CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
According to (Aras and Crowther, 2007), Business is essential for the development and wellbeing of a society. However, business does not exist in a vacuum, but is simultaneously dependent on a number of stakeholders, be it employees, customers, investors, interest groups, community, or the government. An extensive and critical debate about the role and conduct of business, and their associated corporate social responsibilities in the community, is taking place among academics and practitioners alike. It is essential to consider that the practices of corporations are first and foremost resulting from decisions and behaviours of human beings.
According to Smith, (2007), today, companies permanently need to implement solutions aimed at generating competitive advantage that allow them to survive and be successful in ever changing and demanding markets. Therefore, to focus on customers and community is a common denominator for organizations, aiming to meet their needs and satisfy their expectations. In this context, society has become one of the players as one of the actors that highly influence corporate behaviour.
According to (Wood & Logsdon, 2008), Communities have expressed more mistrust of corporations because of various scandals. This has put business ethics in the spot light influencing companies to be good corporate citizens, respecting the law but also to create good social values and principles. Today, the level of demand goes beyond the direct impact of the organizations business to also incorporate how corporations can contribute to societal and environmental causes. For corporations, these activities are manifested through the concept of Corporate Social Responsibility (CSR). Corporate social responsibility connotes the commitment of companies towards encouraging community growth and development and voluntarily eliminating practices that are not in accordance with public interest. It is thus the deliberate inclusion of public interest into corporate decision making and the honouring of a triple bottom line: People, planet and profit.
1.2 Statement of the Problem
According to Peter, (2004) said that Business is a component of the society, as such, it must subject itself to the fair requirements of the society, for, their relationship is paramount and reciprocal (the business needs the society just as the society needs the business).
According to Taiwo, (2011) He argues that business organizations should act in a socially responsible manner for two self-evident reasons: one philosophic and the other pragmatic. In Nigeria context, many organizations implemented CSR as a mere superficial window-dressing. It is widely believed by many that CSR efforts are mere campaigns by organizations to promote corporate brands.
According to Osemene, (2012) who said that a majority of Nigeria business organization believed that business enterprise had not shown sufficient interest to their social responsibility. Many organizations in Nigeria are driven by the need to make more and more profits to the detriment of all the stakeholders. At present, many Nigeria businessmen’s attitude to social responsibility is characterized by the belief in the doctrine of Laissez fair, this has result in conflicts especially in this area where larger number of people now believe that corporations should actively pursue society responsible goal. This include reducing pollution, programme for education, public health, employee’s welfare, environmental protection and community development. This research therefore seeks to examine the challenges of corporate social responsibility of business.
1.3 Objectives of the Study
To examine the general behaviour of organizations towards social responsibility.
To examine the dimension of social responsibility.
To examine the consequences of company ignoring its social responsibility.
To examine the challenges which hinder the performance of social responsibility.
Research Questions
What is the general behavior of organizations towards social responsibility?
What is the dimension of social of social responsibility?
What are the consequences of company ignoring its social responsibility?
What are the challenges which hinder the performance of social responsibility?
Significance of the Study
The study is expected to make contribution to knowledge in the following
areas:
i) Provision of information about Corporate Social Responsibility to corporate institution especially to business owners.
ii) Provision of a fundamental material for scholarly discourse in management science relating to Corporate Social Responsibility.
iii) Assisting in providing information on the impact of Corporate Social Responsibility on the profitability of small and medium business in Nigeria.
iv) Provision of information on the challenges of Corporate Social Responsibility in the Nigerian.
1.6 Scope of the Study
The study centers on analysis of the challenges of being socially responsible in Nigeria business environment. With particular reference to selected small and medium scale enterprises in Ikot Ekpene in Akwa Ibom State.
