IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON THE ACHIEVEMENT OF ORGANIZATIONAL OBJECTIVE

ABSTRACT

This research studied the Impact of Corporate social Responsibility on the achievement of organizational objectives. Chapter one of this study introduced the topic stating the research problem, the purpose of the study which is aimed at examining, evaluating corporate social Responsibility and achievement of organizational objectives. It also include research questions which one of it is; does the benefit of being socially responsible surpass the cost? A review of different literatures in relation to the study was considered in chapter two, in which there were several argument for and against amongst in which many consumers and customers believed that most social responsibility activities do not pay in their own way because the cost of providing the social responsibility is built in the price structure of the product or services. In arriving at a conclusion, datas where collected through research instruments such as Questionnaires and interview carried out using UBA PLC staffs as the sample population, while the datas were analysed using statistical packages for social sciences (SPSS). The testing of hypothesis was done using chi-square. However, hypothesis 3 was rejected (Employees of the organization are not important in social responsibility consideration). This indicated that employees are very important consideration in social responsibility matters.

Finally, the activities of corporate socially responsible organizations over the years had provided for filling the gap in which the government is unable to do, thereby it is essential in the achievement of organizational objectives.

CHAPTER ONE

1.0            INTRODUCTION

Corporate social responsibility of an organisation is about the integration of social, Environmental and Economic consideration into decision making structures and processes of service rendering and production.

Social responsibility is the degree to which a company recognises what being a good community and global citizen means and act accordingly (Ejiwunmi O.M. 2005).

Davies & Co (1975) stated that “Social Responsibility is the obligation of decision makers to take actions which protect and improve the welfare of society as a whole along with their own interest”.

According to Davies & Co, to protect means guiding against negative influences on business and society while to improve implies creating some positive benefits for the business and society.   This is achieved because corporate social responsibility involves using innovations to find creative and value added solution to societal and environmental challenges around a business organisation. Social Responsibility can be viewed from three perspectives which includes; obligations, reaction and response.

Social obligation is concerned with the society’s request that firms or organisations provides for all goods and services, so also providing opportunities for every one desiring to gainfully participate in organizational activities.

Examples of social obligations are payment of taxes, ensuring safety regulations are complied with etc. Social reaction is the prompt reaction to social interest group. This reaction is voluntary because these special interest group have great influence on the company. Examples of these group are shareholders, customers, employee.

Social response is seen in a company not only when the company complies with the law and most of the societal pressures but when it (company) makes efforts to anticipate likely societal problems and to respond timely to prevent them.

At this point, it is imperative to say that corporate social responsibility carters for different stakeholders which includes; shareholders, customers, suppliers, Government, Host communities, employee, the general public etc corporate social responsibility has various argument for and argument against, these will be dealt with in a later chapter of this study.

In order to respond to increasing social, economic and environmental demands, organisations are to be more concerned with what happens around them. In the process, management may have to make a trade off to satisfy issues that could affect their business negatively.

1.1     STATEMENT OF RESEARCH PROBLEM

Over the years a few organisations have found themselves in operations and Economic difficulties which surprisingly are not as a result of poor quality or marketing of their goods or services but which result out of the fact that they do not recognize the need to do one thing or the other to improve their corporate image and boost their profitability. This problem is mostly faced by organisation in the oil industries who operate in the Niger Delta region of Nigeria.