CORPORATE SOCIAL RESPONSIBILITY AND HOST COMMUNITY RELATIONS A STUDY OF SHELL NIGERIA PLC PORT HARCOURT
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The actual output or results of an organization as assessed against its expected outputs, aims, and objectives define organizational performance. In other words, organizational performance is the comparison of actual results or outputs to expected outputs. The research focuses on three primary outcomes: shareholder value performance, financial performance, and market performance.
It is a broad concept which captures what organizations do, generate, and accomplish for the many constituencies with\swhich they interact. Performance appeared to be the completion of an obligation in such a way that the performer was liberated from all duties under the contract. This means that a person must be appropriately evaluated in terms of productivity, abilities, decisions made, and absolute commitment to their jobs in order for the firm to meet its objectives (Kuvaas, 2006).
Corporate social responsibility is one way a corporation can perform well. Corporate social responsibility is a nebulous notion that has been defined in a variety of ways; it is commonly used in sociology, anthropology, economics, politics, and business administration literature. Most corporate social responsibility writers define the notion as an organization’s proclivity to adopt “missionary” rather than “mercenary” views toward society.
Corporate social responsibility in connection to business is the obligation of a company entity to follow those paths of action,\swhich are beneficial in terms of objectives, and values of society. It is defined as “intelligent and objective concern that restrains individual or corporate behavior from eventually damaging pursuits, no matter how momentarily profitable, and leads to the direction of the constructive contribution to human progress” (Lawal & Sulaimon, 2007).
Corporate executives, as agents of the owners, are presumably responsible for conducting business in accordance with the owner’s desires while adhering to the basic rules of society. There are three major aspects to the obligation (Ikpeze, 2001). First, make a charitable contribution. Second, social costs are eliminated. The adoption and observance of ethical codes aimed at reducing business malpractices is the third aspect of social responsibility.
Oil exploration corporations in Nigeria and other types of businesses must be seen in numerous action domains that might seek social responsibility in areas such as: concern for ecology and environment, commitment to quality, truth in advertising, customer happiness, and education. Other\sconcern include service to community needs, fair employment practices, progressive labour relations, job aid and\scorporate charity (Ogbeuchi, 2008).
(Ogbeuchi, 2008). This study associates corporate social responsibility with economic, legal, ethical, and discretionary responsibility, whereas organizational performance is associated with three outcomes associated with selected catering services in Khana Local Government Area, Rivers State, namely profitability, effectiveness, and efficiency.
1.2 Problem Description
The goal of this research is to look into corporate social responsibility and organizational success. It seeks to discover how an\sorganization carries out its commitment to the stakeholders which acts as a plan for carrying out commercial activities amicably. Most claims filed by various stakeholders are excessively burdensome on the business, yet they are expected to actively participate in resolving them. In order to achieve these expectations, most firms engage in unethical behavior, which often backfires.
This study seeks to determine whether elements of corporate social responsibility have the potential to influence organizational performance. The study also attempts to determine how employees’ perceptions of their business’s corporate image influence their behavior and how they promote their organization to other stakeholders.
Previous studies have found that certain aspects of corporate social responsibility (such as organizational ethics) have an impact on employees’ perceived company image, which can affect their loyalty to their organizations as well as organizational performance (Ikpeze, 2001).
As a result of the preceding, this study aims to investigate the relationship between corporate social responsibility and organizational performance in selected catering services in Khana Local Government Area, Rivers State.
1.3 The Study’s Objectives
The study’s major goal is to investigate the relationship between corporate social responsibility and organizational performance in a sample of catering services in Khana Local Government Area, Rivers State. The following objectives must be met:
i. To investigate the connection between economic responsibility and organizational performance in selected catering services in Khana Local Government Area, Rivers State.
ii. To investigate the connection between legal responsibility and organizational performance in selected catering services in Khana Local Government Area, Rivers State.
iii. To investigate the connection between ethical responsibility and organizational performance in selected catering services in Khana Local Government Area, Rivers State.
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1.6 Importance of the Research
One of the primary reasons for doing this study is that society’s expectation of organizational corporate social responsibility efforts is gaining traction and quickly becoming a normal business practice. Many organizations have begun to incorporate corporate social responsibility into their organizational procedures in order to meet their legal obligations.
However, in order for corporate social responsibility to be effective and bring value to the organization (such as improving the corporate image and employee commitment), the organization and employees must first understand the benefits of investing in corporate social responsibility before embarking on this time-consuming, resource-intensive, and costly project.
This study is particularly noteworthy since it revealed the roles of corporate social responsibility and organizational performance in selected catering services in Khana Local Government Area, Rivers State.
1.7 Study Scope/Limitations
The study is divided into three sections: content scope, geographical scope, and unit of analysis.
The study’s content scope entails an inquiry to determine the relationship between corporate social responsibility and organizational performance.
Corporate social responsibility, as assessed by economic, legal, and ethical responsibilities, is the independent variable. The dependent variable is host community relations, which are measured by organizational performance, profitability, efficacy, and efficiency.
Geographical Scope: The scope of this study is limited to Khana Local Government, with special emphasis on chosen catering services such as The Promise Fast Food and Beeks Restaurant.
Analytical Unit: The persons who participated in the study are the unit of analysis in this study.
The researcher must face the following constraints when conducting an investigation of this nature: time, poor response from respondents, and financial.
This research looks into the relationship between corporate social responsibility and organizational performance. As a result, it is a micro level investigation.
CORPORATE SOCIAL RESPONSIBILITY AND HOST COMMUNITY RELATIONS A STUDY OF SHELL NIGERIA PLC PORT HARCOURT
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