MULTI NATIONAL COMPANIES AND THEIR SOCIAL RESPONSIBILITIES IN THEIR HOST COMMUNITIES: A STUDY OF SHELL COMPANY PORT-HARCOURT, RIVER STATE

      CHAPTER ONE

INTRODUCTION

1.1             BACKGROUND OF 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 ask to assemble the resource from the local environment and have the stable socio-political and investment climate in which to operate successfully. If business organization 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 there environments with these, 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 as 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 aiding the development of infrastructures such as access roads where necessary and the provision of good water for domestic use and also the provision of electricity of 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. Therefore, the recognition by businessmen of the need to keep the good of society as a whole to mind while conducting business in the bed-rock of social responsibility.        



1.2       STATEMENT OF THE PROBLEM

          The controversy about the public clamor that business should participate actively in the well being and welfare of the community, society environment in which they operate and make their profit are the problems among others this research intend to solve. Has business social responsibility any part to play in the total marketing effort of business organizations or enterprises?

          Does business social responsibility contribute anything to the total revenue of the company? Is the conception that there is no need for business enterprise to be socially responsible to its society “SHELL PORT-HARCOURT” true or false? Of what use is business social responsibility to the general public? The problem for this research is what the responsiveness of companies to social responsibility is.

          The following research hypothesis are formulated for the purpose of carrying out this project of which:

HYPOTHESIS I: Ho: socials responsibility of business does not significantly enhance the success and development of the host community

Hi: social responsibility of business significantly enhances the success and development of the host community.

HYPOTHESIS 2 I: Ho: There is no significant relationship between the success of business and its social responsibility.

H1: There is a significant relationship between the success of business and its social responsibility.



1.3        OBJECTIVES OF THE STUDY

          This research work was conducted with the following main objectives:

a.                  To met up with the requirement in partial fulfillment for the award of B.Sc in the department of Business Administration Caritas University, Enugu.

b.                 To examine and determine the extent of benefits that the company shell company has contributed to the development of Port Harcourt in response towards to the business social responsibility.

c.                  To investigate the causes of business enterprise nonchalant attitudes towards business social responsibility to the development of its host community.  

d.                 To advance solution of the problems of business social responsibility to the development of her host community.

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