ASSESSMENT OF COMMUNITY PARTICIPATION IN CORPORATE SOCIAL RESPONSIBILITY OF BRITISH AMERICAN TOBACCO NIGERIA IN OYO STATE

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ABSTRACT

Based on observed grudges and complaints of alienation of host communities in company’s CSR initiatives, the research work was conducted on “Assessment of Community Participation in Corporate Social Responsibility of British American Tobacco Nigeria in Oyo State” to evaluate the level of corporate community involvement in CSR initiatives. In conducting the research, mixed research method was used to elicit quantitative and qualitative data through survey, focus group, in-depth interview and document analysis methods. The population of the study was 5,580,894 from which the sample size of 405 was drawn from five Local Government Areas aided by Australian Calculator. The study found out that British American Tobacco Nigeria did not adequately involve the host communities in the conceptualizing, designing and implementing of its CSR programmes in the state. This findings indicates that, although CSR projects are being implemented by BATN, it appears that corporate community engagement in CSR is low and poor, such that, a linear inverse relationship exist between BATN and host communities. Consequently, the study found that the continuous dissatisfaction of the host community with the CSR programmes implemented by BATN will not cease until mutual communication is established between the concerned parties. Finally, until there is high level of community participation in Corporate social responsibility, driven by two-way communication and mutual understanding, BATN’s social effort will continue to be rated poorly. Based on the study findings, the study recommended the adoption of stakeholders’ theory tenets which advocated for the establishment of corporate community engagement platforms where members of the community can meet, interact directly and deliberate on programmes and social development initiatives that concerns them.


TABLE OF CONTENTS

Title Page
Table of Contents
List of Tables
List of Figures
Abstract

CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.2       Statement of Problem
1.3       Objectives of the study
1.4       Research Questions
1.5       Significance of the study
1.6       Delimitation of study
1.7       Definition of terms

CHAPTER TWO: LITERATURE REVIEW
2.0 Focus of the Review
2.1       Corporate Social Responsibility
2.2 Community Relations and Corporate Organizations
2.3       Corporate Community Involvement and Corporate Social Responsibility
2.4       Community Dialogue and Corporate Social Responsibility
2.5       Review of Related Studies
2.6       Theoretical Framework

CHAPTER THREE: RESEARCH METHOD
3.1       Research Design
3.2       Population of study
3.3       Sample Size
3.4       Sampling Technique
3.5       Description of Instruments
3.6       Validity of Research Instruments
3.7       Reliability of research instrument
3.8       Method of data collection
3.9       Method of data analysis

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.0       Introduction
4.1 Data Presentation and Analysis
4.1.1    Data from Survey (Questionnaire)
4.1.2    Analysis of Psychographic Data
4.2 Data from In-depth Interview
4.1.3    Data from Focus Group Discussion
4.3 Data from Document Analysis
4.3.1    BAT Foundation Profile
4.4 Discussion Findings
4.4.1    Research Question One: What is the level of community awareness of BATN CSR programmes?

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1       Summary of Findings
5.2       Conclusion
5.5       Recommendations
5.4       Contributions to Knowledge
5.5       Suggestions for Further Study
Bibliography
Appendix

CHAPTER ONE

INTRODUCTION

1.1 Background of the study
The field of Corporate Social Responsibility in business has become an almost unavoidable concern and focus for large organisations as well as small sized enterprise (SMEs). The British American Tobacco company Nigeria is no exception. In Nigeria, the British American Tobacco started an operational presence in 1912. Commercial growing of tobacco started in 1934 when British American Tobacco (BAT) decided to source tobacco leaf locally, this subsequently led to the establishment of a full scale factory in 1937 in Ibadan, Oyo state. However, tobacco cultivation first started in Ogbomoso, Iseyin and Ago Are, all in the present day Oyo state, before spreading to the Northern part of the country. By 1978, there were three operating factories located at Ibadan, Port-Harcourt and Zaria. (BAT: 2014).

However, the nose-diving of the Nigerian Tobacco Company (NTC), with the closure of

Porthacourt factory 1983, and Ibadan factory closure in December 1995, leaving the failing Zaria

factory for operation, there was another spirited attempt by BAT to launch cigarette production

in Nigeria. (BATN 2014).

British American Tobacco (Nigeria)  Limited was incorporated on July 11, 2000 and

subsequently merged with the Nigerian Tobacco Company on November 6 of the same year. The

company is a fully owned subsidiary of the British American Tobacco Group. Therefore, on

September 24, 2001 at an event tagged “Nigerian Investment Summit”, BAT signed a Memorandum of Understanding (MoU) with the Federal Government of Nigeria for an investment of $150 million to build a state-of-the-art-factory in Ibadan, Oyo State. The investment

started a process that has impacted all aspects of the tobacco industry, from leaf growing, through

to the manufacture and distribution of tobacco products.

It is not a thing of surprise that within a short time of existence, agitations for social


commitment to host communities by opinion leaders, agencies and members of host communities are on a high demand. The rising importance and attention of socially responsible investment, increasing consumer and environmental concern, and a growing political/ legislative environment have driven the British American Tobacco Company Nigeria to engage in corporate social responsibility (CSR) programmes to satisfy the continuous needs of host communities.

According to Tariq, Ahmed, Sheraz & Mehfooz (2012: pg. 41), corporate engagement with society, also termed corporate social responsibility (CSR), has become a commonly used term in contemporary society and refers to one process by which an organization expresses and develops its ‘corporate culture’ and social consciousness (Rupp et al,2006 and Calderon, 2011). CSR has been receiving lots of attention from various backgrounds of researchers worldwide (Ismail 2011), it has attracted a great deal of attention over the past decade (Zu & Song 2008), and according to some researchers, it has gathered great momentum over the past number of years and is now regarded to be at its most dominance(Sweeney 2007). As a result, business leaders, government officials, and academics are focusing more and more attention on the concept of “Corporate Social Responsibility” (Reinhardt et al 2008).

The idea of corporate social responsibility (CSR) according to Igbara, Etu, et.al (2014. p.92) “emerged as a strategy to initiate and bring about development for host communities through programmes and projects that is responsive to their needs.” This assertion shows that community involvement and participation is therefore imperative in corporate social responsibility. Hopkins (2003) further sees corporate responsibility as being concerned with treating the stakeholders of the firm ethically or in a responsible manner and to create higher standard of living, while preserving the profitability of the corporation for people within and outside the corporation. CSR is also seen as a company’s status and activities with respect to its perceived societal or stakeholder obligation (Dacin and Brown, 2006).From a corporate organisation perspective, organizations are seen as key drivers in the process of constructing a....

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