Former Commissioner of Human Rights and Administration Justice (CHRAJ), Justice Emile
Short, has called for the amendment of the Criminal Offences Act to make corruption a high
crime rather than a misdemeanor.According to the former commisioner, the
definition of corruption in the Act gives it a very narrow scope that required an amendment to
give it a wider remit to deter culprits.Justice Short in an interview recently said
government would need to pass domestic legislation that would corroborate with the United Nations
(UN) protocol as part of measures to make theage-old canker unattractive.“A felony attracts a much higher sentence than a misdemeanor. The idea is to make the sentence forcorruption much higher to serve as a deterrent.The definition of corruption in the CriminalOffences Act is very narrow.Ghana has ratified the UN Convention against corruption and the African Convention for
combating corruption.“These two conventions, which were ratified in
2005, gave a much wider definition of corruption include things like illicit enrichment and
insider dealings. There is the need for Parliamentto pass domestic legislation to embrace this wider
definition,” he stated.Justice Short further appealed to government to
amend the Asset Declaration Law to ensure compliance.“There is the need to amend the Asset Declaration
Law to make it more effective because at themoment no institution has the mandate to check the
veracity of the declarations which are made and also the declarations are not made public,” he
noted, adding: “CHRAJ only has the mandate toinvestigate noncompliance.If the law is amended, it still could be made an offense(not to declare asse)] to make it more
stringent and effective but at the moment there is no provision that says that it’s a criminal
offense.”
CONCLUSION AND
RECOMMENDATIONS
5.1 INTRODUCTION
This
study is intended to find out the impact of CSR activities on Union Savings and
Loans competitive advantage. The various findings based on the objectives set
out have been analysed and interpreted. This chapter concludes the study and
gives recommendations and suggestions for further study.
5.2 SUMMARY OF FINDINGS
According
to the sampled data collected by means of interviews and questionnaires, a
summary of findings is provided below.
Ø DO CUSTOMERS GET REWARDS DUE TO BENEFITS FROM CSR ACTIVITIES
UNDERTAKEN BY THE COMPANY
It was
the interest of the researchers to find out if customers of Union Savings and
Loans are rewarded from benefits the organization gets from CSR activities.
Majority of the respondents constituting 78.6% said that customers do not get
rewards due to benefits from CSR activities. However, the minority which
constitutes 21.4% said customers are rewarded due to benefits from CSR
activities. This conflicting response raised the interest of the researchers to
find out why a percentage of the respondents said otherwise. Further findings
showed that indeed customers do get rewards but not from benefits from CSR
activities, rewards given to customers are based on all general strategies and
business activities performed by the organization to maintain their customers. This explains
why some respondents said customers are rewarded probably they didn’t limit themselves
to the question which focused on CSR. Union Savings and Loans reward their
customers on benefits attained from general strategies employed by the
organisation but not specifically CSR activities.
Ø DOES USL ENJOY LOWER LITIGATION EXPENDITURE DUE TO ITS CSR
ACTIVITIES
Smith argued
that ‘cost and risk reductions may also be achieved through CSR activities
aimed at the natural environment. In this case, initial investments tend to pay
off over time, due to cost savings from a better and more rational management
of natural resources, lower litigation expenditure and lower insurance costs.
Cost and risk reductions can also be obtained when CSR focuses on managing
community relations’. According to Smith, organizations that undertake CSR
activities can reduce its cost and risk such as lower litigation expenditure
and other costs. Statistics from the findings of the researchers showed that
majority of the respondents consisting of 71.4% said that Union Savings and
Loans’ does not enjoy lower ligitation expenditure due to its CSR
activities. However, minority of the
respondents which constituted 28.6% said that the organization enjoy lower
litigation expenditure. The researchers expected an all-round answer from respondents
but the contradiction in the response of the respondents made the researchers
to make further enquires to know why some percentage said otherwise though the
views of the majority was considered. It was realized that some respondents
didn’t understand the question and probably just answered without really going
through due to their busy schedule.
The results of this findings
contradict with theories by Smith which stipulates that firms that practice
responsible business behaviour can reduce the cost and risk of the firm and
among such reduction included litigation expenditure. Based on this
information, it is possible that CSR activities undertaken by Union Savings and
Loans are not acknowledged by the government to enable them enjoy such benefits
or the government has simply refused to appreciate the positive business
behaviour of the firm. Also the firm may not undertake CSR activities as often
as the government expect for them to benefit. There is also a possibility that
the country in which the firm operates do not appreciate firms that has the
interest of the community at heart therefore conflicting with other theories
relating to CSR activities with the business environment.
Ø HAS USL's CSR ACTIVITIES
BEEN ABLE TO REDUCE ITS TAX RATE
Studies from some scholars
argued that firms that practice CSR activities must enjoy certain tax
advantages and decrease the level of regulations imposed on the firm.
(Massino Baltagia et al ,2014) argued that ‘positive community relationships
may contribute to attaining tax advantages for firms and to decreasing the
level of regulation imposed on the firm, as the firm is perceived as a
sanctioned member of society’.
Again, the findings showed that the firm does
not enjoy lower tax rate from undertaking CSR activities. This analysis was
seen in a statistics which confirmed majority of the respondents making 85.7%
of the total respondents indicating that the firm do not benefit from tax
advantages from the government. The minority which constitutes 14.3% of the
respondents indicates that the firm enjoys a reduction in tax rate which
contradicts with the majority’s response, probably because the minority had
their own understanding of the question. This conflicts with theories above
which indicated that positive community relationships contribute to attaining tax
advantages for firms as the firm is perceived as a sanctioned member of
society. Based on results from this findings and the contradiction to theories
related to the study, it could be realized that the firm is lacking certain
benefits that it must enjoy from the government which may be caused due to the
fact that the firm has not been identified by the government as a firm that
support communities or the possibility of the government overlooking the good
works done by the firm and depriving the firm of such benefits.
Ø DOES USL's CSR ACTIVITIES PLAY AN INSTRUMENTAL ROLE IN YIELDING A HIGHER RETURN ON INVESTMENT
Some scholars are of the view
that firms that undertake CSR activities can achieve a higher return on its
investment due to the fact that the firm is emphatic and has the interest of
the community at heart. Once the firm is seen as a responsible firm by society,
it attracts investors thus yields a higher return on its investment. According
to Smith , “cost and risk reductions may also be
achieved through CSR activities aimed at the natural environment. In this case,
initial investments tend to pay off over time, due to cost savings from a
better and more rational management of natural resources, lower litigation
expenditure and lower insurance costs. Cost and risk reductions can also be
obtained when CSR focuses on managing community relations”. In this case, firms
that practice CSR activities have the advantage of their initial investments
been paid off over time due to their generous activities. Such responsible
activities attract donors and sponsors to support the project and that helps
the firm to yield a higher return on its investment.
Based on the findings, majority of the
respondents constituting 78.6% agreed that CSR activities undertaken by the
firm resulted in a higher return of their investments. This results above
corresponds with theories and argument raised by Smith in our study. This
response proves that the firm is benefiting from undertaking CSR activities.
Ø HOW OFTEN DOES USL UNDERTAKE CSR ACTIVITIES
The study aimed at achieving
certain objectives and evaluating the effectiveness and efficiency of corporate
social responsibility as a tool for competitive strategy is one of the
objectives which raised the question on how often USL undertakes their CSR
activities. Based on the findings of the researchers, it was statistically
proven by majority of the respondents constituting 50% of the total respondents
that the firm undertakes CSR activities quite often. From further
investigation, an interview with some members of the organisation proved that
the firm undertakes CSR activities three times in a year thus in every four
months a CSR activity is undertaken of which the researches where told by
management is very effective. Some of the CSR activities the firm has
undertaken include: Provision of equipment to Osu
Children’s home, Provision of directional signs at various vantage points to
the road safety commission, Donation of items to orphanages and care homes,
donations to the Red Cross society, etc.
Ø DOES USL's CSR ACTIVITIES AFFECT ITS COMPETITIVE ADVANTAGE
The purpose of
this study was to find out the extent to which CSR activities has had an impact
on Union Savings and Loans competitive advantage and as such raised one of the
objectives of our study to determine how CSR activities affect the firms
‘competitive advantage. In connection to
this quest, the researchers findings centred on solving that puzzle and the
findings indicated that CSR activities undertaken by the firm has a positive
impact on its competitive advantage. This findings were confirmed by
statistical information from respondents were majority making 78.6% said the
CSR activities undertaken has a positive impact on its competitive advantage.
Since this is seen as a responsible act from the firm by customers and having
the community’s interest at heart, the firm tend to gain the loyalty of
customers and therefore gives the firm an upper hand over its competitors. Also
the firm is privileged to attract investors to support their project which
makes the firm business activities more lucrative at the expense of its
competitors who do not undertake CSR activities.
Ø HOW PROFITABILITY IS CSR ACTIVITIES TO USL
Again, it was
the interest of the researchers to find out how profitable CSR activities are
to the firm since profitability is the basis for measurement and as such
necessitated the need for the question. Based on the findings, it was
identified by the researchers that the firm’s CSR activities is relatively
profitable, thus, the firm generates profit from other activities such as good
customer care, branding, promotional activities, etc, to attract new customers
and retain existing ones, developing high demand for product and services among
others leading to a higher return on investment. Majority of the respondents
consisting of 71.4% said that CSR activities are relatively profitable. But the
researcher believe that CSR activities can be very profitable and attractive
because CSR activities attract investors, sponsors and sometimes support from government. The firm can
capitalize on such an opportunity to undertake more CSR activities which will
open doors for more investors which will surely result in higher profitability.
Ø HOW FAR HAS USL'S CSR
STRATEGIES HELPED TO BUILD TRUST WITH CUSTOMERS?
One of the
important objectives of the study is to find out how CSR activities have helped
to build trust and loyalty with customers.
In an interview
with some members of management, the manager Mr Fred Agyare-Mettle when asked
about how CSR activities has helped to build trust with customers said that
“Corporate Social Responsibility activities has made customers to believe that
Union Savings and Loans has the interest of the customers and society at heart
and has helped the organization to gain the trust of customers because they see
the organization as a responsible one. CSR activities has not only helped build
the trust with customers but it has created an avenue for the firm to announce
its presence to society which has led to the firm being recognized and it has
enhance the reputation of the firm. What
the manager said clearly shows that the firm has gained the trust of customers
and has also gained the loyalty of customers and has even possibly attracted new
customers probably by word of mouth because of their support to society and
communities in which they operate and the good reputation the firm has gained.
Ø TO WHAT EXTENT HAS USL'S
CSR ACTIVITIES GAINED THE TRUST AND SUPPORT OF GOVERNMENT
In an interview
with one of the members of management, the researchers asked to what extent the
firm has gained the trust and support of government from their CSR activities.
Mr Kwabena Osei-Kuffour in his explanations said that, “well, special agencies
are created with whom we liase anytime. Also the government involves
participation of government officials in organizational ceremonies such as
unveiling new branches. From what Mr. Osei-Kuffour Said, it seems the
government’s support to the firms’ CSR activities is not very encouraging since
they only support during unveiling of new branches. (Massino Baltagia et al,
2014) argued that positive community relationships may contribute to attaining
tax advantages for firms and to decreasing the level of regulation imposed on
the firm, as the firm is perceived as a sanctioned member of society. The researchers think the government can do
better by financially supporting projects that the firm undertakes which will
benefit the community and the society at large and also decrease level of
regulations imposed on the firm and give the firm the benefit of enjoying
certain tax advantages.
Ø TO WHAT EXTENT HAVE
USL’S CSR ACTIVITIES IMPROVED LONG-TERM SHAREHOLDER VALUES?
As
part of the researchers quest to know the extent to which Union Savings and
Loans’ CSR activities has led to improvement in long-term shareholder values,
the researcher asked the manager and he
said, ‘Union Savings and Loans’ CSR activities has improved our shareholder
values due to the fact that the firms customer based has increased making
business more lucrative which has resulted in shareholders commitment and
trust. Our giving back to society, has positively helped the organization to
gain the trust of customers and have again attracted new clients. We hope to win
potential clients soon to add more to our customer base. The response from the
manager shows that CSR activities has positively affected their business by
increasing their customer base which has resulted in improving long-term
shareholder value and the researchers believes that this positive impact will
surely give the firm an advantage over its competitors and also attract more
investors which will boost the business activities of the firm thereby
increasing profitability.
Ø HOW OFTEN DOES USL
UNDERTAKE CSR ACTIVITIES?
It
is imperative for the researcher to know how often the firm undertakes CSR
activities and thus was included in their objectives in other to ascertain
effectiveness and efficiency of CSR activities. In an interview with Mr
Agyare-Mettle,he said that, “ CSR
activities is done quarterly in a year
which is very effective with initial proceedings from our head office at
dzorwulu. According to Mr. Agyare-mettle, the firm undertakes CSR
activities quarterly that is thrice a year and at most three times in a year.
In the researcher’s opinion, the firm does not undertake CSR activities as
often as it could have.
Ø HOW PROFITABLE IS THE
STRATEGY (CSR) TO USL?
One
of the important objective of the research was to find out if CSR activities is
profitable to the organization. This question was answered by one of the
members of management. According to him, CSR activities is relatively
profitable because it has led to the firm acquiring a good image and reputation
which can be used as a good marketing tool. However, CSR activities does not
solely generate profit for the organization. Other strategies and activities
are put in place which generates profit for the firm. Among such strategies are
customer care, developing high demand for product and services, branding, etc.
Ø APART FROM CSR AS A
STRATEGY EMPLOYED TO GAIN COMPETITIVE ADVANTAGE, WHAT OTHER STRATEGIES ARE
EMPLOYED BY USL TO INCREASE PROFITABILITY?
In
order for the researchers to get information to solve the problem that
necessitated the study, the question above was considered an important
objective. When the researchers asked the manager of other strategies that are
employed to increase profitability apart from CSR activities, he explained by
saying, ‘ Union Savings and Loans has
various strategies they apply in increasing profitability, we develop a high
demand for our products and services. That is to say that we make our offers
more attractive and appealing to our clients which gives us an upper hand over
our competitors and also we are able to make a good brand. Customers like to
hear and see good things that will benefit them so we make sure that we are
able to meet the needs of our clients and satisfy them profitably. Per the
information given by the gentleman, it could be realized that Union Savings and
Loans focuses on customer satisfaction which the researchers believe is an
advantage because there is a saying in marketing that ‘ the customer is the
business and also the customer is always king in business.’’ The researchers
believe that the firm undertakes an intensive research into the market to know
what their customers need and this has helped the firm to gain competitive
advantage over its competitors which has resulted in the firms’ increase in
profitability.
Ø HOW DO USL’S CSR ACTIVITIES
GUARANTEE BRAND LOYALTY?
One of the objectives of the study was to find out how CSR activities
guarantee brand loyalty. In an interview with the marketing manager, he said, ‘corporate social responsibility activities
has helped the organization to be recognized as a responsible member of society
and has gained the loyalty of existing customers and new customers.
The organizations CSR activities is targeted at
communities and surrounding communities where it operates and that has led to
the firm enjoying brand loyalty from customers. The response from the marketing manager shows that indeed CSR activities
has been helpful to the firm and has also improve the brand of the
organization.
Lastly
the findings show that, through CSR activities undertaken by the firm, they
have gained the trust of customers, increase their customer base, and has
succeeded in achieving a good brand name and developing a high demand for
products and services which has resulted in the increase in profitability.
5.3 CONCLUSION
Based on the
aims and objectives of the research, it could be concluded that Union Savings
and Loans CSR activities has a positive impact on its competitive advantage and
it is relatively profitable. Thou the firm does not generate a great percentage
of profits from CSR activities and also does not enjoy certain benefits from
government such as tax advantages, lower litigation, etc., it has succeeded in
obtaining a good brand name and reputation. The firm has also through its
responsible business behaviour achieved a sense of fulfilment in giving back to
society in which it operates. Most importantly the firm has through its CSR
activities gained a competitive advantage of its competitors as the firm has
been able to achieve brand loyalty, increase its
customer base
and also improve its relationship with shareholders in a way of long-term
shareholder values.
In a nut shell,
it is imperative for the firm to be up to date with their CSR activities and
undertake CSR activities as often as possible and also maintain the customers
they have gained by meeting their needs and also providing attractive offers
that will keep the customers and always have a competitive edge over other
competitors.
5.4 RECOMMENDATIONS
Based on the
findings from this study, CSR activities is done quarterly by the firm. The
firm should increase how often they undertake CSR activities. CSR activities
could be undertaken once in two months making it six times in a year which
would cover almost all the regions in which they operate. This may help the
firm to meet the needs of the larger society and also create an opportunity for
the firm to enjoy all benefits they are lacking from the government such as tax
advantages and lower litigation costs.
The government
should support organizations that undertake CSR activities by sponsoring such
firms and also put up an initiative that will reduce the tax rate of such
organisations since their CSR activities goes a long way to benefiting the
society and relieving the government of those responsibilities.
We will also
edge the organisation to research thoroughly into benefits they can derive for
undertaking CSR activities from the government. They are probably not enjoying
these benefits perhaps because they do not know about it.
We will suggest
that the organization should involve customers in their CSR activities at least
that will put money in the pocket of people and create employment for the
unemployed. For instance, the firm can hire customers to help in attending a
CSR activity such as cleaning a particular community and is much easier since
Union Savings and Loans is part of the Jospong group of companies which
includes Zoomlion Company limited, where workers of Zoomlion receive their
salaries directly from USL, making them customers of the organisation. This
will be an opportunity for these workers who earn lower income get extra monies
into their pockets when included in most of these clean up exercises.
5.5 CHAPTER
SUMMARY
This chapter deals
with the findings of the study which answers the objectives of the study,
conclusion and recommendations which will help overcome the lapses in the
study. It is the believe of the researchers that, these recommendations will go
a long to solving the conflicts between our findings and objectives and
literature review
