CHAPTER ONE
INTRODUCTION
Background of the Study
Profit maximization was regarded as the primary mission and over-reaching economic motive of any business enterprises little or no attention was paid to the fact that, in pursuit of their profit objective, business enterprises have to be asked to assemble the resource from the local environment and have the stable socio-political and investment climate in order to operate successfully. If companies relies on society for existence, it is only logical that this environment be acculturated and nurtured to ensure its continuity. It is in this regard that the orientation of the modern business manager has changed to reflect the increasingly important interdependence between organizations and their environments. There is an increasing public glamour that business should participate actively in the well-being and environment in which they operate and make their profit.
However, the aim of establishing any business is to provide competitive goods and services to the consumer and society at large. This does not however, mean that they have concluded their obligation to the people especially to the host community where the business is sited and operated. Although there is no law pertaining to what form of services the host community should benefit from the business, it is morally obliged to cater for at least their host. This they do by development of infrastructures such as access roads where necessary and the provision of good water for domestic use and also the provision of electricity to the local population. Other forms of services that could be rendered for the young members of that community and of course the provision of gainful employment for those who have graduated from college.
There are a lot of other services that the host community can benefit from the business such as the provision of safety measures against pollution other air or water. On the other hand, to the business also look forward to the local populace, for continued patronage and also for ensuring the safety of lives and properties of the business and employees of that business who are not from that community.
According to Ango (2012) ―Business is a component of the society, as such, it must subject itself to the fair requirements of the society, for, their relationship is paramount and reciprocal (the business needs the society just as the society needs the business)‖. The focus of this research will therefore, be to Assess the responsibility of companies on the development of their host communities.
Statement of Research Problem
With the new competent and competitive players, the Nigerian Organization system is now driven by advanced competition brought about by MTNbalization, deregulation of financial services, recent multitude of Multinational Company, Chief Executives, astronomical development in Information and Communication Technology (ICT), among others, to render services according to cost-benefit criteria. This has affected organization customers’ habits as well, while the increasing demands for clear and hard facts about the social and environmental performance of Nigeria by an increasingly well-informed breed of stakeholders have made corporate social responsibility (CSR).
Nigerian organizations perceive the practice of Corporate Social Responsibility as a corporate philanthropy aimed at addressing socio-economic development challenges. However, some companies see the practice of CSR as a means of enhancing market share, avoiding tax and hence competitive strategy. It is however, obvious that despite the practice of CSR by Nigeria organizations, the community in which they operate still remain back ward in term of employment, opportunity, social welfare, infrastructural development etc.
Research Objective
The main objective of this study is to assess the responsibility of companies on the development of their host communities. But specifically, the study will sought to achieve the following objectives:
- To establish the relationship between Business Ethics and social welfare of the home
- To know the contribution of organization competition toward the enhancement of social welfare.
Research Question
The study intend to find answers to the following questions
- What is the relationship between Business Ethics and social welfare of the host communities?
- To what extent does organization competition contribute towards the enhancement of social welfare?
Significance of the Study
The study of responsibility of a companies is hoped to be of benefits not only to student‘s businessmen, government, customers, community, stockholders, academics, but the whole society. The study also highlight the problem associated with social responsibility and make use of the analysis to improve the working situations thereby minimizing the problems associated with social responsibility conflict in the organization and its environment as well.
Finally, the study inform all at large, the need for effective corporate social responsibility not only to the firm, but to the society at large.
Research Design
Traditionally, three methods are commonly in use, namely, survey research, experimental and Ex Post facto. However, additional non-conventional research methods commonly in use include non participant and participant observation, action process, axitology, (Otokiti, 2005). The work also observed that depending on the objectives of the research and associated problems, research work necessitates the use of one or a mixture of two or more methods. This research therefore adopted a mixture of methods. This research therefore, use multiple methods which comprise both survey and observation, information will be gathered using structured questionnaires (close ended questionnaires in order to curtail/restrain the respondents from derailing from expected results) and in- depth interview. Aside the primary data, sources that were adopted includes relevant secondary data like CSR report of the organization overtime, books, journals, published articles relating to Corporate Social Responsibility and Community development in Nigeria. The adopted design permit for review and changes in the research procedure for gathering relevant data, this research will be cross-sectional (i.e the questionnaires will be distributed once).
Population of the Study
The study population is very large, therefore sample determination were used, due to the fact that the population is more than 30 and in that case we study some portion using random sampling which bring about sample size determination, hence structure the population into two, (the organization and its customer) the researcher choose to use one organization in Ilorin (Mtn Nig Ltd) it is assume that the organization staff is 40 which comprises top level management, middle level management and the lower level management, it is assume that Mtn subscriber in Ilorin Constitute about 38% of Ilorin phone users therefore, all the customer was unable to reach as only 160 customer were used for the purpose of this study, which make the total population to amount to 200 in all. So far the whole population cannot be reach due to time and other constraint, 133 sample size was then used, this serve as a good representation of the population.
Sampling Techniques
The sample size for this study is made up of 133 which comprises MTN subscriber and staff of MTN Nig Ltd ranging from (top executives, senior and junior staff) were selected randomly. Stratify sampling technique were also used to select participants by taking a series of simple random samples from each stratum due to need of analysis. Two strata was therefore identified as Staff and subscriber of MTN. In the first strata of stratified random sampling, which made up of the staff, 20per cent representing 40 staff, were randomly sampled and the second strata constitute 80per cent, representing 160 different subscriber of MTN Nig Ltd.
Sources of Data and Procedure for Data Collection
Both primary and secondary sources were used for the data collection. The primary data was obtained mainly with the instruments of questionnaire and interview methods. Questionnaires was administered to 133 focused personality of the study. Concerning information on the contributions of CSR and Community Development, secondary data information was obtained as well from the MTN CSR report, other relevant data from text books, and additional data were sourced from University Library, Internet and other sources were also used for sourcing the relevant materials. The data collection technique that were use in selecting the respondents for the study is stratify sampling method. This method was used because the study population is not homogeneous. Therefore, they were group into strata, the respondents was then drawn randomly.
Research Instrument
Mixture of research instrument, involving the use of interview and questionnaire, was chosen because of the nature of this study. A well structured questionnaire was developed and use to gather information largely from MTN subscriber and executive, senior, and junior management staff of MTN Nigeria Ltd Ilorin branch located at Taiwo Ilorin, Kwara State.
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