EMPLOYEE PERFORMANCE AND CORPORATE SUSTAINABILITY (A SURVEY OF SELECTED COMMERCIAL BANKS IN RIVERS STATE)

CHAPTER 1

INTRODUCTION

1.1     Background of the Study

Employee Performance is a multi-dimensional construct. It may be defined as the record of an individual’s accomplishment. Kane (1996) argues that performance is something that the person leaves behind and that exists apart from the purpose. Performance, apart from being an outcome, is about doing the work as well as being about the results achieved. Campbell (1990) believes that performance is behavior. For this paper, performance is ‘both behavior and results. This is because behaviors emanate from the performer and transform performance from abstraction to results.

Over the past decade, there has been increasing evidence describing the credibility and sustainability of the international economic system, the active search for corporate sustainability, and determinants of sustainable innovation. This paper aims to analyze and discuss the integration of sustainability efficiency into investment resolutions and management systems, the relevance of incorporating the essential process standards into the culture within the corporation, and the forces leading to corporate embracing of sustainable business practices. The theory that we shall seek to elaborate here puts considerable emphasis on the connection between sustainability and economic functioning, the challenges of accomplishing long-run sustainable business performance, and the link between the firm and the community in which it performs. The purpose of this article is to gain a deeper understanding of the management of sustainability performance, the business value of sustainability, and managerial positions and abilities needed to foster creation and innovation. The mainstay of the paper is formed by an analysis of investments in environmental sustainability, environmental, social and governance (ES&G) management practices and performance, and the dynamic character of sustainability. This research makes conceptual and methodological contributions to the importance of sustainable development to private sector corporations, the link between environmental management and corporate performance, and the essential determinants of corporate dedication to sustainable innovation.

Significant public sustainability (ES&G) reporting has grown relevantly. A robust management structure is directed by corporate undertaking and strategy and is overlain by substantial governance operations. Sustainable development indicates environmental standards, social integrity Bensman, 2014, and economic well-being. Sustainability is effective as an organizing criterion for internal business betterment strategies. Organizations must lead considerably towards the improvement of society.

Sustainability is a duty that concerns organizations and political entities. Corporate social responsibility (CSR) is a component of a corporate policy to undertake the sustainability imperative. CSR can include an organization’s attempts to react to the imperative to advance sustainable development. Sustainability investing entails evaluating an organization’s position and functioning concerning environment, health and security, social matters, and governance Soyka, 2012. Trade-offs and disputes between economic, environmental and social features in corporate management Popescu, 2014 and functioning constitute the rule. An exclusive concern for win–win results conceals significant capability for positive corporate efforts to sustainable development. The win–win pattern restricts the opportunity of possible corporate reactions and advances to sustainable development Lee Dowell and Larwin 2014, and generates a restricted analytical view on corporate sustainability proposals and policies. The distinctive degree of trade-offs in corporate sustainability applies to separate decision-makers within firms. Organizational conduct concerning sustainable development relies on the insights, reasons, values and resolutions of individual participants. Trade-offs

in corporate sustainability at the organizational degree apply to disputes between various sustainability features concerning the function and effect of corporations as individual organizations Hahn, Figge, Pinkse, and Preuss, 2010.

The solution to business positive result is process development continued by constant betterment of the organization’s processes. Competitive markets request active reactions and elasticity. Business leaders should develop business undertakings, organization structures and performances. Corporate cultures and ensuing operational routines should satisfy dynamic market prerequisites. Adapting business processes is a leading method of supporting industry competitiveness. Process Improvement should enable organizational change. Enacting a relevant degree of process maturity assists in unlocking performance enhancement potential in organizations. The consequence of a well-designed process is expanded effectiveness and augmented efficiency. Leadership engagement and assistance are essential for effective Process Improvement efforts. Firms should supervise and evaluate organizational process maturity Boutros and Purdie, 2014. Customer requests for environmentally friendly goods and improvements in green technologies stimulate companies to take part in sustainable product development. A combination of internal and external determinants directs corporate engagement to sustainable business practices. Global supervision is a determinant of sustainable innovation. Social activism drives firms to spend supplementary resources for environmental protection. Preserving the environment furthers profitability and growth. Alterations in consumer positions and request guide corporate financing of environmental R&D and technological innovation. Sustainable technology development provides a synergistic effect on the economy Eunsang and Tello, 2009.

1.2 Statement of Problems

The purpose of this study is to investigate employee performance and corporate sustainability. It attempts to determine how an organization carries out its obligation to the stakeholders which serves as a strategy for carrying out business activities peacefully. Most times claims made by various stakeholders are too much on the organization, yet they are expected to get actively involved in getting them solved. In trying to meet up these expectations, most organizations indulge in some unethical acts which most times return on them.

This study attempt to understand employee have the ability to influence the corporate reputation. The study also views employees’ perception on their organization’s corporate image affects their behavior as well as how they promote their organization to the other stakeholders.

Previous researchers indicated certain elements of corporate social responsibility CSR (such as organizational ethics) as having impact on employees’ perceived corporate image that can affect their commitment to their organization as well as host community relations (Ikpeze, 2001). From the foregoing, therefore this study seeks to examine the relationship between employee performance and corporate sustainability in commercial Banks in Rivers State.

1.3     Objectives of the Study

The main objective of the study is to examine the relationship between corporate social responsibility and corporate sustainability in commercial Banks in Rivers State. The following objectives are to be achieved:

i.        To examine the relationship between productivity and corporate sustainability in commercial Banks in Rivers State.

ii.       To examine the relationship between effectiveness and corporate sustainability in commercial Banks in Rivers State.

iii.      To examine the relationship between efficiency and corporate sustainability in commercial Banks in Rivers State.

1.4     Research Questions

The following research questions are posed to guide the study:

i.        To what extent does productivity influence corporate sustainability in commercial Banks?

ii.       To what extent does effectiveness associate with corporate sustainability in commercial Banks?

iii.      To what extent is efficiency associate with corporate sustainability in commercial Banks?

1.5     Statement of Hypotheses

The following hypotheses are stated to guide this study;

H01: There is no significant relationship between productivity and corporate sustainability in commercial Banks in Rivers State.

H02: There is a significant relationship between effectiveness and corporate sustainability in commercial Banks in Rivers State.

H03: There is a significant relationship between efficiency and corporate sustainability in commercial Banks in Rivers State?

1.6     Significance of the Study

Firstly it will assist researchers and academicians interested in issues pertaining to Human Capital Management (HCM) and its relationship to corporate sustainability, both in public and private sector, especially in modern banking system.

Secondly, the government formulate policies, standards, guidelines and procedure for handling difficult issues on employee performance. More so, government and other corporate organizations will also see commercial banks as a medium for establishing employment for innovative, creative, and productive purposes. This in turn, is realized from the returns on organizational assets and sales as a measure of organizational performance.

Finally, it will assist the banking sector to plan for the good of their employee’s and also make use of skilled manpower for the good of the commercial banks.

This study is also significant because it has been able to unveil the roles of employee performance and corporate sustainability in commercial Banks in Rivers State.

1.7     Scope of the study

The study is delimited under the following heading: content scope, geographical scope and unit of analysis.

Content Scope: The content scope of this study involves an investigation to ascertain the relationship between corporate employee performance and corporate sustainability. The independent variable is employee performance measure by productivity, effectiveness and efficiency. While dependent variable is corporate sustainability, measures by economic sustainability, social sustainability and environmental sustainability.

Geographical Scope: This study is delimited in Rivers State Metropolis with special reference to selected commercial Banks in Rivers State.

Unit of Analysis: The unit of analysis in this research involves commercial banks at the time of carrying out the study.

1.8     Limitation of the Study

In carrying out an investigation of this nature the researcher must of necessity be faced with the following constraints; Time, poor response from respondents and finance.

          This study involves an investigation of employee performance in relation to corporate sustainability. Hence it is a micro level study.

1.9     Definition of Terms

The following terms are operationally defined below:

EFFECTIVENESS

Effectiveness is defined as the organizations goals and objectives in today’s market and also is dependent on the industry.

EFFICIENCY

It is the ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result.

EMPLOYEE PERFORMANCE:

 The job related activities expected of a worker and how well those activities were executed. Many business personnel directors assess the employee performance of each staff member on an annual or quarterly basis in order to help them identify suggested areas for improvement.

PERFORMANCE MANAGEMENT

Performance Management is a systematic process of the workload planning and expectations setting, of the continuous performance monitoring, development of the performing capacity, periodically performance evaluation and high performance recommendation.

PERFORMANCE

The act of presenting a play, concern, or other of form of entertainment.