Corporate Social Responsibility (CSR) Practices and Stakeholders Expectations: The Nigerian Perspectives

Abstract

Using Carroll's (1991) Corporate Social Responsibility (CSR) model, the study examines business CSR practices and stakeholders' expectations in Nigeria. Carroll's (1991) CSR model states that four kinds of social responsibilities constitute total CSR: economic, legal, ethical, and philanthropic. Both primary (survey) and secondary (the literature) data are used for the study. There are several stakeholders in business; but, for the purpose of the study employees, customers, shareholders, and local communities are identified as the main stakeholders in the context of the business environment in Nigeria. 240 questionnaires are administered to participants, selected through purposive sampling technique, in the six geopolitical zones of Nigeria. One hundred and fifty eight (158) questionnaires, representing 66% response rate, were duly completed and retuned for the study. The findings indicate that CSR is concerned with treating stakeholders ethically; and business should protect wide range of stakeholders' interest. We found that the four dimensions of CSR (economic, legal, ethical and philanthropic) are not ascribed equal importance in Nigeria. Nigeria's Stakeholders place more emphasis on economic, legal and ethical responsibilities than on philanthropic components. Understanding and effective management of stakeholders' as well as their expectations can enhance corporate image and competitive advantage. The implication for practice is that business needs to identify relevant stakeholders and integrate primary stakeholders' interests into organisational strategic planning. It shows that identification of stakeholders' groups is beneficial to business managers and decision-makers.

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