THE PRACTICE OF CORPORATE SOCIAL RESPONSIBILITIES IN THE BREWERY INDUSTRY (A CASE STUDY OF THE NIGERIAN BREWERIES AMA ENUGU)

Abstract

This study was on the practice of corporate social responsibilities in the breweries industry. Three objectives were raised which included:  To determine if brewery industry are social responsible, to find out whether corporate social responsibility practice of brewery industries use to increase customer patronage, to determine the impact of social responsibilities on profit of brewery industry, to find out the feelings of consumers, to find out the problems encountered by brewery industries in carrying out social responsibilities and to offer solution on how to use corporate social responsibilities for improving customers patronage. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Nigeria breweries industry ama Enugu. Hypothesis was tested using Chi-Square statistical tool (SPSS).

Chapter one

Introduction

1.1Background of the study

Marketers should not only think of customers satisfaction as the key to profitability.  The marketer operates in an environment.  Where several forces are in a state of dynamic tension and these forces must never be under estimated by the marketer.  Socially responsible marketing recognizes that the organization is part of a larger society and as a result should be accountable to that larger society for its actions. 

Okonkwo (2000:128) noted that social possibilities is the concerted efforts of business operators to initiate, formulate and implement policies and decision concerning the well being of the society by studying how their business actions and inactions affect the numbers of the society and taking corrective measures. 

In the view of Adirika, Ebue and Nnolim (2001:29 – 292) some scholars argue that the responsibility of business is to make profit.  By doing so, the society benefits and peoples material needs are met.  However, other scholars are the opinion that the responsibility of a business is to satisfy the society.  Te firm belongs to the people and thus has an obligation to the different section of the society, suppliers, consumers, stock brokers, employees, local community, government and the general public.  The social responsibility of business is a logical extension of the societal marketing concept and social marketing.  

Marketers social responsibilities flow out of their conception of business ethic.  Ethics is the study of right or wrong.  The conduct of most business people are highly unethical.  There are practices such as false or misleading advertisements, overpriced, shoddy goods, bribes to win business, industrial pollution and defective, dangerous and harmful products. 

Berkowitz et al (1997:110) are of the opinion that social responsibility as meaning that organizations are part of a larger society and are accountable to that society for their actions even though like ethics agreement on the nature and scope of social responsibility is difficult to come by, given the diversity of values present in different societal business and organizational culture. 

To Berkowitz et al there are three basic concept of social responsibility. 

1) Profit responsibility: It holds that companies have a single responsibility and that is to maximize fit provided they operate within the rules of the game. 

Those companies which charge very high prices for new HIV drugs believe so much on this 

2) Stakeholders responsibility; This is a fallout of criticisms of the profit responsibility.  It focuses on the obligation an organization has to those who can affect achievement of its objectives, viz. customers, employees, suppliers and distributor.  Many companies have recalled products which they found defective, industrious or harmful, because they felt that inspite or the high cost of such recall, it was in the best interest of the stakeholder to do so and that doing otherwise would have negatively impacted on the image of the product and the companies concerned. 

3) Societal responsibility: this is a much broader concept of social responsibility and refers to the obligation that organizations have to the preservation of the ecological environment and interest of master marketers (Enligned self interest) to be societally responsible, such companies win the trust, patronage and support of the larger public welfare have led to the formation such international organizations like coreen peace (Berkowitz et al 1997:111 0 112).

The role of business including brewery industry is to act within the frame work established by ethics and by government to satisfy the demands of the public.  Guided by this framework, more and more business are becoming increasingly more socially responsible.  It is because of the importance of social responsibility in business that the researcher takes a critical look at the practice of corporate social responsibilities in brewery industry with reference to Nigerian brewery industry Ana Enugu.

1.1 STATEMENT OF PROBLEM

Many organization including brewery industry pursue the profit objective relentlessly.  Some take cognizance of the needs of the customers but most do not as they operate under an environment to their customers. 

Many brewery industries are only interested on only those that can help them make profit even at the erthlement the concept of social responsibility require companies to consider the implication of their action within the whole social system and the system hold the company responsible for any damage the company’s action will have any where in that system.

Social responsibility is the responsiveness of a business to the problem and interest of the society.  It is carrying out the moral obligation of business to the society most of this brewery companies.  It is because of the importance of social responsibility improving customers  welfare and improve company’s performance that there searcher take in critical look at the practice of corporate social responsibilities in the brewery industry. 

1.2 OBJECTIVES OF THE STUDY:

In this study, the following objective are formed. 

1) To determine if brewery industry are social responsible

2) To find out whether corporate social responsibility practice of brewery industries use to increase customer patronage.

3) To determine the impact of social responsibilities on profit of brewery industry. 

4) To find out the feelings of consumers 

5) To find out the problems encountered by brewery industries in carrying out social responsibilities 

6) To offer solution on how to use corporate social responsibilities for improving customers patronage. 

1.3 SIGNIFICANCE OF THE STUDY;

The study is not only an academic exercise, it will have a substantial benefit to the researcher.  It will widen the researcher’s knowledge in research writing and pricing adopted by corporate social responsibility.

It will be of eminence benefit to researchers who will find the study as a sources of literature review. 

1.4 SCOPE OF THE STUDY:

This research was undertaken to examine the practice of corporate social responsibilities in the brewery industry. 

1.5 RESEARCH HYPOTHESIS:

Ho: Brewery industries in Nigeria are not socially responsible

Hi: Brewery industries in Nigeria are socially responsible

Ho: Brewery industries do not care for environment in which they operate 

Hi: Brewery industries care for environment in which they operate 

Ho: Brewery industries in Nigeria do not offers product safety 

Hi: Brewery industries in Nigeria offers product safety

Ho: The practice of corporate social responsibility by brewery industries impacts negative on the profit of the organization. 

Hi: The practice of corporate social responsibility by brewery industries impacts positively on the profit of the organization. 

1.6 DEFINITION OF TERMS:

More value: Moral or professional standards of behaviour; principles.  Attributes concerning principles of right and wrong behaviour; attributes based on peoples sense of what is right and just, not on legal rights and obligation; following standards of right behaviour, good or virtuous; able to understand the different between right and wrong, teaching or illustration good behaviour.

Ethics: system of moral principles, rules of conduct, science of moral conducts – more correctness. 

Strategy: art of planning and directing an operation in a campaign, skill in planning or managing any affair well, plan or design for a particular purpose.

Public good: a thing of high quality, of an acceptable standard, satisfactory concerning people in general.

Responsibilities: Commitment or duties for which a person or persons responsible or accountable.

Environment of business: Conditions, circumstances affecting the life of the business, natural conditions, eg. Economic environment, cultural and technological environment.

Stakeholders: Person or persons that invested money etc, in an enterprise or business so that he has interest or share in it.  Individuals that have stake in the future success of a business.  

Opportunity: Favourable time, occasion or service of circumstances. 

Decorum: Dignified and socially accepted behaviour a moral of good and exemplary life, worthy of emulation.

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