corporate social responsibility and disaster management: a study of 2012 flood in nigeria
TRANSCRIPT
CORPORATE SOCIAL RESPONSIBILITY AND DISASTER MANAGEMENT: A STUDY OF 2012 FLOOD IN NIGERIA
BY:EJIWUNMI, SAMUEL SEGUN & SOLOMON SAMUEL ADETOKUNBO
The study examines the role of corporate social responsibility in disaster management; a study of the 2012 flood in Nigeria. Flood makes an enormous impact on the environment and society creating a tremendous monetary expense for governments, business and individuals alike, this therefore makes the management of flood or disaster an enormous task that the government cannot handle alone, prompting the need to reach out to corporate organizations. The objective of this study was to find out if CSR was used in managing the 2012 flood in Nigeria, examine the aspect of the management of the 2012 flood in Nigeria that CSR was employed, discover the reasons for the use of CSR in the management of the 2012 flood in Nigeria and to ascertain why corporate organizations where involved in the management of the 2012 flood in Nigeria. Relevant literature was reviewed for the study using the conceptual, empirical and theoretical framework, the Integrated Social contract theory by Donaldson was used for the research, the theory helps to explain the relationship between the society and organizations, stating the expectations of the society from the organizations and how the organization is expected to behave. Interview method was used to gather information, the population consist of all the corporate organizations in Nigeria, the sample was drawn using purposive sampling method, Four organizations; Dangote group, Globacom, Mouka foam and National Emergency Management agency (NEMA) were selected for the study. The findings of the research shows that CSR was employed in the management of the 2012 flood in Nigeria, CSR can play an important role in the management of disaster in Nigeria, however a great chasm still exist between the corporate organizations and statutory regulatory bodies that are in charge of disaster management . it was also observed that the participation of corporate bodies was borne mainly or to a large extent out of a strong and already existing company value for corporate philanthropy and social responsibility, the drive to benefit from the government tax incentive or both. It was therefore based on this findings that this research concludes that CSR can be effective in the management of disaster if well harnessed, it is therefore recommended that proper structure be put in place so as to harness the already existing CSR of corporate organizations and maximize it in the management of disasters.
TABLE OF CONTENTS
CONTENTS PAGES
CHAPTER ONE: INTRODUCTION
Background of Study 1
Statement of Problem 10
Objective of the Study 11
Research Questions 12
Significance of Study 12
Delimitation/Limitation of Study 14
Operational Definition of Terms 14
References 16
CHAPTER TWO: LITERATURE REVIEW
Conceptual Review 18
Empirical Studies 34
Theoretical Framework 36
References 39
CHAPTER THREE: METHODOLOGY
Research Method 42
Population 42
Sampling size and Sampling Procedure 43
Research Instrument 43
Collection of Data 44
Preparation Field Study 44
References 45
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION
Data Analysis 46
Discussion of Findings 52
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CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
Summary 54
Recommendations 57
Suggestion for Further Studies 57
Bibliography 58
Appendices 62
iii
CHAPTER ONE
IntroductionBackground to the study
The first great flood occurred in the time of Noah. God gave a warning. It was jettisoned; and
then came the deluge which exterminated mankind except Noah and his household.
Since then, several floods have occurred across the world, some very catastrophic and
cataclysmic; others mild. The most destructive, of course, were the 1887 and 1931 China floods
that claimed over 6 million lives in one fell swoop. There is also the 1979 Morvi Dam burst
incident that killed over 4,500 people in India and the Huascaran landslide in Peru in 1962 which
claimed over 4,000 lives. In 2004, the Spring flooding in Haiti snatched over 3,000 and in 2010
the Pakistani flood asphyxiated about 2,000. Of course, the January 2011 Rio de Janeiro floods
which snuffed life out of 800 still rankles the mind (www.worldhistoryproject.org). Coming
down to Africa, in August and early September 2007, heavy rainfall led to severe flooding in
several West African countries such as Nigeria, Ghana, Burkina Faso, Mali, Kenya Togo, killing
353 and affecting over 600,000 persons.
From May to September, Nigeria has a rainy season and suffers from seasonal flash floods.
These flash foods are sometimes lethal, especially in the rural areas or overcrowded slums,
where drainage is poor or does not exist at all. (Aderogba, 2012).
Indeed, Nigeria has had her own fair share of floods. In 1988 Kano was home to windstorm and
flood that affected 300,000. Similarly in 1999, Bayelsa state experienced heavy floods that
rendered hundreds of people homeless. In 2001, Abia, Adamawa and Akwa-Ibom States
witnessed heavy downpour and rainstorm which affected about 5,000 people. In the same year,
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about 12,300 persons were displaced by torrential rain which destroyed farmlands, damaged
properties and submerged buildings in Zamfara state. In 2005, it was the turn of Taraba state as
massive flood displaced over 50,000 persons. So also is the 2011 Lagos and Ibadan floods that
wreaked extensive havoc. It becomes clear that the flood menace is not strange to Nigeria after
all.
On 2 July 2012, many Nigerian coastal and inland cities experienced heavy rains, and residents
of Lagos were "gasping for breath" due to the flooding. In addition, there was a gridlock on
major roads, causing people to cancel or postpone appointments they may have had. Thousands
of stranded commuters had to pay increased fares for the few bus drivers who were willing to
risk travelling on the roads, and construction of work by the Nigerian government on the inner
Oke-Afa Road took a "heavy toll" (Aderogba, 2012).
In mid-July 2012, flooding in the Ibadan metropolis caused some residents at Challenge, Oke-
Ayo, and Eleyele to flee from their residences and save their lives. The flooding also prevented
some Christians from attending churches in the morning, while a few bridges caved in. The
Nigerian government said that certain structures on waterways had to be demolished as a result
of the flooding, while Commissioner for Information and Orientation, Bosun Oladele, announced
that there weren't any casualties from the flooding (Aderogba, 2012).
In late July 2012, at least 39 people were killed due to flooding in the central Nigerian Plateau
state. Heavy rainfall caused the Lamingo dam to overflow near Jos, sweeping across a number of
neighbourhoods in Jos, and approximately 200 homes were submerged or destroyed. In addition,
at least 35 people were missing, while Manasie Phampe, the head of the Red Cross in the state,
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announced that relief efforts were ongoing. The floods left 3,000 people homeless, many of
whom are taking refuge in government buildings in Jos (Aderogba 2012). Human activities such
as dam construction, irrigation, bridges and others have impacted on free flow of water in the
drainage channels, rivers and streams. Particularly at the urban centers, construction of roads,
buildings, factories, manufacturing plants, farmlands and others have reduced their channels and
or have attempted diversion of the natural courses of others. The vegetation cover typically
reflects rainfall patterns, soil types and variations in altitude. In general, rainfall diminishes from
the south and south-east towards the north. The coast has rain during all months of the year while
the north has rain for approximately half of the months of the year. In the coastal regions, the
annual rainfall is of the order of 4,000mm dropping to about 500mm in the extreme north. The
assured supply of rainfall, especially during the rainy season, and the consistent high temperature
throughout the year make for plant growth everywhere, (Nelson and Prescott, 2003). But urban
activities of man have changed the face of the earth. What is often found is man-made: Roof top
of buildings, concrete surfaces and bare grounds.
Road constructions, residential and commercial buildings, hospitals and maternity homes,
schools and colleges, research institutes, markets and stores, filling stations and others demanded
for concrete surfaces all of which have increased surface run off from rainfall and the waste
waters which have inadvertently added to the waters in the rivers, streams and drainage channels.
In mid-August, flooding killed at least 33 people in central Nigeria's Plateau state, and co-
ordinator of the National Emergency Management Agency in central Nigeria Abdussalam
Muhammad said that homes were destroyed while roads and bridges were washed away,
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obstructing relief efforts. Over 12,000 people were affected by the flooding in six districts of the
state, while hundreds were rendered homeless (Aderogba, 2012).
Government Effort in Management Of Disaster
The government through various parastatals has attempted to manage disaster in the past, for
example the federal government established the National Emergency Management Agency by
Act 12 and amended it by Act 50 of 1999. It has also in terms of Policy developed a National
Disaster Risk Reduction Action Plan.(try and include plans by NGO’S) However the magnitude
of the 2012 flood is a clear indication that the federal government cannot handle the situation
alone hence the need to reach out to the corporate society. Therefore on the 8th of October, 2012,
President Goodluck Jonathan approved the establishment of a national committee on flood and
rehabilitation to raise funds in support of government’s efforts to provide urgent relief for
victims of recent floods across the country.
The composition of the Committee is as follows:
1. Alhaji Aliko Dangote – Co-Chairman
2. Mr. Olisa Agbakoba – Co-Chairman
3. Dr. Mike Adenuga Jnr. – Chief Fund Mobilizer
4. Alhaji Karami Isiaku Rabiu – Member
5. Alhaji Mohammed Indimi – Member
6. Ngo Hannatu Cholum – Member
7. Mrs. Folorunsho Alakija – Member
8. Prof. Dora Akunyili – Member
9. Mr. Tony Elumelu – Member
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10. Secretary-General, Nigerian Red Cross – Member
11. Representative of C.A.N. – Member
12. Representative of N.S.C.I.A. – Member
13. Representative of the UNDP – Member
14. Representative of the European Union – Member
15. Representative of DFID – Member
16. Representative of USAID – Member
17. Perm. Sec., Fed. Ministry of Environment – Member
18. Perm. Sec., Fed. Min. of Water Resources – Member
19. Perm. Sec., Federal Ministry of Works – Member
20. Perm. Sec., Federal Ministry of Agriculture – Member
21. Perm. Sec. Federal Ministry of Health – Member
22. Perm. Sec., Federal Ministry of Finance – Member
23. Perm. Sec., Fed. Ministry of National Planning – Member
24. Director-General, NEMA – Member
25. Ag. Commissioner, National Commission for Refugees – Member
26. Perm. Sec., Ecological Funds Office – Member
27. Chairman, Senate Committee on Special Duties – Member
28. Chairman, House Committee on Environment – Member
29. Rep., Nigerian Union of Journalists – Member
30. Rep., National Council of Women’s Societies – Member
31. Mr. Tunde Lemo, (Representing the CBN) – Member
32. Ms. Fatima Wali – Member
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33. Mr. Frank Nweke Jnr. – Member
34. Senator Florence Ita-Giwa – Member
The Committee according to a statement by presidential spokesman, Dr Reuben Abati has been
given the mandate to raise funds to complement government’s resources for the provision of
relief to flood victims across the country and the post-impact rehabilitation of affected persons
and communities.
The Committee which is also expected to advise government on the judicious utilization of funds
raised, has been authorized by President Jonathan to co-opt any other persons or organizations
that it may find useful in carrying out its assignment.
The Concept of CSR
The concept of Corporate Social Responsibility (CSR) has been developing since the early
1970s. There is no single universally accepted definition of CSR, though there are some
definitions given by certain authorities. According to Business Council for Sustainable
Development , CSR is the continuing commitment by business to behave ethically and contribute
to economic development while improving the quality of life of the workforce and their families
as well as of the local community and society at large. CSR is a term describing a company’s
obligation to be accountable to all of its stakeholders in all its operations and activities. Socially
responsible companies consider the full scope of their impact on communities and the
environment when making decisions, balancing the needs of stakeholders with their need to
make profit. CSR is a concept whereby organizations serve the interests of society by taking
responsibility for the impact of their activities on customers, employees, shareholders,
6
communities and the environment in all aspects of their operations. In simple terms, CSR may be
described as the responsibility of a corporation towards the society in consideration of the
support given and the sacrifices made by the society (Campher, 2005).
The concept and momentum of “CSR” (Corporate Social Responsibility) has been rapidly
gaining its influence particularly among the developed nations and as well as developing
countries. One can witness the rhetoric of CSR gaining its influence to the extent which many
stakeholders who were not used to the thought of CSR as an integral part of business community,
have started to look at corporations for their responsible activities toward society which they
operate directly and indirectly (Dow and Dowing, 2006).
According to the Business for Social Responsibility, CSR is “operating a business in a manner
that meets or exceeds the ethical, legal, commercial and public expectations that society has of
business.” Of course, there is no universally accepted definition of it, but the role of CSR in
disaster and also environmental management has been recognized over the years, particularly
after witnessing the magnitude of the recent earthquakes, floods and Tsunamis (Wright, 2011).
It is on this premise perhaps that President Goodluck Jonathan approved the establishment of a
National Committee on Flood Relief and Rehabilitation to raise funds in support of
government’s efforts to provide urgent relief for victims of the 2012 floods across the country.
The Committee was given the mandate to raise funds to complement government’s resources for
the provision of relief to flood victims across the country and the post-impact rehabilitation of
affected persons and communities. The Committee, which is also expected to advise government
on the judicious utilization of funds raised, has been authorized by President Jonathan to co-opt
7
any other persons or organizations that it may find useful in carrying out its assignment. To this
end, the Dangote-Agbakoba led committee has reached out to various private organizations.
Sustainable Development and Public Private Partnership: A CSR Approach
Effective disaster management will lead to sustainable development both directly and indirectly.
Following the Millennium Summit of the United Nations in 2000, the United Nations adopted
eight developmental goals (The MDGs). The Millennium Development Goals (MDGs) are eight
international development goals that were officially established, following the adoption of
the United Nations Millennium Declaration. All 189 United Nations member states and at least
23 international organizations have agreed to achieve these goals by the year 2015. The goals
are: eradicating extreme poverty and hunger, achieving universal primary education, promoting
gender equality and empowering women, reducing child mortality rates, improving maternal
health, combating hiv/aids, malaria, and other diseases, ensuring environmental sustainability,
and developing a global partnership for development.
The MDG item No.7 which is Ensuring environmental sustainability aims at integrating the
principles of sustainable development into country policies and programs; reverse loss of
environmental resources.
The importance of linking sustainable development and disaster management was highlighted in
the Report of the World Summit on Sustainable Development. Important elements to sustainable
development are interwoven into successful mitigation and prevention. Past experiences have
shown that the basic problems related to disaster mitigation and preparedness in developing
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countries are attributed to lack of training, awareness, education and self-reliance within
communities, which are direct function of capacity building in a community.
Socio-Economic Impact of the Flood Disaster
For a start, there are several causes and types of floods. Fundamentally, when the ground is
already saturated and therefore loses the ability to absorb more water faster than rain or snow
falls, flooding begins. Because of heavy rainfall, the water within a river may overflow its bank
and surreptitiously spread around the surrounding land or there could be a flash flood which
occurs very quickly by rapid rise of extremely dangerous water travelling at a speed of
2.7meteres per second. There is also coastal flooding in oceans and is driven by storm surges,
hurricanes and tsunamis. More importantly, failure of dams or other structures constructed to
retain water may engender flooding. This is often attributed to negligence by engineers during
dam construction. Of course, global warming and climate change is yet another causative factor.
But not a few persons contend that increased urbanisation, inadequate urban planning laws, lack
of drainage facilities and erecting buildings in flood plains contribute substantially to exacerbate
the effect of flood when they occur. Even so, dam failure and global warming have been
identified as significant factors.
In 2012, sequel to the massive destruction caused by the flood, farmers all over the country
suffered huge economic losses. Challenges of food storage, processing and marketing arose
culminating in spiralling prices of other consumables, even in unaffected areas. In many parts of
the country, commercial activities ground to a stultifying halt as businesses lost billions of naira
and schools were hurriedly shut down. The heavy rainfall coupled with bad human activities in
relation to the environment and lack of drainage infrastructure in most Nigerian cities has left
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hundreds of people distressed and homeless. It should be mentioned that flooding in cities can
contaminate water supplies and intensify the spread of epidemics diseases, diarrhea, typhoid,
scabies, cholera, malaria, dysentery and other water-borne diseases (Gwary, 2008;Adeoti, 2010).
Given the destructive socio-economic impact of the flood, it is critical that mitigating and
attenuating measures be put in place to forestall resurgence. Hurricane Andrew, for example,
occurred in 1992 in the Atlantic Basin and made landfall over the United States, causing US$21
billion (1999 US$) in insured damage. According to the intergovernmental panel on climate
change (IPCC) Hurricane Floyd, which caused US$2.2 billion in insured losses in 1999, required
the evacuation of 2 million people and imposed huge stress on infrastructure, resources, and
ultimately health. The most damaging extratropical windstorm was Daria in 1990, which caused
US$6.8 billion in insured losses in north western Europe. In December 1999, windstorms Martin
and Lothar tracked south of the normal route, affecting France, northern Spain, and central
Europe. Together they caused 140 fatalities and US$8.4 billion in insured damage. Nigeria has
lost several billions to the 2012 flood.
Statement of the Problem
Floods make an enormous impact on the environment and society. Floods destroy drainage
systems in cities, causing raw sewage to spill out into bodies of water. Also, in cases of severe
floods, buildings can be significantly damaged and even destroyed. This can lead to catastrophic
effects on the environment as many toxic materials such as paint, pesticide and gasoline can be
released into the rivers, lakes, bays, and ocean, killing maritime life. Floods may also cause
millions of dollars worth of damage to a city, both evicting people from their homes and ruining
10
businesses. Floods cause significant amounts of erosion to coasts, leading to more frequent
flooding if not repaired.
Severe floods affect the environment, including communities, nature and construction, in
tremendous ways. They can create a tremendous monetary expense for governments, businesses
and individuals alike. Worse yet, if significant land erosion occurs as a result of flooding, more
disasters are likely to follow, creating an ongoing cycle of water damage.
With regard to CSR activities in the field of disaster management, the tendency is that they focus
primarily on response and recovery activities than mitigation and preparedness. (James et al
1999) The obvious fact that government may not be able to manage disaster alone is a precursor
for this research. This study will seek to know if CSR is being used in disaster management in
Nigeria. The study further examined if CSR was used in managing the 2012 flood in Nigeria as
well as the reason for reaching out to corporate organizations by the government and also the
reasons why corporate organizations where involved through their CSR activities and also the
aspect or area of involvement. Finally the research will examine other strategies and tools
adopted for managing the 2012 flood in Nigeria.
Objective of the Study
This study sought to:
1. Find out if CSR was used in managing the 2012 flood in Nigeria
2. Examine the aspect of the management of the 2012 Flood in Nigeria that CSR was employed
3. Discover the reasons for the use of CSR in the management of 2012 floods in Nigeria
4. Ascertain why corporate organizations were involved in the management of the 2012 flood in
Nigeria?
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Research Questions
In trying to identify and find the role of corporate social responsibility in disaster management
this study attempted to find answers to the following questions:
1. Was CSR used in managing the 2012 flood in Nigeria?
2. What aspect of the management of the 2012 Flood in Nigeria was CSR employed?
3. What are the reasons for the use of CSR in the management of 2012 floods in Nigeria?
4. Why where corporate organizations involved in the management of the 2012 flood in
Nigeria?
Significance of this Study
Apart from traffic congestion, flood is the most common serious physical urban problem in most
Nigerian cities. This usually results from high river levels, concentration of overland flow
following heavy rainfall, limited capacity of drainage systems and blockage of waterways and
drainage channels. . Yet, even more frightening was the empirical prediction by the Director
General of the Nigerian Meterological Agency, Dr. Anthony Anuforom on February 15 2013 and
the Director General of Nigeria Emergency Management Agency (NEMA) Muhammed Sani-
Sidi, that several states in the country could be submerged in 2013 on a larger scale as a result of
heavy rainfall if adequate precautions are not taken. NEMA also hinted that about 25 million
Nigerians living in coastal states would be affected.
Flooding is the most common environmental hazard in Nigeria. Flood disaster is not a recent
phenomenon in the country, and its destructive tendencies are sometimes enormous. Natural
disasters affect everyone alike although the nature of impact varies from region to region and
sector to sector with the coping capacity of an individual sector being the differentiating factor.
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The catastrophic fallout of natural disasters on the community and the people is very well
documented by now. At the same time, it is their impact on the existence, survival and viability
of the economic muscle of a nation, community and region, i.e. the corporate sector, which also
merits equally focused attention. Today, the corporate sector has become an inalienable part of
our socio-economic and national life and a vibrant industry is not only better placed to make
itself sustainable but can also act as a composite foil to the governmental efforts at holistic
disaster management. The recent major disasters have clearly indicated the need for interweaving
of disaster risk reduction and management concerns in order to minimize the losses— both
human and economic. This underscores the necessity of involvement of all stakeholders, from
the Government, at all levels, to Community Based Organizations, international and national
organizations, the community and, of course, the corporate sector (Mordi, 2011).
Corporate sectors’ cooperation in reducing people’s vulnerabilities to natural disasters would
also help it in protecting its market catchment areas. In the aftermath of a catastrophe, the
resources of the community are more likely to be utilized in protecting and rebuilding livelihoods
rather in acquiring goods and services offered by the corporate sector. Thus, their involvement in
minimizing the impact of a natural event or in facilitating speedy and sustainable recovery
should be viewed as a form of investment in protecting and securing its own “sources of
livelihood”. Therefore the study is very significant in providing a much needed data on the role
of corporate organisations in management of disaster and can help the government in its
evaluation of how successful or otherwise its plan to manage the 2012 flood in Nigeria has been.
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Delimitation/Limitation of the Study
There are various aspects of CSR that can be examined, so also is the 2012 Floods in Nigeria,
However for the purpose of this study and to allow the researcher to capture accurately the focus
of the problem, the research was limited to the role that corporate bodies through its Corporate
Social Responsibility activity played in the management of the 2012 flood disaster in Nigeria.
During the research, the following were the limitations encountered:
1. Some respondents were reluctant in giving information about their organization despite
assurance of confidentiality given to them
2. The 2012 flood in Nigeria is still very recent and therefore a lot of the activities surrounding
it are yet to be properly documented, this therefore posed the problem of obtaining secondary
data.
3. This work was also limited by time, however, efforts was made to obtain adequate
information within the time limit.
Operational Definition of Terms
Disaster: A calamitous event, especially one occurring suddenly and causing great loss of life,
damage, hardship.
Crisis management: The process companies use to respond to short-term and immediate
shocks, such as accidents, disasters, catastrophes, and injuries.
Management: Management in all business and organizational activities is the act of
coordinating the efforts of people to accomplish desired goals and objectives using available
resources efficiently and effectively.
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CSR: Corporate social responsibility (CSR, also called corporate conscience, corporate
citizenship, social performance, or sustainable responsible business/ Responsible Business) is a
form of corporate self-regulation integrated into a business model. CSR policy functions as a
built-in, self-regulating mechanism whereby a business monitors and ensures its active
compliance with the spirit of the law, ethical standards, and international norms.
15
REFERENCES
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Aderogba, K. A. (2012). Global warming and challenges of flood in Lagos Metropolis, Nigeria.
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systems and floods in Lagos Metropolis, Nigeria. International journal of social sciences
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Godschalk, D, (1998). Natural hazard mitigation. Island Press.
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Kershi, J. and Simon, R. (2005). The Essentials of the environment. London: Hodder Arnold; pp
30 – 39.
Lindell, K. M., Perry, W. R. (2003). Communicating environmental risk in multiethnic
communities. Sage Publications Inc.
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Nelson, J. and Prescott, D. (2003). Business and the millennium development goals. The
International Business Leaders Forum.
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Contemporary issues in environmental studies. Ilorin: Haytee Press & Publishing Co. pp
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Internet Sources
World history- China Flood Retrieved Sunday, May 19, 2013 fromhttp://worldhistoryproject.
org/1931/8/18/china-flood-of-1931
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CHAPTER TWO
Literature Review
Conceptual Review
This chapter reviewed relevant literatures on key concepts in this research, it looked at both
conceptual and empirical research into corporate social responsibility, and theoretical framework
was also given to have a better understanding of the researcher’s approach to this study.
Corporate Social Responsibility
The concept and momentum of “CSR” (Corporate Social Responsibility) has been rapidly
gaining its influence particularly among the developed nations and as well as developing
countries.
According to the Business for Social Responsibility, CSR is “operating a business in a manner
that meets or exceeds the ethical, legal, commercial and public expectations that society has of
business.” CSR is the continuing commitment by business to behave ethically and contribute to
economic development while improving the quality of life of the workforce and their families as
well as of the local community and society at large. CSR is a term describing a company’s
obligation to be accountable to all of its stakeholders in all its operations and activities. Socially
responsible companies consider the full scope of their impact on communities and the
environment when making decisions, balancing the needs of stakeholders with their need to
make profit. CSR is a concept whereby organizations serve the interests of society by taking
responsibility for the impact of their activities on customers, employees, shareholders,
communities and the environment in all aspects of their operations. In simple terms CSR may be
18
described as the responsibility of a corporation towards the society in consideration of the
support given and the sacrifices made by the society (Dow and Dowing, 2006).
CSR can be a means to ease the tension, if any between the corporate entity and the local people.
The scope of CSR is conceptually quite unbound at the present times. As there is no single
commonly accepted definition of CSR, there is no universally accepted classification of the main
components of CSR. Corporate Social Responsibility is related to Environment protection,
Labour Security, and Human Rights, Community Involvement, Business Standard, Enterprise
and economic development, Health promotion, Education and leadership development Human
Disaster relief. Many factors and influences have led to increasing attention being devoted to the
role of companies and CSR. These include: Sustainable development, Globalization, Corporate
sector impact, Communications, Finance, Ethics, Leadership, Business Tool and so on
(Ologunorisa, 2004).
There are innumerable definitions of CSR, each valuable in their own right, often given based on
the existing scenario. It is worthy of note that majority of definitions integrate the three
dimensions: economic, environmental and social aspects into the definition, what is usually
called the triple bottom line.
The EU Definition
The EU´s Green paper on CSR defines CSR as a “concept whereby companies integrate social
and environmental concerns in their business operations and in their interaction with their
stakeholders on a voluntary basis” (Green Paper Promoting a European Framework for
Corporate Social Responsibility, 2001).
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This definition of CSR by the European Union help to underscore the importance of this
research, the 2012 flood in Nigeria has not only ravaged the country but has also left Nigeria in a
situation where the government understand the fact that immediate action has to be taken if it is
to savage the situation.
Approaches to Corporate Social Responsibility
Corporate Charity or Altruism
This school of thought argues that there is no need to support the local community from
company resources because shareholders would not tolerate non-profit oriented activities for
very long. Corporate donations to charities or more active involvement in social issues like
education, research grants or slum clearance is largely self interested involvement. It is usually
done to curry favour with individuals or pressure groups important to the company’s causes,
including government. CSR is at best enlightened involvement of material benefit to both the
company and community. The company is repaid in term of goodwill and social support from the
community, or from certain sectors of the community, which are important to the company.
Supporters of this school of thought have an apparent tendency to follow trends or the current ‘in
issues’ for example, subscribing to feminism and environmentalism, as the issues of the day.
This they do at the expense of other equally important matters like urban renewal, or education.
(Journal of business ethics 27: 363-375 , 2000).
Entrepreneurial Attitude
The second school of thought in CSR reflects on the entrepreneurial attitude of the business as it
seeks to involve itself in social, economic and political questions in an industrial society. People
are no longer content that business should merely provide them with reliable products and
20
services at affordable prices. They are beginning to expect business to provide more and new
kinds of services than it did in the past. Carroll (1991)
The 3C-SR Model of Corporate Social responsibility
Social resources are made up of three inter-related components whose simultaneous presence
underwrites the credibility of a product/service offer targeted Corporate social responsibility The
model is shown and explained in detail below. Components of the model are:
1. Ethical and social commitments;
2. Connections with partners in the value network; and
3. Consistency of behaviour over time to build trust.
Figure 2.1 The 3C-SR Model of Corporate Social responsibility (Schwartz and Carroll 2003).
CSR = Corporate Social Responsibility; CSP = Corporate Social Performance; CC =Corporate
Citizenship.
21
The Corporate Social Responsiveness Approach
By early 1980s there was a shift from the idea that organizations should be socially responsible
to what ethical behavior actually entailed and how companies should respond to business related
to social issues. Responsiveness thus refers to how organizations operationalise their social
responsibilities. The distinguished features of the CSR and responsiveness approaches is that
they apply the stakeholders concept to non-traditional stakeholder groups, usually thought of as
having adversarial relationships with the organization. It is the intention of this study to assess
empirically how the corporate organizations have responded to the 2012 flooding in Nigeria.
(Carroll, 2003).
The Corporate Social Performance Approach
The trend throughout the 1980s and into the 1990s to make concerns for social and ethical issues
more pragmatic led to the corporate social performance (CSP) approach. According to this
approach what is really important is what organizations are able to accomplish with regard to
specifying the nature of their responsibilities, adopting a particular philosophy of responsiveness
and identifying the stakeholder issues to which these responsibilities are. it is therefore important
to examine how the response of this organizations have impacted on the lives of the people that
were affected by the disaster . In addition, it is salient for corporations to look at what they have
been doing for the publics and how the activities have been contributing positively to the
objectives and goals of the corporation and its publics. (Carroll, 2003)
22
The Strategic Management of Issues
From a strategic management perspective, issue management could be seen as the process used
to close the gap between the expectations of the stakeholders group and corporate performance.
In a turbulent environment, the list of issues facing organizations is vast. Issues could be
perceptual, political, moral, ethical or a mixture of all of those. Organizations cannot, however,
attend to all issues and all stakeholders do not care equally about specific issues. Issues therefore
must be prioritized to make them more manageable and to be able to evaluate performance in
this regard. The strategic management literature indicates that managers are not equipped to
identify and manage stakeholders and issues emanating from an increasingly complex socio
political environment. There is a need for ‘external’ or stakeholder managers who can take part
in strategy formulation and develop integrated processes for dealing with stakeholders, issues
and the public’s that arise around them. (McWilliams and Siegel 2000).
Carroll´s Pyramid of Corporate Social Responsibility
One of the most used and quoted model is Carroll´s (1991) Pyramid of Corporate Social
Responsibility. In indicates that CSR constitutes of four kinds of social responsibilities;
economic, legal, ethical and philanthropic.
Carroll considers CSR to be framed in such a way that the entire range of business
responsibilities are embraced. Carroll suggests that CSR consists of four social responsibilities;
economic, legal, ethical and philanthropic. These four responsibilities can be illustrated as a
pyramid.
23
The economic component is about the responsibility to profit and this responsibility serves as the
base for the other components of the pyramid. One of the organisations that have responded to
the clarion call in helping to manage the 2012 flood is the Mouka foam Ltd, Mouka donated
bedding materials worth millions of Naira to the victims, in addition to its donation also offered
100 free mattresses for every 1000 bought by the flood victims. This offer delivered a multiplier
effect on the generous donations of concerned citizens and stretches the relief effort to cover
more ground. With regard to the legal aspect, society expects organisations to comply with the
laws and regulations.
Ethical responsibilities are about how society expects organisations to embrace values and norms
even if the values and norms might constitute a higher standard of performance than required by
law.
Philanthropic responsibilities are those actions that society expect for a company to be a good
corporate citizen.
Figure 2.2: The pyramid of Corporate Social Responsibility (Carroll, 1991with modification)
24
The pyramid illustrates the four components of CSR with economic performance as the basic
block. Next is the responsibility to be ethical. At its most fundamental level this is the obligation
to do what is right and to avoid harming stakeholders. Finally business is expected to be a good
corporate citizen. This is embedded in the philanthropic responsibility, where in business is
expected to contribute financial and human resources to the community and to improve the
quality of life.
`Implicit´ versus `Explicit´ Corporate Social Responsibility
Matten & Moon (2004) presents a conceptual framework for understanding CSR, the `implicit´
versus the `explicit´ CSR.
`Explicit´ CSR is about corporate policies with the objective of being responsible for what
interest society. `Explicit´ CSR can for example be voluntary, self-interest driven CSR policies
and strategies. While `Implicit´ CSR is a country´s formal and informal institutions that give
organisations an agreed share of responsibility for society´s interests and concerns. `Implicit´
CSR are values, norms and rules which result in requirements for corporations to address areas
that stakeholders consider important. Business associations or individual organisations are often
directly involved in the definition and legitimisation of these social responsibility requirements.
The concept of sustainability is generally regarded as having emerged from the environmental
perspective. Sustainability in the environmental perspective is about how to manage physical
resources so that they are conserved for the future.
Economic sustainability is about the economic performance of the organisation itself. A broader
concept of economic sustainability includes the company´s impact on the economic framework
in which it is embedded.
25
The development of the social perspective has not developed as fast as the environmental and
economic perspectives. The key issue in the social perspective on sustainability is that of social
justice. Matten & Moon (2004).
A Three Dimension Definition
Löhman & Steinholtz (2004) view the CSR concept as a combination of three separate agendas,
namely Sustainability, Corporate Accountability and Corporate Governance.
Sustainability derives from the United Nation meeting in Rio de Janeiro in 1992 and the Agenda
The definition means how we address and balance the social, economic and environmental areas
in the world so that our long term survival is not threatened.
Corporate Accountability focuses on the credibility of the organisation and is used in situations
where discussions are held about the ability of the organisation to manage conflicts.
Corporate Governance is used in the discussion about how an organisation is being run. It deals
with transparency, and in the long run, trustworthiness.
Five C's in Corporate Social Responsibility
Kotler and Lee (2005) assert that there are five C’s in CSR/CSI that corporations must fulfill.
The first C stands for “conviction” this a about real improvement in business performance, not
PR. The second C means Commitment, which means “when we commit, we deliver”,
Communication means “we have committed to open, honest, and direct communication with all
the stakeholders. This integrates new tools of communication that are used by corporations that
reinforce reciprocity in communication. The communication discussed by Kotler and Lee is a
two way process of communication and all stakeholders are respected and addressed.
26
Consistency is a process of continuous improvement. For instance CSR programs by
organizations involved in the 2012 flood in Nigeria should be continuously implemented. The
fifth “C” stands for credibility; it should be known that the communities ability to trust their
performance depends on the credibility of their effort. Corporation should regularly review and
consider new or modified business practices to use which will improve the quality of life and, at
the same time, provide some net benefit to the corporation, ideally financial, operational relation-
ship-building, or marketing in nature. This capture the open system concept, that asserts that
corporations should interact with the environment in order for it to survive.
Corporate Philanthropy
Corporate philanthropy is a direct contribution by corporation to a charity or causes, most often
in the form of cash, grants, and donations and or in kind services. Philanthropy is the traditional
of all corporate social initiatives and has historically been a major source of support for
community health and human service agencies, education, and the arts, as well as organization
with mission to protect the environment. (Kotler and Lee 2005). Other terms closely associated
with this initiative includes community giving, community relations, and corporate citizenship
and community affairs. Philanthropic efforts commonly involve selecting a cause that reflects a
priority area for the corporation, determining the type of contribution to be made, and identifying
a recipient for contributions, most often an existing non profit organizations, foundations, or
public agency such as a school. Philanthropic efforts commonly involve selecting a cause that
reflects a priority area for the corporation, determining the type of contribution to be made, and
identifying a recipient for contribution, most often an existing non profit organization,
27
foundation, or public agency such as a school. The involvement of the Dangote Group,
Globacom, Mouka foam and other corporate organization in the 2012 disaster management can
be viewed from this perspective.
In addition, Kotler (2004) says that there are ranges of options for giving by corporate
organizations to their publics as follows; I) Providing cash donations II) Offering grants III)
Awarding scholarships IV) Donating products V) Donating services VI) Providing expertise VII)
Allowing use of facilities and distribution of channels VIII) Offering the use of equipment.
Corporate Social Responsibility and Disaster Management
Corporate Social Responsibility (CSR) permeates every aspect of the functioning of corporate
sector. The corporate organisations always look for ways and means to enhance the brand value
of their company and their products. It is in this context that corporate social responsibility
makes good business sense. It is a business strategy that works. Nowadays, the value and
reputation of a company are increasingly being seen as its most valuable assets for retaining the
loyalty and trust of the public to ensure a bright and sustainable future (Okereke 2007).
The business corporations, because of their high visibility, are being adjudged not merely on the
basis of their bottom lines but also on their social behavior. By integrating CSR into its business
strategy as a core value, the corporate organization not only makes a significant contribution to a
better society but is also recognized for doing so. This has obvious benefits for the company. In
fact, enormous rewards are there both for the business/industrial community as well as the
society. The companies are motivated to achieve profitability, sustainable growth and human
28
progress by placing corporate social responsibility in the mainstream of their business practice
(Folorunsho, and Awosika, 2001).
As part of their corporate social responsibility, the companies are encouraged to conduct
business responsibly by contributing to the economic health and development of communities in
which they operate; create healthy and safe working conditions to attract and retain a quality
workforce; manage risk more efficiently and minimize the negative impact of its activities on the
environment and its resources; be accountable to all stakeholders through dialogue and
transparency regarding economic, social and environmental impacts of business activities;
operate a good governance structure and uphold the highest standards and ethics while
conducting business. The corporate sector is an integral part of the society. As a member of the
community, it is its responsibility to contribute to sustainable development and to integrate social
and environmental concerns in its business operations as well as in its interaction with other
stakeholders. It can play a leading role in supporting and building the knowledge, capacity and
skills of the community in comprehensive risk-based disaster management activities ranging
from prevention, mitigation and preparedness to response and recovery (Odemerho 2004). It can
offer human and financial resources and can also be a precious source of technical know-how, as
for example in the case of identification and research on technological solutions to prepare for
and respond to natural disasters.
In addition, the recovery of the community cannot be complete if the business community itself
is seriously affected as disasters can have serious negative fall-out on the corporate sector. For
them to acquire capacity in disaster risk management would also entail protection of their
employees and dependents (Mordi, 2011).
29
Corporate sectors’ cooperation in reducing people’s vulnerabilities to natural disasters would
also help it in protecting its market catchment areas. In the aftermath of a catastrophe, the
resources of the community are more likely to be utilized in protecting and rebuilding livelihoods
rather in acquiring goods and services offered by the corporate sector. Thus, their involvement in
minimizing the impact of a natural event or in facilitating speedy and sustainable recovery
should be viewed as a form of investment in protecting and securing its own “sources of
livelihood” (Abam, 2006).
As an inalienable part of its CSR, the corporate sector can play an essential role in leading and
supporting the community in comprehensive risk management activities and in mobilizing
human and financial resources as well as materials for utilization during a disaster situation. In
addition to this, the corporate sector can be a precious source of technical knowledge, as for
example in the case of identification and research on technological solutions to prepare for and
respond to natural disasters. On the whole, corporate sector has the potential for strengthening
and promoting its own safety and protection against natural catastrophes as well as in assisting
the community at large in reducing its vulnerability to disasters (Rudrappan, 2011).
Economic Impact of Disasters
At the global level, nearly 700 major catastrophes take place every year affecting billions in
different countries. The disasters periodically visit the same geographical regions and set the
development clock back by decades. It is similar to taking two steps forward and one step
backwards. In some countries, this equation even gets reversed. The repeated occurrence of
natural catastrophes undermines the economic viability of the communities as well as the
corporate sector – further impoverishing the impoverished and sapping the very soul (Kershi and
30
Simon, 2005). In Nigeria the impact is really telling on the country, according to the report
released by The Nigeria National Emergency Management Agency (NEMA) and the inter
Emergency Preparedness and Response Working Group (IA-EPRWG) To date (29, September
2012), the floods have killed 148, injured 202 and displaced 64,473. (Appendix III).
There is no standard typology of the different kinds of private sector involvement in social
responsibility, or its engagement with other actors (such as NGOs), which is the form taken by
most CSR work. Relationships between private sector and other organisations are often
categorised according to the degree of confrontation or collaboration. For example, Heap (2000:
15-56) sets out three broad types of relationship between the private sector and NGOs –
Adversarial, Neutral and Co-operative – each of which comprises a further variety of types that
again can be categorised according to different criteria. Within the area of co-operation, which is
of most interest to this research project, relationships can be categorised in different ways:
according to their purpose, the scope and content of private sector activity, or the degree of
participation in such activity (Wright, 2011). However they are configured, these typologies
attempt to cover the whole spectrum of corporate social responsibility issues, which are very
diverse: they include social and environmental impact, business ethics, ‘fair trade’, labour
standards and human rights.
Disasters and Sustainable Development
Disasters triggered by natural hazards are major threat to sustainable development. According to
the International Federation of Red Cross and Red Crescent Societies (IFRC), they killed on
average more than 56,000 people each year between 1988 and 1997. Over the same period, they
affected each year on average 171 million people directly (in terms of damage to homes,
31
property, crops and livestock, and local infrastructure), while the number affected indirectly (for
example by rising prices or job losses caused by adverse economic consequences) is
incalculable. The average annual economic loss worldwide from natural disasters between 1988
and 1997 amounted to $62 billion of which $26 billion was in Europe and the USA, and $34
billion in Asia. All of these are conservative estimates (Christopherson, 1997).
Developing countries are hit hardest. Between 1988 and 1997, on average 88% of deaths from
natural disasters each year were in developing countries. Over the same period, on average, 98%
of those directly affected each year lived in developing countries. If the countries of the former
Soviet Union are included, the figures go up to around 95% and 99% respectively (Whitecomb,
and Morris, 1997).
Most of the economic losses are felt in wealthier countries, but the economic impact of disasters
on developing countries is also severe, and the relative impact is often greater. The impact of
disasters is not felt evenly within countries, either. Studies have shown that in general it is the
weaker groups in society that suffer worst from disasters: the poor (especially), the very young
and the very old, women, the disabled, and those who are marginalised by race or caste. The
need for action to reduce natural disasters’ impact has been acknowledged for some time. This
acknowledgement lay behind the designation of the 1990s as the United Nations International
Decade for Natural Disaster Reduction (IDNDR). Nevertheless, hazard risk and disaster
reduction remain marginal issues in development planning, political commitment appears to be
weak, and actions on the ground are as likely as not to be individual and one-off rather than
collective and long-term (Dow and Dowing, 2006).
32
As investor and employer, the private sector is an important actor in development. There is
clearly a need for a fuller understanding of the role that it can play in natural disaster reduction.
During the past decade or so, the international aid community has become more interested in the
role that the private sector plays in development. Calls have grown for partnerships between the
public sector, private sector and civil society in initiatives that will promote more just and
sustainable development. One of the main indicators of this heightened interest is the
development of codes of corporate conduct by companies, trade unions, NGOs, governments and
intergovernmental organisations that have become both more numerous and more extensive in
terms of the issues that they cover (UN, 2007).
The main factor behind this trend is the growing power of business, especially transnational
business, compared to that of the nation state and its institutions, and even compared to
intergovernmental institutions such as the United Nations (UN). States throughout the world
have progressively transferred their responsibilities to the private sector and civil society
organisations during the past 20 years and especially since the end of the Cold War. This
redistribution of power between the three sectors of government, business and civil society has
made it necessary for each of them to think again about their roles and to renegotiate their
relationships with the others. Business has freed itself from many regulations, but at the same
time, more is expected of it. It is no longer seen as somehow separate from the rest of society,
nor is it seen as apolitical, and society’s expectations of companies increasingly outstrip the
traditional legal requirements imposed upon them. Shifts in attitude can be seen within the
corporate and NGO sectors as they seek to respond to these and related changes (Taiwo, 2008).
33
However, business has been involved in the debate on sustainable development since the early
1990s and the idea of CSR has gained ground. This is at least partly – and arguably largely – due
to increasingly effective pressure from civil society organisations, compelling business to
recognise that it has responsibilities to society and not just to its shareholders. The power of such
pressure, and the need to legitimize business operations to the public, has been increasingly
evident to the private sector in recent years. More recently, it has been argued that some kinds of
multi-national corporations are, in fact, becoming increasingly vulnerable to challenges of this
kind. There is now considerable enthusiasm among multilateral and bilateral aid agencies for
partnerships between the public, private and non-profit sectors (Kershi and Simon, 2005). Much
of the effort to date has gone into encouraging involvement in commercial ventures rather than
CSR – a fact that the standard rhetoric of ‘partnership’ can sometimes hide.
Empirical Studies on CSR and Disaster
John Twigg (2001) examined corporate social responsibility and disaster reduction; a global
overview, the purpose of the research was to look specifically at what are usually called natural
disasters i.e. disasters triggered by natural hazards such as flood, cyclones and earthquakes. The
project surveyed the extent and nature of CSR in this area, focusing on the process of private
sector engagement and its results, and assessed the potential for further involvement, particularly
in developing countries. The research found out that companies are sometimes very willing to
respond to disasters through donations of money to emergency appeals and in-kind support such
as provision of relief goods, transport and communication facilities. It also noted that although
companies can and do gain publicity from their support for relief efforts, altruism is the primary
motive and is often spontaneous. The research further discovered that private organisations do
34
donate inappropriate relief supplies and this is a serious problem. Finally it discovered that
companies do not perceive emergency relief support as an obligation. The research concluded
among other things that the private sector’s main concern is the bottom line of profitability. CSR
is not altruism: its ultimate aim is to benefit the business concern, however indirectly. In general,
business does not feel itself responsible for natural disasters, seeing this as an issue for the
government. Existing CSR initiatives address the immediate causes of vulnerability (unsafe
conditions) but not its deeper socio-economic and political causes where CSR cannot counter
balance the effects of the private sector’s prime goal of profitability. Current trends in
globalisation, particularly the globalisation of market, can increase vulnerability in disaster prone
regions. Business may also seek to avoid their professional responsibility for safety purpose.
Kotler and Lee (2005:5) states that according to KPMG US Professionals Services firm, a 2002
survey of the Global Fortune Top 2005 companies indicated a continued increase in a number of
American companies reporting on corporate responsibility. In 2002, 45 percent of these
companies issue environmental, social, or sustainability reports compared with 35 percent in
their 1999 survey. Major avenues for this reporting include corporate giving and, increasingly,
the publication of a separate annual community giving reports.
Odemerho (2004) and Nwafor (2006) identified carried out a research on the causes of flood in
Nigeria, they were able to identify 12 causes of flood. These include: surcharges in water level
due to natural or man – made construction on flood path, sudden dam failure, inappropriate land
use, mudflow, inadequate drainage capacity to cope with urbanization, excess encroachment in
flood ways, ice jam, rapid snow fall, deforestation of catchment basins, reclamation, construction
sites and solid waste.
35
(Okereke (2007) listed the consequences of urban flooding in his studies in Dhaka, Bangladesh
to include: loss of human lives, flooding of houses, streets, inflow to soak away, municipal
pollution, damage to properties, health hazards, cleanup costs, disruption of services, traffic
problems, adverse effects on aesthetics, disturbances on wildlife habitats, economic loses and
infrastructural damage (Okereke 2007).
Kolawole et al also wrote on Managing flood in Nigerian cities: Risk analysis and adaptation
options – Ilorin city as a case study where they examined the effect of the global climate change
and the resultant effect on the country using Ilorin as a case study. It concluded that “Developing
countries are already suffering from the impacts of climate change and are the most vulnerable to
further change. Flooding is the common and most costly natural disaster, though its impacts are
also exacerbated by anthropogenic sources. Quality assessment of the risk impacts of flood will
facilitate countries to plan adaptation measures and adapt effectively.”
Theoretical Framework
Theory is a set of interrelated concepts, which provides a systematic view of a phenomenon.
Theory guides practice and research; practice enables testing of theory and generates questions
for research; research contributes to theory-building and selecting practice guidelines. Tuckman
(1996) says that researchers may conduct a theoretical framework for the following reasons;
a) Testing a theory, by assessing the validity of a theory prepositions in the study being
undertaken or explain the explanatory power of two rival theories.
b) Locating the research, in order to signal where the research is coming from.
36
Corporate social responsibility is rapidly developing within the realm of the social science. The
development of a body of theoretical knowledge is central to this development and is essential
for acknowledgement as a veritable approach by organization in sustainability. As a social
science the theories of CSR are grounded on the theories and research methodology of other
social sciences (Danie du Plessis (2000:20).
Integrative Social Contract Theory (Donaldson, 1982)
This theory considered the business and society relationship from the social contract tradition,
mainly from the philosophical thought of Locke. He assumed that a sort of implicit social
contract between business and society exists. This social contract implies some indirect
obligations of business towards society. This approach would overcome some limitations of
deontological and teleological theories applied to business. Afterwards, Donaldson and Dunfee
(1994, 1999) extended this approach and proposed an ‘‘Integrative Social Contract Theory’’
(ISCT) in order to take into account the socio-cultural context and also to integrate empirical and
normative aspects of management. Social responsibilities come from consent. These scholars
assumed two levels of consent. Firstly a theoretical macro social contract appealing to all rational
contractors, and secondly, a real micro social contract by members of numerous localized
communities. According to these authors, this theory offers a process in which the contracts
among industries, departments and economic systems can be legitimate. In this process the
participants will agree upon the ground rules defining the foundation of economics that will be
acceptable to them.
The macro-social contract provides rules for any social contracting. These rules are called the
‘‘hyper-norms’’; they ought to take precedence over other contracts. These hyper-norms are so
37
fundamental and basic that they ‘‘are discernible in a convergence of religious, political and
philosophical thought’’ (Donaldson and Dunfee, 2000, p. 441). The micro social contracts show
explicit or implicit agreements that are binding within an identified community, whatever this
may be: industry, companies or economic systems. These micro social contracts, which generate
‘authentic norms’, are based on the attitudes and behaviours of the members of the norm-
generating community and, in order to be legitimate, have to accord with the hyper-norms. In
relations to this study, the Integrated social contract theory helps to understand the relationship
that exist between communities in Nigeria and business organisations, it further goes to show
what the society expects of business and how business is expected to behave in certain
circumstances. The 2012 Flood has upset the status quo of living in the society , it is therefore
time for the organisations to fulfil the agreement that are binding upon them with the society.
38
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41
CHAPTER THREE
Methodology
Research Method
The collection and analysis of the empirical data was done using deductive and qualitative
approaches. The in-depth interview survey method was used. This is because the entire
population cannot be studied within the time frame available for the research. When we have the
real world as a starting point and investigate the reality through observations we call it an
inductive research. The aim of this study has been to obtain what can be called soft data, such as
personal understanding and experiences, and therefore the research has used the qualitative
method appropriately since characterized for openness for new knowledge and new
understanding.
The choice of methodology was informed by the need to get accurate data from the respondents
using the qualitative approach to data gathering. The sample was drawn from the population of
the companies listed and excerpts were drawn from newspaper reports, journal and other relevant
source of information to dig out information and extract data.
Population
The study population for this research are all the private organisations in Nigeria, that were part
of the Dangote – Agbakoba Flood relief committee and the statutory body in charge of disaster
management in Nigeria; NEMA. According to Baxter and Babbie (2004) ‘a study population is
that aggregation of elements from which the sample is actually selected’.
42
Sampling size and Sampling Procedure
The selection of organisations to interview was done using a purposive sampling method.
According to Tejumaye (2003) purposive sampling is when you select a sample on the basis of
specific characteristics or qualities and elimination of those who fail to meet these criteria. It was
deliberately chosen and it attempts to represent a specific portion of the population. Four
organisations were selected. They are: Dangote group of companies, The Globacom
Telecommunications, Mouka Foam and National Emergency Management Agency (NEMA),
based on accessibility and availability of resources persons to be interviewed. The people
interviewed from the companies were the people in charge of the organisations CSR activities.
Research Instrument
Interview guide was used as the tool for collection of data. Interviewing guide is a way to collect
data as well as to gain knowledge from individuals. Kvale (1996, p. 14) regarded interviews
guide as “an interchange of views between two or more people on a topic of mutual interest ...
sees the centrality of human interaction for knowledge production, and emphasizes the social
situations of research data. Interviews are ways for participants to get involved and talk about
their views. In addition, the interviewees are able to discuss their perception and interpretation in
regards to a given situation. It is their expression from their point of view. Cohen, Manion and
Morrison (2000, p. 267)
Therefore in carrying out this research the choice of using interview guide to elicit response from
the organizations that were part of the disaster relief effort is an appropriate approach.
NEMA was also included being the statutory body designated to manage disasters in the country.
43
Collection of Data
This study used both primary and secondary data. Secondary data was collected from books,
articles, reports and internet to gain an understanding of the area and what has already been done.
The primary data which is information collected specially for the study and not documented
before was collected through personal interviews using the designed interview guide.
Preparations Field Study
In order to solve the research problem mails were sent to the organizations selected and
appointment scheduled, also a cover letter was obtained from the supervisor which assisted the
researcher in obtaining data. The selection of relevant organisations was based upon the need for
direct information from organizations involved directly with the 2012 flood in Nigeria.
Method of Analyzing Data
The responses (data) gathered through the interview guide was qualitatively analyzed.
44
REFERENCES
Asika, Nnamdi (1990). Research Methodology in the Behavioral Sciences, Lagos: Longman plc.
Babbie E. (1983). The practice of Social Research 4th edition, pg 351, Wardsworth publishing
company
Berger, A.A. (2000). Media and communication research methods: An introduction to
qualitative and quantitative approaches. USA: Sage Publications.
Oduko S. (1991:47). Guide to students Research, Ikorodu: Vdg Press Ltd.
Osuala B. (1991). Introduction to Research Methodology. Onoitsha , FRP publishers Ltd.
Sobowale I. (1983). Scientific Journalism, Ikeja: John West Publications
Tejumaye, A J (2003). Mass Communication Research, Abeokuta; Nigeria Sceptre Prints Ltd.
45
CHAPTER FOUR
Data Presentation, Analysis and Discussion
The design of this chapter was to analyse the findings of the various interviews conducted and
the content analysis of related stories. The analysis formed the basis of interpretation of the level
of Corporate Nigeria’s level of commitment to CSR cum Disaster Management.
Question 1
Was CSR used in managing the 2012 flood in Nigeria?
According to Farinloye, the Public Information Officer of NEMA, private organizations were
called upon in the management of the disaster, however only a few of them responded. So most
of the funding came from the Federal government. And where the private organizations
responded it was mostly in terms of monetary contributions. (I,Farinloye, personal
communication, August 13 , 2013)
However in the words of Nwokolo, Head of Corporate Afairs, Mouka Foam, the company
donated over 1000 mattresses free to the flood victims and gave a 10% discount to any corporate
body that bought Mouka foam mattresses for the flood victims. (B, Nwokolo, personal
communication , September 3 , 2013)
While this in a way corroborates the claim of Farinloye that most of the funding came from the
federal government. It is in abeyance with the claim that response from the private bodies was
only in terms of monetary contribution. Mouka foam’s 1000 mattress donation was able to reach
about 1% of the total number of affected Nigerians. The total number being 134, 381 (see
46
Appendix iii) given the numbers of private organisations in the country, one can say therefore
that if more private organisations are involved, a lot more can be tackled.
Mr Oladipo of Dangote group (T. Oladipo, personal communication, December 17, 2013) said
that the company has always been in the business of corporate giving and had instantly made
donation to some affected states even prior to the inauguration of presidential relief committee.
He affirmed that the company remains one of the biggest donors during the disaster phase having
donated to the tune of about N1 billion in cash. This is in a way a confirmation that the private
sector are involved in the management of disaster and that they are quick to respond, even when
they are yet to be called in any official capacity.
Ayede , Head of Corporate Social Responsibility for Globacom (B. Ayede, personal
communication, November 12,2013), said the company was not directly responsible, rather it
was through the Mike Adenuga Foundation and this was to the tune of N500 million. She
however added that Globacom contributes to the Mike Adenuga Foundation.
In addition, as noted in the literature review, Kotler (2004) says that there are ranges of options
for giving by corporate organizations to their publics as follows; I) Providing cash donations II)
Offering grants III) Awarding scholarships IV) Donating products V) Donating services VI)
Providing expertise VII) Allowing use of facilities and distribution of channels VIII) Offering
the use of equipment.
Based on the foregoing it is safe to infer that even though participation was low, there was still
some level of interest shown and CSR was used in managing the 2012 flood in Nigeria.
47
Question 2
What aspect of the management of the 2012 Flood in Nigeria was CSR employed?
As discussed in Page 35, CSR can take the form of prevention, mitigation and preparedness to
response and recovery.
From the nature of the disaster under study, flooding and attendant displacement of residents was
the form of aid embarked upon by the organisations, all the organisations excluding NEMA were
only involved after the breakout of the flood, which is categorized here as response and recovery.
It is therefore noteworthy that the form of CSR was the response and recovery.
However, NEMA states that it published the Lake Nyos Disaster Response Manual in September
2012 to sensitise people on the impending danger of the dam bursting. This was a warning that
was meant to prevent. However it could be stated that it is not strictly CSR, as such actions fall
squarely within the purview of the agency as a disaster management agency.
Question 3
What are the reasons for the use of CSR in the management of 2012 floods in Nigeria?
Farinloye of NEMA notes that disaster management and prevention is a daunting financially
intensive affair. When confronted with disaster the magnitude of the 2012 flooding, it becomes
unavoidable to go at it alone.’ states Farinloye. It is at this point the agency turned to
organization who sees an opportunity to exercise their CSR initiative.
The extent of donation reached as far as the ECOWAS Commission, Japan, Thailand and even
local bodies like the Enugu state chapter of the Association of Local Government of Nigeria
(ALGON).
48
Farinloye states that activities such as search and rescue including airlifting of victims from
affected areas were quite expensive requiring modern, high-tech equipment that are quite
expensive to come by.
Apart from this, the rescued victims also had to be situated at a safe central location and they had
to be catered for all through the duration of the flood creating an internal refugee situation. He
noted that the magnitude of this situation would be better appreciated if one considers that the
flood affected about 12 states of the federation. It is safe to conclude therefore that NEMA, the
statutory body charged with disaster management, was overwhelmed by the enormity of the
disaster and the ensuing cost involved. In its bid to manage the situation, NEMA therefore
reached out to corporations for support who in turn cited CSR as their reason for bringing aid to
victims.
From antecedents, disasters of this magnitude can hardly be managed by one body. Even most
recently, the hurricane Hayan that destroyed property and lives in Philippines is overwhelming
even for the national government. There has been widespread global support to help the victims
contain the after-effect of the storm. To reiterate, overwhelming financial and material costs of
managing disasters can be attributed to the requirement of CSR in the 2012 Flood saga.
Question 4
Why where corporate organizations involved in the management of the 2012 flood in
Nigeria?
According to Farinloye of NEMA, the agency regularly reaches out to private organizations
especially for PPP (private public partnership). But the turnout is usually unimpressive.
49
However, reports indicate that the government pledged a tax incentive for willing organizations.
This is perhaps a big factor for the compliance by companies. Still, there are companies enjoying
the tax holiday without fulfilling their own end of the bargain ‘’It was learnt that many of the
defaulters had been enjoying the tax incentives accompanying their pledges, while they have
failed to fulfil their own part of the bargain.’’ (PUNCH June 12, 2013).
According to Oladipo (2013) of Dangote group, CSR is a vital aspect of the company’s
existence because the company believes in giving back. And as a visible part of the community,
it is only proper to show responsibility and empathy by identifying with the aspirations and
struggles of the host environment. As the well being of that community is equivalent to the well
being of the company. It is thus impossible, in the books of Dangote Group, to ignore the
community it serves (in this case Nigeria).
Nwakolo response is in tandem with the former. The Mouka Foam representative states that the
company sells its mattresses and other products to Nigerians. It therefore behoves on the
company to be concerned with the welfare of Nigerians as best it could. Because, he states, if
there are no Nigerians, then there will be no market for Mouka foam. ‘Therefore our activities in
CSR are borne out of our empathy for the market that we serve, as corporate members of the
society’.
Both respondents state that while the tax holiday was a great incentive, their active participation
was more altruistic than the business-inclined.
50
Ayede of Globacom stated that “We consider CSR as a business strategy for delivering value to
our stakeholders, we are encouraged by the visible and quantifiable impact the programmes have
on the beneficiaries it helps to sustain good relationships with our various stakeholders .The
knowledge and satisfaction that Globacom is giving back to society as a good and responsible
corporate citizen is enough drive for us to be involved. Although carried out on the Mike
Adenuga Platform, it is in tandem with our core values, our CSR initiatives therefore aim to
deliver the best solutions to the needs and challenges of those we target.
From the foregoing, it is clear that every company that pledged support in whatever form
benefitted from the federal governments tax incentive. It is however hard to determine which the
motive of the participating companies was. However, it must be noted that some companies did
not fulfil their pledges while they benefitted from the tax incentive. Of this category, it is certain
what the intention was.
Three main reasons are herein possible for the companies’ participation in the 2012 disaster
relief episode:
1. The participation was borne mainly or to a large extent out of a strong and already existing
company value for corporate philanthropy and social responsibility.
2. The drive to benefit from the government’s tax incentive.
3. Both
51
Discussion of findings
The research has been able to establish the following findings:
1. CSR was used in the management of the 2012 flood in Nigeria
2. The CSR was employed in form of response and recovery
3. The reason for the use of CSR was due to the enormous cost associated with managing
disaster of such magnitude.
4. The reason why most organisations were involved was because of the already existing CSR
value within the organisation.
The presence of defaulters that continued to enjoy the tax incentive given by the government
without redeeming their pledges showed that some organisations were involved simply because
of the tax incentive associated with it. According to the report of Punch, June 12, 2013. The
Dangote Flood committee pledged to publish the name of defaulters. This is in tandem with the
findings of Twiggs(2001) that noted that the private sectors main concern is the bottom line of
profitability and CSR is not altruism.
It is also important to note that, although different amount was recorded to have been donated by
different private organisations, Dangote group was recorded to have donated 1 billion Naira,
Mike Adenuga Foundation donated 500, million naira and Mouka foam donated mattress,
however newspaper reports that were examined also revealed that, a lot of the people affected are
yet to benefit from the CSR effort of this organisations. According to the report on premium
times of April 14, 2013 , Abdulhamid Hussaini a victim that lost six children during the floods,
in Jos, `We (victims) are yet to receive a kobo or measure of grain from the Plateau Government
that collected the assistance on our behalf,' (NAN). In a similar report of News24.com.ng of 15
52
May 2013, Dennis Igbana who lives in Benue revealed as well that the victims had no options
than to return to the affected areas affected by flood. “Our situation is that of the abandoned
child, we are treated as if we do not belong to this state or country, we are being abandoned as if
we choose ourselves to be affected by flood.”
It is therefore important to ensure that CSR efforts on the part of organizations are not just word
of mouth, but also action and practice.
The use of CSR to address the flood from the angle of response and recovery is also important,
while most organizations have already existing CSR plans, disaster management is not one of the
angles usually focused on, and organizations CSR are mostly in areas of sport development,
donations to community, education and other related field as noted by Rusell (2011) in his
study.
All this are in tandem with the empirical review by Twigg(2001) that concluded that private
sectors main concern is the bottom line of profitability CSR is not altruism: its ultimate aim is to
benefit the business concerned, however indirectly. In general , business does not feel itself
responsible for natural disasters, seeing this as an issue for the government.
53
CHAPTER FIVE
Summary, Conclusion and Recommendations
Although scientific inquiry seeks a degree of objectivity and neutrality, this does not prevent one
either approving or disapproving of a tendency indicted by a theory (Mcquail, 108).
Summary
This research work is borne out of the need to determine the role of corporate organisations in
disaster management in Nigeria using the 2012 flood in Nigeria as a background of the study.
It seeks to assess the potential for disaster reduction and management initiatives involving the
corporate sector through corporate social responsibility (CSR) programmes. With this aim in
mind, the conclusions and recommendations presented here focus on the main challenges to such
initiatives and the opportunities for taking them further.
There has been much talk of partnership between the private , public and non-profit sectors to
reduce the impact of natural disasters, but there is little understanding of what this means in
practice and still less of how to go about it.
To date there has been very little private sector involvement in natural disaster reduction in the
form of CSR initiatives in Nigeria. Most of the experience of CSR in disaster reduction comes
from countries in the North, especially the USA, which have a supportive enabling environment
that is not present in many developing countries including Nigeria, even when certain provisions
were made such as the tax incentive that was announced by the government of Nigeria to any
organisation that provides support for the flood disaster management in Nigeria, such
54
opportunity are often exploited. Substantive empirical evidence is scarce: much of the available
data is superficial, promotional or anecdotal. The Flood relief website for example was only
helpful in providing superficial information as regarding the management of the 2012 flood in
Nigeria. While most organisations do not have a proper documentation of their effort in this
regard only supplying general information about their organisations corporate social
responsibility programmes. It is therefore particularly difficult to assess the impact of existing
initiatives and there seems to be little or no interest in evaluation.
Furthermore existing CSR initiatives like the Dangote-Agbakoba led committee’s effort address
the immediate causes of disaster and not its deeper social-economic and political. Furthermore
when statutory bodies such as the National Emergency Management Agency (NEMA) calls out
to private organisations, their response if often minimal or where they respond only in terms of
financial donations. This is a big challenge to disaster management in Nigeria; the country
currently has a weak institutional support that allows the private bodies to collaborate with the
established institutions in carrying out their corporate social responsibility programme as far as
disaster management is concerned. Therefore Government has a key role to play in initiating and
supporting partnership involving the private sector.
Collaborative efforts benefit from having a dedicated institutional ‘home’ to give focus and
continuity. It is therefore a good initiative that a committee such as the Dangote-Agbakoba own
was set up; such will actually provide a common ground for organisations to pool resources
together.
55
Sustainability is a major challenge to CSR work in the field of disaster management. Funding
regimes and business attitudes favour one-off intervention, it is therefore imperative that a proper
structure be put in place to ensure that the effort of a committee such as the Dangote-Agbakoba
led committee does not experience a sudden death.
An open, relaxed relationship is an essential element in successful partnerships between the
private and other sectors. To this end it is important that the statutory bodies that have been
established by the government and other stake holders make conscious effort to encourage
Corporate organisations to be more involved in disaster management through their corporate
social responsibility. Realistic disaster reduction plans should be set, recognising that the
corporate organisation is first in business to make profit; this can help to determine what can be
expected from the corporate organisations. Business commitment are most likely to come from
those business sectors most closely linked to issues of risk and safety, theses organisations have a
large commercial stake in risk reduction and understand the problems associated with it.
Well placed individuals can also play an influential role as champions of CSR and stimulators of
new initiatives as shown by Mr. Aliko Dangote.
Effective processes for inter-sectoral partnerships developed in the developed countries of the
West such as the United states of America can be considered for application in Nigeria even
though the context there may be different, human needs are universal. An effective process
should therefore be applicable to local conditions in Nigeria, with appropriate modifications
were it is necessary.
56
Recommendations
The research has been able to establish that there is corporate involvement though corporate
social responsibility in disaster management in Nigeria however it is at a minimal level, the
research has also further revealed that there is still a chasm between the corporate organisations
and the established organisations in charge of disaster management and the need for a more
structured programme of disaster mitigation and management in Nigeria.
This study has been able to find out so much in a case that a formal report is yet to be formally
made and effort are still ongoing .
This work recommends that a unit be established within the National Emergency Management
Agency (NEMA) that will act as a liaison between the government and Private agency.
It is also recommended that there should be more involvement on the part of the government in
ensuring that corporate organisations are encouraged to donate and participate in disaster
management.
Credibility and accountability been the watch word, efforts should be made to make sure that
they system put in place is fair and transparent.
Suggestion for Further Studies
This work has examined the role of corporate social responsibility in disaster management
studying the 2012 flood in Nigeria. Further studies can be conducted to build on this work by
considering how the involvement of the private sector in the management of the 2012 flood
affected the lives of people that were in the disaster area. This effort is still ongoing and a
research that measures the impact when it is concluded will serve as a veritable evaluation tool.
The foundation that matter have herein been discussed, what I am suggesting is that more work
should be done to determine how the Dangote-Agbakoba led committee faired in its effort at
getting corporate organisations to be responsible to their environment.
57
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61
APPENDIX I
INDEPTH INTERVIEW QUESTIONS
My name is Samuel Ejiwunmi, a 400 level student of Mass Communication Department,
University Of Lagos. I am currently carrying out a research on the role of corporate social
responsibility in disaster management; a study of the 2012 Flood in Nigeria. Your organization
has been selected for interview based on your participation in the relief effort.
Thank you for your time.
Samuel S. Ejiwunmi.
08022199921.
Interview Questions for Private Organizations
1. What are the areas of your organizations CSR activities?
2. List some of the CSR activities carried out in the past 2 years
3. What are the methods employed in carrying out your CSR activities?
4. Has your organization ever been involved in disaster management as a CSR activity?
5. What were the aspects of your organization involvement in the management of the 2012
flood in Nigeria?
6. What was the vision behind the involvement of your organization in the management of the
2012 flood in Nigeria?
7. What did your organization aim to achieve by carrying out this CSR activity.
8. Do you think government should always reach out to corporate bodies in times of disaster
management?
9. Do you think the corporate bodies can influence government policies as a result of its
involvement in this type of CSR activity?
10. The use of CSR has been able to successfully manage the 2012 flood in Nigeria?62
11. What Other methods can be used in effective disaster management?
APPENDIX II
INDEPTH INTERVIEW QUESTIONS
My name is Samuel Ejiwunmi, a 400 level student of Mass Communication Department,
University Of Lagos. I am currently carrying out a research on the role of corporate social
responsibility in disaster management; a study of the 2012 Flood in Nigeria. Your organization
has been selected for interview based on your participation in the relief effort.
Thank you for your time.
Samuel S. Ejiwunmi.
08022199921.
INTERVIEW QUESTIONS FOR GOVERNMENT AGENCY
SECTION A
1. Was your organization involved in the 2012 Flood in Nigeria
2. What is your organization involvement with the 2012 flood in Nigeria
3. What are the methods employed in management of disasters
4. Is Corporate Social responsibility activities by private organization one of the methods in
management of disasters
5. What where the factors that motivated the involvement of the Private organizations?
6. What aspect of the intervention were the corporate bodies brought in to address?
7. What other methods have been employed in the management of the 2012 flood in Nigeria?
8. What were the challenges in carrying out this disaster management activities?
9. Do you think the partnership with private organisation has made the disaster management
effort better?
10. What aspect of partnership with private organizations do you think should be re-addressed?
SECTION B63
NAME OF ORGANIZATION:________________________________________________
NAME OF RESPONDENT:__________________________________________________
POSITION WITHIN THE ORGANIZATION:_____________________________________
APPENDIX III
Figure 2.3: Source, International Federation of Red Cross and Red Crescent (IFRC)
Disaster Relief Emergency Fund (DREF).
64