An Appraisal of Corporate Social Responsibility Accounting in the Manufacturing Industry (a Case Study of 7up Bottling Company Plc, 9th Mile Corner, Enugu)



This study was conducted to appraise corporate social responsibility accounting using 7up Bottling Company Plc, 9th Mile Corner Enugu as the case study. However, some research problems were investigated such as how to meet up the excessive demand of the host community and to determine if there is any benefit of reporting social corporate issues in the financial statement. To solve the research problems, both primary and secondary data were collected. Then research instrument used in collecting data was oral interview and questionnaire; the respondents were staff of the 7up Bottling Company and some selected individuals in the community. In organizing and presenting data collected, tables and percentages were used. Three hypotheses were tested using T – distribution method populations for this study were drawn from Ngwo community in particular 9th Mile and staff of the 7up Bottling Company. The population covered was 100. The study found out among others, that corporate social responsibility accounting has positive impact on company and to their host community and also lead to social acceptance. As a result of these findings, the following recommendations among others were made, that companies should see social responsibility as a major task that must be accorded seriousness as part of their objectives and should try to include social responsibility in their annual report.




            The state of the world’s environment and impact of the mankind on the ecology of the world have leads to increased public concern and scruting of the operations sole responsibility was to provide a maximum financial return to shareholders. With this in mind it was quickly acknowledged that the interest of financial gain needed to take place within the law’s and regulations. The established bodies of regulations acclaimed that the environments, employees, consumers and society as a whole were important stakeholders as well like the shareholders,

            As a result of the stakeholders perspectives, the topic of corporate social responsibility was brought in throughout the 1960’s and 1970’s over the years it has continued to grow in important for many organizations, it is important to note that corporations should take responsibility for their actions in order to benefit the general public.

            However, corporations are investing in corporate social responsibility (CSR) due to a variety of reasons. For instance corporate want to boost their image in order to portray that not only, do they care about making profit but to have an impact on philanthropic event(weber). Also they want to show that they care about people as well. It is important to note that business and society are interwoven rather than two distinct entities, due to and also government, corporations, should be accountable not only to the shareholders but also to the communities and government.

            Social responsibility is a movement both inside and outside of the accounting profession that desires to broaden the scope of information disclosed in accounting statement.

            Richmood and etal (2009) define social accounting as process of collecting measuring and reporting transitions and interactive affects of these transactions between business and society surrounding him. By measuring the effect of cross-business unit and its surrounding community, to assess the fulfillment of social obligations.

            According to Wickson (2004) social accounting allows for organizations to communicate social and environmental impacts of an organization’s action. He stated that one of the purposes of social accounting is to be accountable to a wide a range of stakeholders. As a result of this, it gives stakeholders the ability to see things in addition to just the financial statements of a company.

            However, some additional items might include non-traditional reports such as environmental reports and pollution reports.

            Finally, the philanthropic duties of a form state that it is important to perform in a manner consistent with the philanthropic and charitable expectations of society. According to Carrol, organization can do this by participating in voluntary and charitable activities within their local communities and providing assistance to private.

The complex relationship between the communities and companies and public education. One can see that these activities are designed to improve the quality of life for the general public. Through these, people can see that organizations are giving back to the community.


            The Seven – Up Bottling Company Plc is one of the largest independent manufacturer and distributor of the well-known and widely consumed brands of soft drink in Nigeria. Our brands are Pepsi, &up, Mirinda, Tean and Mountain Dew, which are produce and market in all our present manufacturing plants.

            We also market our products through our over 200 distribution centres that we also call depots spread over the nooks and crane of Nigeria. Our work force is currently in the neighbourhood of 3500 employees.

            A lebanse Mohammed El-khalil who came to Nigeria for the very first time in 1926 founded the company Mohammed is the father of the companies current chairman, Faysal El-Khalil. This company metamorphosed from a very successful transport company in the entire west of African on October 1st 1960, the exact day – over great country Nigeria won her independent, Nigeria also experience the birth of a soft drink giant as the first bottle of 7up rolled out from our factory located in Ijora. Since then our company continued to grow in the leap and the bound, in the late 80’s, we established six more plants in Ibadan, Ikeja, Enugu, Abia, Imo and Ebonyi in the early 1990’s when Pepsi international took over 7up international. We again got great opportunities to introduce the Pepsi brand to the Nigeria people.

            7up Bottling Company Enugu, Enugu was established in the year 1974 and started it’s operation in the year 1976. It situated/located at 9th Mile Corner Ngwo in Udi Local Government Area of Enugu State. They has 40% market share, seven (7-up) Bottling Company Plc has 3% market share.


            Different views and opinions in relation to the accounting concept of social responsibility. An appraisal of corporate social responsibility accounting is aimed at maintaining customers confidence and confidence of the host community as well. However, there are still impediments that confronted corporations, such as:

a.         How to meet up the excessive demand of the host community.

b.         To determine if there is any benefits of reporting social corporate issued in the financial statement of an organization.

c.         In what ways did corporations usually display negligence to their host community.


            This study ill specifically attempt to achieve the following objectives:

i.          To examine the corporate environmental disclosure practice among firms in the Nigerian manufacturing industries.

ii.       To ascertain whether there is a significant difference of corporate environmental reporting among firms in the manufacturing industry.

iii.      To find out the benefit of social responsibility accounting to the community and organization.


           This research work will be based on the following research question:

a.        What is the corporate environment disclosure practiced by the Nigeria firm?

b.        Is there any significant difference among firms in reporting social corporate issues in Nigeria?

c.        What are the benefits of social responsibility accounting to the communities and organization at large?


           The following hypotheses are tested in this study:

Ho:    Firms in Nigeria do not practice corporate environmental disclosure.

H1:    Firms in Nigeria practice corporate environmental disclosure.

H0:    There is no significant difference in the level of corporate environmental disclosure practice among firms in Nigeria.

H1:    There is a significant difference in the level of corporate environmental disclosure practices among firms in Nigeria manufacturing industries.

H0:    There is no benefit social responsibility accounting to the community and organization.

H1:    There is benefit of social responsibility accounting to the community and organization.


            This research work was based on the appraisal of corporate social responsibility accounting in the manufacturing industry.

1.8       ASSUMPTION

            The idea that firms may assume and be expected to assume social responsibilities has been celebrated and condemned during the entire 20th century. Corporate social responsibility (CSR) enjoys plenty of attention in the media and in academic and does now appear to be widely accepted as an integral part of doing business. That fact that there is very little common consensus of what CRS means and how it fits into the corporate objective function is therefore a cause for concern. The aim of this paper is to bring some light on this issue, using evidence from the CRS literature as it has evolved since the beginning of the 20th century. This paper addresses three important questions in this respect; firstly, how business approach to CSR has evolved from the beginning of the 20th century and into 21st.

Secondly, whether our understanding of CSR has vices and virtues of CRS actually has improved over this time and.

Thirdly, whether the acceptance of CRS has challenged or complemented the traditional model of the firm as a profit – maximizing institution.


            It is important to note that corporate social responsibility accounting cannot be over emphasized. There is need for corporate social responsibility accounting to be strengthens in order to achieve the set goals and objectives. This study will be of much importance and benefit to the government and general public as they can obtain information regarding the companies corporate social responsibility accounting.


A.        Social accounting: It implies the process of transmitting the social and environmental implications of the economic actions of companies to specified interest parties within and outside a country Ani Wilson (2010: 185).

            It’s concept include production, consumption, capital accumulation etc.

i.          Production account: This relates to the business sector of the economy.

ii.         Consumption account: This refers to the income and expenditure account of the household or personal sector.

iii.       Capital account: This shows that savings equals domestic and foreign investment.

B.        Corporate social responsibility: It Implies the obligation of a business assumes or own towards its society. To be socially responsible is to maximize positive effect and minimize negative effects on the society (www.afrreujo.ent). It’s concept include, corporate social responsibility framework.

i.          Promoting socially responsible activities across the value chain.

ii.         International initiatives and commitments

iii.       Stakeholder engagement

iv.        Dialogue with experts.

C.        Stakeholder theory: This group oppose the shareholders theory; they opined that, there is a multiplicity of groups having a stake in the operation of the firm. This group state that the concern of every business should go beyond profit. It should include helping society to gain a greater sense of belonging and promoting the overall welfare and accommodate wilder stakeholders interest Zhang & Hill (1998:2).

D.        An appraisal: It means a process of examining both the strength and weakness of an organization and form an opinion about them.

E.         Financial statement: Is document reporting business financial performance and resources. This comprises profit or loss account, income statement showing the sales and expenses of a business over a period of time, cash flow statement of financial position formerly known as the balance sheet that record the asset, liability and owners’ equity or retained earnings of the business for each accounting period.




WeCreativez WhatsApp Support
Welcome! My name is Damaris I am online and ready to help you via WhatsApp chat. Let me know if you need my assistance.