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68-527: The Kingdom of Bonny was a trading state founded before 1600, based on the port of Bonny in what is now Rivers State , Nigeria. It became a major trading center, first of slaves and later of palm oil products. During the 19th century, British influence was growing in the region. George Oruigbiji Pepple was born in 1849, son of King William Dappa Pepple of Bonny, who was deposed by the British and deported to Britain in 1854. George went into exile with his father, and

136-418: A profit motive when participating in corporate philanthropy and community volunteering. On the other hand, the remaining corporate social initiatives can be examples of cause marketing, in which there is both a societal interest and a profit motive. CSR may be based within the human resources , business development or public relations departments of an organisation, or may be a separate unit reporting to

204-423: A CSR perspective, while critics argue that CSR distracts from businesses' economic role. A 2000 study compared existing econometric studies of the relationship between social and financial performance, concluding that the contradictory results of previous studies reporting positive, negative, and neutral financial impact were due to flawed empirical analysis and claimed when the study is properly specified, CSR has

272-416: A business enterprise that emerge from neighborhoods, environmental groups, local stakeholders, and other elements of the surrounding civil society". Social License to Operate can be determined as contractual grounds for the legitimacy of activities and projects a company is involved in. It refers to the level of support and approval of a company's activities by its stakeholders. Displaying commitment to CSR

340-427: A company's economic actions to particular interest groups within society and to society at large. Social accounting emphasizes the notion of corporate accountability . Crowther defines social accounting as "an approach to reporting a firm's activities which stresses the need for the identification of socially relevant behavior, the determination of those to whom the company is accountable for its social performance and

408-468: A differentiation strategy. They concluded that managers could determine the appropriate level of investment in CSR by conducting a cost-benefit analysis in the same way they analyze other investments. Reinhardt (1998) found that a firm engaging in a CSR-based strategy could only sustain an abnormal return if it could prevent competitors from imitating it. The relationship between corporate social responsibility and

476-428: A firm's corporate financial performance is a phenomenon that is being explored in a variety of research studies that are being conducted across the world. Based on these research studies, including those undertaken by Sang Jun Cho, Chune Young Chung, and Jason Young, a positive relationship exists between a firm's corporate social responsibility policies and corporate financial performance. To investigate this relationship,

544-403: A form of corporate self-regulation for some time, over the last decade or so it has moved considerably from voluntary decisions at the level of individual organizations to mandatory schemes at regional, national, and international levels. Moreover, scholars and firms are using the term " creating shared value ", an extension of corporate social responsibility, to explain ways of doing business in

612-774: A foundation for consumers to verify that their products are socially sustainable . Due to an increased awareness of the need for CSR, many industries have their verification resources. They include organizations such as the Forest Stewardship Council (paper and forest products), International Cocoa Initiative, and Kimberly Process (diamonds). The United Nations Global Compact provides frameworks not only for verification, but also for reporting human rights violations in corporate supply chains. The rise of ethics training inside corporations, some of which are required by government regulation, has helped CSR to spread. Such training aims to help employees make ethical decisions when

680-613: A healthy, educated workforce, sustainable resources, and an adept government to compete effectively. For society to thrive, profitable and competitive businesses must be developed and supported to create income, wealth, tax revenues, and philanthropy. The Harvard Business Review article "Strategy & Society: The Link between Competitive Advantage and Corporate Social Responsibility" provided examples of companies that have developed deep linkages between their business strategies and CSR. CSV acknowledges trade-offs between short-term profitability and social or environmental goals, but emphasizes

748-403: A neutral impact on financial outcomes. Critics have questioned the "lofty" and sometimes "unrealistic expectations" of CSR, or observed that CSR is merely window-dressing , or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations . In line with this critical perspective, political and sociological institutionalists became interested in CSR in

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816-595: A positive response. Somerville also found that consumers are loyal and willing to spend more on retailers that support charity. Consumers also believe that retailers selling local products will gain loyalty. Smith (2013) shares the belief that marketing local products will gain consumer trust. However, environmental efforts are receiving negative views, given the belief that this would affect customer service. Oppewal et al. (2006) found that not all CSR activities are attractive to consumers. They recommended that retailers focus on one activity. Becker-Olsen (2006) found that if

884-493: A pyramid of responsibilities, namely, economic, legal, ethical, and philanthropic responsibilities. While Carroll was not defining CSR, but simply arguing for the classification of activities, Sheehy developed a definition differently following the philosophy of science—the branch of philosophy used for explaining phenomena. Carroll extended corporate social responsibility from the traditional economic and legal responsibility to ethical and philanthropic responsibility in response to

952-495: A range of reporting guidelines and standards that serve as frameworks for social accounting, auditing, and reporting: Legal requirements for social accounting, auditing, and reporting exist in nations like France. However, international or national agreement on meaningful social and environmental performance measurements has not been achieved. Many companies produce externally audited annual reports that cover Sustainable Development and CSR issues ("Triple Bottom Line Reports"), but

1020-526: A risk of agency costs, a law academic may consider that discretion to be an appropriate expression of what the law demands from directors. In the 1930s, two law professors, A. A. Berle and Merrick Dodd, famously debated how directors should be made to uphold the public interest: Berle believed there had to be legally enforceable rules in favor of labor, customers and the public equal to or ahead of shareholders, while Dodd argued that powers of directors were simply held on trust. Corporate social responsibility

1088-571: A socially responsible company makes safe, high-quality products; for Germans it provides secure employment; in South Africa it makes a positive contribution to social needs such as health care and education. Even within Europe, the discussion about CSR is very heterogeneous. A more common approach to CSR is corporate philanthropy . This includes monetary donations and aid given to nonprofit organizations and communities. Donations are made in areas such as

1156-553: A socially responsible way while making profits (see the detailed review article of Menghwar and Daood, 2021). Considered at the organisational level, CSR is generally understood as a strategic initiative that contributes to a brand's reputation. As such, social responsibility initiatives must coherently align with and be integrated into a business model to be successful. With some models, a firm's implementation of CSR goes beyond compliance with regulatory requirements and engages in "actions that appear to further some social good, beyond

1224-401: A steam launch at the end of his visit. All this caused considerable alarm among the chiefs, concerned about his growing power, combined with the growing power of the British. He came close to being deposed on his return but was saved by the British consul. On 14 December 1883 King George was deposed. In February 1886 a protectorate treaty was concluded between Bonny and Britain. A ruling council

1292-512: A variety of outside markets, an improved reputation, and stakeholder relationships. In all cases (emerging markets vs. developed economies), implementing CSR policies into the daily activities and framework of a company has been shown to allow for a competitive advantage versus other companies, including the creation of a positive image for the company, improved stakeholder relationships, increased employee morale, and attraction of new consumers who are committed to social responsibility. Despite all of

1360-460: Is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic , activist, or charitable nature by engaging in, with, or supporting professional service volunteering through pro bono programs, community development , administering monetary grants to non-profit organizations for the public benefit , or to conduct ethically oriented business and investment practices. While once it

1428-727: Is a traditional, coastal town and a Local Government Area (LGA) in Rivers State in Southern Nigeria , on the Bight of Bonny . It is also the capital of the Kingdom of Bonny . The region produces a type of crude oil known as Bonny Light oil . Much of the oil extracted onshore in Rivers State is piped to Bonny for export. It has the biggest LNG Gas Plant in Nigeria with six (6) trains. Currently,

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1496-517: Is achieved within and given by communities, which is defined as "a social unit of any size that shares common values, or that is situated in a given geographical area". Lacey suggested that social license can take a long time for a corporation or industry to achieve, but social license can be lost very quickly for a variety of factors, including changes in stakeholder expectations, technology, or other disturbances. Gunningham et al. stated that meeting and exceeding regulations to build reputational capital

1564-427: Is economically vital, saying: "in certain circumstances, [natural resource-based industries] cannot afford to do otherwise". In communities with a diverse economy, achieving social license is often much more complex than in local communities, which depend economically on the natural resource industry. In research undertaken by Ketola et al. , the writers believed that the forest products industry in rural Michigan in

1632-522: Is located in the Bight of Bonny. The LGA has two different seasons—the rainy and the dry seasons—and a total area of 646 square kilometers. Bonny LGA's average temperature is recorded at 25 degrees Celsius, and the area's humidity content is reported at 92%. 4°26′N 7°10′E  /  4.433°N 7.167°E  / 4.433; 7.167 Corporate social responsibility Corporate social responsibility ( CSR ) or corporate social impact

1700-407: Is not directly undertaken by the companies, they become accountable to the stakeholders. These surrounding issues have prompted supply chain management to consider the corporate social responsibility context. Wieland and Handfield (2013) suggested that companies must include social responsibility in their reviews of component quality. They highlighted the use of technology to improve visibility across

1768-557: Is one way to achieve a social license, by enhancing a company's reputation. As stated in Enduring value: the Australian minerals industry framework for sustainable development the concept of the 'social license to operate', then defined simply as obtaining and maintaining broad community support and acceptance. Unless a company earns and maintains that license, social license holders may intend to block project developments; employees may leave

1836-484: Is the process by which several organizations, including suppliers, customers, and logistics providers, work together to provide a value package of products and services to the end-user, who is the customer. Corporate social irresponsibility in the supply chain has greatly affected the reputation of companies, leading to many costs to solve the problems. For instance, incidents like the 2013 Savar building collapse , which killed over 1000 people, pushed companies to consider

1904-459: The CEO or the board of directors . An engagement plan can assist in reaching the desired audience. A corporate social responsibility individual or team plans the goals and objectives of the organization. As with any corporate activity, a defined budget demonstrates commitment and scales the program's relative importance. Social accounting is the communication of social and environmental effects of

1972-463: The United States may have received a social license through the channels that mining corporations initially established and the long history of logging and copper mining in the area continued to shape the attitudes and identities of industry participants to present day. They found that local stakeholders and local industry operators have shared history and experience as having limited power to control

2040-477: The supply chain . Corporate social responsibility includes six types of corporate social initiatives: All six of the corporate initiatives are forms of corporate citizenship. However, only some of these CSR activities rise to the level of cause marketing , defined as "a type of corporate social responsibility (CSR) in which a company's promotional campaign has the dual purpose of increasing profitability while bettering society." Companies generally do not have

2108-452: The 19th century, it came under increasing pressure from the British to end the trade. It collapsed in the subsequent Bonny civil war of 1869 which led to part of Bonny leaving to go form another Kingdom of Opobo . A remnant of Bonny continues to exist, however, as a part of the contemporary aristocratic structure of Nigeria . Presently, Bonny Kingdom is subdivided into two main segments –

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2176-498: The British, a plea that was accepted. The British consul Livingston was supplied with a gunboat with which he sailed up the river to Andoni and imposed peace. In 1879 George fell ill, and when he recovered took his doctor's advice to take a holiday in England. He was received well, his actions were reported in the press, and he was introduced to the Prince of Wales . He was also presented with

2244-669: The Federal Government of Nigeria has set plans for the construction of the 7th train of the NLNG to boost its gas production in anticipation of dominating the African market. Bonny has a bridge being constructed from Bodo in Gokana LGA (also in Rivers State) to enable land transportation. A deep seaport is underway as a corporate social responsibility project from CCECC . The Kingdom of Bonny

2312-571: The Hungarian Association for Environmentally Aware Management (KÖVET) refers to "Deep CSR" and the role of a "Truly Responsible Enterprise". Gergely's definition of "Deep CSR" is the behaviour displayed by a "Truly Responsible Enterprise" (TRE), which: The five principles of the TRE are: In competitive markets, the cost-benefit analysis of CSR initiatives can be examined using a resource-based view (RBV). According to Barney (1990), "formulation of

2380-535: The Manilla Pepple and Annie Pepple houses revived. In June 1867 there was a two-day skirmish between the factions, which King George managed to end by threatening to personally shoot the ringleaders. In 1869 a major battle between the two factions led to Ja-Ja founding a new state of Opobo , further inland at the village of Andoni , taking some of the palm oil trade away from Bonny. On 16 March 1870, George sailed for England, where he called for more forceful action by

2448-803: The RBV, sustainable competitive advantage requires that resources be valuable (V), rare (R), inimitable (I) and non-substitutable (S)". A firm introducing a CSR-based strategy might only sustain high returns on their investment if their CSR-based strategy could not be copied (I). However, should competitors imitate such a strategy that might increase overall social benefits? Firms that choose CSR for strategic financial gain are also acting responsibly. RBV presumes that firms are bundles of heterogeneous resources and capabilities that are imperfectly mobile across firms. This imperfect mobility can produce competitive advantages for firms that acquire immobile resources. McWilliams and Siegel (2001) examined CSR activities and attributes as

2516-862: The answers are unclear. The most direct benefit is reducing the likelihood of "dirty hands", fines, and damaged reputations for breaching laws or moral norms. Organizations see increased employee loyalty and pride in the organization. Common CSR actions include: The term "social license" was introduced in 1997 and has since been applied in multiple resource extraction industries to describe changes in company-community interactions. This use of social license has included an understanding of how acceptance levels impact resource development operations within these industries. Gunningham et al. state corporations comply with their social license by operating within societal expectations and avoiding activities (or influential elements within them) considered unacceptable, and define social license it as "the demands on and expectations for

2584-436: The arts, education, housing, health, social welfare, and the environment, among others, but excluding political contributions and commercial event sponsorship. Another approach to CSR is to incorporate the CSR strategy directly into operations, such as procurement of Fair Trade tea and coffee. Creating shared value , or CSV, is based on the idea that corporate success and social welfare are interdependent. A business needs

2652-533: The benefits, it is important to note that several drawbacks exist, including possible accusations of hypocrisy, the difficulty of measuring the social impact of CSR policies, and oftentimes placing companies at a disadvantage against competitors when prioritizing CSR ahead of advancing a company's R&D. A large body of literature urges businesses to adopt non-financial measures of success (e.g., Deming 's Fourteen Points, balanced scorecards ). While CSR benefits are hard to quantify, Orlitzky, Schmidt and Rynes found

2720-701: The companies is to obtain and maintain the Social License to Operate. Based on the Requisite Organization , to achieve this goal, a company needs to: A positive relationship has been shown to exist between CSR and a firm's corporate financial performance. However, results from these analyses may need to be examined under different lenses for emerging and developed economies, especially since firms based in emerging economies oftentimes have weak firm-level governance. For companies operating in emerging markets, engaging in CSR practices enables widespread reach into

2788-407: The company as the social contract the company has with the social license holders (employees, trade unions, communities, government) for them to manifest positive intention to support the business short- and long-term objectives by "providing managerial leadership that nurtures the social good and also gives the foundation for sustainable growth in organizational results." The primary objective for

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2856-459: The company for a company that is a better corporate citizen: and companies may be under ongoing legal challenge. Issues related to the government's measurement of corporations' social license include its role in licensure processes, the penalties for non-compliance, or the community's ability to halt a project if a corporation is not responsive to their concerns, are still subject to global concern. Regardless of government involvement, social license

2924-542: The company to make a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others. From an ethical perspective, some businesses will adopt CSR policies and practices because of the ethical beliefs of senior management: for example, the CEO of outdoor-apparel company Patagonia, Inc. argues that harming the environment is ethically objectionable. Proponents argue that corporations increase long-term profits by operating with

2992-550: The context of theories of globalization , neoliberalism , and late capitalism . Since the 1960s, corporate social responsibility has attracted attention from a range of businesses, academics and stakeholders and been referred to by a number of other terms, including "corporate sustainability", "sustainable business", "corporate conscience", "corporate citizenship", "purpose", "social impact", "conscious capitalism ", and "responsible business". A wide variety of definitions have been developed, but with little consensus. Part of

3060-449: The definition problem has arisen because of the different interests represented. A business person may define CSR as a business strategy, an NGO activist may see it as ' greenwash ' while a government official may see it as voluntary regulation. "In addition, disagreement about the definition will arise from the disciplinary approach." For example, while an economist might consider the director's discretion necessary for CSR to be implemented

3128-428: The development of appropriate measures and reporting techniques." Modern CSR has a wide range of different standards, frameworks and metrics for reporting and disclosing the social, environmental and economic issues. However, there is no single, fixed standard and the complex, dynamic and contextual nature of CSR means different companies and stakeholders adopt different approaches depending on their needs. There are

3196-455: The employed resources." Businesses have changed when the public came to expect and require different behavior [...] I predict that in the future, just as in the past, changes in public attitudes will be essential for changes in businesses' environmental practices. Most consumers agree that while achieving business targets, companies should engage in CSR efforts at the same time. Most consumers believe companies doing charity work will receive

3264-563: The environment, and how others perceive competitor CSR strategy. Meehan, Meehan and Richard developed a model known as the 3C-SR model, published in a frequently cited article in 2006, which aimed to offer "a new strategic approach to corporate responsibility". Their model sought to fill the gap between corporate social responsibility definitions and strategy, which the authors perceived to be an issue, and to provide guidance to managers on connecting businesses with ethically-aware consumers. An approach described by Tóth Gergely and published by

3332-415: The identifiable behaviour of individual businesses risks not including what he calls " unincorporated market behaviour" within the scope of CSR - actions attributable to market processes, and also calls for other factors including "brand citizenship" and "illegitimate, informal or illegal activity" to be considered as part of a more complete picture. The term "brand citizenship" has been put forward because

3400-488: The impacts of their operations on society and the environment. On the other hand, the horsemeat scandal of 2013 in Europe affected many food retailers, including Tesco, the largest retailer in the United Kingdom, leading to the dismissal of the supplier. Corporate social irresponsibility from suppliers and retailers has greatly affected the stakeholders who lost trust in the affected business entities. Although sometimes it

3468-520: The interests of the firm and that which is required by law". Furthermore, businesses may engage in CSR for strategic or ethical purposes. From a strategic perspective, CSR can contribute to firm profits, particularly if brands voluntarily self-report both the positive and negative outcomes of their endeavors. In part, these benefits accrue by increasing positive public relations and high ethical standards to reduce business and legal risk by taking responsibility for corporate actions. CSR strategies encourage

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3536-438: The larger economic forces acting upon them. Local actors are more likely to have values similar to those of stakeholders, have established some history in the area, and have had the time to develop meaningful relationships within the community. This shared experience shaped the process of acquiring a social license. Nonlocal actors are likely to experience a much lesser degree of social license than local actors. Furthermore, many of

3604-631: The mainland and the hinterland. The mainland comprises Bonny Island that has both Okoloama and Finima and their segments, namely the Main Island (Township), Sandfield, Iwoama, Orosikiri, Aganya, Ayambo, Akiama, Isilegono, New Road, Wilbross pipeline, Workers Camp, and some outlying fishing settlements lying along the Bonny River's coastline. The hinterland includes the village communities such as Kuruma, Fibiri, Oloma, Ayama, Kalaibiama, Ifoko, Sangamabie, Abalamabie and Epellematubo. The island known as Bonny LGA

3672-434: The opportunities for competitive advantage from building a social value proposition into corporate strategy. CSV gives the impression that only two stakeholders are essential – shareholders and consumers. Many companies employ benchmarking to assess their CSR policy, implementation, and effectiveness. Benchmarking involves reviewing competitor initiatives, measuring and evaluating the impact those policies have on society and

3740-480: The public perception of an organisation may be associated with its branding rather than its corporate identity: McIntosh uses Virgin as an example. Similarly, Anne Bahr Thompson uses the same term and observes that companies adopting socially responsible behaviours are primarily investing in their reputations . In the 21st century, corporate social responsibility in the supply chain has attracted attention from businesses and stakeholders. A corporation's supply chain

3808-683: The reports vary widely in format, style, and evaluation methodology (even within the same industry). Critics dismiss these reports as lip service, citing examples such as Enron 's yearly "Corporate Responsibility Annual Report" and tobacco companies' social reports. In South Africa, as of June 2010, all companies listed on the Johannesburg Stock Exchange (JSE) were required to produce an integrated report in place of an annual financial report and sustainability report. An integrated report reviews environmental, social, and economic performance alongside financial performance. This requirement

3876-516: The researchers conducted a regression analysis and preceded the analysis with the provision of several measures that they utilized to serve as proxies for key financial performance indicators (i.e. return on assets serves as a proxy for profitability). Initially, CSR emphasized the official behaviour of individual firms. Later, it expanded to include supplier behaviour, the uses to which products were put, and how articles were disposed of after they lost value. Malcolm McIntosh notes also that focussing on

3944-893: The resources affected by forest management are held in the public trust, so it is essential for both industry actors and community stakeholders to feel engaged and involved in decisions regarding local natural resource management. Baines and Edwards shared similar findings in New Zealand's aquaculture sector regarding the importance of relationships and communication between industry and local stakeholders. They find that social license depends on relationships and building trust. Smaller, local companies tend towards relationships that are relational as opposed to transactional, possibly due to their ongoing community presences and communication abilities, which are better for fostering these relationships and trust building. In research of Requisite Organization , Elliott Jaques defines Social License to Operate for

4012-630: The rising concerns on ethical issues in businesses. A review of 14,523 articles found that stakeholder perspective is the most prevalent dimension of corporate social responsibility. This view is reflected in the Business Dictionary that defines CSR as "a company's sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs, and (3) by earning adequate returns on

4080-595: The social initiative done by the company is not aligned with other company goals it will have a negative impact. Mohr et al. (2001) and Groza et al. (2011) also emphasise the importance of reaching the consumer. Some commentators have identified a difference between the Canadian (Montreal school of CSR), the Continental European , and the Anglo-Saxon approaches to CSR. It has been described that for Chinese consumers

4148-525: Was a Christian, and on his accession wrote to Bishop Crowther giving his support for introduction of the religion in Bonny. On 21 April 1867, supported by Oko Jumbo and other Manilla Pepple chiefs, he declared the iguana was no longer the sacred deity of the kingdom. His association with Christianity, at first welcomed by many people for the benefits it gave, gradually made him become identified with British interests and caused growing resentment. The tension between

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4216-572: Was a sovereign state in the Niger Delta . It is currently one of Nigeria's traditional states . The original first settlement, which began as a small town, was called Okoloama , a name taken from the Okulo (or Curlews ) that inhabited the island in large numbers. The Kingdom of Bonny was powerful beginning in the 15th century with the advent of the Portuguese and the following Atlantic slave trade . In

4284-459: Was defined by Sheehy as "international private business self-regulation". Sheehy examined a range of different disciplinary approaches to defining CSR. The definitions reviewed included the economic definition of "sacrificing profits", a management definition of "beyond compliance", institutionalist views of CSR as a "socio-political movement," and the law's focus on directors' duties. Further, Sheehy considered Archie B. Carroll's description of CSR as

4352-407: Was educated in England at the boys' school at Hall Place, Bexley in southeast London. His studies included English, Greek, Mathematics, Scripture and History, the conventional syllabus of Victorian England . During his father's exile, Bonny was torn by struggles, at times violent, between two rival factions attached to the ruling house. The Manilla Pepple faction was led by Chief Oko Jumbo , but

4420-716: Was established, and King George Pepple was restored to his throne. Oko Jumbo was publicly degraded, his bans on Christianity were repealed and afterwards he was a spent force in Bonny politics. King George died in October 1888, and was succeeded by a series of regents. He was buried in the British Cemetery of Funchal , Madeira . The cemetery today is administered and financed by the Anglican Holy Trinity Church, Rua Quebra Costa, Funchal, and has public access daily. Bonny, Nigeria Bonny (originally Okoloama )

4488-546: Was implemented in the absence of formal or legal standards. An Integrated Reporting Committee (IRC) was established to issue guidelines for good practice. One of the reputable institutions that capital markets turn to for credible sustainability reports is the Carbon Disclosure Project , or CDP. Consumers of goods and services should verify corporate social responsibility and the results of reports and efforts. The accounting, auditing, and reporting resources provide

4556-646: Was possible to describe CSR as an internal organizational policy or a corporate ethic strategy similar to what is now known today as Environmental, Social, Governance (ESG); that time has passed as various companies have pledged to go beyond that or have been mandated or incentivized by governments to have a better impact on the surrounding community. In addition, national and international standards, laws, and business models have been developed to facilitate and incentivize this phenomenon. Various organizations have used their authority to push it beyond individual or industry-wide initiatives. In contrast, it has been considered

4624-586: Was racked by internal dissension. It was opposed by the Anna or Annie Pepple faction, led by Chief Jubo Jubogha , known as Ja-Ja to the British. In an attempt to restore peace, the British brought King William Dappa back and restored him to the throne in August 1861, reigning until his death in September 1866. George Pepple became king in succession to his father on 30 September 1866, taking the regnal name of Perekule VII . He

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