CHAPTER ONE
INTRODUCTION
1.1 BACGROUND TO THE STUDY
All organizations exists in complex relationship witah elements in their external environments. Corporate social performance is therefore an obligation of organization to act in ways that serve both its own interest and that of its many external public. These publics are considered stakeholder persons, and groups who are affected in one way or the other by the activities of an organization. They are people affected in one way or the other by its commitment to social responsibilities (Ogbuechi, 1998)
Corporations have grown larger and more powerful that their influence have become more pervasive thus creating an imbalance which is likely to have been instrumental in generating a movement to promote more socially conscious business performances. (Holmes 1977).
Andrew (1977) described social responsibilities as the intelligent and objective concern which restrains individuals or corporate behavior from destructive activities no matter how immediately profitable but rather direct their positive contribution to human betterment.
Ogbuechi (1998) submitted that an organization is meeting its economic responsibility when it earns profit through the provision of goods and services desired by customers. Legal responsibilities are fulfilled when an organization operates within the law and according to the requirements of various external regulations. Ideally, economic responsibility is met in a legal responsible manner.
Luttan and Hodget (1976) submitted that a classis discussion of corporate social performance is the obligation of a businessman to pursue those policies, to make decisions or to follow those lines of action which are desirable in terms of objectives and values of the society.
Imosili (1985)said that the major limitations of these conceptions about corporate social performances are the failure to make into account organizations ability to become ‘missionaries’. There is a wide spread acceptance of the idea that corporations should exhibit socially responsible behavior, there is however a wide disagreement about how they should go about it.
Lawal (1993) therefore concluded that social responsibility is a nebulous concept that has been described in a number of ways. He said that most writers on social responsibility see the concept as the disposition of organizations to exhibit ‘missionary’ rather that ‘mercenary’ attitudes towards the society.
1.2 PROBLEM STATEMENT
Question regarding ethnics and social responsibility have always surfaced in the discussions pertaining to the activities of corporations in emerging market such as Nigerian. Giving the size of the Nigerian economy as well as the enormous potentials it offers, it has become increasingly necessary to promote higher ethnical standards among leaders of major Nigeria corporations as the global awareness of ethnical and corporate responsibilities issues is continually increasing the conduct of business transaction, efficiency and effectiveness in technocratic terms is no longer sufficient to preserve the accept ability of the Nigerian mangers in the global market place, but may have to include issues of ethnical and corporate social integrity considerations. Though there is yet no universal morality standard, ethical and social must become and integral part of decision making process of Nigeria managers. This decisions making must include every aspect of managing the business including production, marketing, financial, legal and human resource.
1.3 PURPOSE OF STUDY
The study seeks to evaluate corporate social performance by identifying those areas of commitment of business organizations in Nigeria with particular reference to manufacturing firms.
The study will also examine the relationship between social responsibility practice and organization performance. It is to analyze and discuss the result of findings with a view to giving useful suggestion on how organizations can better put their social awareness programmes into profitable practice.
The study will also examine the impact of organizations involvement in social responsibility practice as it affects their profitability level and corporate image.