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THE SOCIAL
RESPONSIBILITY OF COMPANIES ON THE DEVELOPMENT OF THEIR HOST COMMUNITIES
Chapter One
Introduction
1.1 Background to the Study
Profit
maximization was regarded as the primary mission and over-reaching economic
motive of any business enterprises little or no attention was paid to the fact
that, in pursuit of their profit objective, business enterprises have to be ask
to assemble the resource from the local environment and have the stable
socio-political and investment climate in which to operate successfully. If
business organization relies on society for existence, it is only logical that
this environment be acculturated and nurtured to ensure its continuity. It is
in this regard that the orientation of the modern business manager has changed
to reflect the increasingly important interdependence between organizations and
there environments with these, there is an increasing public glamour that
business should participate actively in the well being and environment in which
they operate and make their profit.
However, the
aim of establishing any business is to provide competitive goods and services
to the consumer and society at large. This does not however, mean that they
have concluded their obligation to the people especially to the host community
where the business is sited and operated.
Although
there is no law as what form of services the host community should benefit from
the business, it is morally obliged to cater for at least their host. This they
do by aiding the development of infrastructures such as access roads where
necessary and the provision of good water for domestic use and also the provision
of electricity of the local population. Other forms of services that could be
rendered for the young members of that community and of course the provision of
gainful employment for those who have graduated from college.
There are a
lot of other services that the host community can benefit from the business
such as the provision of safety measures against pollution other air or water.
On the other hand, to the business also look forward to the local populace, for
continued patronage and also for ensuring the safety of lives and properties of
the business and employees of that business who are not from that community.
Therefore, the recognition by businessmen of the need to keep the good of
society as a whole to mind while conducting business in the bed-rock of social
responsibility.
1.2 Statement of the Problem
The controversy about the public
clamor that business should participate actively in the well being and welfare
of the community, society environment in which they operate and make their
profit are the problems among others this research intend to solve. Has
business social responsibility any part to play in the total marketing effort
of business organizations or enterprises?
Does business social responsibility
contribute anything to the total revenue of the company? Is the conception that
there is no need for business enterprise to be socially responsible to its
society “SHELL PORT-HARCOURT” true or false? Of what use is business social
responsibility to the general public? The problem for this research is what the
responsiveness of companies to social responsibility is.
1.3 Scope of the Study
The scope of
social responsibilities of business in relation to this project focus on
obligation which business have voluntarily imposed on themselves to ensure the
survival of the system under which they thrive. In order to give the reader a
board base from which to see all of the implications of the social
responsibilities of business, it is necessary to examine such responsibilities
from the perspective of consumers, employees and general public shell Port
Harcourt.
Time and
financial constraints are the two limitation of this study. Subsequent
difficulty in obtaining data from other companies led to the selection of shell
company Port Harcourt as a case study.
This limits
the generalized ability of the conclusions of the research to shell Port
Harcourt and no other company in the country.
Another
problem was the shortage of literature on related topics and non- availability
of shell publications in libraries. The absence of accurate and up to date
statistical figures because of the recent of events as regards the research
topic.
1.4 Objective of the Study
This research work was conducted
with the following main objectives:
a. To met up with the requirement in
partial fulfillment for the award of B.Sc in the department of Business
Administration Oduduwa University, Ipetumodu, Ile-Ife.
b. To examine and determine the extent of
benefits that the company shell company has contributed to the development of
Port Harcourt in response towards to the business social responsibility.
c. To investigate the causes of business
enterprise nonchalant attitudes towards business social responsibility to the
development of its host community.
d. To advance solution of the problems of
business social responsibility to the development of her host community.
1.5 Research Questions
This study
intends to provide answers to these questions.
a. Does social responsibility of business
organization enhance the development of the community?
b. In what way has the company carried out
their social responsibility in community?
c. To know the extent of implementation of
this policy, the problems, argument and difficulties facing the company in
carrying out their social responsibility in their host community.
1.6 Research hypotheses
The
following research hypothesis are formulated for the purpose of carrying out
this project of which:
Hypothesis
I: H0: socials responsibility of business does not significantly enhance the
success and development of the host community
H1: social
responsibility of business significantly enhances the success and development
of the host community.
Hypothesis 2
I: H0: There is no significant relationship between the success of business and
its social responsibility.
H1: There is
a significant relationship between the success of business and its social
responsibility.
1.7 Significance of the Study
This
research is significant in the sense that it provides the basis for further
research into the topics by providing related data.
This study
is also of important for the fact that business have been criticized on
ethical, moral, economic and political grounds. Businesses have also
contributed to the determination of our physical environment the case of SHELL
company’s pollutants like poisonous waste materials have been buried in abandoned
plant sites; solid wasters have been thrown into lakes and seas or rivers;
poisonous gases have been released into the air we breathe etc. Trying to be
socially responsible involves extra cost or expenses for industries.
This study
is important because it will be useful to “SHELL COMPANY” and its customers by
helping them understand and appreciate more of the effort it has made. If any,
it will also be useful to the government and registration because it will help
them make more meaning
And useful
legislature and help them to set achievable standards concerning social
responsibility of businesses.
1.8 Limitation of the Study
The data
used in writing this research work is gather from both primary and secondary
sources.
The writer
of this project work was face with several problems while gathering information
from various sources,
At start,
financial constraint was the major problem faced with during the course of
gathering information for this project work, this is due to high cost of
browsing on the internet.
1.9 Definition f Terms
Multinational
corporations (MNC) or multinational enterprises (MNE)
This are
organizations that are own or control production or services facilities in one
or more countries other than the home country. For example, when a corporation
is registered in more than one country or has operations in more than one
country, it may be attributed as MNC. Usually, it is a large corporation which
both produces and sells goods or services in various countries. It can also be
referred to as an international corporation or "transnational
corporation". Social responsibility is an ethical theory that an entity,
be it an organization or individual, has an obligation to act to benefit society
at large. Social responsibility is a duty every individual has to perform so as
to maintain a balance between the economy and the ecosystems. A trade-off may
exist between economic development, in the material sense, and the welfare of
the society and environment.
Social
Responsibility means: sustaining the equilibrium between the two. It pertains
not only to business organizations but also to everyone whose any action
impacts the environment. This responsibility can be passive, by avoiding
engaging in socially harmful acts, or active, by performing activities that
directly advance social goals. A Community: is a social unit of any size that
shares common values. Although embodied or face-to-face communities are usually
small, larger or more extended communities such as a national community,
international community and virtual community are also studied. In human
communities, intent, belief, resources, preferences, needs, risks, and a number
of other conditions may be present and common, affecting the identity of the
participants and their degree of cohesiveness. Host Country: Nation in which
individuals or organizations from other countries or states are visiting due to
government invitation or meeting.
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