College of Development Studies, Covenant University, Ota, Nigeria
Abstract
In the pursuit of profit maximization as a major objective of business
organizations, several firms forfeit their social and economic responsibility
whilst focusing on activities that are deemed to solely profit the firm, without
taking into cognizance the effect of their operations on the society in which
they operate. Business analysts have however, realized the determinant role of
social responsibility in corporate performance, such that firms that are able to
imbibe corporate social responsibility in their core business
operations may be able to take advantage of the social reputation gained across
their several stakeholders. Small and medium enterprises operating in highly
competitive markets are also advised to leverage on this reputation gained from
being socially responsible, if they seek ways to remain relevant in the same
markets dominated by multinational corporations. Adapting a case study
approach, this study highlights the advantages (such as employee and customer
loyalty) gained by House of Tara, a small business operating in the beauty and
make-up industry in Nigeria, resulting from the firm‘s commitment to
advancing the society in which it operates through several social responsibility
activities. It is observed that although competing with major makeup brands
such as MAC, Maybelline, Dior, Mary Kay and others, House of Tara has been
able to not only thrive, but gain a sizeable market in the Nigerian makeup
industry, because several consumers purchase their products not solely because of the quality or price of their product, but because they perceive themselves as
buying into the firm‘s CSR vision. This study therefore recommends that small
and medium enterprises that may lack adequate resources (manpower,
technology, capital) needed to successfully compete with multinationals, can
harness the potentials in the reputation and loyalty gained from adequate
investment in corporate social responsibility