CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

Corporate social responsibility is the promise by business organization to behave in a way that is ethically acceptable and at the same time contributing to the economic development and improvement of the living condition of the employee, that the catchment community and the larger society. It is the set of conditions to which a company relates of corporate social responsibility are its potentials to bring about sustainable development or infrastructure and contribution to poverty reduction in any given society.

Corporate social responsibility is the contributions of the organization to the development of the community in which such organization is found in term of the social, economic, political, educational involvements.

However, the company is not compelled to do by and law t o do if (Adebayo, 1998), corporate social responsibility relates to the roles and obligation expected of business as a creation of modern society. Two opposing schools of thoughts emerged during the early birth of corporate social responsibility while one school argued that small and medium scale enterprise should assumed some responsibilities in the society beyond their primary economic role the other stand against. In the later case, corporate social responsibility is based on purely economic roles of profit, these regarded as the “classical view” is base on stakeholder theory. (Brance and Rodrigues) 2007.

• Statement of the Problem

These are challenges problem in the field of human resources (Manpower) is considered the most critical to any organizational survival of a truism that adequate supply of materials and services that will utilizes the available resources to bring about the desired goals. In the present economy, there are competition in companies and industries which depends on their creative production and more especially on public goodwill to be able to make profit and stay in the business, corporate social responsibility by small and medium scale enterprises are multi-directional and problems are equally diverse.

• Objective of the Study

With the above problem, these study in specific terms seeks to:

1. Identify the corporate social responsibility of the small and medium scale enterprise in Eket Local Government Area, Akwa Ibom State.
2. Ascertain the contribution and direction of corporate social responsibility in both small and medium scale enterprises.

• Find out the relationship between the corporate social responsibility and the achievement of small and medium scale business

1. Make suggestions or recommendations that will enhance effective corporate social responsibility by small and medium scale enterprise and infrastructural development of Eket Local Government Area.
   • Research Questions

The researcher has chosen the following research questions thoughts to be relevant that will assist in achieving and arriving the expected conclusion they include:

1. How would you know that social responsibility policy in effective?
2. Why is corporate social responsibility of importance to business both the small and medium scale
3. What is social security administrator responsible for
4. What are the business expectations of the corporate social responsibility?
   • Significance of the Study

Corporate social responsibility by small and medium scale enterprise is important to the study because, its demonstrate to both the consumers and the media that the company takes an interest in wider social issues that have no direct  impact  on profit margins. These issues may be local national or global, but a concern for the health and wellness of others that does not involved sales can be seen as commendable if done well.

Furthermore, being part of a scheme that helps disadvantaged people or those otherwise in need can help boost morale for employees within the responsible industry or company. Along with other methods of morale boosting, this can lead to greater productivity among the workforce. When the importance of social responsibility is recognized as part of a business foundation the impact of such endeavours can have life changing consequence for recipients of aid and equally. Instill a sense of pride in the people who support and work towards its growth and infrastructural development.

• Scope of the Study

The project Corporate Social Responsibility by Small and Medium Scale Enterprise of Eket Local Government Area of Akwa Ibom State. The researcher decided to use the industry for this study. The coverage may give time representation of selection practice in the government owned enterprise in the economy and the organized private sector. Therefore, there is now an increase level of awareness of the important functions of small and medium scale enterprise in most developing countries including Nigeria, particularly in the informal sector of the economy in term of supply and creation of employment.

The researcher discovered that, the hotel industry belonging to this group small and medium scale enterprises has expanded rapidly since the return to democratic rule in 1999, primarily due to government interest in tourism development. Such expansion of the hotel industry called for an enquiry into how socially responsible its activities are. Hence, this study therefore explored the corporate social responsibility of the hotel industry in Nigeria and particularly, the hotel industry in Eket Local Government Area, Akwa Ibom State.

• Limitation of the study

During the course of this study, the researcher was confronted with some problems which the study was limited to the workers of the hotel industry. A large population of the workers falls among the regular customers and as such, it was difficult to really get their opinions as regards to manpower development. Hence, a lot of finance was also used in making this project a reality; nevertheless, the researcher also made concretes effort to ensure that the project was comprehensively carried out to meet the desired need.

• Definition of terms

Small and Medium Enterprise: According to operational guidelines of small and medium enterprise equity investment scheme (SMEEIS) 2009). A small and medium enterprise has been defined as an enterprise with a maximum assets base 500m and with no limited with regards to the size of the workplace.

Corporate Social Responsibility: Corporate social responsibility is the contributions of the organization to the development of the community in which such organizations is found in term of the social, economic,  political, educational involvements.

Infrastructure: These deals with the basic system