1.1 Background to the Study
Sustainable development and poverty reduction are now widely recognized as critical issues that governments, particularly in developing countries, must address. The government, on the other hand, will not be able to address this challenge without the assistance of the private sector. Policymakers are paying close attention to the private sector’s potential contribution to such goals. As the issue of sustainable development becomes more pressing, CSR has evolved into a component that addresses these concerns, making it more important in the day-to-day operations of businesses. Being a socially responsible business can help to improve a company’s image and brand. Segun, O.J. (2018) asserts that employees with a sense of social responsibility can use the corporate resources at their disposal to do good. Formal corporate social responsibility programs can improve employee morale and increase workplace efficiency. The impact of a company’s activities on stakeholders’ interests is referred to as corporate social responsibility. CSR has a significant impact on an organization’s performance.
Corporate Social Responsibility (CSR) as a concept entails the practice whereby corporate entities voluntarily integrate both social and environmental upliftment into their business philosophy and operations. A business enterprise is primarily established to create value by producing goods and services which society demands. The notion of Corporate Social Responsibility (CSR) is one of the ethical and moral issues surrounding corporate decision making and behaviour. Therefore, whether a company should undertake certain activities or refrain from doing so because they are beneficial or harmful to society is a central question. Social issues deserve moral consideration of their own and should lead managers to consider the social impacts of corporate activities in decision making regardless of any stakeholders’ pressures. However, some argue that the contribution of concepts such as Corporate Social Responsibility (CSR) is just a reminder that the search for profit should be constrained by social considerations and increasing (Heslin, P. & Achoa, J. 2018).
Corporate Social Responsibility (CSR) involves a business identifying its stakeholder groups and incorporating their needs and values into the strategic and day-to-day decision-making process. It is a means of analyzing the inter-dependent relationships that exist between businesses, the economic system, and the communities within which they are operating (Umar, G. 2018). Corporate Social Responsibility (CSR) is a means of discussing the extent of obligations a business has to its immediate society; it is a way of proposing policy ideas on how those obligations can be met, as well as a tool by which the benefits to a business of meeting those obligations can be identified. As a result of this, the environmental aspect of Corporate Social Responsibility (CSR) is seen as the duty of business organizations to cover the environmental implications of their operations, products, and facilities, eliminate waste and emissions, maximize the efficiency and productivity of their resources, reward for externalities, and minimize unethical practices that might adversely affect the enjoyment of the community where they are located and the country’s resources (Brammer, S., Millington, A., & Rayton, B. 2017). Although corporations around the world are struggling with this new role, which is to meet the needs of the present generation without compromising the ability of the next generations to meet their own needs. Organizations are being called upon to take responsibility for the ways their operations impact society and the natural environment. They are also being asked to demonstrate the inclusion of social and environmental concerns in business operations and in interactions with stakeholders. Too often, attaining Corporate Social Responsibility (CSR) is understood from the perspective of business generosity to community projects and charitable donations, but this fails to capture the most valuable contributions that a company has to make as their attention has shifted from promoting product differentiation at the product and firm levels to looking outside their business environment.
1.2 Statement of the Problem
In the emerging global economy, where the Internet, the news media, and the information revolution shed light on business practices around the world, companies are more frequently judged on the basis of their environmental stewardship. Partners in business and consumers want to know what is inside a company. According to Anyanwu E. (2021) many business organizations see themselves as caught between social demands and maximizing short-term profits. It is now believed that stakeholder value is hardly compatible with shareholder value. Therefore, today’s businesses have a fiduciary duty to shareholders and, at the same time, a social responsibility to stakeholders.
Apparently, it seems like today’s companies are caught in a morality test. Being moral involves costs, especially being upholding ethical practices while dealing with clients and customers within their environment. Thus, research has revealed that most business organizations do not practice CSR policy because they are shying away from giving back value to society and engaging in philanthropic actions to those within the area of their business. While most of them have become too profit-oriented, they no longer acknowledge the need to take social responsibility on the excuse of too many stakeholders and shareholders’ interference. In spite of the existing literature about the role of corporate social responsibility in the environment and society, there is a significant gap about how corporate social responsibility improves business performance due to a lack of documented evidence of the benefits. Hence, the researchers’ focus was to find out the impact of CSR on commercial banks as well as to find out whether these institutions realize any benefits from the amount they spend on social responsibility.
1.3 Objectives of the Study
The main objectives this study is to examine the place of Corporate Social Responsibility and it effect on the business organization on Nigerian Economy. The other specific objectives are:-
- To determine the significant effect of CSR on business organization.
- To identify the hindrances to organization social responsibility.
- To examine perhaps CSR policy to be incorporated in organization strategic goal.
- To determine the relationship between CSR and business performance.
1.4 Research Questions
- What are the significant effect of CSR on business organization?
- What are the hindrances to organization social responsibility?
- Are there CSR policy to be incorporated in organization strategic goal?
4.What is the relationship between CSR and business performance?
1.5 Significance of the Study
Findings from the study are expected to make a contribution to knowledge in the provision of information about Corporate Social Responsibility to business organizations. It will enlighten business organizations about their social responsibility, which can enhance their profitability as most of the environmental obligations they do go unnoticed by customers and the community, even when most of them prefer to invest in CSR activities that are conspicuous to customers as opposed to those which are salient. The study will equip both stakeholders and shareholders with a handful of information on the approaches and strategies for incorporating CSR policies into other policies to promote sustainable development of their business environment. The study will provide fundamental material for scholarly discourse in management science relating to Corporate Social Responsibility and also serve as a reference material for students and academia for future research in related fields.
1.6 Scope of the Study
The scope of the study is bordered on the impact of Corporate Social Responsibility on business organizations. The study will determine the hindrances to organization social responsibility. The study is however limited to selected Organization in Uyo metropolis in Akwaibom State.
1.7 Limitation of the Study
The major limiting factor of this research work is financial constraints Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview). More so, time constraint of which the researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work. Lastly respondents attitude the staff who is to give the necessary information as to the impact of Corporate Social Responsibility in their organization as most of them were not willing to collect the questionnaire while those who did where not able to give detailed information on the research questions.
1.8 Definition of Terms
Organization: This is a combination of people or individual efforts working together in pursuit of certain common purposes called organization goals
Social Responsibility: Social Responsibility is the commitment of businesses to contribute to sustainable economic development by working with employees, their families, the local community and society at large to improve their lives in ways that are good for business and for development.
Corporate Social Responsibility: –It entails the practice whereby corporate entities voluntarily integrate both social and environment upliftment in their business philosophy and operations.
Anyanwu E. (2021). Impact of Corporate Social Responsibility in banking sector using First Bank Nigeria plc as the focus retrieved from https://iproject.com.ng/banking-and-finance/Impact of Corporate Social Responsibility in banking sector/index.html.
Brammer, S., Millington, A., Rayton, B. (2017). The Contribution of Corporation Social Responsibility to Organizational Commitment. Int. J. Hum. Res. Manag. 18 (10): 1701-1719.
Heslin, P., Achoa, J. (2008). Understanding and Developing Strategic Corporate Social Responsibility. Org. Dynamics. 27 (2): 125-144.
Umar, G.(2018). The Influence of Corporate Social Responsibility on the Performance of Banks: A Case study of Zenith Bank Plc. Journal of Management Studies. A bi-annual publication of the Faculty of Management Sciences, Usmanu Danfodiyo University, Sokoto
Segun, O.J. (2018). Corporate Social Responsibility: Challenges and Opportunities in Small and Medium Size Enterprises (A case study of Commandclem Nigerian Limited). A project work submitted to the Department of Business Administration.[email protected][email protected]