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THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON SOCIETAL DEVELOPMENT

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CHAPTER ONE

GENERAL INTRODUCTION

1.1    BACKGROUND OF THE STUDY

Corporate social responsibilities have assumed a serious dimension in modern business. The awareness is so great that the operating environment/society forms expectations of what they expect from the organisation operating within, then and the organisation feels they have social and moral responsibilities to put some thing to the society within which they operate.

The end result of this two strands if effectively and efficiently managed leads to a company societal relations. It also enhances development through employment of the environment into the company, infrastructural provision, scholarship which all help to develop the society.

Baker (2004) corporate social responsibilities has becomes an integral part of the wealth creative process, which if properly manage should enhances the competitiveness of business and maximize the value of wealth creation of the society. Corporate social responsibilities however where it is not properly handled, it can lead to strand relationship and lack of development.

Corporate social responsibilities are basically a concept where by companies decided voluntary to contribute to a better society development and cleaner environment. Bromstorm (1976) describes social corporate responsibilities a “The obligation of the decision makers as it e=improves the welfare of the society as a long with own interest. It is also represented by the contributions undertaken by companies, organisation to society through its business activities and its social investment.

Drucker (1954) describe corporate social responsibilities investment in and contribution to the wide company. It is also designed to help, create healthy environment that an organisation needs to survive and operates efficiently. Despite the above, ascertaining the call for corporate social responsibilities has not be effectively overblown. The problems however, are where this or such responsibilities do begging and where does it end, should a firm plan, shareholders interest before those of society or environment? Should a firm be held responsible for social consequences of this operation?

Drucker (1974) came out with two ways through which the demand for social impact of business organisation is require.

  1. The negative consequences on business activities like pollution, deception and advertising products offered for sale market, tax aversion and avoidance etc. it may arise from problem of the society itself.
  2. Falling standard of living, illiteracy, poor infrastructure facilities, inadequate social amenities and growing disentrancement with government and its ability to solve major social problems. Hence, society has come to expect business with successful operations of this task of solving major part of their problems by developing social responsibilities objective and process. There has been a general opinion that corporate body in country at large and in Akwa Ibom State in particular in their social responsibility.

The focus of the work is to assess the impact of corporate social responsibilities on societal development in Akwa Ibom State. The work is divided into five chapters. Chapters with caption “General introduction” deals with introduction, statement of the problem, objectives of the study, significance of the study, scope of the study etc.

1.2   STATEMENT OF THE PROBLEM

There has been a general opinion that corporate bodies in the country at large and in Akwa Ibom State in particular has not been living up to expectation in their corporate social responsibility. What are the reasons behind these ascertain? Is there a limiting factor responsible for their lack of performances?

How does the issues of awareness or lack of contribution to this? What should be done to make sure that corporate social responsibility is taken seriously? What are objectives of Champion Breweries in the duration?

1.3   PURPOSE OF THE STUDY

The purpose of this study is to identity the impact of corporate social responsibility on societal development. The specific objectives are:

  • To identify the impact of corporate social responsibility on the corporate image of the organisation.
  • To identify the impact of corporate social responsibility on customer patronage.
  • To identify the impact of corporate social responsibility on societal development
  • To identify what the impact of corporate social responsibility of the organisation has on its performance.
  • To determine if government policies affect corporate bodies in discharge of their social responsibility.

1.4   RESEARCH QUESTIONS

To evaluate this study, some tentative statements and question shall be tested. The following research questions are used:

  1. Does corporate social responsibility have impact on the corporate image of the organisation?
  2. Does corporate social responsibility have impact on customer patronage?
  3. What impact does corporate social responsibility have on societal development?
  4. Does corporate social responsibility have impact on the organisational performance?
  5. How does government policies affects corporate bodies in the discharge of their social responsibility.

1.5    HYPOTHESIS

Ho: There is no impact of corporate social responsibility on societal        development.

Hi: There is impact of corporate social responsibility or societal        development

Ho: There is no impact of corporate social responsibility on the         organisation performance.

Hi:    There is impact of corporate social responsibility on the               organisation performance.

Ho:    Corporate social responsibility have no impact on corporate image of the organization.

Hi:    Corporate social responsibility have impact on corporate image of the organization.

1.6    SCOPE OF THE STUDY

The scope of the study is the impact of corporate social responsibility on societal development. However, some of the constraints encountered in the course of this study were time, inadequate materials and financial constraints, and respondent bias.

The research instrument that will be use in this study is a self administered questionnaire.

1.7    SIGNIFICANCE OF THE STUDY

The research will provide details about fact and different areas where organization’s should be said to be socially responsible and will equally discuss strategic ways for corporate social responsibility and maintenance of business ethnical code of conduct. However the impact of social corporate responsibilities on societal development image will be spell out.

1.8    DEFINITION OF TERMS

For the study if magnitude, the key word used in the research study shall be defined for better understanding of the topic.

–       Corporate Image:  This includes an intangible passion that enable a firm to continue gaining profit by other business or similar type.

–       Business Environment: It comprises of the force that may affect the continuous existence of the firms ability to coping with the environment.

–       Profit: This is a financial benefit.


This material content is developed to serve as a GUIDE for students to conduct academic research



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