SOCIAL RESPONSIBILITY OF COMPANIES ON THE DEVELOPMENT OF THEIR HOST COMMUNITIES
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SOCIAL RESPONSIBILITY OF COMPANIES ON THE DEVELOPMENT OF THEIR HOST COMMUNITIES
Chapter One
Introduction
1.1 Background for the Study
Profit maximisation was regarded as the primary mission and overarching economic motive of any business enterprise. Little or no attention was paid to the fact that, in order to achieve their profit objective, business enterprises must be asked to gather resources from the local environment and have a stable sociopolitical and investment climate in which to operate successfully.
If a corporate organisation depends on society for survival, it is only natural that this environment be acculturated and fostered to maintain its longevity.
In this regard, the modern business manager’s orientation has shifted to reflect the increasingly important interdependence between organisations and their environments.
Additionally, there is a growing public perception that businesses should actively participate in the well-being and environment in which they operate and profit.
However, the goal of starting a business is to deliver competitive goods and services to customers and society as a whole. This does not, however, imply that they have fulfilled their commitment to the people, particularly the host community where the firm is located and managed.
Although there is no regulation governing the type of services that the host community should receive from the business, it is morally required to cater to at least their host.
This is accomplished by assisting with the building of infrastructure such as access roads where necessary, as well as the provision of safe drinking water for home use and power for the local community.
Other types of services that could be provided to the young residents of that community, include the provision of gainful work for those who have graduated from college.
The host community can benefit from a variety of other services provided by the business, such as the provision of pollution-control measures for air and water.
On the other side, businesses look forward to ongoing patronage from the local population, as well as protecting the safety of the lives and properties of the firm and its employees who are not from the neighbourhood.
As a result, businessmen recognise the importance of keeping the benefit of society in mind while conducting business, which is the foundation of social responsibility.
1.2 Statement of Problem
The dispute surrounding the public’s demand that businesses actively contribute in the well-being and welfare of the community, society, and environment in which they operate and profit, is one of the issues that this research seeks to address. Has corporate social responsibility played a role in the overall marketing strategy of commercial organisations or enterprises?
Does business social responsibility contribute to the company’s total revenue? Is the belief that there is no need for a corporate enterprise to be socially responsible to its society “SHELL PORT-HARCOURT” correct or incorrect? What use is corporate social responsibility to the general public? The research problem is determining how sensitive firms are to social responsibility.
1.3 Scope of the Study
The scope of business’s social responsibilities in regard to this project focuses on obligations that businesses have deliberately imposed on themselves in order to secure the survival of the system in which they operate.
To provide the reader with a solid foundation from which to view all of the ramifications of business’s social duties, such responsibilities must be examined from the perspectives of consumers, employees, and the general public shell Port Harcourt.
The study’s two limitations are time and money limits. The subsequent difficulty in acquiring data from other companies led to the choice of shell company Port Harcourt as a case study.
This limits the generalizability of the research findings to only Port Harcourt and no other company in the country.
Another issue was a lack of literature on relevant issues and the non-availability of shell publications in libraries. The lack of precise and up-to-date statistical data due to current occurrences concerning the research issue.
1.4 Object of the Study
This study was undertaken with the following main objectives:
a. To partially meet the requirements for the award of a B.Sc in the department of Business Administration at Oduduwa University in Ipetumodu, Ile-Ife.
b. Examine and establish the extent to which the firm shell corporation has contributed to the development of Port Harcourt as part of its business social responsibility.
c. To explore the causes of business enterprises’ casual attitudes regarding business social responsibility to the development of their host community.
d. To advance solution of the challenges of business social responsibility to the growth of her host community.
1.5 Research Questions.
This study aims to provide solutions to these questions.
a. Does a commercial organization’s social duty promote community development?
b. How has the corporation carried out its social responsibilities in the community?
c. To learn about the extent to which this policy has been implemented, as well as the problems, arguments, and difficulties that the company has encountered in carrying out its social responsibilities in their host community.
1.6 Research Hypotheses
For the sake of carrying out this project, the following research hypotheses have been developed:
Hypothesis I: H0: business social responsibility has no major impact on the success and growth of the host community.
H1: Business social responsibility contributes considerably to the prosperity and growth of the host community.
Hypothesis 2 I: H0: There is no statistically significant association between corporate performance and social responsibility.
H1: There is a strong link between economic success and social responsibility.
1.7 Significance of the Study
This study is significant in that it lays the groundwork for future research into the issues by giving relevant data.
This study is especially significant since businesses have been criticised for ethical, moral, economic, and political reasons. Businesses, such as SHELL, have also contributed to the determination of our physical environment by burying poisonous waste materials in abandoned plant sites
dumping solid waste into lakes, seas, or rivers, and releasing poisonous gases into the air we breathe, among other things. Trying to be socially responsible incurs additional costs or fees for industries.
This study is significant because it will benefit “SHELL COMPANY” and its customers by allowing them to better comprehend and appreciate the work that has been made. If any, it will also benefit the government and registration because it will help them make more sense.
And useful legislation, which assists them in setting reasonable requirements for corporate social responsibility.
1.8 Limitations of the Study
The data used to write this research paper was gathered from both primary and secondary sources.
The author of this project work had several obstacles when acquiring information from diverse sources.
At first, the main issue encountered while gathering information for this project was budgetary constraints, which were caused by the high cost of browsing the internet.
1.9 Definition of Terms.
Multinational companies (MNC) or multinational enterprises (MNEs)
This category includes organisations that own or control production or service facilities in one or more countries other than their native country. For example, if a corporation is registered in more than one country or operates in more than one country, it may be classified as an MNC.
Typically, it is a large firm that manufactures and sells goods or services in multiple nations. It is sometimes known as an international corporation or “transnational corporation”. Social responsibility is an ethical theory that states that any body, whether an organisation or an individual, has an obligation to behave in the best interests of society.
Social responsibility is an obligation that every individual must do in order to keep the economy and ecosystems in balance. There may be a trade-off between material economic development and social and environmental well-being.
Social responsibility implies maintaining the balance between the two. It applies not only to businesses, but to anyone whose actions have an impact on the environment.
This obligation might be passive, such as refraining from engaging in socially destructive behaviour, or active, such as carrying out activities that directly advance societal goals. A community is a social group of any size that shares common ideals.
Although embodied or face-to-face communities are often small, larger or more extended communities, such as national, international, and virtual communities, are also investigated.
In human communities, intent, belief, resources, preferences, needs, hazards, and a variety of other circumstances may exist and be shared, influencing participant identity and cohesiveness. Host Country: A country to which individuals or organisations from other countries or states travel on government invitation or to attend a gathering.
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