ABSTRACT

This study examined customer perceptions of corporate social responsibility (CSR) and its influence on organizational performance at CSQUAD Security Company. The research was guided by three specific objectives: to identify the factors influencing involvement in CSR activities and the performance of CSQUAD Nigeria Limited; to assess the relationship between CSR strategies and the performance of CSQUAD Nigeria Limited; and to determine how government policies and regulations affect the company's CSR performance. These objectives were examined within the context of security firms operating in Nigeria. A descriptive research design was adopted for the study, with a sample population of 140 supervisors comprising 30 personnel from the Finance Department, 20 from the Courier Division, 50 from the Guarding Division, and 20 from the Human Resource Management (HRM) Department. Structured, self-administered questionnaires were employed as the instruments for data collection. The data obtained were analyzed using the Statistical Package for Social Sciences (SPSS), version 2. Primary data were examined to establish the influence of corporate social responsibility on the organizational performance of CSQUAD Nigeria Limited, with particular attention given to the relationship between CSR practices and company performance. The findings indicated that the mean scores of the parameters examined under this objective were generally average. Participative and democratic management styles were identified as the most appropriate approaches to CSR implementation because both encourage members of the organization to contribute their ideas and opinions. Regarding the final objective, which focused on the government's role in facilitating CSR initiatives at CSQUAD, the study found that government policies and regulations influenced the types of CSR activities the company could undertake through the provision of advice and recommendations. The government also supported the sustainable development of CSQUAD's CSR strategies by establishing an enabling regulatory environment. Furthermore, government oversight of CSR activities in companies such as CSQUAD encouraged more responsible management of these initiatives. The study concluded that CSQUAD had several opportunities to utilize CSR activities to improve its organizational performance. CSR was found to contribute positively to the company's performance in both financial and non-financial aspects. The findings also demonstrated that CSR strategies had considerable potential to improve organizational performance. In addition, employee and organizational member participation was identified as an important factor in strengthening CSR strategies. By involving its members in CSR activities, CSQUAD enhanced the quality of its initiatives through the contributions and perspectives of different participants. Finally, the study concluded that government involvement should be limited to an appropriate level, with most CSR policies and implementation decisions left to the discretion of CSQUAD.

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the Study

From a global perspective, corporate organizations have numerous social responsibilities towards the societies in which they operate. Corporate social responsibility refers to the approach through which organizations voluntarily develop and implement strategies that take social and environmental concerns into consideration. Although participation in CSR has traditionally been voluntary, many companies around the world have incorporated social and environmental issues into their strategic plans. It is therefore important to monitor the effects of business activities on society so that a balance can be achieved among the environmental, social, and economic interests of communities (Carroll & Shabana, 2015). The United Nations has made considerable efforts to promote this objective. One of its major initiatives is the Global Compact (GC), which provides guidance on corporate social responsibility. Through this initiative, participating organizations and other parties commit themselves to observing ten principles that promote human rights, social responsibility, anti-corruption practices, and environmental protection (Dans, 2015).

Several countries have taken steps to encourage corporate social responsibility through the involvement of nonprofit organizations, international aid agencies, private companies, and governments. Some developed countries have gone further by making financial provisions for social responsibility initiatives in their annual budgets, thereby encouraging broader national participation. Such arrangements also promote transparency and accountability in the allocation and management of funds intended for these activities. In the United States, for instance, several security companies have established strong reputations within the industry. Securitas USA is one of the major security companies, with a workforce reported to exceed 88,000 employees. The company operates across local and national markets and provides security services to banks, shopping malls, educational institutions, and other establishments. Security companies in the United States are also equipped to deliver specialized services, including electronic security, fire protection, and safety management (Mieres, 2017).

According to Carroll and Shabana (2015), corporate social responsibility (CSR) provides businesses with an important means of responding to the social needs of the communities in which they operate. Different perspectives exist regarding the motivations that encourage organizations to engage in CSR practices. Although the term corporate social responsibility became prominent in the 1960s, the practice itself predates the formal introduction of the concept. Historical accounts suggest that people recognized certain principles associated with social responsibility from the earliest periods of civilization. For example, Hammurabi, the king of Mesopotamia, introduced rules intended to protect the welfare of his subjects by requiring builders to maintain acceptable standards in their work. Under these rules, a builder could face severe punishment if a poorly constructed building collapsed and caused the death of its occupants. This requirement discouraged builders from compromising safety in pursuit of profit and emphasized their responsibility to the people who relied on their work (Freeman, 2013). The rules legally required craftsmen to demonstrate honesty and accountability in carrying out their duties. In addition, Hammurabi established more than 282 laws designed to protect citizens against poor workmanship and the harmful practices of artisans.

During periods of warfare in ancient Rome, businesses were expected to contribute to efforts supporting military campaigns. Religious texts, including the Bible, also contain examples of principles associated with corporate and social responsibility. The parable of the Good Samaritan, for instance, emphasizes concern for others and the importance of sharing resources to support people in need (Valli, 2015). Similar principles can be identified in African societies. Among Cameroonian hunters, for example, it was customary for hunters to present their catch to the chief, who would oversee its distribution among other members of the community. In Nigeria, community members were traditionally expected to contribute their first harvest during the Yam Festival. Asungo also observes that in many African countries, traditional medical practitioners provided treatment either free of charge or for a relatively small fee. These practices reflected the belief that community welfare and collective well-being were important and should not be sacrificed solely for individual financial gain.

In subsequent years, corporate social responsibility attracted greater attention as scholars began to investigate its principles and practical benefits. Robert Owen conducted early experiments relating to the benefits of social responsibility around 1810 while managing the Lanark Mill factory in the United Kingdom. He observed that reducing employees' working hours from thirteen to ten hours was associated with a 50% increase in productivity (Husted, 2017). The term corporate social responsibility became widely used in the early 1960s. One of the earliest scholars to examine the subject was Howard Bowen, who published work emphasizing the need for businesses to consider society's interests when making decisions. Later scholars, including Rhou, Singal, and Koh (2016) and Madrakhimova (2013), contributed further discussions and analyses of the concept. Governments and international organizations subsequently introduced laws, guidelines, and regulations intended to encourage businesses to comply with CSR principles. The benefits of these practices became increasingly apparent to both governments and corporate organizations. International bodies such as the United Nations have played an important role in creating awareness of CSR and its potential benefits. The UN Global Compact, for example, provides a platform through which businesses can learn about and work towards meeting corporate social responsibility expectations.

Some organizations have used charitable activities and sponsorship arrangements as marketing tools for their products and services. However, such activities may raise questions about whether the organizations are genuinely fulfilling their social responsibilities. In certain situations, charitable events are primarily intended to improve a company's public image rather than address the actual social problems affecting the communities in which it operates. An example in Africa is MTN, a major telecommunications company based in South Africa. The company sponsors sports teams in leading Ghanaian leagues and requires the participating teams to display its corporate logo on their jerseys. The sponsorship arrangements also require the teams not to enter into similar agreements with competing companies (Kigotho, 2014). Although MTN's activities may be viewed as supportive contributions to sports development, the conditions attached to the sponsorship agreements raise questions about the extent to which such initiatives reflect a genuine commitment to effective corporate social responsibility.

The wide range of activities associated with CSR has made it difficult to establish a single definition that is universally accepted. This lack of agreement has existed since the concept emerged. Early thinkers, including Milton Friedman and Kirk Russell, expressed differing opinions concerning the meaning and purpose of CSR. Friedman maintained that the primary responsibility of a business was to generate profits, provided that it pursued this objective through transparent and lawful means without engaging in fraud. From this perspective, businesses that comply with these requirements fulfil their responsibilities. Russell, however, presented a different argument by emphasizing that companies have moral and social obligations in the conduct of their operations (Singh, 2014). This position suggests that organizations should assess the moral acceptability and social consequences of their decisions before implementing them.

Howard Bowen provided one of the earliest formal definitions of corporate social responsibility, describing it as the obligation of businesspeople to make decisions and take actions that are consistent with the values and expectations of society (Hamidu, Haron, & Amran, 2015). In more recent discussions, the concept has expanded to incorporate sustainability, accountability, environmental protection, and competitive strategy. Corporate social responsibility is therefore closely connected to the relationships among organizations, customers, members of the public, and government institutions. Cooperation among these stakeholders is important for the successful implementation and achievement of CSR objectives.

In East Africa, KK Security Limited is identified as a prominent security company with branches in Uganda and Tanzania. The company provides security services to residential estates, banks, shopping centres, schools, and other establishments across the region. According to Musau (2015), the concept of corporate social responsibility is relatively new in Nigeria, although the government and private sector have made efforts to attract support and funding from international corporations and multinational organizations that have greater experience with CSR initiatives. Awareness of social responsibility is gradually increasing, and many organizations have come to view it as a form of philanthropy or as a way of giving back to society. Some profit-oriented businesses have adopted this approach to improve their public image and strengthen their acceptance within the communities where they operate. Nevertheless, an important question concerns whether the value of the contributions these organizations make to society corresponds with the benefits and resources they obtain from those same communities (Khan, Halabi, & Samy, 2013).

Foreign security companies have a significant presence in the African private security industry and often face relatively limited competition from locally owned firms (Choongo, van Burg, Masurel, Paas, & Lungu, 2017). These foreign companies frequently draw on the CSR principles and practices established in their countries of origin. Since they operate from different national and cultural backgrounds, their approaches to social responsibility may vary considerably. For example, CSQUAD may choose to provide scholarships to students from disadvantaged backgrounds, while Fargo may concentrate on environmental conservation programmes.

Despite these differences, security companies can learn from one another by adopting and adapting successful CSR strategies. However, the financial resources available to each organization may limit the number and range of activities it can undertake. Consequently, companies must determine which CSR initiatives deserve priority and are most likely to produce meaningful social benefits within their available budgets.

African communities have benefited from corporate social responsibility programmes implemented by private security companies and organizations operating in other industries (Kipruto, 2014). These initiatives can reduce some of the pressure on governments to provide social services and address community needs. Nevertheless, concerns about the intentions of commercial organizations have encouraged governments to demand greater transparency in CSR activities. In particular, companies may be required to present their CSR proposals for review when the proposed initiatives involve members of the public. This requirement is intended to prevent organizations from exploiting public goodwill or misusing funds collected in the name of helping communities. Governments therefore emphasize transparency, accountability, and honesty in the implementation of social responsibility programmes. In South Africa, for example, organizations seeking donations from members of the public may be required to obtain authorization from the relevant government ministries.

Hong and Minor (2016) maintain that effective corporate governance contributes to the successful implementation of corporate social responsibility. When CSR initiatives are properly managed, they can influence consumer behaviour and perceptions of an organization. Although profitability and revenue may fluctuate over time, stakeholders increasingly recognize the importance of maintaining positive relationships between businesses and the communities surrounding them. An organization may therefore be assessed not only by its profitability but also by the extent to which it demonstrates concern for society (Sam, 2016). The effects of corporate activities on stakeholders and the wider community may be positive or negative, direct or indirect, and may differ in scale.

The management of CSR projects also requires careful attention to the major elements of project implementation, including money, time, scope, and resources. These elements are relevant throughout the planning, development, and execution of CSR initiatives and must be coordinated effectively to achieve the desired outcomes.

CSQUAD is regarded as one of the major security companies operating in Nigeria. Its activities extend beyond conventional security services to include courier operations and the management of security risks in buildings and residential properties (Odhong, 2018). The company has expanded its business portfolio through mergers and acquisitions involving local and international organizations, helping it establish a wider regional and international presence. In Nigeria, CSQUAD provides a range of security and logistics services, including courier services, cash services, manned guarding, alarm and response services, fire protection and safety, and secure data solutions.

CSQUAD operates across several service segments and works with major corporations, successful privately owned businesses, and nongovernmental organizations to provide security solutions. The company's operations cover a broad geographical area both within Nigeria and internationally. These achievements have been attributed, in part, to management efforts to improve service delivery and participate in corporate social responsibility initiatives.

Fairness and integrity are among the company's core values. These principles have contributed to its development and influenced the way it conducts its operations and relates to its customers (CSQUAD Annual Report, 2017). Against this background, examining customer perceptions of corporate social responsibility and its relationship with organizational performance is important for understanding how CSQUAD's social responsibility activities may contribute to its overall success.

1.2 Statement of the Problem

The responsibilities of modern organizations have expanded beyond the traditional objective of generating earnings and profits to include greater concern for social welfare and community development. In developed countries such as the United States, organizations and members of society are increasingly recognized as participants in a relationship through which businesses operate within communities while also contributing to their development. Both voluntary and involuntary responsibilities arise from this relationship, and the participation of different stakeholders helps sustain the business environment over time. African countries, including South Africa, have also taken steps to promote social responsibility through initiatives involving gold-mining companies, sports sponsorships, and other corporate activities (Kaingu, 2016).

Mbogoh and Ogutu (2017) explained that CSR activities have been increasing in Nigeria, with major corporate organizations competing to establish favourable relationships with local communities. These organizations participate in community development projects, construct boreholes, provide educational scholarships, sponsor charitable events, and undertake other activities intended to improve social welfare. However, an important concern remains the extent to which highly publicized CSR initiatives address the actual needs and priorities of the communities they are intended to serve.

In Nigeria, Cheruiyot and Tarus (2016) found that companies engage in CSR partly to obtain legitimacy and respond to shareholders' expectations. Their study concluded that the relationship between corporate social responsibility and financial performance was not clearly established. Similarly, Tarus (2015), in a study examining factors influencing CSR among commercial banks in Nigeria, identified profitability as one of the major factors affecting their involvement in social responsibility activities.

Nyaga (2016) observed that managers increasingly treat CSR expenditure in much the same way as ordinary operational expenses. This development raises important questions about the relationship between social responsibility and organizational performance. Specifically, it is necessary to determine whether organizations that engage in socially responsible activities perform better or worse than those that do not. It also raises concerns about the appropriate amount of financial resources, managerial attention, and organizational effort that businesses should devote to social responsibility initiatives.

According to the CSQUAD Annual Report (2017), the company undertakes social responsibility activities through various initiatives, including the sponsorship of football and basketball competitions. It also contributes to community development through projects such as the construction of homes for underprivileged children. These activities suggest that CSQUAD goes beyond meeting basic legal requirements by undertaking initiatives intended to improve social welfare. In doing so, the company seeks to promote community well-being while operating within applicable legal and regulatory frameworks.

CSQUAD Security Company is expected to accept responsibility for the consequences of its corporate actions and to promote positive outcomes through its activities for the environment, consumers, customers, communities, stakeholders, and other members of the public. By using its organizational strengths and available resources, the company seeks to increase awareness of corporate philanthropy and encourage members of society to participate in and contribute to social development (CSQUAD Report, 2016).

Although several studies on corporate social responsibility have been conducted both locally and internationally, research specifically examining CSR and its relationship with organizational performance in the context of CSQUAD Security Company remains limited. Studies addressing related issues in Nigeria include those by Cheruiyot and Tarus (2016), Kigotho (2014), and Mburu (2014). This limited body of research creates a need to investigate how CSR strategies influence the performance of CSQUAD, the factors that affect the company's participation in CSR activities, and the extent to which government policies and regulations influence the implementation and outcomes of these initiatives.

Furthermore, understanding customer perceptions of CSR is important because the way customers view a company's social responsibility practices may influence their attitudes towards the organization and its services. It is therefore necessary to examine whether CSR activities contribute to organizational performance and identify the conditions under which such contributions can be strengthened. This study addresses these issues by examining corporate social responsibility and organizational performance at CSQUAD Security Company.

1.3 General Objective

The general objective of this study was to examine customer perceptions of corporate social responsibility (CSR) and its influence on the organizational performance of CSQUAD Security Company.

1.4 Specific Objectives

The study was guided by the following specific objectives:

1.4.1 To examine the effect of CSR strategies on the performance of CSQUAD Nigeria Limited.

1.4.2 To identify the factors influencing participation in CSR activities and their effects on the performance of CSQUAD Nigeria Limited.

1.4.3 To determine the effect of government policies and regulations on the CSR performance of CSQUAD Nigeria Limited.

1.5 Significance of the Study

1.5.1 Management of CSQUAD

The study was considered important to CSQUAD's management because its findings were expected to encourage the organization to reconsider its approach to corporate social responsibility and become more actively involved in CSR projects. The research was also intended to provide useful information about the factors affecting the performance of CSR initiatives within security firms in Nigeria. Such information could help management understand the challenges associated with implementing social responsibility programmes and identify opportunities for improving their effectiveness.

1.5.2 Other Organizations Implementing CSR

The study was expected to benefit other organizations experiencing difficulties in implementing corporate social responsibility programmes in Nigeria. The findings could assist these organizations in making informed decisions and developing strategies for reducing implementation costs while improving the effectiveness of their CSR activities. In addition, the insights generated by the study could encourage organizations to broaden the scope of their CSR programmes by considering the various factors that may prevent them from achieving their intended objectives.

1.5.3 The Researcher

The research provided an opportunity for the researcher to develop analytical, evaluative, and academic writing skills. It also offered a foundation for further investigation into corporate social responsibility and organizational performance. Through the study, the researcher could explore additional aspects of CSR and identify areas that had not been sufficiently examined in previous research.

1.5.4 Policy Makers

The findings of the study were expected to provide useful information to policymakers responsible for developing policies and regulations relating to corporate social responsibility among business organizations. The results could help policymakers identify appropriate measures for encouraging effective CSR implementation and improving the contribution of corporate organizations to social welfare and community development.

1.6 Scope of the Study

The study examined the effects of corporate social responsibility projects on the performance of security firms, considering the subject from a global perspective and within the African region, with particular emphasis on Nigeria. CSQUAD's head office in Abuja served as the case study location. The study noted that approximately 585 security companies operated across Nigeria, while CSQUAD had 41 branches within the country.

The research did not examine the security-related issues and operational policies that fall within the company's direct service responsibilities. Instead, its focus was on corporate social responsibility and organizational performance. The target population was identified as 140 supervisors working across different branches of the company in Nigeria, while a sample of 42 individuals occupying supervisory positions was specified for the study. The research was conducted over three months, from June 2018 to August 2018.

1.7 Definition of Terms

1.7.1 Government Policy

Government policy refers to a rule, guideline, or regulation established by the authorities responsible for governing a country to maintain order and create stable conditions for its citizens. Governments establish various standards of conduct to monitor, direct, and regulate people's activities. These measures also help protect citizens, contractual rights, and personal property (Knudsen, Moon, & Slager, 2015).

1.7.2 Corporate Social Responsibility

Corporate social responsibility is a concept through which corporate organizations acknowledge their obligations to society and undertake activities intended to contribute to community welfare. It involves the voluntary integration of social and environmental concerns into business operations and the relationships organizations maintain with their stakeholders (Madrakhimova, 2013).

1.7.3 Community Involvement

Community involvement refers to the process through which members of a community contribute their efforts and resources towards achieving shared objectives. It includes identifying relevant stakeholders, establishing systems that facilitate engagement between stakeholders and public officials, and developing mechanisms that support participation in community development (Carroll & Shabana, 2015).

1.7.4 Projects

Projects are planned and organized activities designed to achieve specific results or objectives. They consist of related tasks that are scheduled for implementation within a defined period and subject to established costs, resource requirements, and other limitations (Avaye, 2015).

1.7.5 Security Firms

Security firms are organizations established to provide security and related services to individuals, businesses, and other institutions. Essentially, they are commercial enterprises that offer armed or unarmed security services to both public and private clients (Kaingu, 2016).

1.7.6 Performance

Performance refers to the extent to which a particular task, activity, or undertaking succeeds in achieving its intended objectives (Kipruto, 2014). In the context of this study, performance may be assessed through the positive outcomes generated by the projects and initiatives in which the company participates.

1.8 Chapter Summary

This chapter examined the major issues relating to corporate social responsibility and its influence on the performance of CSQUAD Security Company. It began by providing background information on the concept of CSR, including its historical development, meaning, significance, and application within different societies and business environments. The chapter subsequently presented the statement of the research problem, the general and specific objectives, and the significance of the study to CSQUAD management, other organizations implementing CSR, the researcher, and policymakers. It also outlined the scope of the research and explained the key terms used throughout the study. The subsequent chapter reviews relevant literature and secondary information from previous researchers concerning corporate social responsibility, organizational performance, and the ways CSR practices may influence business outcomes.