AN APPRAISAL OF SOCIALS RESPONSIBILITY PRACTICE BY NIGERIAN CORPORATE ORGANISATIONS

CHAPTER ONE

1.0            INTRODUCTION

1.1     BACKGROUND OF THE STUDY

In the early 1900’s the mission of business firm was exclusively economic.  Today, partly due to interdependencies of many groups in on society, the social involvement of business has increased. There is a question as to what the social responsibility of business really is. Moreover, the same question originally asked of business is now being addressed with increasing frequency to the people in government, universities, non-profit organization, charitable organizations and even churches. Thus: we talk about the social responsibility and social responsiveness of all organisation although the focus of our study is on corporate organisation. Society awakened and vocal with respect to the urgency of social problems is asking managers particularly those at the top, what they are doing to discharge their social responsibilities and why they are not doing more. The concept of social responsibility is not new, although the idea was already considered in the early part of the twentieth century.  The modern discussion of social responsibility got a major impetus with the book social responsibility of business men by Howard R. Bowen, who suggested that business should consider the social implications of their decisions.  The concept of social responsibility refers to the firm’s consideration of and responses to the issues beyond the narrow economic, technical and legal requirement of the firm.  It is the firm’s obligation to evaluate in its decision making process the effect of its decision on the external social systems in a manner that should accomplish social benefits along with the traditional economic gains which the firms seek. In the recent years, the concept of social responsibility of business managers have become a popular subject for discussion and debate within both business and academic circle.  The distinct phase namely:

a.                 Profit maximization management

b.                 Trusteeship management

c.                  Quality of life management

The phase one (profit maximization management) believes that business managers have one objective which is to maximize profit.  Legal framework with the environment of the firms operation was the only constrain.  The origin of the view may be found in Adam Smith’s wealth of the nations.  The trusteeship managers recognize the interest of the other groups.  They are profit satisfiers that is they balance the profit of the owners and the organization with the wages for employees, taxes for the government, interest for the creditors and so forth. The quality of life manage agrees that selfish and group interest are important, but the society is good for the company.  He agrees that profit is essential for the firm, but that profit is not the end of objective of the firm.  As far as money and wealth are concerned, his set of values would tell him that money is important but people are more important than money. In today’s business world, there are people who subscribe for the three phases of social responsibility concept.  Perhaps the majority of the business managers today adhere to phase two concept of social responsibility.  Those businessmen emphasize on good wages and working condition and forthright in dealing with their customers and suppliers.  A growing number of academicians and business executive appear to be accepting the phase two concept of social responsibility.

1.2            STATEMENT OF THE PROBLEM

Oil spillage in some of the oil producing states is alarming and some pollution caused by industries in on country is on high rate in 1980s and early 1990.  the problems of communities where the oil operate bring these problems constructively to the attention of the companies with which they have developed a regular forum for meetings. These companies have created ecological disaster, gas flowing in the communities. Therefore, the problem to be looked into in this research is that corporate organizations do not bother about their social responsibility to the environment where they operate. Furthermore, poverty, lack of essential facilities and unemployment are increasing in alarming proportion, as a result of this, the need and expectations of the society are not by the business organizations.  Also, it seems that the government provides the essential facilities needed by the society.

1.3            OBJECTIVE OF THE STUDY

The corporate organizations naturally have their own mix and different emphasis.  The overall objectives of every organisation survival, growth, profit, economic contributions and social obligation.  It is a known fact that firms in Nigeria lay more emphasis on profit maximization. There have been many articles written by Nigerians urging Nigeria companies to be socially responsible.  In other words they urge that these companies be more concerned with social issues than they are now. However, these articles have largely ignored the situational nature of Nigeria business organisation.  The general small size and economic development of the nation.  It is therefore the objective of this research to:

a.                 Enrich the literature of social responsibility

b.                 To examine the general attitude of ANAMMCO towards social responsibility.

c.                  To examine the consequences of company ignoring its social responsibility.

d.                 To examine the problem which hinder the performance of social responsibility by ANAMMCO.

e.                  To make recommendations

1.4            SIGNIFICANCE OF THE STUDY

The study is important because, it will not only examine the attitude of business organizational towards the issues of social responsibility.  It will also help these organisation in policy making decision in order to eliminate the negative effects and consequences of these attitude in the discharge of social responsibility. Organizations must not assume tasks for which they lack competence. It will be of immense benefit to the people who want to research more on this topic example students etc. Another significance role of this research is finding ways to improve relationship between the company and the society in which it operates. It enables managers of different organizations to know actually what social responsibility is all about and it will help them to know the difference between social problem and economic performance.

1.5            RESEARCH QUESTIONS

In the case of the present – economic condition, how can a business organisation carryout a successful social responsibility?  This study intends to provide answers to these questions.

a.                 Could business organization carryout a successful social responsibility practice?

b.                 Should social responsibility be legalized?

c.                  In what form should social responsibility be?

d.                 Where should funds for carrying out these social programme come from?

1.6            THE SCOPE AND LIMITATION

In the course of carrying out this work, the researcher underwent a lot of difficulties as in going to liberties sourcing for materials.  She also encountered financial problems and other problems as regards to the corporate organisaiton (ANAMMCO) which she used as a case study.  Time was also a constraint to the researcher in the sense that some officials who suppose to give information concerning the research work are not always found on sit, this makes the researcher to frequent the company often and on thereby wasting time as the company were afraid of giving the correct data which could affect the research work.

REFERENCESEgbu, K.I. (1998)Groundwork of Research Methods and Procedures, Institute for Development Studies, Enugu.

Heinz Welrich (1988)     Management B y Harold Koontz, McGraw Hill Book Co-Singapore.