CAPE MANAGEMENT OF BUSINESS

INTERNAL ASSESSMENT

Theme: Corporate Social Responsibilities

Topic: An investigation into the Corporate Social Responsibilities of the Noranda

Bauxite Company in St Ann and its impact on the community.

Candidate Names/#:

Name of School: York Castle High School

Centre Number: 100131

 TABLE OF CONTENTS

ACKNOWLEDGEMENT 2

TITLE 3

INTRODUCTION 4
BACKGROUND 4

LITERATURE REVIEW 5

METHODOLOGY 7

PRESENTATION OF DATA 8

ANALYSIS OF DATA 13

INTERPRETATION OF RESULTS 15

CONCLUSION 16

RECOMMENDATION 17

REFERENCES 18

APPENDICES 19
-Copy of letter of request to conduct research 19
QUESTIONNAIRE 20
 ACKNOWLEDGEMENT
The sincerest of gratitude is extended to the following stakeholders who have shown and given

tremendous support and aid in the successful completion of this project.

First and foremost, God our Creator for the strength, wisdom and knowledge to endure and

complete our internal assessment. We are forever grateful to our teacher, Mrs. Haughton for her

continuous dedication towards ensuring we produce nothing but the best; her assistance has truly

made a tremendous impact. Last but not least, to all other stakeholders who have participated in its

completion, we wholeheartedly thank you.

 TITLE
An Investigation into the Corporate Social Responsibilities of the Noranda
Bauxite Company in St. Ann and its Impact on the community.
 INTRODUCTION
BACKGROUND

CSR is a concept whereby companies integrate social and environmental concerns in their

business operations and in their interaction with their stakeholders on a voluntary basis.

(Commission of the European Communities, 2001)

Corporate Social Responsibilities are very important as they help in building the image of companies

by attracting investors and consumers. The Noranda Bauxite Company is known to be one of those

companies that perform these responsibilities, therefore, the researchers have chosen to investigate this

particular company. The importance of the Noranda Bauxite Company in the island should not be

underestimated as it generates a huge amount of revenue for the economy as well as jobs for citizens,

employing approximately 800 employees. It is also important to note that Noranda Bauxite

Company, Jamaica is the exclusive exporter of bauxite from Jamaica. [Jamaica Observer-Jan 9 2020]

In completing this research, the researchers have established the following aims:

1. To determine the strategies used by Noranda Bauxite to carry out its CSR programme.

2. To assess the effectiveness of the Corporate Social Responsibilities strategies of the Noranda

Bauxite Company to its stakeholders

3. To determine the effect these corporate social responsibilities strategies have on the firm.

4. To recommend ways in which Noranda Bauxite Company can improve its Corporate Social

responsibilities.
 LITERATURE REVIEW
The term ‘Corporate Social Responsibility’ is one that has been on the battlefield for a very long time.

Many scholars and individuals have had their many diverse opinions on this subject matter, whether it

be in alliance with CSR and its importance in a business or against the whole notion.

James Brusseau ( 2001) defines CSR as the general name for any theory of the corporation that

emphasizes both the responsibility to make money and the responsibility to interact ethically with the

surrounding community. He also sees Corporate Social responsibility as a specific concept to achieve

profit for a company while it plays a role in community welfare. (Safarzad 2017). The concept of

CSR rests on the ideology of give and take. Companies take resources in the form of raw

materials, human resources, etc from the society. By performing the task of CSR activities, the

companies are giving something back to the society (Companies Act 2013 ). A business's CSR can

encompass a wide variety of tactics, from giving away a portion of a company's proceeds to charity,

to implementing "greener" business operations.

The establishment of a CSR strategy is a crucial component of a company’s competitiveness and

something that should be led by the firm itself. This means having policies and procedures in

place which integrate social, environmental, ethical, human rights or consumer concerns into
business operations and core strategy – all in close collaboration with stakeholders. (Fraser

Tennant, 2015). Carroll (1979) also suggested external CSR activities including charitable

contributions, employee volunteer programs, community involvements, environmental and

sustainability programs, and other outside projects that improve the company’s social investment (p.

500).

Porter and Kramer (2002, p.57), postulate “ that corporate philanthropic programs are designed for

establishing good faith and a positive business reputation, thus improving employee morale and

productivity” (Porter & Kramer, 2002, p. 57). Brewis (2004) suggested that employees’ participation

in corporate volunteering and community projects has a positive influence on employees’ perceptions

of the organization. Laverie and McDonald (2007) also suggested that employer-guided volunteering

is linked with better employee commitment and enhanced positive recognition of the employee with

the company. A strong employee commitment can generate positive work attitudes that will result in

greater organizational morale, and therefore enhance employee job satisfaction. Said another way,

when employees are happy about their jobs, they are strongly motivated to have better work

performance and a better relationship with the organization. (CCS Chiang, 2010)

To prove the success of CSR implementation, A study showed that a global provider of business

solutions for human resources) found that organisations that had a genuine commitment to CSR

substantially outperformed those that did not, with an average return on assets 19 times higher.

Additionally, the study showed that CSR-orientated companies had a higher level of employee
engagement and provided a markedly better standard of customer service (Study by Kenexa High

Performance Institute in London, 2015).

On the other hand, Milton Friedman spoke against the CSR concept as a whole and believed that

companies’ management had only one responsibility which was to maximize the profits of its owners

and shareholders [Friedman,M.1962]. However, In the global business environment today, studies

have shown that highly competitive companies are often strategically merging CSR programs into

their organizational core values for achieving the maximum effects. ( CCS Chiang, 2010)

In conclusion, CSR is a vital part of a business and can be incorporated in a variety of ways from

charity to community involvement; plus the benefits to be accrued are enormous.

 METHODOLOGY
In order to thoroughly execute this research project, the researchers employed the use of qualitative

data collection methods. This method was chosen due to its emphasis on words (non-numerical data)

rather than numbers and its focus on people/situations which was needed for this research.

The data collected was obtained from both primary and secondary sources. Primary sources provide

the researcher with firsthand information which is relevant, up to date and specific to one's research

objectives whilst secondary sources are quite easy to access and cost effective. The primary source, the

questionnaire consisted of 12 questions with eleven (11) close ended questions and 3 open ended

questions. Using this method has been beneficial to the researchers as:

They are simple to analyze,

Cost effective and

Generates quick results.

A sample unit of 17 employees were selected and the snowball sampling method was used where an

employee at the Noranda Bauxite Company was asked to distribute the questionnaires to the workers.

This sampling method was quite expeditious and expedient to our condition seeing that we were

unable to visit due to the Covid 19 pandemic.

Online articles and textbooks provided our secondary sources as they provided background

information of the topic and company. These sources were up to date and reliable hence were deemed

beneficial to our research.

PRESENTATION OF DATA
Table 1: Showing employees’ awareness of the company's CSR activities.

COMMUNITY ACTIVITIES THE NORANDA BAUXITE COMPANY IS ENGAGED IN

ACTIVITIES NUMBER OF PERSONS IN PERCENTAGE

(OUT OF 17)

Providing scholarships 15 88%

Supporting community 14 67%

sporting activities

Volunteering in the 9 53% OR 52.9%

community

Supporting charitable 9 53% OR 52.9%

organizations

Contributing to initiatives 10 59% OR 58.8%

that will help to protect the
environment

Organizing community 9 53% OR 52.9%

health fairs

Donating goods to the less 8 47%

fortunate
Figure 2: Showing how employees rate Noranda’s Involvement in Various CSR
Activities
Figure 3: showing the views of the employees of Noranda Bauxite Company on
whether or not the community benefits from CSR activities
Figure 4: showing employees appreciation for the company as a result of CSR
activities.
Figure 5 : showing how important Corporate Social Responsibilities are to the
Noranda Bauxite Company
 ANALYSIS OF DATA
Once the survey was completed, a summary of the responses were done to enable accurate

analysis. Table 1 shows the various activities that Noranda is engaged in. As outlined in the table , it

was seen that the activity that Noranda is involved in the most is providing scholarships for students in

their community. 88% of the respondents indicated that this was the best activity that Noranda could

ever be involved in, as this shows that Noranda cares about the youths in their community. Figure 2

justified this perception, as respondents gave it a rating of 4. In addition to scholarship, supporting

Community Sporting Activities is the second highest rated activity ( Figure 2). The question of

whether or not the community benefited from the CSR activities, 65% of the respondents agreed,

and 23% strongly agreed with this statement. There were also 12% of the employees who responded

neutral. ( Figure 3) There is also evidence that employees do appreciate the company for its

community involvement. In figure 4, it shows the amount of responses to the statement. "The CSR

Activities of Noranda Allows Employees to Have an Appreciation For the Company ". It is clearly
stated that 75% of the employees of Noranda agreed with this statement, 12% strongly agreed and 13%

chose neutral. So as you can see in figure 4, the activities that Noranda has been doing actually allows

the employees to have an appreciation for the company. In figure 5 the statement that was made was

"Importance of Corporate Social Responsibilities to the Noranda Bauxite Company". It has shown

that 47% of the employees stated that CSR is very important to the company. Majority of the

employees strongly agreed with this statement.

Is CSR important to the company? Yes it is as approximately 47% of respondents state that the

various activities are important.

INTERPRETATION OF RESULTS
Noranda Bauxite company uses many strategies to carry out it’s CSR programme within the

community. The provision of scholarship came out as the most valuable activity for the community.

Carroll, A.B. (1979) suggests that external CSR activities include charitable contributions, employee

volunteer programs, community involvements, environmental and sustainability programs, and other

outside projects that improve the company’s social investment, so the Noranda bauxite company

improve its social investment by doing the activities for the community, in which in figure 3. 65% of

respondents agreed that the CSR activities of Noranda benefit the community.

The question as to whether the company benefits from engaging in CSR activities; Porter, M., &

Kramer, M. (2002) suggest that many corporate philanthropic programs are designed for establishing

good faith and a positive business reputation, thus improving employee morale and productivity. The

researchers do believe that this theory is factual as 75% of respondents agreed that the CSR activities of

Noranda Bauxite company allow employees to have an appreciation for the company thus improving

employees’ morale.
 CONCLUSION and RECOMMENDATION
From the information collected the researchers have found it fit to conclude that the Noranda Bauxite

Company is one that plays a vital role in and around its community. Through the Corporate Social

Responsibility strategies that the company is involved in it has provided a greater appreciation (by

both the employees and regular citizens) towards the business

The researchers wish to inform the company that CSR is a very effective strategy to improve sales and

provide better brand recognitions. Therefore the researchers will recommend that the Noranda

Bauxite Company continue to be involved in CSR activities and improve on the ones which got a

relatively low rating such as the Donation of Goods to the less fortunate.

Also, it is recommended that:

1.Noranda should take time to research and consider what the individual community needs, so as to
effectively provide for its needs. Community stakeholder meetings will provide critical information in
ascertaining those needs.

2.Noranda spends its time exploring where other businesses have succeeded in their sustainability,
charitable giving, and employee engagement and tailor its strategies accordingly.

3.Noranda employs more community personnel so as to be proactive in establishing links between the
project and local community interest groups, councils, schools and colleges. Also, this will ultimately
help local people gain long-term sustainable employment, which some likely would not have been
opportuned to have otherwise.

4.Publicise its activities to help increase awareness and visibility of the company while establishing it as
a worthwhile business to purchase products or services from.

5.Donate used lands for farming /housing

6.Engage immediate communities in more social development programs
7.Provide on the job training for young people
 REFERENCES

Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. Springer Science

& Business Media, 2008.

Laverie, D. A., & McDonald, R. E. (2007). Volunteer dedication: Understanding the role of

identity importance on participation frequency. Journal of Macromarketing, 27(3), 274–288.

Porter, M., & Kramer, M. (2002). The competitive advantage of corporate philanthropy: Harvard
business press.

Chiang, Chia-Chun Saprina, "How corporate social responsibility influences employee job satisfaction in
the hotel industry" (2010). UNLV Theses, Dissertations, Professional Papers, and Capstones. 598.
http://dx.doi.org/10.34917/1750436

Mondo.(2016).Corporate Social Responsibility: What it is, Why it Matters, & How it Impacts Business
in 2016. Retrieved from https://mondo.com/corporate-social-responsibility-2016

https://www.researchgate.net/publication/312084577_The_Role_of_Corporate_Social_Responsibil
ity_in_India
 APPENDICES
-Copy of letter of request to conduct research

Dear Sir/Madam,

In partial fulfilment of our requirements for the subject Management of Business , the
following grade 12 students -(Brittany Alexander, Nickoy Brown, Joshikah Harvey, Jahzara
Rose, Dijonaé Thomas ) request your permission to conduct a research study entitled” An
investigation into the Corporate Social Responsibilities of Noranda Bauxite Company and its
Impact on stakeholders”.

In connection with this, we would like to ask your office to allow us to conduct the research at
your facility. We can assure you that the data gathered will only be used for the intended
purpose, the research, and will remain confidential and will be used for academic purposes
only.

We anticipate your positive response to this matter. Your approval will be greatly appreciated.
QUESTIONNAIRE

1. To which age group do you belong?

17-24
25-32
33-40
40-50
50+

2. What is your gender?

Female
Male

3. What is your level of education?

Primary
Secondary
Tertiary

4. How long have you been working at the Noranda Bauxite Company?
1-11months
1-5years
6-10years
Over 10 yrs

5. Indicate which of the following community activities Noranda is engaged in:

Providing scholarships
Supporting community sporting activities
Volunteering in the community
Supporting charitable organization
Contributing to initiatives that will help to protect the environment
Organizing community health fairs
Donating goods to the less fortunate

Others, please state _____________________________________________________

 6. Bearing in mind the activities listed in question 5 above, how would you rate
Noranda’s involvement on a scale of 1 to 5 (1 being the lowest; 5 being the highest)?

Activities 1 2 3 4 5

Providing scholarships

Supporting community sporting activities

Volunteering in the community

Supporting charitable organization

Contributing to initiatives that will help to

protect the environment

Organizing community health fairs

Donating goods to the less fortunate

7. As an employee, are you satisfied with how workers are treated?

Always
Often
Sometimes
Rarely
Never

8. The CSR activities of Noranda benefit the community.

Strongly agree
Agree
Neutral
Disagree
Strongly disagree
9. The CSR activities of Noranda allow employees to have an appreciation for the
company.
Strongly agree
Agree
Neutral
Disagree
Strongly disagree

10. In what other ways can Noranda implement its CSR strategies?

Answer:______________________________________

11. How important are Corporate Social Responsibilities to Noranda Bauxite Company?
Very important
Important
Fairly important
Not Important

12. Do you think the community is well aware of the contributions of the Noranda
Bauxite Company?
Yes
No
Neutral

13. How do you think Noranda can improve its CSR activities? Please state:
______________________________________________________________________________
__________________________________________________________________
______________________________________________________