the award of scholarships
to indigenes from the host community, donations to sports, charity, social interest works, hospitals, town halls,
small and medium scale projects for employment generations, skill acquisition, etc. and support for ethical
interest objectives. Most companies that spend on such projects usually report them in their annual report to
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.15, 2013
19
show compliance. It has become fashionable for organizations in the Niger Delta region of Nigeria to use CSR
projects as a form of advertisement. Such expenditures are often treated as appropriation of profit rather than a
charge against profit suggesting that the company is not selfishly giving all its profit to shareholders alone after
the government taxes. Basically, CSR implies that a company’s business model should be socially responsible
and environmentally sustainable. By being socially responsible, it means that the company’s activities should
benefit the society and by being environmentally sustainable, it means that the activities of the company should
not harm the environment (Shumate and O’Conner, 2010).
The Kennedy School of Government’s CSR initiative has defined CSR to encompass not only what companies
do with their profits, but also how they make them. It goes beyond philanthroping and compliance to address the
manner in which companies manage their economic, social and environmental impacts and stakeholder
relationship in all their key spheres of influences: the workplace, the marketplace, the supply chain, the
community and the public policy realm (www.ksg.harvard.edu/csri/home.htm). Given the dynamic interactions
of the global economy, adopting a CSR programme is a natural extension of going global analogous to other
adjustments of “scaling up” (e.g., forming strategic alliances, finding skilled staff in foreign countries). CSR,
particularly for a global company, is related to corporate risk management through two means: by providing
intelligence about what those risks are, and by offering an effective means to respond to them. Risk can be most
simply understood in the context of a company’s threats, vulnerabilities, controls and counter measures (Kytle
and Ruggie, 2005). To mitigate risk, companies develop risk management systems. Risk management is the
variety of activities undertaken by an organization to control and minimize threats to the continuing efficiency,
profitability and success of its operations. The process of risk management includes the identification and
analysis of risks to which the organization is exposed, the assessment of potential impacts on the business and
deciding what action can be taken to eliminate or reduce risk and deal with the impact of unpredictable events
causing loss or damage. For this study, risk management is seen as the process of analyzing, understanding and
managing the risks that an organization is unavoidably subject to in its attempt to realize its corporate objectives.
In this wise, risks can be divided into the following categories: operational, financial, legal compliance
information and personnel. Risk management systems fundamentally aim to address uncertainty in the market
place. Their primary goal is to create controls and counter measures that minimize or eliminate the disruption,
loss or damage to business operations and shorten the recovery time from an unwanted event and thereby
reducing its impact on the business.
Beneath these efforts is a realization that improved CSR reporting and better risk management systems generally
promote the transparency and accountability essential to good company governance and improved financial
performance. These systems in effect enable a company to anticipate and respond to opportunities when it senses
that society’s expectations are not being met by its performance.
3. Key Drivers of Corporate Social Responsibility
Organizations may exercise social responsibility toward their stakeholders, toward the natural environment and
toward general social welfare. Some of the multinational corporations strive to acknowledge their
responsibilities in all three areas, while a majority tend to emphasize only one or two areas of social
responsibility. The organizational stakeholders are those people and organizations who are directly affected by
the behaviours of an organization and they have a stake in its performance (Donaldson and Preston, 1995;
Harrison and Freeman, 1999). Most companies that diligently strive to be responsible to their stakeholders
concentrate on three main groups: customers, employees and investors. They then select other stakeholders that
are particularly relevant to the organization’s core business interest and then attempt to address their needs and
expectations as well. Figure 2 shows key organizational stakeholders.
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.15, 2013
20
Figure 2: Organizational Stakeholders
Source: Griffin, R. W. (2002:112)
Without mincing words, the 21st
century has witnessed growing societal demand for increased Corporate Social
Responsibility and environmental accountability. No longer are companies obligated to do no harm. Instead they
are being called upon to actively take responsibility for and positively engage with their communities, the global
society and the environment. Consequently, today’s business leaders are working hard to understand society’s
changing expectations of corporations in areas that were previously seen as the responsibility of government, or
non-profit organizations. Some of the key drivers of Corporate Social Responsibility are highlighted below.
• Need for enhanced market leadership: A distinct justification for socially responsible behaviours on
the part of organizations is that those that make visible contributions to society can achieve enhanced
reputation and gather greater market share for their products.
• License to operate: Organizations need to have genuine relations with government of their host
environment. This practice can lead to reduced shareholder activation and reduced risk of law suits
which tend to place organizations in bad light in the public opinion.
• People who argue in favour of social responsibility hinge their claims that organizations by their
activities create many of the environmental problems such as air, water pollution and resource depletion.
Justice demands that they should be involved in solving them.
• Business as private citizen: Because organizations are legally defined entities with most of the
privileges as private citizens, they should not evade society obligations as citizens. Advocates of this
argument point out while governmental organizations have stretched their budgets to the limit but many
multinational organizations often have surplus revenues that could potentially be used to help solve
social problems (McGuire et al, 1988). For example, the Mobile Telecommunication Network MTN
claims that they routinely build school laboratories, donate to old people’s home and offer scholarships
to indigent students in their host environment. Just recently (January 21–22, 2013) an independent
television organization in Nigeria, the Channel Television attracted the attention of the President of
Federal Government of Nigeria about the oldest dilapidated Police College Ikeja in Lagos State and
caused him to be the first sitting President to visit the Police academy since inception. The Channel
Television remarked it was her Corporate Social Responsibility (CSR) contribution to the nation.
• Increased reputational capital: Proponents of good Corporate Social Responsibility point to the fact
that organizations that involve in CSR stand good chances of garnering unquantifiable reputational
capital. This can be translated into reduced negative consumer activism/boycotts; positive media
coverage/“free advertising”: positive word of mouth advertising, and increased community support for
the company’s operations (“a bank account of goodwill”).
• Growth in Global Reporting Initiatives (GRI): Launched in 1997 by the coalition of
Environmentally Responsible Economies, the GRI reports contain 50 core environmental, social and
economic indicators for a broad range of companies. The GRI also offers additional modules with
distinct metrics for companies depending on industrial sector and operations. The price range for
producing a report spans from 100,000 dollars for a basic GRI to more than three million dollars for
complex organizations like Shell. Moreover, the continued growth of the socially responsible
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.15, 2013
21
investment movement especially in advanced economies of the United States and Europe is
encouraging companies to adopt GRI and other instruments. For instance, in the United States alone,
the capital available to socially responsible companies reached 2.29 trillion dollars in 2005 (Surdyk,
2006).
4. Impact of Corporate Social Responsibility Programmes On Risk Management
Managing risk is a central part of many corporate strategies; reputations that take decades to build can be ruined
in hours through incidents such as corruption scandals or environmental accidents (Eisingerich and Ghardwaj,
2011). These can also draw unwanted attention from regulators, courts, government, civil society organizations
and the media. Building a genuine culture of “doing the right thing” within a corporation can offset these risks
(Bhattancharya, Sankar and Korschun, 2008). More often than not, it takes a crisis to precipitate attention to CSR.
One of the most active stands against environmental management is the CERES principles that resulted after the
Exxon Valdez incident in 1989 (Grace and Cohen 2006). Other examples include the Magellan Metalsin, the
West Australian town of Esperance which was responsible for lead contamination killing thousands of birds in
the area. The company had to cease business immediately and work with independent regulatory bodies to
execute a clean-up. Odwalla, the giant Apple Juice Corporation, also experienced a crisis with sales dropping 90
percent and the company’s stock price dropping 34 percent due to several cases of E.coli spread through
Odwalla apple juice. The company ordered a recall of all apple or carrot juice products and introduced a new
process called “flash pasteurization” as well as maintaining lines of communication constantly open with
customers. Some of the emerging risks companies face today show up on their radar screens through well-
recognized entry-points, for example the challenge of carbon emission and climate change is a good example.
The number of shareholder resolutions demanding climate change risk management policies from US companies
tripled between 2001 and 2002 and climate change related lawsuits against companies have recently been filed
for the first time (Cogan, 2003). From a company’s perspective, a social risk occurs when an empowered
stakeholder takes up a social issue area and applies pressure on a corporation (exploiting a vulnerability in the
earning drivers, reputation, corporate image) so that the company will change policies or approaches in the
market place.
The increasing complexity of international business also means that risks at the global level are much more
likely to crosscut different categories of risk (e.g. a social risk may also have political or economic implications)
so that they need to be tackled from multiple perspectives simultaneously using CSR (figure 3.0 shows the STEP
Perspective on Risk).
Figure 3: The STEP Perspective on Risk
Source: Kytle, B and Ruggie, J. G. (2005:9)
Corporate Social Responsibility (CSR) for a global company can impact on risk management positively through
two main means:
• by providing intelligence about what these risks are, and
• by offering an effective means to respond to them.
The key to the above mentioned means is effectively managing stakeholder relationships. Managing stakeholder
relationships is imperative for multinational companies because if they do not effectively manage those
relationships, stakeholders like regulators and civil society organizations (CSOs) will likely engage them in the
court of public opinion with little to say by the companies.
At this juncture, it is necessary to differentiate managing stakeholder relationships from simply managing
stakeholder. The stakeholder management mindset embodies a mechanistic paradigm where the organization
perceives itself as a closed system capable of autonomous action independent of the external context
(www.collective wisdom initiative.org.). Its main objective is the dissemination of information to stakeholders
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.15, 2013
22
through public relations or community relations on decisions already made without completing the feedback
loop. This way of managing stakeholders is ineffective in global operating environments given networked value
chains and the empowerment of global stakeholders. Managing stakeholder relationship requires closing the loop:
it means truly engaging stakeholders (figure 4). The diagram shows a stakeholder engagement model developed
by the World Bank group (Calow, Morris and Lawrence, 1999).
Figure 4: Stakeholder Engagement Model
Source: Calow, Morris and Lawrence (1999:25)
Managing stakeholders represented by information dissemination to groups is at the bottom while managing
stakeholder relationships as represented by engagement strategies is at the top. The term “engagement” relates to
the various mechanisms that have been used by organizations to listen to, and account for the views of
stakeholders as well as involving them in the provision of solutions. One example is the dissemination of
information to stakeholders of a company which may state before a decision is made. This can be done through
joint workshops, task forces or the use of focused group discussion (FGD). At the next level, stakeholders gain
some influence on decision makers in addressing a particular social risk. At the highest level, stakeholders are
viewed as co-decision makers in providing the solution. These strategies are examples of completing the
feedback loop: both informing stakeholders and having them inform top management about a particular social
risk.
Effectively managing stakeholder-relationships pays attention to issues, problems/challenges and opportunities
that go far beyond one organization and involve the whole global system. Learning, sensing and innovations are
the keystone of such a strategy. By integrating the business sense, learning and innovations gained from CSR
programmes, multinational companies can better manage their risks and subsequently their economic, social and
environmental impacts successful. This strategy is similar to what their sales/marketing executives do from their
customers: a form of business intelligence gathering.
Effective stakeholder-relationships-management can provide strategic intelligence regarding the organization’s
risk environment around particular economic, social, political or environmental issues. Stakeholder engagement
strategies provide the antennae through which to pick up signals of impending threats, and possible response
solutions. With time, these integrated-information-flows between stakeholders and top company management
can form the base of knowledge bank about social issues and systematic nature of such problems. However, the
information picked by these antennae has to be fully internalized by organizations. If it is merely encapsulated in
a CSR programme its impact will be limited, but if it is linked to the company’s strategic risk management
paradigm, then it can be of considerable help.
Many global organizations have found these initiatives very helpful in generating strategic intelligence. Some of
these organizations are organized within individual sectors: forestry, apparel, oil and gas industry. Even the
United Nations Global Compact which has become by far the world’s largest corporate citizenship initiative with
more than 1,800 participating organizations involves companies, labour and civil society organizations in
promoting ten UN principles in the areas of human rights, labour standards and environmental sustainability
(www.unglobalcompact.org).
It should be observed without much gainsaying that a company’s vulnerability and threat for any type of risk can
be reduced to a great extent through internal and environmental scanning, reporting and monitoring. Gaining
access to knowing the expectations of the stakeholder through amicable relationships management can help a
global organization have increased knowledge of international standards/norms by which the organization should
abide. All these can be achieved through linking a CSR programmes to risk management.
A CSR Programme Model Initiative for Organizations in Nigeria
To implement a successful CSR programme Multi-National Corporations in Nigeria should adopt the following
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.15, 2013
23
7 model steps:
Step 1: Articulate a relevant CSR philosophy into the organizational guiding principle.
Step 2: Put in place a well packaged reward and recognition system that applaud good responsible
behaviour.
Step 3: Make sure senior management team buys into the programme.
Step 4: Include CSR programmes into the long-term strategic plan
Step 5: Communicate to the relevant stakeholders and celebrate the result of CSR efforts.
Step 6: Partner, if necessary, with other organizations, community groups or government agencies to
multiply CSR impacts.
Step 7: Implement CSR programmes with the same zeal and tenacity used for other organizational
core competencies.
Source: The Authors
5. Conclusion
Since businesses play a pivotal role both in job and wealth creation in society and in the efficient use of national
capital, Corporate Social Responsibility (CSR) is a central management concern. It positions organizations to
both proactively manage risks and take advantage of opportunities especially with respect to their corporate
reputation and the broad engagement of stakeholders, (shareholders, employees, customers, communities,
suppliers, non-government organizations, international organizations and others affected by a company’s
activities. Acting responsibility towards these stakeholders can help companies build long-lasting values for
themselves. Investors and financial institutions have recognized that Corporate Social Responsibility activities
that integrate broad societal concerns into business strategy and performance are evidence of good risk
management capabilities. In addition to building trust with the host communities and giving companies
competitive edge in attracting good customers and employees, there are countless win-win opportunities waiting
to be discovered. This is because every activity in a firm’s value chain overlaps in some way with social factors.
The job of today’s business leaders is to start thinking systematically; adapt Corporate Social Responsibility to
risk management and stop being defensive.
6. Suggestions/Recommendations
• All multinational corporations listed on the Nigeria Stock Exchange (NSE) should be required by an act
of National Assembly to produce an integrated report in place of annual financial report and
sustainability report. An integrated report includes environmental, social and economic performance
alongside financial performance information.
• Government of developing countries, where these MNCs operate, should step up regulations with
adequate enforcement and monitoring to ensure that MNCs behave in a socially responsible manner.
• It is necessary to include all stakeholder groups or constituents in managerial decision-making in
matters related to the organization’s portfolio of socially responsible activities. This is because CSR
collaborations are positively accepted when they are in the interests of stakeholders without detrimental
effects on the organization.
• Managers should understand fully the various ways in which business and government influence one
another while it may be legal and appropriate to influence government and other stakeholders, managers
should be wary to avoid crossing legal or ethical boundaries.
• Managers should understand that CSR is not something that just “happens”. Instead, like other
organizational activities, it must be actively managed.
• Social and environmental accountability cannot be meaningless words on a dusty mission statement or
an after thought; they must be integrated into all aspects of everyday corporate life.
REFERENCES
Bhattancharya, C. B., Sankar, S and Korschun, D. (2008). “Using Corporate Social Responsibility to Win the
War for Talent”. MIT Sloan Management Review, 49, 37 – 44.
Calow, R. C., Morris, B. L., and Lawrence, A. R. (1999). Stakeholder Analysis and Consultation. Washington
DC: The World Bank Group.
Cogan, D. G. (2003). “Corporate Governance and Climate Change: Making the Connection”. A CERES
Sustainable Governance Project Report prepared by the Investor Responsibility Research Centre.
Donaldson, T and Preston, L. E. (1995). “The Stakeholder Theory of the Corporation: Concepts, Evidence and
Implications”. Academy of Management Review, 20, 65 – 91.
Ebhomielen, E. P. (2011). Ethical Standards in Modern Corporate Governance. A paper presented at the BIU
Accounting Workshop/Conference held at Benson Idahosa University, Postgraduate Lecture Theatre,
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.15, 2013
24
April, 28 – 29; Benin City.
Eisingerich, A. B. and Ghardwaj, G. (2011). “Corporate Social Responsibility: Does Social Responsibility help
Protect a Company’s Reputation?” MIT Sloan Management Review, 52, (March).
Grace, D. and Cohen, S. (2006). Business Ethics; Australian Problems and Cases. London; Oxford University
Press.
Griffin, R. W. (2002). Management. New York: Houghton Mifflin Company.
Harrison, J. S. and Freeman, R. E. (1999). “Stakeholders, Social Responsibility and Performance: Empirical
Evidence and Theoretical perspectives”, Academy of Management Journal, 42, 479 – 495.
Hohnen, P. (2007). Corporate Social Responsibility: An Implementation Guide for Business. Manitoba:
International Institute for Sustainable Development.
International Finance Corporation (2002) “Developing Value: The Business case of Sustainability in Emerging
Markets” in Sustainability and Ethos.
Kytle, B. and Ruggie, J. G. (2005). “Corporate Social Responsibility as Risk Management: A Model for
Multinationals”, Corporate Social Responsibility Initiative Working Paper, No. 10. Cambridge, MA: John
F Kennedy School of Government.
McGuire, J. B; Sundgren, A. and Schneeweis, T. (1988). Corporate Social Responsibility and Firm Financial
Performance, Academy of Management Journal, December.
Shumate, M. and O’Conner, A. (2010). “The Symbiotic Sustainability Model: Conceptualizing NGO –
Corporate Alliance Communication”, Journal of Communication, 60, 3, 577 – 609.
Surdyk, J. (2006). “CSR: More than PR, Pursuing Competitive Advantage in the long Run” in Business. The
Ultimate Resource. Cambridge, M.A: A and K Black Publisher.
Wood, D. (1991). “Corporate Social Performance Revisited”, The Academy of Management Review, 16, 4.
World Bank, (2004). “Making Services work for poor people” World Development Report 2004 Overview.
Inter Sources
www.bsr.org..
www.collectivewisdominitiative.org.
www.ksg.harvard.edu/csr/home.htm.
www.unglobalcompact.org.
This academic article was published by The International Institute for Science,
Technology and Education (IISTE). The IISTE is a pioneer in the Open Access
Publishing service based in the U.S. and Europe. The aim of the institute is
Accelerating Global Knowledge Sharing.
More information about the publisher can be found in the IISTE’s homepage:
http://www.iiste.org
CALL FOR PAPERS
The IISTE is currently hosting more than 30 peer-reviewed academic journals and
collaborating with academic institutions around the world. There’s no deadline for
submission. Prospective authors of IISTE journals can find the submission
instruction on the following page: http://www.iiste.org/Journals/
The IISTE editorial team promises to the review and publish all the qualified
submissions in a fast manner. All the journals articles are available online to the
readers all over the world without financial, legal, or technical barriers other than
those inseparable from gaining access to the internet itself. Printed version of the
journals is also available upon request of readers and authors.
IISTE Knowledge Sharing Partners
EBSCO, Index Copernicus, Ulrich's Periodicals Directory, JournalTOCS, PKP Open
Archives Harvester, Bielefeld Academic Search Engine, Elektronische
Zeitschriftenbibliothek EZB, Open J-Gate, OCLC WorldCat, Universe Digtial
Library , NewJour, Google Scholar

Más contenido relacionado

La actualidad más candente

The social role of the business firm
The social role of the business firmThe social role of the business firm
The social role of the business firmlee king
 
Corporate social responsibility
Corporate social responsibilityCorporate social responsibility
Corporate social responsibilityPamela Gonzales
 
Social Responsibilitie Of Business
Social Responsibilitie Of BusinessSocial Responsibilitie Of Business
Social Responsibilitie Of Businesshome
 
Presentation Social Responsibilities in Business by Jay R & Mykee (Group 10)
Presentation Social Responsibilities in Business by Jay R & Mykee (Group 10)Presentation Social Responsibilities in Business by Jay R & Mykee (Group 10)
Presentation Social Responsibilities in Business by Jay R & Mykee (Group 10)Jay Gonzales
 
Social Responsibility PPT
Social Responsibility PPTSocial Responsibility PPT
Social Responsibility PPTSamuel pongen
 
corporate social responsibility and ethics
corporate social responsibility and ethicscorporate social responsibility and ethics
corporate social responsibility and ethicscnaasir7
 
Social responsibility and ethics
Social responsibility and ethicsSocial responsibility and ethics
Social responsibility and ethicsKushala Mysore
 
SOCIAL RESPONSIBILITY OF BUSINESS
SOCIAL RESPONSIBILITY OF BUSINESSSOCIAL RESPONSIBILITY OF BUSINESS
SOCIAL RESPONSIBILITY OF BUSINESSBharath Nair
 
Social Responsibility and Ethics in Business
Social Responsibility and Ethics in BusinessSocial Responsibility and Ethics in Business
Social Responsibility and Ethics in BusinessWaheed Iqbal Boss
 
CORPORATE SOCIAL RESPONSIBILITY ARGUMENTS FOR AND AGAINST
CORPORATE  SOCIAL RESPONSIBILITY ARGUMENTS FOR AND AGAINSTCORPORATE  SOCIAL RESPONSIBILITY ARGUMENTS FOR AND AGAINST
CORPORATE SOCIAL RESPONSIBILITY ARGUMENTS FOR AND AGAINSTSundar B N
 
Social responsibility of business
Social responsibility of businessSocial responsibility of business
Social responsibility of businessVandna Bhandari
 
Social responsibility
Social responsibilitySocial responsibility
Social responsibilitysheelu57
 
Social Responsibility and Ethics in Strategic Management
Social Responsibility and Ethics in Strategic ManagementSocial Responsibility and Ethics in Strategic Management
Social Responsibility and Ethics in Strategic ManagementRintis Eko Widodo
 
Social responsibility of Managers
Social responsibility of ManagersSocial responsibility of Managers
Social responsibility of ManagersDr. Shivendra Singh
 
Social responsibility of a business
Social responsibility of a businessSocial responsibility of a business
Social responsibility of a businessShreyaDouglas
 
Corporate Social Responsibility
Corporate Social ResponsibilityCorporate Social Responsibility
Corporate Social ResponsibilitySheryl Mehra
 
Social responsibility
Social responsibilitySocial responsibility
Social responsibilityAmanjot Kaur
 
Social responsibilities of business
Social responsibilities of businessSocial responsibilities of business
Social responsibilities of businessDEEPAK DODDAMANI
 

La actualidad más candente (20)

The social role of the business firm
The social role of the business firmThe social role of the business firm
The social role of the business firm
 
Csr and ethics
Csr and ethicsCsr and ethics
Csr and ethics
 
Corporate social responsibility
Corporate social responsibilityCorporate social responsibility
Corporate social responsibility
 
Social Responsibilitie Of Business
Social Responsibilitie Of BusinessSocial Responsibilitie Of Business
Social Responsibilitie Of Business
 
Presentation Social Responsibilities in Business by Jay R & Mykee (Group 10)
Presentation Social Responsibilities in Business by Jay R & Mykee (Group 10)Presentation Social Responsibilities in Business by Jay R & Mykee (Group 10)
Presentation Social Responsibilities in Business by Jay R & Mykee (Group 10)
 
Social Responsibility PPT
Social Responsibility PPTSocial Responsibility PPT
Social Responsibility PPT
 
corporate social responsibility and ethics
corporate social responsibility and ethicscorporate social responsibility and ethics
corporate social responsibility and ethics
 
Social responsibility and ethics
Social responsibility and ethicsSocial responsibility and ethics
Social responsibility and ethics
 
SOCIAL RESPONSIBILITY OF BUSINESS
SOCIAL RESPONSIBILITY OF BUSINESSSOCIAL RESPONSIBILITY OF BUSINESS
SOCIAL RESPONSIBILITY OF BUSINESS
 
Social Responsibility and Ethics in Business
Social Responsibility and Ethics in BusinessSocial Responsibility and Ethics in Business
Social Responsibility and Ethics in Business
 
CORPORATE SOCIAL RESPONSIBILITY ARGUMENTS FOR AND AGAINST
CORPORATE  SOCIAL RESPONSIBILITY ARGUMENTS FOR AND AGAINSTCORPORATE  SOCIAL RESPONSIBILITY ARGUMENTS FOR AND AGAINST
CORPORATE SOCIAL RESPONSIBILITY ARGUMENTS FOR AND AGAINST
 
Social responsibility of business
Social responsibility of businessSocial responsibility of business
Social responsibility of business
 
Social responsibility
Social responsibilitySocial responsibility
Social responsibility
 
Social Responsibility
Social ResponsibilitySocial Responsibility
Social Responsibility
 
Social Responsibility and Ethics in Strategic Management
Social Responsibility and Ethics in Strategic ManagementSocial Responsibility and Ethics in Strategic Management
Social Responsibility and Ethics in Strategic Management
 
Social responsibility of Managers
Social responsibility of ManagersSocial responsibility of Managers
Social responsibility of Managers
 
Social responsibility of a business
Social responsibility of a businessSocial responsibility of a business
Social responsibility of a business
 
Corporate Social Responsibility
Corporate Social ResponsibilityCorporate Social Responsibility
Corporate Social Responsibility
 
Social responsibility
Social responsibilitySocial responsibility
Social responsibility
 
Social responsibilities of business
Social responsibilities of businessSocial responsibilities of business
Social responsibilities of business
 

Destacado

05 redevelopment - swot analysis - merit - demerits
05   redevelopment - swot analysis - merit - demerits05   redevelopment - swot analysis - merit - demerits
05 redevelopment - swot analysis - merit - demeritsspandane
 
Merit and the demerits of investing in the cse, (fem, slim)
Merit and the demerits of investing in the cse,  (fem, slim)Merit and the demerits of investing in the cse,  (fem, slim)
Merit and the demerits of investing in the cse, (fem, slim)Royal Ceramics Lanka PLC
 
corporate social responsibility
corporate social responsibilitycorporate social responsibility
corporate social responsibilityMutahir Bilal
 
Corporate social responsibility and disaster management: a study of 2012 floo...
Corporate social responsibility and disaster management: a study of 2012 floo...Corporate social responsibility and disaster management: a study of 2012 floo...
Corporate social responsibility and disaster management: a study of 2012 floo...Solomon Adetokunbo
 
Destiny And Karma
Destiny And KarmaDestiny And Karma
Destiny And KarmaSSRF Inc.
 
Cat operating rules and procedures on merits, demerits, and bangs (with sig...
Cat   operating rules and procedures on merits, demerits, and bangs (with sig...Cat   operating rules and procedures on merits, demerits, and bangs (with sig...
Cat operating rules and procedures on merits, demerits, and bangs (with sig...iamkim
 
CSR OF ADITYA BIRLA GROUP OF COMPANIES.
CSR OF ADITYA BIRLA GROUP OF COMPANIES.CSR OF ADITYA BIRLA GROUP OF COMPANIES.
CSR OF ADITYA BIRLA GROUP OF COMPANIES.Winnie Manoj
 
Knowledge management
Knowledge managementKnowledge management
Knowledge managementAbouzar Najmi
 
PPT on BRAIN TUMOR detection in MRI images based on IMAGE SEGMENTATION
PPT on BRAIN TUMOR detection in MRI images based on  IMAGE SEGMENTATION PPT on BRAIN TUMOR detection in MRI images based on  IMAGE SEGMENTATION
PPT on BRAIN TUMOR detection in MRI images based on IMAGE SEGMENTATION khanam22
 
Knowledge Management System & Technology
Knowledge Management System & TechnologyKnowledge Management System & Technology
Knowledge Management System & TechnologyElijah Ezendu
 
Knowledge Management Presentation
Knowledge Management PresentationKnowledge Management Presentation
Knowledge Management Presentationkreaume
 
Ethical Behavior and Social Responsibility
Ethical Behavior and Social ResponsibilityEthical Behavior and Social Responsibility
Ethical Behavior and Social ResponsibilityMuhammad Syukhri Shafee
 
Knowledge management
Knowledge managementKnowledge management
Knowledge managementSehar Abbas
 
Social responsibility of business
Social responsibility of businessSocial responsibility of business
Social responsibility of businessFlex
 

Destacado (16)

05 redevelopment - swot analysis - merit - demerits
05   redevelopment - swot analysis - merit - demerits05   redevelopment - swot analysis - merit - demerits
05 redevelopment - swot analysis - merit - demerits
 
Corporate social responsibility
Corporate social responsibilityCorporate social responsibility
Corporate social responsibility
 
Merit and the demerits of investing in the cse, (fem, slim)
Merit and the demerits of investing in the cse,  (fem, slim)Merit and the demerits of investing in the cse,  (fem, slim)
Merit and the demerits of investing in the cse, (fem, slim)
 
corporate social responsibility
corporate social responsibilitycorporate social responsibility
corporate social responsibility
 
Corporate social responsibility and disaster management: a study of 2012 floo...
Corporate social responsibility and disaster management: a study of 2012 floo...Corporate social responsibility and disaster management: a study of 2012 floo...
Corporate social responsibility and disaster management: a study of 2012 floo...
 
Destiny And Karma
Destiny And KarmaDestiny And Karma
Destiny And Karma
 
Cat operating rules and procedures on merits, demerits, and bangs (with sig...
Cat   operating rules and procedures on merits, demerits, and bangs (with sig...Cat   operating rules and procedures on merits, demerits, and bangs (with sig...
Cat operating rules and procedures on merits, demerits, and bangs (with sig...
 
CSR OF ADITYA BIRLA GROUP OF COMPANIES.
CSR OF ADITYA BIRLA GROUP OF COMPANIES.CSR OF ADITYA BIRLA GROUP OF COMPANIES.
CSR OF ADITYA BIRLA GROUP OF COMPANIES.
 
Knowledge management
Knowledge managementKnowledge management
Knowledge management
 
PPT on BRAIN TUMOR detection in MRI images based on IMAGE SEGMENTATION
PPT on BRAIN TUMOR detection in MRI images based on  IMAGE SEGMENTATION PPT on BRAIN TUMOR detection in MRI images based on  IMAGE SEGMENTATION
PPT on BRAIN TUMOR detection in MRI images based on IMAGE SEGMENTATION
 
Knowledge management
Knowledge managementKnowledge management
Knowledge management
 
Knowledge Management System & Technology
Knowledge Management System & TechnologyKnowledge Management System & Technology
Knowledge Management System & Technology
 
Knowledge Management Presentation
Knowledge Management PresentationKnowledge Management Presentation
Knowledge Management Presentation
 
Ethical Behavior and Social Responsibility
Ethical Behavior and Social ResponsibilityEthical Behavior and Social Responsibility
Ethical Behavior and Social Responsibility
 
Knowledge management
Knowledge managementKnowledge management
Knowledge management
 
Social responsibility of business
Social responsibility of businessSocial responsibility of business
Social responsibility of business
 

Similar a Adapting corporate social responsibility programs to risk management a model for multinational organizations in nigeria

Corporate social responsibility competitive advantage or social concern
Corporate social responsibility competitive advantage or social concernCorporate social responsibility competitive advantage or social concern
Corporate social responsibility competitive advantage or social concernAlexander Decker
 
11.corporate social responsibility competitive advantage or social concern
11.corporate social responsibility competitive advantage or social concern11.corporate social responsibility competitive advantage or social concern
11.corporate social responsibility competitive advantage or social concernAlexander Decker
 
Corporate social responsibility in nigerian banking industry
Corporate social responsibility in nigerian banking industryCorporate social responsibility in nigerian banking industry
Corporate social responsibility in nigerian banking industryAlexander Decker
 
Corporate social responsibility in nigerian banking industry
Corporate social responsibility in nigerian banking industryCorporate social responsibility in nigerian banking industry
Corporate social responsibility in nigerian banking industryAlexander Decker
 
Corporate social responsibility
Corporate social responsibilityCorporate social responsibility
Corporate social responsibilityyogesh tanpure
 
Views on corporate social responsibility
Views on corporate social responsibilityViews on corporate social responsibility
Views on corporate social responsibilityAlexander Decker
 
DBA 703 ADVANCED GOOD & CSR Final Examination.docx
DBA 703 ADVANCED GOOD & CSR Final Examination.docxDBA 703 ADVANCED GOOD & CSR Final Examination.docx
DBA 703 ADVANCED GOOD & CSR Final Examination.docxjamesmarshall624223
 
Corporate social responsibility
Corporate social responsibilityCorporate social responsibility
Corporate social responsibilitywilliamwachira
 
A Study Of Corporate Social Responsibility And Its Impact On Performance Of C...
A Study Of Corporate Social Responsibility And Its Impact On Performance Of C...A Study Of Corporate Social Responsibility And Its Impact On Performance Of C...
A Study Of Corporate Social Responsibility And Its Impact On Performance Of C...Joe Andelija
 
An impact of social audits on corporate performance, analyses of nigerian man...
An impact of social audits on corporate performance, analyses of nigerian man...An impact of social audits on corporate performance, analyses of nigerian man...
An impact of social audits on corporate performance, analyses of nigerian man...Alexander Decker
 
Company social responsibility
Company social responsibilityCompany social responsibility
Company social responsibilityNoopur Sahu
 
Corporate social responsibility_csr_over
Corporate social responsibility_csr_overCorporate social responsibility_csr_over
Corporate social responsibility_csr_overKush Juthani
 
principles of good corporate governance
 principles of good corporate governance principles of good corporate governance
principles of good corporate governanceGetrude Muchecheterwa
 
Corporate social responsibility
Corporate social responsibilityCorporate social responsibility
Corporate social responsibilityNewazAIUB
 
Corporate social responsibility
Corporate social responsibilityCorporate social responsibility
Corporate social responsibilitySahil Jain
 

Similar a Adapting corporate social responsibility programs to risk management a model for multinational organizations in nigeria (20)

Corporate social responsibility competitive advantage or social concern
Corporate social responsibility competitive advantage or social concernCorporate social responsibility competitive advantage or social concern
Corporate social responsibility competitive advantage or social concern
 
11.corporate social responsibility competitive advantage or social concern
11.corporate social responsibility competitive advantage or social concern11.corporate social responsibility competitive advantage or social concern
11.corporate social responsibility competitive advantage or social concern
 
Corporate social responsibility in nigerian banking industry
Corporate social responsibility in nigerian banking industryCorporate social responsibility in nigerian banking industry
Corporate social responsibility in nigerian banking industry
 
Corporate social responsibility in nigerian banking industry
Corporate social responsibility in nigerian banking industryCorporate social responsibility in nigerian banking industry
Corporate social responsibility in nigerian banking industry
 
Corporate social responsibility
Corporate social responsibilityCorporate social responsibility
Corporate social responsibility
 
Views on corporate social responsibility
Views on corporate social responsibilityViews on corporate social responsibility
Views on corporate social responsibility
 
Corporate Social Responsibilities Essay
Corporate Social Responsibilities EssayCorporate Social Responsibilities Essay
Corporate Social Responsibilities Essay
 
Theoretical Analysis of Managing Corporate Social Responsibility in Developin...
Theoretical Analysis of Managing Corporate Social Responsibility in Developin...Theoretical Analysis of Managing Corporate Social Responsibility in Developin...
Theoretical Analysis of Managing Corporate Social Responsibility in Developin...
 
Tmuj p77
Tmuj p77Tmuj p77
Tmuj p77
 
DBA 703 ADVANCED GOOD & CSR Final Examination.docx
DBA 703 ADVANCED GOOD & CSR Final Examination.docxDBA 703 ADVANCED GOOD & CSR Final Examination.docx
DBA 703 ADVANCED GOOD & CSR Final Examination.docx
 
Effect of Corporate Social Responsibility on the Financial Performance of Con...
Effect of Corporate Social Responsibility on the Financial Performance of Con...Effect of Corporate Social Responsibility on the Financial Performance of Con...
Effect of Corporate Social Responsibility on the Financial Performance of Con...
 
Corporate social responsibility
Corporate social responsibilityCorporate social responsibility
Corporate social responsibility
 
A Study Of Corporate Social Responsibility And Its Impact On Performance Of C...
A Study Of Corporate Social Responsibility And Its Impact On Performance Of C...A Study Of Corporate Social Responsibility And Its Impact On Performance Of C...
A Study Of Corporate Social Responsibility And Its Impact On Performance Of C...
 
An impact of social audits on corporate performance, analyses of nigerian man...
An impact of social audits on corporate performance, analyses of nigerian man...An impact of social audits on corporate performance, analyses of nigerian man...
An impact of social audits on corporate performance, analyses of nigerian man...
 
Company social responsibility
Company social responsibilityCompany social responsibility
Company social responsibility
 
Corporate social responsibility_csr_over
Corporate social responsibility_csr_overCorporate social responsibility_csr_over
Corporate social responsibility_csr_over
 
principles of good corporate governance
 principles of good corporate governance principles of good corporate governance
principles of good corporate governance
 
Corporate social responsibility
Corporate social responsibilityCorporate social responsibility
Corporate social responsibility
 
Corporate social responsibility
Corporate social responsibilityCorporate social responsibility
Corporate social responsibility
 
Csr
CsrCsr
Csr
 

Más de Alexander Decker

Abnormalities of hormones and inflammatory cytokines in women affected with p...
Abnormalities of hormones and inflammatory cytokines in women affected with p...Abnormalities of hormones and inflammatory cytokines in women affected with p...
Abnormalities of hormones and inflammatory cytokines in women affected with p...Alexander Decker
 
A validation of the adverse childhood experiences scale in
A validation of the adverse childhood experiences scale inA validation of the adverse childhood experiences scale in
A validation of the adverse childhood experiences scale inAlexander Decker
 
A usability evaluation framework for b2 c e commerce websites
A usability evaluation framework for b2 c e commerce websitesA usability evaluation framework for b2 c e commerce websites
A usability evaluation framework for b2 c e commerce websitesAlexander Decker
 
A universal model for managing the marketing executives in nigerian banks
A universal model for managing the marketing executives in nigerian banksA universal model for managing the marketing executives in nigerian banks
A universal model for managing the marketing executives in nigerian banksAlexander Decker
 
A unique common fixed point theorems in generalized d
A unique common fixed point theorems in generalized dA unique common fixed point theorems in generalized d
A unique common fixed point theorems in generalized dAlexander Decker
 
A trends of salmonella and antibiotic resistance
A trends of salmonella and antibiotic resistanceA trends of salmonella and antibiotic resistance
A trends of salmonella and antibiotic resistanceAlexander Decker
 
A transformational generative approach towards understanding al-istifham
A transformational  generative approach towards understanding al-istifhamA transformational  generative approach towards understanding al-istifham
A transformational generative approach towards understanding al-istifhamAlexander Decker
 
A time series analysis of the determinants of savings in namibia
A time series analysis of the determinants of savings in namibiaA time series analysis of the determinants of savings in namibia
A time series analysis of the determinants of savings in namibiaAlexander Decker
 
A therapy for physical and mental fitness of school children
A therapy for physical and mental fitness of school childrenA therapy for physical and mental fitness of school children
A therapy for physical and mental fitness of school childrenAlexander Decker
 
A theory of efficiency for managing the marketing executives in nigerian banks
A theory of efficiency for managing the marketing executives in nigerian banksA theory of efficiency for managing the marketing executives in nigerian banks
A theory of efficiency for managing the marketing executives in nigerian banksAlexander Decker
 
A systematic evaluation of link budget for
A systematic evaluation of link budget forA systematic evaluation of link budget for
A systematic evaluation of link budget forAlexander Decker
 
A synthetic review of contraceptive supplies in punjab
A synthetic review of contraceptive supplies in punjabA synthetic review of contraceptive supplies in punjab
A synthetic review of contraceptive supplies in punjabAlexander Decker
 
A synthesis of taylor’s and fayol’s management approaches for managing market...
A synthesis of taylor’s and fayol’s management approaches for managing market...A synthesis of taylor’s and fayol’s management approaches for managing market...
A synthesis of taylor’s and fayol’s management approaches for managing market...Alexander Decker
 
A survey paper on sequence pattern mining with incremental
A survey paper on sequence pattern mining with incrementalA survey paper on sequence pattern mining with incremental
A survey paper on sequence pattern mining with incrementalAlexander Decker
 
A survey on live virtual machine migrations and its techniques
A survey on live virtual machine migrations and its techniquesA survey on live virtual machine migrations and its techniques
A survey on live virtual machine migrations and its techniquesAlexander Decker
 
A survey on data mining and analysis in hadoop and mongo db
A survey on data mining and analysis in hadoop and mongo dbA survey on data mining and analysis in hadoop and mongo db
A survey on data mining and analysis in hadoop and mongo dbAlexander Decker
 
A survey on challenges to the media cloud
A survey on challenges to the media cloudA survey on challenges to the media cloud
A survey on challenges to the media cloudAlexander Decker
 
A survey of provenance leveraged
A survey of provenance leveragedA survey of provenance leveraged
A survey of provenance leveragedAlexander Decker
 
A survey of private equity investments in kenya
A survey of private equity investments in kenyaA survey of private equity investments in kenya
A survey of private equity investments in kenyaAlexander Decker
 
A study to measures the financial health of
A study to measures the financial health ofA study to measures the financial health of
A study to measures the financial health ofAlexander Decker
 

Más de Alexander Decker (20)

Abnormalities of hormones and inflammatory cytokines in women affected with p...
Abnormalities of hormones and inflammatory cytokines in women affected with p...Abnormalities of hormones and inflammatory cytokines in women affected with p...
Abnormalities of hormones and inflammatory cytokines in women affected with p...
 
A validation of the adverse childhood experiences scale in
A validation of the adverse childhood experiences scale inA validation of the adverse childhood experiences scale in
A validation of the adverse childhood experiences scale in
 
A usability evaluation framework for b2 c e commerce websites
A usability evaluation framework for b2 c e commerce websitesA usability evaluation framework for b2 c e commerce websites
A usability evaluation framework for b2 c e commerce websites
 
A universal model for managing the marketing executives in nigerian banks
A universal model for managing the marketing executives in nigerian banksA universal model for managing the marketing executives in nigerian banks
A universal model for managing the marketing executives in nigerian banks
 
A unique common fixed point theorems in generalized d
A unique common fixed point theorems in generalized dA unique common fixed point theorems in generalized d
A unique common fixed point theorems in generalized d
 
A trends of salmonella and antibiotic resistance
A trends of salmonella and antibiotic resistanceA trends of salmonella and antibiotic resistance
A trends of salmonella and antibiotic resistance
 
A transformational generative approach towards understanding al-istifham
A transformational  generative approach towards understanding al-istifhamA transformational  generative approach towards understanding al-istifham
A transformational generative approach towards understanding al-istifham
 
A time series analysis of the determinants of savings in namibia
A time series analysis of the determinants of savings in namibiaA time series analysis of the determinants of savings in namibia
A time series analysis of the determinants of savings in namibia
 
A therapy for physical and mental fitness of school children
A therapy for physical and mental fitness of school childrenA therapy for physical and mental fitness of school children
A therapy for physical and mental fitness of school children
 
A theory of efficiency for managing the marketing executives in nigerian banks
A theory of efficiency for managing the marketing executives in nigerian banksA theory of efficiency for managing the marketing executives in nigerian banks
A theory of efficiency for managing the marketing executives in nigerian banks
 
A systematic evaluation of link budget for
A systematic evaluation of link budget forA systematic evaluation of link budget for
A systematic evaluation of link budget for
 
A synthetic review of contraceptive supplies in punjab
A synthetic review of contraceptive supplies in punjabA synthetic review of contraceptive supplies in punjab
A synthetic review of contraceptive supplies in punjab
 
A synthesis of taylor’s and fayol’s management approaches for managing market...
A synthesis of taylor’s and fayol’s management approaches for managing market...A synthesis of taylor’s and fayol’s management approaches for managing market...
A synthesis of taylor’s and fayol’s management approaches for managing market...
 
A survey paper on sequence pattern mining with incremental
A survey paper on sequence pattern mining with incrementalA survey paper on sequence pattern mining with incremental
A survey paper on sequence pattern mining with incremental
 
A survey on live virtual machine migrations and its techniques
A survey on live virtual machine migrations and its techniquesA survey on live virtual machine migrations and its techniques
A survey on live virtual machine migrations and its techniques
 
A survey on data mining and analysis in hadoop and mongo db
A survey on data mining and analysis in hadoop and mongo dbA survey on data mining and analysis in hadoop and mongo db
A survey on data mining and analysis in hadoop and mongo db
 
A survey on challenges to the media cloud
A survey on challenges to the media cloudA survey on challenges to the media cloud
A survey on challenges to the media cloud
 
A survey of provenance leveraged
A survey of provenance leveragedA survey of provenance leveraged
A survey of provenance leveraged
 
A survey of private equity investments in kenya
A survey of private equity investments in kenyaA survey of private equity investments in kenya
A survey of private equity investments in kenya
 
A study to measures the financial health of
A study to measures the financial health ofA study to measures the financial health of
A study to measures the financial health of
 

Último

Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...ssuserf63bd7
 
Go for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptx
Go for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptxGo for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptx
Go for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptxRakhi Bazaar
 
Strategic Project Finance Essentials: A Project Manager’s Guide to Financial ...
Strategic Project Finance Essentials: A Project Manager’s Guide to Financial ...Strategic Project Finance Essentials: A Project Manager’s Guide to Financial ...
Strategic Project Finance Essentials: A Project Manager’s Guide to Financial ...Aggregage
 
How to Conduct a Service Gap Analysis for Your Business
How to Conduct a Service Gap Analysis for Your BusinessHow to Conduct a Service Gap Analysis for Your Business
How to Conduct a Service Gap Analysis for Your BusinessHelp Desk Migration
 
Driving Business Impact for PMs with Jon Harmer
Driving Business Impact for PMs with Jon HarmerDriving Business Impact for PMs with Jon Harmer
Driving Business Impact for PMs with Jon HarmerAggregage
 
Planetary and Vedic Yagyas Bring Positive Impacts in Life
Planetary and Vedic Yagyas Bring Positive Impacts in LifePlanetary and Vedic Yagyas Bring Positive Impacts in Life
Planetary and Vedic Yagyas Bring Positive Impacts in LifeBhavana Pujan Kendra
 
Simplify Your Funding: Quick and Easy Business Loans
Simplify Your Funding: Quick and Easy Business LoansSimplify Your Funding: Quick and Easy Business Loans
Simplify Your Funding: Quick and Easy Business LoansNugget Global
 
Kyryl Truskovskyi: Training and Serving Open-Sourced Foundational Models (UA)
Kyryl Truskovskyi: Training and Serving Open-Sourced Foundational Models (UA)Kyryl Truskovskyi: Training and Serving Open-Sourced Foundational Models (UA)
Kyryl Truskovskyi: Training and Serving Open-Sourced Foundational Models (UA)Lviv Startup Club
 
WSMM Technology February.March Newsletter_vF.pdf
WSMM Technology February.March Newsletter_vF.pdfWSMM Technology February.March Newsletter_vF.pdf
WSMM Technology February.March Newsletter_vF.pdfJamesConcepcion7
 
Fundamentals Welcome and Inclusive DEIB
Fundamentals Welcome and  Inclusive DEIBFundamentals Welcome and  Inclusive DEIB
Fundamentals Welcome and Inclusive DEIBGregory DeShields
 
Technical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamTechnical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamArik Fletcher
 
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...SOFTTECHHUB
 
Pitch Deck Teardown: Xpanceo's $40M Seed deck
Pitch Deck Teardown: Xpanceo's $40M Seed deckPitch Deck Teardown: Xpanceo's $40M Seed deck
Pitch Deck Teardown: Xpanceo's $40M Seed deckHajeJanKamps
 
digital marketing , introduction of digital marketing
digital marketing , introduction of digital marketingdigital marketing , introduction of digital marketing
digital marketing , introduction of digital marketingrajputmeenakshi733
 
NAB Show Exhibitor List 2024 - Exhibitors Data
NAB Show Exhibitor List 2024 - Exhibitors DataNAB Show Exhibitor List 2024 - Exhibitors Data
NAB Show Exhibitor List 2024 - Exhibitors DataExhibitors Data
 
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdfGUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdfDanny Diep To
 
Psychic Reading | Spiritual Guidance – Astro Ganesh Ji
Psychic Reading | Spiritual Guidance – Astro Ganesh JiPsychic Reading | Spiritual Guidance – Astro Ganesh Ji
Psychic Reading | Spiritual Guidance – Astro Ganesh Jiastral oracle
 
Exploring Elite Translation Services in Your Vicinity
Exploring Elite Translation Services in Your VicinityExploring Elite Translation Services in Your Vicinity
Exploring Elite Translation Services in Your VicinityThe Spanish Group
 
Ivey Leveraging Information Technology MBA 2024
Ivey Leveraging Information Technology MBA 2024Ivey Leveraging Information Technology MBA 2024
Ivey Leveraging Information Technology MBA 2024Nihal Nishadul
 

Último (20)

Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
 
Go for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptx
Go for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptxGo for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptx
Go for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptx
 
Strategic Project Finance Essentials: A Project Manager’s Guide to Financial ...
Strategic Project Finance Essentials: A Project Manager’s Guide to Financial ...Strategic Project Finance Essentials: A Project Manager’s Guide to Financial ...
Strategic Project Finance Essentials: A Project Manager’s Guide to Financial ...
 
How to Conduct a Service Gap Analysis for Your Business
How to Conduct a Service Gap Analysis for Your BusinessHow to Conduct a Service Gap Analysis for Your Business
How to Conduct a Service Gap Analysis for Your Business
 
Driving Business Impact for PMs with Jon Harmer
Driving Business Impact for PMs with Jon HarmerDriving Business Impact for PMs with Jon Harmer
Driving Business Impact for PMs with Jon Harmer
 
Planetary and Vedic Yagyas Bring Positive Impacts in Life
Planetary and Vedic Yagyas Bring Positive Impacts in LifePlanetary and Vedic Yagyas Bring Positive Impacts in Life
Planetary and Vedic Yagyas Bring Positive Impacts in Life
 
Simplify Your Funding: Quick and Easy Business Loans
Simplify Your Funding: Quick and Easy Business LoansSimplify Your Funding: Quick and Easy Business Loans
Simplify Your Funding: Quick and Easy Business Loans
 
Authentically Social - presented by Corey Perlman
Authentically Social - presented by Corey PerlmanAuthentically Social - presented by Corey Perlman
Authentically Social - presented by Corey Perlman
 
Kyryl Truskovskyi: Training and Serving Open-Sourced Foundational Models (UA)
Kyryl Truskovskyi: Training and Serving Open-Sourced Foundational Models (UA)Kyryl Truskovskyi: Training and Serving Open-Sourced Foundational Models (UA)
Kyryl Truskovskyi: Training and Serving Open-Sourced Foundational Models (UA)
 
WSMM Technology February.March Newsletter_vF.pdf
WSMM Technology February.March Newsletter_vF.pdfWSMM Technology February.March Newsletter_vF.pdf
WSMM Technology February.March Newsletter_vF.pdf
 
Fundamentals Welcome and Inclusive DEIB
Fundamentals Welcome and  Inclusive DEIBFundamentals Welcome and  Inclusive DEIB
Fundamentals Welcome and Inclusive DEIB
 
Technical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamTechnical Leaders - Working with the Management Team
Technical Leaders - Working with the Management Team
 
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
 
Pitch Deck Teardown: Xpanceo's $40M Seed deck
Pitch Deck Teardown: Xpanceo's $40M Seed deckPitch Deck Teardown: Xpanceo's $40M Seed deck
Pitch Deck Teardown: Xpanceo's $40M Seed deck
 
digital marketing , introduction of digital marketing
digital marketing , introduction of digital marketingdigital marketing , introduction of digital marketing
digital marketing , introduction of digital marketing
 
NAB Show Exhibitor List 2024 - Exhibitors Data
NAB Show Exhibitor List 2024 - Exhibitors DataNAB Show Exhibitor List 2024 - Exhibitors Data
NAB Show Exhibitor List 2024 - Exhibitors Data
 
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdfGUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
 
Psychic Reading | Spiritual Guidance – Astro Ganesh Ji
Psychic Reading | Spiritual Guidance – Astro Ganesh JiPsychic Reading | Spiritual Guidance – Astro Ganesh Ji
Psychic Reading | Spiritual Guidance – Astro Ganesh Ji
 
Exploring Elite Translation Services in Your Vicinity
Exploring Elite Translation Services in Your VicinityExploring Elite Translation Services in Your Vicinity
Exploring Elite Translation Services in Your Vicinity
 
Ivey Leveraging Information Technology MBA 2024
Ivey Leveraging Information Technology MBA 2024Ivey Leveraging Information Technology MBA 2024
Ivey Leveraging Information Technology MBA 2024
 

Adapting corporate social responsibility programs to risk management a model for multinational organizations in nigeria

  • 1. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.15, 2013 17 Adapting Corporate Social Responsibility Programs to Risk Management: A Model for Multinational Organizations in Nigeria EUGENE NWADIALOR, Ph.D, FCA, FCIT DEAN Faculty of Management and Social Sciences, Godfrey Okoye University, Thinkers Corner Enugu +2348037026544 NICHOLAS N. IGWE, Ph.D, JP, MIMC, MNIM Department of Business Management , Godfrey Okoye University Enugu +23408038726688 E-mail: ngozinick@yahoo.com Abstract There is a growing recognition of the effects activities of businesses have on stakeholders. Business executives know that their long term success depends on continued good relations with a wide range of individuals, groups and institutions. Corporate Social Responsibility (CSR) can impact on risk management positively by providing intelligence about what these risks are and offering effective means to respond to them. This paper advocates that by integrating the business sense, learning and innovations garnered from CSR programmes, multinational companies in Nigeria can better manage risks and subsequently ameliorate the impacts of their economic, social and environmental activities successfully. The paper recommends that organizational leaders to proactively manage risks and take advantage of opportunities inherent in the environment to enhance stakeholders engagement and corporate reputation. Keywords: Adapting, Corporate Social Responsibility Programs, Risk Management, Manufacturing Organizations. 1. Introduction Businesses are an integral part of the communities in which they operate. There is a growing recognition of the effect that activities of these businesses have on employees, customers, communities, the environment, competitors, business partners, investors, shareholders, governments and others. It is also becoming increasingly clear that firms can contribute to their own wealth and to overall societal wealth by considering the effect they have on the world at large when making decisions (Hohnen, 2007). Good executives know that their long-term success is based on continued good relations with a wide range of individuals, groups and institutions. Smart firms know that business can’t succeed in societies that are failing – whether this is due to social or environmental challenges or governance problems. Again, the general public has high expectations of the private sector in terms of responsible behaviour. Consumers expect goods and services to reflect socially and environmentally responsible business behaviour at competitive prices. Shareholders also are searching for enhanced financial performance that integrates social and environmental considerations both in terms of risks and opportunities. Governments, too are becoming aware of the national competitive advantages to be won from a responsible business sector. At the same time leading industry associations such as the World Business Council for Sustainable Development, have also suggested that countries as well as companies might gain a competitive advantage from Corporate Social Responsibility. In some of the developing world, governments and businesses understand that their respective competitive positions and access to capital increasingly depends on being seen to respect the highest global standards (International Finance Corporation, 2002). As governments around the world continue to withdraw from operating business enterprises on the grounds that critics emphasize that government has no business in business (McGuire, Sundgren and Schneeweis 1988). There is no way companies can avoid paying serious attention to Corporate Social Responsibility. This is because the costs of ignoring CSR are simply too high. Companies which have a good reputation risk losing their hard-earned name when they fail to put systematic approaches in place to ensure continued positive performance. The effect of a tarnished reputation often extends far beyond one company, entire sectors and indeed nations can suffer. Therefore business leaders need to understand better the dynamics of their operating environment in order to manage these related risks effectively. Corporate Social Responsibility (CSR) can play a central role in this context.
  • 2. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.15, 2013 18 2. Conceptual Framework Globally, Corporate Social Responsibility (CSR) is an evolving concept without a clear definition, yet it describes a set of corporate obligations and practices somewhere on the spectrum between traditional charitable giving on one hand and merely strict compliance with the law, on the other. While operating definition remains elusive, the term “CSR” generally refers to a company’s efforts to explicitly involve social and environmental concerns in its decision-making along with a commitment to increasing the organization’s positive impact on society (Surdyk, 2006). Wood (1991) states that Corporate Social Responsibility also called corporate conscience; corporate citizenship, social performance or sustainable responsible business is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in self-regulating mechanism whereby business monitors and ensures that its activities comply with the spirit of the law, ethical standards and international norms. Commenting on Corporate Social Responsibility, (Griffin, 2002:111) remarks that organizations do not have ethics, rather they relate to their environment in ways that often involve ethical dilemmas and decisions. These situations are generally referred to within the context of the organization’s social responsibility. Specifically, he defines Corporate Social Responsibility as the set of obligations an organization has to protect and enhance the society in which it functions. Several inter-governmental bodies, company federations and non-profit organizations have advanced competing definitions. Among the most influential are: the World Bank (2004) which sees Corporate Social Responsibility as the commitment of business to contribute to sustainable economic development working with employees, their families, the local community and society at large to improve their quality of life in ways that are both good for business and good for development. For the World Economic Forum, “Corporate citizenship can be defined as the contribution a company makes to society through its core business activities, its social investment and philanthropy programmes and its engagement in public policy. The manner in which a company manages its economic, social and environmental relationships as well as those with different stakeholders, in particular shareholders, employees, customers, business partners, governments and communities, determines its impact” (2006:10-12). Business for Social Responsibility (BSR) states that CSR is operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business. CSR is seen by leadership companies as more than a collection of discrete practices and occasional gestures or initiatives motivated by marketing, public relations or other business benefits. Rather, it is viewed as a comprehensive set of policies, practices and programmes that are integrated throughout business operation and decision-making processes that are supported and rewarded by top management (www.bsr.org). Figure 1: The Global Operating Environment Source: Kytle, B and Ruggie, J. G. (2005:4) In a developing country like Nigeria, (Ebhomielen, 2011) states that Corporate Social Responsibility is perceived as corporate philanthropy. It requires organizations to impact positively on their environments. Companies traditionally played this role by undertaking community development projects such as the award of scholarships to indigenes from the host community, donations to sports, charity, social interest works, hospitals, town halls, small and medium scale projects for employment generations, skill acquisition, etc. and support for ethical interest objectives. Most companies that spend on such projects usually report them in their annual report to
  • 3. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.15, 2013 19 show compliance. It has become fashionable for organizations in the Niger Delta region of Nigeria to use CSR projects as a form of advertisement. Such expenditures are often treated as appropriation of profit rather than a charge against profit suggesting that the company is not selfishly giving all its profit to shareholders alone after the government taxes. Basically, CSR implies that a company’s business model should be socially responsible and environmentally sustainable. By being socially responsible, it means that the company’s activities should benefit the society and by being environmentally sustainable, it means that the activities of the company should not harm the environment (Shumate and O’Conner, 2010). The Kennedy School of Government’s CSR initiative has defined CSR to encompass not only what companies do with their profits, but also how they make them. It goes beyond philanthroping and compliance to address the manner in which companies manage their economic, social and environmental impacts and stakeholder relationship in all their key spheres of influences: the workplace, the marketplace, the supply chain, the community and the public policy realm (www.ksg.harvard.edu/csri/home.htm). Given the dynamic interactions of the global economy, adopting a CSR programme is a natural extension of going global analogous to other adjustments of “scaling up” (e.g., forming strategic alliances, finding skilled staff in foreign countries). CSR, particularly for a global company, is related to corporate risk management through two means: by providing intelligence about what those risks are, and by offering an effective means to respond to them. Risk can be most simply understood in the context of a company’s threats, vulnerabilities, controls and counter measures (Kytle and Ruggie, 2005). To mitigate risk, companies develop risk management systems. Risk management is the variety of activities undertaken by an organization to control and minimize threats to the continuing efficiency, profitability and success of its operations. The process of risk management includes the identification and analysis of risks to which the organization is exposed, the assessment of potential impacts on the business and deciding what action can be taken to eliminate or reduce risk and deal with the impact of unpredictable events causing loss or damage. For this study, risk management is seen as the process of analyzing, understanding and managing the risks that an organization is unavoidably subject to in its attempt to realize its corporate objectives. In this wise, risks can be divided into the following categories: operational, financial, legal compliance information and personnel. Risk management systems fundamentally aim to address uncertainty in the market place. Their primary goal is to create controls and counter measures that minimize or eliminate the disruption, loss or damage to business operations and shorten the recovery time from an unwanted event and thereby reducing its impact on the business. Beneath these efforts is a realization that improved CSR reporting and better risk management systems generally promote the transparency and accountability essential to good company governance and improved financial performance. These systems in effect enable a company to anticipate and respond to opportunities when it senses that society’s expectations are not being met by its performance. 3. Key Drivers of Corporate Social Responsibility Organizations may exercise social responsibility toward their stakeholders, toward the natural environment and toward general social welfare. Some of the multinational corporations strive to acknowledge their responsibilities in all three areas, while a majority tend to emphasize only one or two areas of social responsibility. The organizational stakeholders are those people and organizations who are directly affected by the behaviours of an organization and they have a stake in its performance (Donaldson and Preston, 1995; Harrison and Freeman, 1999). Most companies that diligently strive to be responsible to their stakeholders concentrate on three main groups: customers, employees and investors. They then select other stakeholders that are particularly relevant to the organization’s core business interest and then attempt to address their needs and expectations as well. Figure 2 shows key organizational stakeholders.
  • 4. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.15, 2013 20 Figure 2: Organizational Stakeholders Source: Griffin, R. W. (2002:112) Without mincing words, the 21st century has witnessed growing societal demand for increased Corporate Social Responsibility and environmental accountability. No longer are companies obligated to do no harm. Instead they are being called upon to actively take responsibility for and positively engage with their communities, the global society and the environment. Consequently, today’s business leaders are working hard to understand society’s changing expectations of corporations in areas that were previously seen as the responsibility of government, or non-profit organizations. Some of the key drivers of Corporate Social Responsibility are highlighted below. • Need for enhanced market leadership: A distinct justification for socially responsible behaviours on the part of organizations is that those that make visible contributions to society can achieve enhanced reputation and gather greater market share for their products. • License to operate: Organizations need to have genuine relations with government of their host environment. This practice can lead to reduced shareholder activation and reduced risk of law suits which tend to place organizations in bad light in the public opinion. • People who argue in favour of social responsibility hinge their claims that organizations by their activities create many of the environmental problems such as air, water pollution and resource depletion. Justice demands that they should be involved in solving them. • Business as private citizen: Because organizations are legally defined entities with most of the privileges as private citizens, they should not evade society obligations as citizens. Advocates of this argument point out while governmental organizations have stretched their budgets to the limit but many multinational organizations often have surplus revenues that could potentially be used to help solve social problems (McGuire et al, 1988). For example, the Mobile Telecommunication Network MTN claims that they routinely build school laboratories, donate to old people’s home and offer scholarships to indigent students in their host environment. Just recently (January 21–22, 2013) an independent television organization in Nigeria, the Channel Television attracted the attention of the President of Federal Government of Nigeria about the oldest dilapidated Police College Ikeja in Lagos State and caused him to be the first sitting President to visit the Police academy since inception. The Channel Television remarked it was her Corporate Social Responsibility (CSR) contribution to the nation. • Increased reputational capital: Proponents of good Corporate Social Responsibility point to the fact that organizations that involve in CSR stand good chances of garnering unquantifiable reputational capital. This can be translated into reduced negative consumer activism/boycotts; positive media coverage/“free advertising”: positive word of mouth advertising, and increased community support for the company’s operations (“a bank account of goodwill”). • Growth in Global Reporting Initiatives (GRI): Launched in 1997 by the coalition of Environmentally Responsible Economies, the GRI reports contain 50 core environmental, social and economic indicators for a broad range of companies. The GRI also offers additional modules with distinct metrics for companies depending on industrial sector and operations. The price range for producing a report spans from 100,000 dollars for a basic GRI to more than three million dollars for complex organizations like Shell. Moreover, the continued growth of the socially responsible
  • 5. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.15, 2013 21 investment movement especially in advanced economies of the United States and Europe is encouraging companies to adopt GRI and other instruments. For instance, in the United States alone, the capital available to socially responsible companies reached 2.29 trillion dollars in 2005 (Surdyk, 2006). 4. Impact of Corporate Social Responsibility Programmes On Risk Management Managing risk is a central part of many corporate strategies; reputations that take decades to build can be ruined in hours through incidents such as corruption scandals or environmental accidents (Eisingerich and Ghardwaj, 2011). These can also draw unwanted attention from regulators, courts, government, civil society organizations and the media. Building a genuine culture of “doing the right thing” within a corporation can offset these risks (Bhattancharya, Sankar and Korschun, 2008). More often than not, it takes a crisis to precipitate attention to CSR. One of the most active stands against environmental management is the CERES principles that resulted after the Exxon Valdez incident in 1989 (Grace and Cohen 2006). Other examples include the Magellan Metalsin, the West Australian town of Esperance which was responsible for lead contamination killing thousands of birds in the area. The company had to cease business immediately and work with independent regulatory bodies to execute a clean-up. Odwalla, the giant Apple Juice Corporation, also experienced a crisis with sales dropping 90 percent and the company’s stock price dropping 34 percent due to several cases of E.coli spread through Odwalla apple juice. The company ordered a recall of all apple or carrot juice products and introduced a new process called “flash pasteurization” as well as maintaining lines of communication constantly open with customers. Some of the emerging risks companies face today show up on their radar screens through well- recognized entry-points, for example the challenge of carbon emission and climate change is a good example. The number of shareholder resolutions demanding climate change risk management policies from US companies tripled between 2001 and 2002 and climate change related lawsuits against companies have recently been filed for the first time (Cogan, 2003). From a company’s perspective, a social risk occurs when an empowered stakeholder takes up a social issue area and applies pressure on a corporation (exploiting a vulnerability in the earning drivers, reputation, corporate image) so that the company will change policies or approaches in the market place. The increasing complexity of international business also means that risks at the global level are much more likely to crosscut different categories of risk (e.g. a social risk may also have political or economic implications) so that they need to be tackled from multiple perspectives simultaneously using CSR (figure 3.0 shows the STEP Perspective on Risk). Figure 3: The STEP Perspective on Risk Source: Kytle, B and Ruggie, J. G. (2005:9) Corporate Social Responsibility (CSR) for a global company can impact on risk management positively through two main means: • by providing intelligence about what these risks are, and • by offering an effective means to respond to them. The key to the above mentioned means is effectively managing stakeholder relationships. Managing stakeholder relationships is imperative for multinational companies because if they do not effectively manage those relationships, stakeholders like regulators and civil society organizations (CSOs) will likely engage them in the court of public opinion with little to say by the companies. At this juncture, it is necessary to differentiate managing stakeholder relationships from simply managing stakeholder. The stakeholder management mindset embodies a mechanistic paradigm where the organization perceives itself as a closed system capable of autonomous action independent of the external context (www.collective wisdom initiative.org.). Its main objective is the dissemination of information to stakeholders
  • 6. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.15, 2013 22 through public relations or community relations on decisions already made without completing the feedback loop. This way of managing stakeholders is ineffective in global operating environments given networked value chains and the empowerment of global stakeholders. Managing stakeholder relationship requires closing the loop: it means truly engaging stakeholders (figure 4). The diagram shows a stakeholder engagement model developed by the World Bank group (Calow, Morris and Lawrence, 1999). Figure 4: Stakeholder Engagement Model Source: Calow, Morris and Lawrence (1999:25) Managing stakeholders represented by information dissemination to groups is at the bottom while managing stakeholder relationships as represented by engagement strategies is at the top. The term “engagement” relates to the various mechanisms that have been used by organizations to listen to, and account for the views of stakeholders as well as involving them in the provision of solutions. One example is the dissemination of information to stakeholders of a company which may state before a decision is made. This can be done through joint workshops, task forces or the use of focused group discussion (FGD). At the next level, stakeholders gain some influence on decision makers in addressing a particular social risk. At the highest level, stakeholders are viewed as co-decision makers in providing the solution. These strategies are examples of completing the feedback loop: both informing stakeholders and having them inform top management about a particular social risk. Effectively managing stakeholder-relationships pays attention to issues, problems/challenges and opportunities that go far beyond one organization and involve the whole global system. Learning, sensing and innovations are the keystone of such a strategy. By integrating the business sense, learning and innovations gained from CSR programmes, multinational companies can better manage their risks and subsequently their economic, social and environmental impacts successful. This strategy is similar to what their sales/marketing executives do from their customers: a form of business intelligence gathering. Effective stakeholder-relationships-management can provide strategic intelligence regarding the organization’s risk environment around particular economic, social, political or environmental issues. Stakeholder engagement strategies provide the antennae through which to pick up signals of impending threats, and possible response solutions. With time, these integrated-information-flows between stakeholders and top company management can form the base of knowledge bank about social issues and systematic nature of such problems. However, the information picked by these antennae has to be fully internalized by organizations. If it is merely encapsulated in a CSR programme its impact will be limited, but if it is linked to the company’s strategic risk management paradigm, then it can be of considerable help. Many global organizations have found these initiatives very helpful in generating strategic intelligence. Some of these organizations are organized within individual sectors: forestry, apparel, oil and gas industry. Even the United Nations Global Compact which has become by far the world’s largest corporate citizenship initiative with more than 1,800 participating organizations involves companies, labour and civil society organizations in promoting ten UN principles in the areas of human rights, labour standards and environmental sustainability (www.unglobalcompact.org). It should be observed without much gainsaying that a company’s vulnerability and threat for any type of risk can be reduced to a great extent through internal and environmental scanning, reporting and monitoring. Gaining access to knowing the expectations of the stakeholder through amicable relationships management can help a global organization have increased knowledge of international standards/norms by which the organization should abide. All these can be achieved through linking a CSR programmes to risk management. A CSR Programme Model Initiative for Organizations in Nigeria To implement a successful CSR programme Multi-National Corporations in Nigeria should adopt the following
  • 7. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.15, 2013 23 7 model steps: Step 1: Articulate a relevant CSR philosophy into the organizational guiding principle. Step 2: Put in place a well packaged reward and recognition system that applaud good responsible behaviour. Step 3: Make sure senior management team buys into the programme. Step 4: Include CSR programmes into the long-term strategic plan Step 5: Communicate to the relevant stakeholders and celebrate the result of CSR efforts. Step 6: Partner, if necessary, with other organizations, community groups or government agencies to multiply CSR impacts. Step 7: Implement CSR programmes with the same zeal and tenacity used for other organizational core competencies. Source: The Authors 5. Conclusion Since businesses play a pivotal role both in job and wealth creation in society and in the efficient use of national capital, Corporate Social Responsibility (CSR) is a central management concern. It positions organizations to both proactively manage risks and take advantage of opportunities especially with respect to their corporate reputation and the broad engagement of stakeholders, (shareholders, employees, customers, communities, suppliers, non-government organizations, international organizations and others affected by a company’s activities. Acting responsibility towards these stakeholders can help companies build long-lasting values for themselves. Investors and financial institutions have recognized that Corporate Social Responsibility activities that integrate broad societal concerns into business strategy and performance are evidence of good risk management capabilities. In addition to building trust with the host communities and giving companies competitive edge in attracting good customers and employees, there are countless win-win opportunities waiting to be discovered. This is because every activity in a firm’s value chain overlaps in some way with social factors. The job of today’s business leaders is to start thinking systematically; adapt Corporate Social Responsibility to risk management and stop being defensive. 6. Suggestions/Recommendations • All multinational corporations listed on the Nigeria Stock Exchange (NSE) should be required by an act of National Assembly to produce an integrated report in place of annual financial report and sustainability report. An integrated report includes environmental, social and economic performance alongside financial performance information. • Government of developing countries, where these MNCs operate, should step up regulations with adequate enforcement and monitoring to ensure that MNCs behave in a socially responsible manner. • It is necessary to include all stakeholder groups or constituents in managerial decision-making in matters related to the organization’s portfolio of socially responsible activities. This is because CSR collaborations are positively accepted when they are in the interests of stakeholders without detrimental effects on the organization. • Managers should understand fully the various ways in which business and government influence one another while it may be legal and appropriate to influence government and other stakeholders, managers should be wary to avoid crossing legal or ethical boundaries. • Managers should understand that CSR is not something that just “happens”. Instead, like other organizational activities, it must be actively managed. • Social and environmental accountability cannot be meaningless words on a dusty mission statement or an after thought; they must be integrated into all aspects of everyday corporate life. REFERENCES Bhattancharya, C. B., Sankar, S and Korschun, D. (2008). “Using Corporate Social Responsibility to Win the War for Talent”. MIT Sloan Management Review, 49, 37 – 44. Calow, R. C., Morris, B. L., and Lawrence, A. R. (1999). Stakeholder Analysis and Consultation. Washington DC: The World Bank Group. Cogan, D. G. (2003). “Corporate Governance and Climate Change: Making the Connection”. A CERES Sustainable Governance Project Report prepared by the Investor Responsibility Research Centre. Donaldson, T and Preston, L. E. (1995). “The Stakeholder Theory of the Corporation: Concepts, Evidence and Implications”. Academy of Management Review, 20, 65 – 91. Ebhomielen, E. P. (2011). Ethical Standards in Modern Corporate Governance. A paper presented at the BIU Accounting Workshop/Conference held at Benson Idahosa University, Postgraduate Lecture Theatre,
  • 8. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.15, 2013 24 April, 28 – 29; Benin City. Eisingerich, A. B. and Ghardwaj, G. (2011). “Corporate Social Responsibility: Does Social Responsibility help Protect a Company’s Reputation?” MIT Sloan Management Review, 52, (March). Grace, D. and Cohen, S. (2006). Business Ethics; Australian Problems and Cases. London; Oxford University Press. Griffin, R. W. (2002). Management. New York: Houghton Mifflin Company. Harrison, J. S. and Freeman, R. E. (1999). “Stakeholders, Social Responsibility and Performance: Empirical Evidence and Theoretical perspectives”, Academy of Management Journal, 42, 479 – 495. Hohnen, P. (2007). Corporate Social Responsibility: An Implementation Guide for Business. Manitoba: International Institute for Sustainable Development. International Finance Corporation (2002) “Developing Value: The Business case of Sustainability in Emerging Markets” in Sustainability and Ethos. Kytle, B. and Ruggie, J. G. (2005). “Corporate Social Responsibility as Risk Management: A Model for Multinationals”, Corporate Social Responsibility Initiative Working Paper, No. 10. Cambridge, MA: John F Kennedy School of Government. McGuire, J. B; Sundgren, A. and Schneeweis, T. (1988). Corporate Social Responsibility and Firm Financial Performance, Academy of Management Journal, December. Shumate, M. and O’Conner, A. (2010). “The Symbiotic Sustainability Model: Conceptualizing NGO – Corporate Alliance Communication”, Journal of Communication, 60, 3, 577 – 609. Surdyk, J. (2006). “CSR: More than PR, Pursuing Competitive Advantage in the long Run” in Business. The Ultimate Resource. Cambridge, M.A: A and K Black Publisher. Wood, D. (1991). “Corporate Social Performance Revisited”, The Academy of Management Review, 16, 4. World Bank, (2004). “Making Services work for poor people” World Development Report 2004 Overview. Inter Sources www.bsr.org.. www.collectivewisdominitiative.org. www.ksg.harvard.edu/csr/home.htm. www.unglobalcompact.org.
  • 9. This academic article was published by The International Institute for Science, Technology and Education (IISTE). The IISTE is a pioneer in the Open Access Publishing service based in the U.S. and Europe. The aim of the institute is Accelerating Global Knowledge Sharing. More information about the publisher can be found in the IISTE’s homepage: http://www.iiste.org CALL FOR PAPERS The IISTE is currently hosting more than 30 peer-reviewed academic journals and collaborating with academic institutions around the world. There’s no deadline for submission. Prospective authors of IISTE journals can find the submission instruction on the following page: http://www.iiste.org/Journals/ The IISTE editorial team promises to the review and publish all the qualified submissions in a fast manner. All the journals articles are available online to the readers all over the world without financial, legal, or technical barriers other than those inseparable from gaining access to the internet itself. Printed version of the journals is also available upon request of readers and authors. IISTE Knowledge Sharing Partners EBSCO, Index Copernicus, Ulrich's Periodicals Directory, JournalTOCS, PKP Open Archives Harvester, Bielefeld Academic Search Engine, Elektronische Zeitschriftenbibliothek EZB, Open J-Gate, OCLC WorldCat, Universe Digtial Library , NewJour, Google Scholar