THE ROLE OF CORPORATE SOCIAL RESPONSIBILITIES ON CRISIS MANAGEMENT
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ABSTRACT
Corporate Social Responsibility (CSR) involves giving back to the community where a business organisation operates. This study assessed the role of corporate social responsibilities on crisis management. Triangulation research design that combined survey and indepth interview was adopted in this study. The population of the study comprised 148,341 members of communities in Asaba, Delta state, Nigeria. Multi-stage sampling technique was adopted to select a sample of 345 respondents for the survey. The composite Crobach’s Alpha score for the questionnaire indicated an internal consistency score of 0.797 meaning it had a high internal consistency. Representatives of the communities and Grand Hotel were purposively chosen for the indepth interviews. Data were collected using validated questionnaire and interview guide. Quantitative data were analysed using frequency count, simple percentages, charts and linear regression analysis. Qualitative data were analysed using content analysis to report responses to the interviews. Findings of the study indicated that CSR had not improved the relationship between Grand Hotel and the communities (Average Weighted Mean=1.98; SD=0.94) and that CSR projects provided to the host community were partially adequate (Mean=1.89, SD=1.21). Respondents also indicated that CSR was a moderately significant strategy for managing crisis in the communities of Asaba, Delta state (Mean=2.15, SD=1.24), rating the management of crisis by Grand Hotel in Delta Sate as moderately effective (Mean=1.70, SD=1.00). Results also showed that the effectiveness of CSR as a crisis management strategy in communities was low (Mean=1.85, SD=0.72) because respondents believed mostly that CSR projects were provided by Grand Hotel after crisis had started in the area (n=215, 63.6%). CSR was observed to have a significant effect on crisis management in communities, indicating a strong positive correlation coefficient and positive slope, which are statistically significant (β=0.744; B=0.358; p<0.05) as assessed by a t-test (T=20432). The study concluded that there was no cordial relationship between the companies and their host community, and CSR was not effectively handled as a crisis management strategy. The study recommended that Grand Hotel should consult stakeholders widely and be proactive in implementing CSR projects in their host community. The Federal government should also monitor the activities of Grand Hotel and directly intervene in the development of the area.
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