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THE IMPACT
OF CORPORATE SOCIAL RESPONSIBILITY ON THE PERFORMANCE OF AN ORGANIZATION
CHAPTER ONE
INTRODUCTION
1.1.
BACKGROUND OF THE STUDY
Corporate
social responsibility is one vital aspect of any business. However, this is one
area where grievous mistakes have been made. Companies need to understand the
subject its concept, theories as well as the benefits there of.
In today’s
business environment, business organization are being expected to assume
broader and more diverse responsibilities to the various groups within the
society in Nigeria., various communities in which some major companies are
operating have been demanding for one thing or the other especially in riverine
area such as River state asking oil companies in conjunction with (NNPC)
Nigeria National Petroleum Corporation to provide drinkable water, giving
scholarship to their children, building hospitals, more schools and given them
compensation due to the damage cause on their farmland.
Business
firms not being socially responsible, infact lead youths of the communities to
agitate for their right such is the case of the riverine areas. There is no
doubt that there is an increasing amount of attention directed to social
responsibilities in business firms.
Corporate
social responsibility is the sense of obligation on the part of the
organization to build certain social concern and criteria into their strategic
decision making process. EVBOROKGHAI (2003).
Social
responsibility by Andrews (1971) is the intelligent and objective concern for
the welfare of the society that restrains individual and corporate behaviour
from ultimately destructive activities, no matter how immediately profitable,
and leads to the direction of positive contributions to human betterment,
variously as the latter may be defined. The concept implies that when companies
evaluate decisions from an ethical perspective there should be a presumption in
favour of adopting courses of action that enhance the welfare of society at
large. The point stressed in these definition is that when making decisions,
business men or organizations should consider the social interest of people in
society. These among other reasons probe the researcher to embark on this
research work.
1.2 STATEMENT OF THE PROBLEM
Access Bank
Plc, is a very reputable organization whose services is a visible friend in
almost every home in the society, but do not have a defined policy on social
responsibility.
Base on the
above, many companies use the strategy of benchmarking to compete within their
respective industries in corporate social responsibility policy, implementation
and effectiveness.
Bench
marking involves reviewing corporate social responsibility initiatives, as well
as measuring and evaluating the impact that those policies have on society and
the environment and how costumers perceive corporate social responsibility
strategy.
After a
comprehensive study and an internal policy review performed, a comparison can
be drawn.
1.3 OBJECTIVES OF THE STUDY
The
objective of the study is to look into the impact of corporate social
responsibilities on the performance of business organizations and they
include:-
To examine
social responsibility between/among business organizations, government and its
agencies, stakeholders and the society at large.
To examine
the impact of corporate social responsibility on the performance of business
organization
To find out
new areas in which business organizations can engage so as to strengthen its
relationship among various stakeholders that make up the society.
To find out
how business organization contribute to national development through charity
donations in times of disasters, obedience and respect for governmental laws
and policies, partnering with government financially in ensuring a healthy and
vigorous economy.
1.4 SIGNIFICANCE OF THE STUDY
The study
intends to present the under listed significance of the study as:
The research
work seeks to create awareness on the need to engage in social responsibility
in banking sector
Also, it
seeks to bring into limelight how newly established organizations can use the
concept of corporate social responsibility to capitalize on opportunities in
their business environment.
The project
would also be useful for scholars in the field of business administration and
others to understand the basic concept on the area of social responsibility
1.5 RESEARCH QUESTIONS
What are the
new areas in which business organizations can engage so as to strengthen its
relationship among various stakeholders that make up the society?
What are the
impact of corporate social responsibility on the performance of Access Bank
Plc?
What extent
have corporate social responsibility impacted positively among/between business
organizations?
What are the
contributions of social responsibility to the national development in ensuring
healthy and vigorous economy?
1.6 SCOPE OF
THE STUDY
The scope of
the study will center on the impact of corporate social responsibility on the
performance of Access bank plc with special reference to Kaduna Central Market
Branch office, Ibrahim Taiwo Road, to examine the nature, size and breath of
activity in business organizations. Social responsibility of business
encompasses the economic, legal, ethical and discreational expectations that
society has on organizations from 2006 to 2011.
1.7 LIMITATION OF THE STUDY
Some of the
available constraint faced by the researcher are presented below:
Time
constraint: To do adequate justice, the duration allowed for the completion and
submission of this research work is very limited, not to talk about other
school activities such as coping with lectures, tests schedules and most of all
researching for assignment and the project work at hand.
Financial
constraints: The work is really tasking and in my financial capacity as a
student it is not easy to meet up with.
Sourcing for
adequate and relevant information cover the research is not encouraging as the
respondent where not cooperating.
1.8 DEFINITION OF TERMS
Various
literary terms that sharpen the write up will be examined and defined as
follows:
Ethics =
Ethics according to Grace and Cohen (2005) includes standards of moral
behaviour that is, behaviours that are acceptable by the society.
Consumerism
= organized effect by individuals or groups aimed to project the users of
various products and service from harmful or deceptive business practices Grace
and Cohen (2005).
Corporate
social responsibility = according to Ronald and Ricky (1999) it is an attempt
by business organizations to balance their commitment towards groups and
individuals in it business environment.
Social
responsibility = according to Weihrich and Koontz (1994), it is the ability of
an organization to relates its operations and policies to the environment in
such ways that are mutually beneficial to the company and the society.
Social audit
= according to Ronald and Ricky (1999) it is commitment to systematic assessment of reporting on some
meaningful and definable domain of the company’s activities that have social
impact.
Corporate
philanthropy = according to Michael E porter (1997), as a practical sympathy
and benevolence shown by a business organization to various sectors of the
society.
Shareholders
= according to Kenning (1998), the
include interest groups that are tangible, visible and approachable groups or
institutions which can exercise direct influence in the functioning or affairs of an organization
1.9 HISTORICAL BACKGROUND OF THE CASE STUDY
Access bank
plc commences operation in 24th march 1998 as one of the measures taken by the
bank to spread it’s operations to the doorstep of the people.
Further to
the approval of the shareholders of Access bank plc and intercontinental bank
plc, the central bank of Nigeria and the securities and exchange commission
announce the completion of the re-capitalization of intercontinental bank and
the acquisition of 75% majority interest in the bank by Access bank plc.
Effective 14th October 2011,
intercontinental bank plc (including all its assets, liabilities and
undertakings) became a subsidiary of Access bank plc.
Emphasis was
placed on the fact that there was need for financial services. Prior to the
opening of the branch, its officials embarked on mass continues awareness
programme to sensitize the environs
Access bank
plc takes corporate social responsibility seriously. It leads the business
community by its efforts at promoting the doctrines of responsible corporate
citizenship through initiative and programmes. That address economic, social
and environmental challenges. Essential, the driving philosophy and objective
of the bank’s corporate social responsibility are to affect lives of citizens
and spur sustainable economic development in the societies the operate in.
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