CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

Social responsibility can be defined as the recognition that an organization or company’s activities has some impact on the entire society and the consideration of that impact in organizational decision. Therefore, organizations should have a sense of responsibility towards the community in which they operate in view of the adverse effect of their production operations on these communities. Some of these adverse effect range from health hazard, displacement of human settlement to environmental pollution.

Social responsibility can also be seen as an ethical theory that has it that an entity (organization or individual) has an obligation to act in a manner that benefits the society at large. Social responsibility is a duty every individual or organization must perform so as to maintain a balance between the economy and the ecosystem. For the survival and productivity of an organization, these social responsibilities must sustain the equilibrium between the society and the organization. It pertains not only to business organization but also to everyone who’s any action impact the environment. This responsibility can be in the form of providing infrastructures for the host community, scholarship awards to their children, good health care centers, schools, good roads, portable water, electricity, supporting sport and culture etc. it could also be passive by avoiding engaging in social harmful act or action by performing activities that directly advance social goals. Apart from engaging in community development programmes which also help in National Development, businesses form a part of the socio-economic structure of the   society. This, it does by making available what the society can utilize to satisfy its needs in product.

Also, on the use of product or services that could have adverse effect on consumers (e.g. cigarettes and medical drugs), organizations have the responsibility of educating users of product or services on their correct usage in order to avoid side effects. When organizations agree to the terms of social responsibility, the organization can then operate smoothly in the society.

1.2     Statement of the Problem

The debate on the rationale for social responsibility has been fiercer in recent times especially among classical economists and environmentalist, business owners and their stakeholders among others. While some businessmen see social responsibility as an indispensible part of their activities, others see it as being absolutely unnecessary and detrimental to the growth and productivity of the business organization. On the part of the organization discharging their social responsibilities to their host communities, they encounter some problems that affect the productivity of the organization negatively. Such problems tend to disturb the free flow of the organization in these communities in which they operate.

The social value of some communities in which the organization operates affects the smooth running of the organization in terms of their culture and beliefs. Most businessmen have been relatively insensitive or have overtly isolated themselves from the problem peculiar to the areas in which they live and amass their wealth. Some business organizations have insufficient managerial and financial resources to undertake social charges. Furthermore, most organizational managers lack the basic ideas and concept surrounding social responsibility. Now despite these considerations, It is not certain whether social responsibility can hamper or enhance organizational productivity or if it can make or mar an organization’s overall growth and survival. Upon this uncertainty, it has become pertinent for this study to find out the relationship between social responsibility and organizational productivity and survival.

1.3     Purpose of the Study

After knowing the problem inherent in this research topic, the following are the purpose of the study;

1. To establish the relationship between social responsibility and organizational productivity and survival.
2. To ascertain the benefit of social responsibility on organizations and the individuals.
3. To examine the effect of social responsibility on organizational efficiency or productivity.
4. To determine whether organization should embark on social responsibility
5. To assess the problems associated with social responsibility and proffer solutions to it.

1.4     Research Questions

Stated below are the questions raised on this study:

1. Is there any relationship existing between social responsibility and organizational productivity?
2. Are there any benefits associated with the discharge of social responsibility?
3. What is the effect of social responsibility on organizational efficiency?
4. Should organization embark on social responsibility?
5. What are the impediments or problems associated with social responsibility?
6. Why and who should benefit from social responsibility of the organization?
7. What can the government do if organizations fail to discharge their social responsibility?
8. What legal backing allows the organization to discharge its social responsibilities?

These and many more are the questions this work seeks to answer.

1.5     Research Hypothesis

The following are the research hypothesis formulated from this work. Research hypothesis seeks to test or interpret the relationship between two variables. Null hypothesis is being represented by Ho while the alternate hypothesis is represented by Hi.