CORPORATE SOCIAL RESPONSIBILITY IN THE NIGERIA BANKING SECTOR (A CASE STUDY OF SELECTED COMMERCIAL BANKS IN AUCHI, EDO STATE)

ABSTRACT
The objective of the study is to examine the effect of Corporate Social Responsibility in the Banking Sector. Using selected Banks in Auchi. The study adopted research survey design in which the sample subjects and variables that are being studied are simply being as the one without any attempt to control them. Questionnaire was used to collect information for the study. The population of the study consisted of workers in the selected banks. Simple random sampling was used to sample the population and ten percent 10% of the entire population of study (600) was adopted in the study. This gave a sample size of 60 (sixty). Simple percentage was used in translating frequency counts into percentage. One hypothesis was formulated for the study and product movement correlation co-efficient was used to test the only hypothesis.

1.1 BACKGROUND TO THE STUDY
Corporate social responsibility (CSR) as a concept entails the practice whereby corporate entities voluntarily integrate both social and environment upliftment in their business philosophy and operations. A business enterprise is primarily established to create value by producing goods and services which society demands. The present-day conception of corporate social responsibility (CSR) implies that companies voluntary integrate social and environmental concerns in their operations and interaction with stakeholders. The notion of CSR is one of ethical and moral issues surrounding corporate decision making and behaviour. Thus, if a company should undertake certain activities or refrain from doing so because they are beneficial or harmful to society is a central question. Social issues deserve moral consideration of their own and should lead managers to consider the social impacts of corporate activities in decision making. However, some arguments that the contribution of concepts such as CSR is just a reminder that the search for profit should be constrained by social considerations (manuel and Lucia, 2007) and increasingly CSR is analyzed as a source of competitive advantage and not as an end in itself (Branco and Rodrigues, 2006). In effect, the concept of CSR has evolved from being regarded as detrimental to a company’s profitability, to being considered as some – how benefiting the company as a whole, at least in the long run.
Today, managers of Nigerian banks have found a need that the environment in which they operate should be provided for because their intermediate and macro environments have a direct impact on the attainment of the corporate goals. Objectives and mission statement. The purpose of all profit- making organizations is to maximize profit and in turn minimize cost, through optimal utilization of available resources to achieve the best results they are capable of profitability is an important factor to all banks, because it is one of the major purpose for which the banks are established.

CSR involve a business identifying its stakeholders groups and incorporating their needs and values within the strategic and day-to-day decision making process. Thus a means of analyzing the inter-dependent relationships that exist between business, the economic systems and the communities within which they are operating. CSR is a means of discussing the extent of obligations a business has to, its immediate society; a way of proposing policy ideas on how those obligations can be met; as well as tool by which the benefits to a business for meeting those obligations can be identified (CSR Guide). CSR is also referred to as ‘corporate’ or ‘business responsibility’ ‘corporate’ or ‘business citizenship’, ‘community relations’, ‘social responsibility’. It involves the way organizations make business decision the products and services they offer, their efforts to achieve an open and honest culture, the way they manage the social, environmental and economic impacts of business activities and their relationships with their employees, customers and other key stakeholders having interest in the business and its operations. The motivations to engage in CSR are varied – response to market forces, globalization, consumer and civil society pressures, corporate objectives, etc. the activities of these firms are therefore visible because of their global reach. As such there is a higher incentive to protect their brands and investments through CSR. The CSR activities in this sector are mainly focused on remedy the effects of their business activities on the local communities. So, the firms operating in this sector have often provided pipe – borne waters, hospitals, schools, etc.

The Nigerian banks seek to conduct CSR so that they meet their financial, social and environmental responsibilities in an aligned way. At its core, it is simply about having a set of values and bahaviours that underpin its everyday activities, its transparency, its desire for fair dealings, its treatment of people, its attitudes towards and treatment of its customers and its links into the community. As a result, the environmental aspect of CSR is seen as the duty to cover the environmental implications of the company’s operations, products and facilities; eliminate waste and emissions; maximize the efficiency and productivity of its resources; reward for externalities and minimize unethical practices that might adversely affect the enjoyment of the county’s resources by future generations. In the emerging global economy, where the internet, the news media and the information revolution shed light on business practices around the world, companies are more frequently judged on the basis of their environmental stewardship (CIBN). Partners in business and consumers want to know what in inside a company. This transparency of business practice means that for Nigerian Banks, CSR is no longer a luxury but a requirement.

Mazurkiewicz (2004) recognized the concept has been developing since the early 1970s; there is no single, there is no single, commonly accepted definition of ‘Corporate social responsibility’ (CSR). There are different perceptions of the concept among the private sector, governments and civil society organizations. Depending on the perspective, CSR may cover;
• A company running its business responsibly in relation to internal stakeholders, employees, customers and suppliers
• The role of business in relationship to the state and nationally, as well as global institutions or standards.
• Business performance as a responsible member of the society in which it operates and the global community.

The first perspective includes ensuring good corporate governance, product responsibility, employment conditions, workers rights, training and education. The second includes corporate compliance with relevant legislation, and the company’s responsibility as a taxpayer, ensuring that the state can function effectively. The third perspective is multi-layered and may involve the company’s relations with the people and environment in the communities in which it operates and those to which it transact business. Too often, attaining CSR is understood from the perspective of business generosity to community projects and charitable donations. But this fails to capture the most valuable contributions that a company has to make (Reyes 2002).

Business for social responsibility (BSR) defines CSR as ‘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 or occasional gestures, or initiatives motivated by making, public relations or other business benefits. Rather, it is viewed as a comprehensive set of policies, practices and programs that are integrated throughout business operations, and decision-making processes that are supported and rewarded by top management.

Simply, many companies have found that CSR has often had a positive impact on corporate profits. Of all the topics related to corporate social responsibility, it is environmental initiatives that have produced, so far, the greatest amount of quantifiable data linking proactive companies with positive financial results. Business for Social Responsibility (BSR), for example, emphasizes that investment in CSR has promoted product differentiation at the product and firm levels. Some firms now produce goods and services with attributes or characteristics that signal to the consumer that this particular company is concerned about certain social and environmental issues.

Corporate Social Responsibility in Nigeria Banking Sector would be aimed towards addressing the peculiarity of the socio-economic development challenges of the country (e.g poverty alleviation, health care provision, infrastructure development, education etc) and would be informed by socio-cultural influences (e.g communalism and charity). They might not necessarily reflect the popular western standard or expectations of CSR (e.g consumer protection, fair practice, green marketing, climate change concerns, social responsible investments etc.) as a result of the effect of the global economic meltdown and the Central Bank of Nigeria (CBN) regulatory policies on the banking activities which led to the recent replacement of some Nigerian Banks Chief Executive Officers even after the 89 banks that had hitherto existed in Nigeria were reduced to 25 in 2006. while 76 of them merged into the 25 mega banks, 13 banks were liquidated which was the outcome of the implementation of the N25 billion minimum capital base for banks the first phase of the most extensive and intensive banking reforms in post-independence of Nigeria.

Companies are assumed to be socially responsible because they anticipate a benefit from actions. Examples of such benefits might include reputation enhancement, the ability to charge a premium price for its output, or the use of CSR to recruit and retain high quality workers. These benefits are presumed to offset the higher costs associated with CSR, since resources must be allocated to allow the firm to achieve CSR status, while a key indicator to determine the true worth and value of modern organizations is their ability to give back to the society part of their income through some mutually beneficial initiatives (Nkanbra and Okorite, 2007). There is no doubt that CSR is becoming indispensable, though involuntary, in the contemporary business world as societal needs are making it imperative for the corporate organizations to be sensitive to happenings in their environment, which ensure more understanding and good relationship between the organization and the society they exist, since CSR contributes to the wellbeing of the citizenry (Osho 2008).

Gustafson (2006), CSR is one of the most dynamic, complex and challenging areas that business leaders face today and it is arguably one of the most critical, even as deregulation and privatization are increasingly gaining ground in most countries thus bringing private-sector companies under pressure to take active role in making the society a better place to live in and not only for them. This informed the choice of the topic, cooperate social responsibility in the Nigerian Banking sector for this study.