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

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


Introduction
The concept of corporate social responsibility (CSR) focuses on ethical and moral issue which impact corporate decision making and behaviour. CSR is a concept that emphasises responsive and extended social contribution of businesses to the society. Likewise, globalisation has reinforced the relevancy of CSR in business operations. This is because globalisation has introduced new challenges and opportunities emanating from increasing linkages between social, political, economical and environmental roles of businesses. Thus, businesses are confronted with new risks in the global dynamic environment. The implication is that businesses need to be profitable and respond positively to emerging societal expectations accordingly. The main purpose of CSR is to ensure that firms are accountable to stakeholders. Firms deal with a wide range of stakeholders, including: shareholders, customers, employees, trade unions and community (Carroll, 1991;Hillenbrand and Money, 2007;Carroll and Shabana, 2010;Kemper et al., 2013). Since business have limited resources to devote to CSR activities; hence, firms need to identify, prioritise and incorporate stakeholders in decision-making. Naturally, business seeks to maximise its profits and is selfinterested (Friedman, 1970;Bakan, 2004;Fisher and Lovell, 2009;Hooker, 2011). However, a firm has social responsibilities, as its strategic decisions often affect wide range of stakeholders. CSR practices have become a component of business organisation that enhance competitive advantage and long-term sustainability (Porter and Kramer, 2006;Halme and Laurila, 2009;Brik et al., 2010;Carroll and Shabana, 2010;Rodriguez-Melo and Mansouri, 2011;Kemper et al., 2013;Monowar and Humphrey, 2013). The study uses Carroll's (1991) CSR model as the main theoretical framework for examining firms CSR practices and stakeholders' expectations in Nigeria. Carroll's (1991) CSR model states that four kinds of social responsibilities constitute total CSR: economic, legal, ethical, and philanthropic (Carroll, 1979(Carroll, , 1991. Using Carroll's (1991) CSR model, the study examines business CSR practices and stakeholders' expectations in Nigeria. It considers business as an entity; explains the concept of CSR; explores stakeholder' theory; explains stakeholder's management; and outlines theoretical framework of the study.

Aim, Objectives and Significance of Study
The study examines stakeholders' expectations of firms CSR practices in Nigeria. The objectives of the study include, to: a) explore the concept of CSR; b) highlight components of CSR using Carroll model; and c) identify stakeholders and stakeholders' expectations regarding CSR.
Business organisations have several stakeholders; however, for the purpose of the study we identified: employees, customers, shareholders, and local communities as the main stakeholders in the context of the business environment in Nigeria. Since social, cultural, and political histories and backgrounds differ from country to country; we envisaged that stakeholder' expectations of CSR activities would differ. The study is significant and contributes to knowledge as its findings would assist businesses in Nigeria to understand stakeholders' expectations and to improve CSR activities.

The Concept of CSR
CSR is highly complex and contentious issue among academics and practitioners. There is lack of consensus regarding definition and contents of CSR practices (Dahlsrud, 2008;Dobers, 2009;Carroll and Shabana, 2010;Taneja et al., 2011). The concept and terminology of CSR also varies as some firms refer to it as: corporate social performance, corporate social responsiveness, corporate citizenship, ethical business practices, stakeholder management, and corporate sustainable business practices (Basu and Palazzo, 2008;Carroll and Shabana, 2010;Sharma and Kiran, 2013). CSR advocates that businesses have responsibilities, which extend beyond making a profit, to society. Notwithstanding, a firm has social responsibilities, and is ethical responsible for its action because its strategic decisions often affect other stakeholders. For example, a firm decision to retrench employees affects not only the firm's workforce but also affect other stakeholders, include: local communities; government; general public; and customers. Hence, Bernstein (2000) argues that business should be responsible to stakeholders even if it requires firms to sacrifice some profits. Firms should deal with these conflicting interests and claims in an ethical manner by formulating stakeholders' friendly policies. This is consistent with the assertion of Carroll and Buchholz (2011) that CSR includes economic, legal, ethical, and philanthropic expectations placed on businesses by the society. CSR is a commitment to improve community well-being through discretionary business practices and contributions of corporate resources (Kotler and Lee, 2005). Zadek (2000) argues that firms engage CSR strategies to: protect/defend their reputations; justify benefits over costs; integrate stakeholders into their strategies; and understand, innovate and manage risk. There are several benefits firms derived for engaging in CSR activities. Kurucz et al. (2008) categorise benefits firms derive from engaging in CSR activities into four: cost and risk reduction; gaining competitive advantage; developing reputation and legitimacy; and seeking win-win outcomes through synergistic value creation. CSR, therefore, promotes healthy relationship between business and the larger society, by redefining the role and obligations of private business within that society (Keinert, 2008).

Stakeholder Theory
Stakeholder theory emphasises that beyond shareholders there are several agents that are interested in firms' actions and decisions. The theory highlights the need for managers to be accountable to stakeholders. Stakeholders are individuals or groups which were either harmed by or benefits from the corporation; or whose rights have been violated or have to be respected by the corporation (Freeman, 1984;Jensen, 2001;Hosmer, 2011;Trevino and Nelson, 2011). Firms have several stakeholders which compete for organisational resources; hence, the need for firms to identify strategies for managing stakeholders (Bryson, 2005;Reynolds et al., 2006;Michelon et al., 2013). The type of stakeholders proactively engaged and resources control strategy adopted impact firms corporate strategy (Kolk and Pinkse, 2007;Carroll and Shabana, 2010). From a business-driven viewpoint, stakeholder theory interest covers three premises: that organisations have stakeholders which impact their activities; these interactions impact on specific stakeholders and the organisation; and perceptions of major stakeholders impact the viability of organisational strategic options (Simmons, 2004;Branco and Rodrigues, 2007;Hillenbrand and Money, 2007). Firms, therefore, need to adopt suitable approaches to deal with primary stakeholders accordingly (Jawahar and McLaughlin, 2001;Carroll and Buchholtz, 2011). Firms are unlikely to fulfil responsibilities (economic and non-economic) of some primary stakeholders; hence, the need for stakeholders management.

Stakeholders' Management
The obligation to serve all stakeholders' interests is often referred to as stakeholder management (Post et al., 2002;Bowie, 2004;Boatright, 2006). Since corporations deal with several stakeholder over time and simultaneously; it is unlikely that organisations would fulfil all their responsibilities towards each primary stakeholders or groups (Freeman, 1984;Jawahar and McLaughlin, 2001;Wicks et al., 2010). Hence, firms' should identify strategies for managing stakeholders as there are several stakeholders competing for organisational resources (Reynolds et al., 2006;Branco and Rodrigues, 2007). Furthermore, the type of stakeholders engage, and resources control strategy adopted impact organisation's corporate strategy (Kolk and Pinkse, 2007). Stakeholder management facilitates consideration of individuals or groups within and outside the firm when allocating organisational resources. Stakeholder management promotes effective allocation of resources among stakeholders to achieve a 'win-win' outcome.

Theoretical Framework
CSR benefits both the society and business for improved performance and social reputation Moon, 2008, Monowar andHumphrey, 2013). Carroll's (1991) CSR model is used as the main theoretical framework for examining CSR practices of Nigeria's business environment. The model is adopted because it is comprehensive and highlights important issues of the CSR debate. The model focuses on main areas of CSR and their relative importance. Although the classification of CSR activities is still contentious, Carroll's (1991) pyramid of CSR ( Fig. 1) is considered the most acceptable model (Geva, 2008;Carroll and Shabana, 2010;Taneja et al., 2011;Carroll and Buchholtz, 2011). Carroll (1991) defines CSR as encompassing "economic, legal, ethical and discretionary expectations that society has placed on organisations". Carroll's model of CSR states that four kinds of social responsibilities constitute total CSR: economic, legal, ethical, and philanthropic (Carroll, 1979(Carroll, , 1991. Economic Responsibilities Firms are economic entities established to provide goods and services to society. Profit motive (profit maximisation) is the primary incentive for entrepreneurship. Managers, as agents of the company owners, are oblige to maximise shareholders wealth. Carroll's economic component emphasises the need for a business organisation to: perform in a manner consistent with maximising earnings per share; be committed to being profitable as possible; maintain a strong competitive position; maintain a high level of operating efficiency; and that a successful firm be defined as one that is consistently profitable (Carroll, 1991:40). However, Barnett (2007) argues that excessive financial performance is not in the interest of stakeholders.

4.2.2
Legal Responsibilities Whilst a business organisation is permitted to operate according to profit motive (economic responsibility); firms are expected to comply with laws and regulations (legal responsibility). Legal responsibilities embody basic notions of fair operations as promulgated by federal, state and local governments. Carroll's legal component stresses the need for a firm to: perform in a manner consistent with expectations of government and law; be a law-abiding corporate citizen; provide goods and services that meet minimal legal requirements; and that a successful firm be defined as one that fulfils its legal obligations (Carroll 1991:40). Moreover, some scholars argue that regulation is necessary for the fulfilment of CSR (Phillips et al., 2003;De Schutter, 2008).

4.2.3
Ethical Responsibilities Whilst economic and legal responsibilities incorporate ethical rules about fairness and justice; ethical responsibilities encompass activities and practices that are acceptable or unacceptable by the society, though not codified into law. Ethical responsibilities refer to strategic managers' values about right and wrong business behaviour or conduct. Ethics or values are dynamic and precede the establishment of law. In essence, ethics are the driving force behind the creation of laws or regulations. Moreover, ethical responsibilities embrace society emerging values and norms which a business are expected to meet. Sometimes, such values and norms may require a higher standard of performance than that required by law. Carroll's ISSN 2330-8362 2014 ethical component advocates the need for a firm to: perform in a manner consistent with societal expectations and ethical norms; recognise and respect new or evolving ethical/moral norms adopted by society; and prevent ethical norms from being compromised in order to achieve corporate goals (Carroll 1991:41).

Philanthropic Responsibilities
Philanthropy entails corporate actions, towards promoting human welfare or goodwill, in response to society's expectations that businesses should be good corporate citizens. Philanthropic responsibilities are voluntarily assumed by business; such as public relations, good citizenship, and contribution to education or community. The main difference between philanthropic and ethical responsibilities is that ethical components are expected in an ethical or moral sense, but philanthropic components are not. Philanthropy is voluntary or discretionary on the part of a business. Carroll's philanthropic component emphasises the need for a firm to: perform in a manner consistent with philanthropic and charitable expectations of society, and voluntarily assist projects that enhance a community's quality of life (Carroll 1991:41). In response to social and stakeholder concern, many firms in Nigeria are adopting policies directed at the ethical responsibilities of business.

5.
Hypothesis Formulation Different countries (including Nigeria) have different social, cultural, and political histories and backgrounds (Halme and Laurila, 2009;Hiseh, 2009;Bagire et al., 2011;Adeyanju, 2012); hence, we expect that perceptions and expectations of stakeholders regarding CSR activities would differ (Wong et al., 2010;Adeyanju, 2012). Likewise, stakeholders' expectations and interests vary with organisational contexts (Kolk, 2008;Ramachandran, 2011). We presumed that firms in Nigeria are trying to implement some CSR activities to enhance their corporate images. Hence, we formulate a research hypothesis as follows: Ho: In Nigeria, stakeholders' do not ascribe equal importance to the four dimensions of CSR activities. Hi: In Nigeria, stakeholders' ascribed equal importance to the four dimensions of CSR activities.

6.1
Survey Response and Response Rate One hundred and fifty eight (158) of the 240 administered questionnaires, representing 66% response rate, were duly completed and retuned for the study. The achievement of 66% response rate was greatly influenced by pre-survey contacts with participants, and subsequent reminders via emails, telephone calls and messages. The result reveals that 148 of the respondents representing 94% have heard about CSR. This suggests that majority of the respondents are aware about CSR; consequently, we envisaged objective and reliable results/findings. Furthermore, 94% CSR awareness of the respondents' affirms the suitability of purposive sampling technique adopted for the study.

6.2
Stakeholders' Perception of CSR (Questions 2 -5) Respondents are required to indicate their level of agreement with statements on stakeholders' perception of CSR. The results are presented in Table 1. The analysis of responses revealed that: firms should treat stakeholders in a manner ethically acceptable in a

Research in Business and Management
ISSN 2330-8362 2014, Vol. 1, No. 2 civilised society; business should protect wide range of stakeholders' interest; business should protect wide range of stakeholders' interest; and business commitment to CSR is not a waste of organisational time and resources (Table 1).  (5), Agree (4), Neither agree nor disagree (3), Disagree (2), and Strongly disagree (1) 6.3 Section C: Importance Ascribed to CSR Practice (questions 6 -10) Respondents are required to rate statements about CSR in business according to their importance. The results are presented in Table 2. The results indicated that: stakeholders' concern is perceived to be highly important, as a business need to develop appropriate strategies for managing stakeholders (Branco and Rodrigues, 2007;Wicks et al., 2010); profitability of a business is highly important to stakeholders in Nigeria, as profitability enhances its operations and other auxiliary activities (Fontaine et al., 2006;Elkin, 2007;Yilmaz and Gunel, 2008); stakeholders' in Nigeria expect businesses to be responsible corporate citizen, as businesses are expected to comply with laws (Schwartz and Carroll, 2008;Steurer, 2010); stakeholders in Nigeria perceived philanthropic concern in business less important; and stakeholders in Nigeria considered ethical responsibility to be relevant in business, as power and influence of business in society is becoming greater than ever (Keith, 2010;Bernard et al., 2012). ISSN 2330-8362 2014 (3), Less important (2), and Not important (1)

CSR and Stakeholders Expectations (Questions 11 -22)
Respondents are required to indicate their level of agreement with statements about CSR and stakeholders' expectations in business. Based on Carroll's (1991) CSR pyramid; the section is divided into four parts/responsibilities -economic, legal, ethical, and philanthropic. The results are presented in Table 3. NB: Strongly agree (5), Agree (4), Neither agree nor disagree (3), Disagree (2), and Strongly disagree (1)

CSR and Stakeholders Expectation -Economic Responsibility (Questions 11 -13)
The findings (Table 3) on business economic responsibility suggest that Nigeria stakeholders' expect: business to be profitable, as profit motive is the primary incentive for entrepreneurship (Elkin, 2007;Yilmaz and Gunel, 2008); business should maintain strong competitive position; and business should maintain a high level of operating efficiency, as there is positive link between strategic CSR and firm operating efficiency (Kemper et al., 2013;Michelon et al., 2013). 6.6 CSR and Stakeholders Expectation -Legal Responsibility (Questions 14 -16) The results (Table 3) on legal responsibility suggest that Nigeria stakeholders' expect: business to perform in a manner consistent with expectations of government and law; business to be a law-abiding corporate citizen, as business is expected to comply with legal requirements to satisfy the needs of various stakeholders (Fombrun et al., 2010;Mallin and Michelon, 2011;Michelon et al., 2013); and business to offer goods and services which meet minimal legal requirements, in compliance with the law (Grossman, 2005;Falck and Heblich, 2007;Dobers and Springett, 2010).

CSR and Stakeholders Expectation -Ethical Responsibility (Questions 17 -19)
The results (Table 3) on ethical responsibility suggest that Nigeria stakeholders' expect: business to perform in a manner consistent with societal expectations and ethical norms, as business has certain rights and responsibilities (Crane and Matten, 2010;Ghillyer, 2012); business to recognise and respect new or evolving ethical/moral norms, so as to ensure that business proactively respond to relevant stakeholders (Neville and Menguc, 2006;Carroll and Shabana, 2010); and business should not compromise ethical norms while pursuing organisational goals.

CSR and Stakeholders Expectation -Philanthropic responsibility (Questions 20 -22)
The results (Table 3) on philanthropic responsibility indicate that Nigeria's stakeholders: pay less attention to contribution of business resources to the community; business philanthropic activities by way of supporting projects that enhance the community's quality of life should be voluntarily.

7.
Hypothesis Testing Ho: In Nigeria, stakeholders' do not ascribe equal importance to the four dimensions of CSR activities.
The research hypothesis is validated with questions 7 -10 responses which focus on importance ascribed to CSR activities by stakeholders in Nigeria. Summary of results are presented in Table 4 and Fig. 1. The result shows that equal importance is not ascribed to the four dimensions of CSR activities in Nigeria. From Nigeria's stakeholders' perspectives; stakeholders' concern is perceived to be highly important in business. Stakeholders place more emphasis on economic, legal and ethical responsibilities than on philanthropic responsibility. This may be due to the on-going economic restructuring, legal framework enhancement and financial sector consolidation in Nigeria. However, the findings reveal that economic responsibility is adjudged most importance by stakeholders in Nigeria; followed by legal and ethical responsibilities. This is consistent with Carroll's (1991) CSR model. To develop positive corporate image, firms need to consider stakeholders expectation before formulating CSR policies (Dober and Eweje and Palakshappa, 2009;Veleva, 2010;Bagire et al., 2011;Epstein and Widner, 2011). Business is also expected to be responsible corporate citizen by complying with laws and regulations (Schwartz and Carroll, 2008;Steurer, 2010). Similarly, ethical responsibility is relevance in business, as power and ISSN 2330-8362 2014 24 influence of business in society is becoming greater than ever (Keith, 2010;Bernard et al., 2012).

Conclusion
Using Carroll's (1991) CSR model, the study examines business CSR and stakeholders' expectations in Nigeria. Carroll's (1991) CSR model states that four kinds of social responsibilities constitute total CSR: economic, legal, ethical, and philanthropic. It considers business as an entity; explains the concept of CSR; explores stakeholder' theory; explains stakeholder's management; and outlines theoretical framework of the study. The study findings indicate that CSR is concerned with treating stakeholders ethically; and business should protect wide range of stakeholders' interest. We found that the four dimensions of  ISSN 2330-8362 2014 CSR (economic, legal, ethical and philanthropic) are not ascribed equal importance in Nigeria. Stakeholders place more emphasis on economic, legal and ethical responsibilities than on philanthropic components. Understanding and effective management of stakeholders' as well as their expectations can enhance corporate image and competitive advantage. The implication for practice is that business needs to identify relevant stakeholders and integrate primary stakeholders' interests into organisational strategic planning. It shows that identification of stakeholders' groups is beneficial to business managers and decision-makers.