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This research work was conducted to determine the effects of corporate social responsibility on customers’ perception of an organization: a study of Dangote Foundation. The research problem was identified as recognizing Dangote Group of Companies to be one of the largest goods producing companies not only in Nigeria but also across West Africa region. A recent survey has shown that the company has the highest average profit over the cast five (5) years than any other group of companies in Nigeria. The researcher was posed to undertake an investigation to find out whether a corporate social responsibility has a relationship with customers perception of an organization. Both primary and secondary data were collected and chi-square was adopted to test the hypothesis formulated on “The Activities of Dangote Foundation on Corporate Social Responsibility has significant impact on customers perception of Dangote Group of Company. It was found out that the generally corporate social responsibility have significant impact on customers perception of an organization. It was therefore recommended that private companies are strongly recommended to carefully designed good policies towards implementing corporate social responsibility so as to have good perception by their customers.
TABLE OF CONTENT
Title Page i
Approval Page iv
Table of content viii
1.1 Background to the Study 1
1.2 Statement of the Problem 2
1.3 Objectives of the Study 3
1.4 Research Questions 4
1.5 Hypothesis 4
1.6 Significance of the Study 5
1.7 Scope of the Study 6
LITERATURE REVIEW AND THEORETICAL FRAMEWORK
2.0 Introduction 7
2.1 Empirical Literature on Corporate Social Responsibility 7
2.1.1 The Instrumental/Normative Debate 14
2.1.2 Relationship Between Corporate Social Responsibility and
Societal Values 17
2.1.3 The Role of the Manager in Implementing Corporate Social
2.1.4 Relationship Between Stakeholders and Corporations in
Corporate Social Responsibility 24
2.2 General Customer’s Perception 28
2.2.1 Customer’s Perception of a Product 31
2.2.2 Changing Product Strategies 31
2.2.3 Why customer’s perception matters 35
2.2.4 Customer loyalty and customer perception 35
2.2.5 Impact factors on customer perception 37
2.2.6 Measuring customer perception 40
2.3 Theoretical Framework: Two Factor Patronage Model 45
3.0 Introduction 48
3.1 Research Design 48
3.2 Population and Sample 48
3.2.1 The Population 49
3.2.2 The Sample Size 49
3.2.3 Sampling Technique 50
3.3 Data Collection Instruments and Administration 50
3.3.1 Sources of Data 51
3.3.2 Instruments and Measurements 51
3.4 Data Analysis Techniques 52
DATA PRESENTATION AND ANALYSIS
4.0 Introduction 53
4.1 Corporate Social Responsibility of Dangote Group 53
4.2 Data Presentation 54
4.3 Data Analysis 71
4.4 Major Findings 73
SUMMARY, CONCLUSION AND RECOMMENDATION
5.0 Introduction 74
5.1 Summary 74
5.2 Conclusion 75
5.3 Recommendations 75
1.1 Background to the Study
The upliftment and ensuring socio-economic welfare of the people is not the sole responsibility of the Government and the Non-Governmental Organisations (NGOS) alone, but also the private firms. In fact, what characterises a modern society is the ability of the three basic formal societial institutions i.e. the government, the NGOs and the private sector organisations, to provide a synergy through which the people’s welfare could be enhanced and the environment could adequately be protected. The survival of the private sector depends, to a larger extent, on the sustainability of the environment within which it operates and the quality of people surrounding it, with the latter being the potential and actual customers. Therefore, the private sector cannot do away with these two critical agents (the environment and the customers). When these two agents are negatively affected by the operation of a firm, the firm in turn would be affected. It could therefore be understood that, the success of every corporate firm depends on how well it utilises the environment within which it operates and the customers that patronise it. Thus exhibiting/discharging social responsibility by a firm is not a matter of choice, but a responsibility which will enhance the fame of the company.
It does not necessarily mean that each customer must directly benefit from the activities of the organisation before a social responsibility is said to have been discharged, for the activities majorly impact on the vulnerable and in some cases the youth/students of the society. However, this has alot to do with how the generality of the society perceive the company, and helps significantly in moulding customers’ psychology.
Against this background, this research intends to examine the effectiveness of ‘corporate social responsibility discharged by Dangote Foundation, on behalf of the Dangote Group of Companies on the customers’ perception to Dangote Group of Companies.
1.2 Statement of the Problem
Dangote Group of Companies is one of the largest companies that produces goods that are consumed by many people not only in Nigeria, but also across West African region. These goods range from food stuff like rice, flour, pasta, salt, suger among others, to construction materials prominent among which is Dangote Cement. A recent survey has shown that over 75% of the total country’s population must use one Dangote product or the other every day. The survey revealed that, the company has the highest average profit over the last five (5) years that any other group of companies in Nigeria (Isah, 2013). However, Dangote Group of Companies has a large number of trucks and haulage system. It is perceived that these trucks use the road networks across the country than any other company’s trucks in the country.
Based on the above statistics and perception, a recent preliminary survey in Kaduna metropolis by the current researcher shows that not more than 25% of the sampled respondents were even aware of the company’s foundation and the social responsibility. In line with the above, the researcher is posed to undertake an investigation to find out whether a corporate social responsibility has a relationship with customers’ perception of an organisation.
1.3 Objectives of the Study
The main objective of this research is to examine the effects of corporate social responsibility on the customer’s perception of Dangote Group of Companies.
In order to achieve the aforementioned objectives, the following objectives are set:
(i) To determine the general level of the social responsibility of Dangote Foundation.
(ii) To examine how customers generally perceive the social responsibility of Dangote Foundation.
(iii) To evaluate the effects of the Foundation’s activities on customers perception of the group’s companies.
1.4 Research Questions
(i) What is the general level of the social responsibility of Dangote Foundation?
(ii) How do the customers generally perceive the social responsibility discharged by the Foundation?
(iii) What are the effects of the corporate social responsibility on customers’ perception of Dangote Group of Companies?
Based on the problem defined above two hypotheses, on the basis of null (H0) and alternate (H1), are formulated as follows;
H0: The activities of Dangote Foundation on corporate social responsibility have no significant impact on customers’ perception of Dangote Group of Companies.
H1: the activities of Dangote Foundation on corporate social responsibility have significant impact on customers’ perception of Dangote Group of Companies.
The independent variable is “The Corporate Social Responsibility”
The dependent variable is the “customers’ perception.” Therefore, customers’ perception of an organisation depends on effective corporate social responsibility.
1.6 Significance of the Study
Every research is embarked upon to have certain impact or make some significance. Therefore, this research has significance in many respects as discussed in the following:
Firstly, this research is significant to the world of academia and research and can contribute to update knowledge in that it bridges the gap of knowledge especially between corporate social responsibility and customers’ perception of an organisation. In other words, it attempts to clearly define what exactly is the relationship between corporate social responsibility and customers’ perception of an organisation.
Secondly, it will be significance to the world of business in that firms can adopt the findings of this research to make or modify their existing policies on corporate social responsibility such that both the firm/company and the society could mutually benefit from each other.
Finally, the research is significant in that it will be a point of further research. Further research relevant to this research could be carried out in some salient areas which this research has not touched.
1.7 Scope of the Study
The scope of this study deals with two main issues i.e. the period, and the substance.
In terms of the period, the study is limited to the period of five (5 ) years i.e. 2010 – 2014. Only donations by Dangote Foundation within this period could be taken into cognisance. Any other donation before this period could not be accounted for.
In terms of substance, the intervention of the Dangote Foundation in the education sector will be more focused on under this research.
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