AN ASSESSMENT OF THE IMPACT OF WEALTH MAXIMIZATION GOAL OF BUSINESS ON CORPORATE SOCIAL RESPONSIBILITY IN NIGERIA

Format: MS WORD | Chapter: 1-5 | Pages: 70 | 1630 Users found this project useful | Price NGN5,000

AN ASSESSMENT OF THE IMPACT OF WEALTH MAXIMIZATION GOAL OF BUSINESS ON CORPORATE SOCIAL RESPONSIBILITY IN NIGERIA

ABSTRACT

The project is an exposition towards determining the impact of business goal on the exercise of business’ social responsibility. The research was conducted by the analysis of field data collected through questionnaires, interviews, personal observation and by a critical review of related literatures. Data were collected from at least two businesses in three sectors across the Nigerian economy covering the range of year 2005-2007, data presentation and interpretation is by simple tables and percentages and hypotheses was tested using Chi-Square statistical technique at 95% level of significance. The study established that over 70% of businesses that engage in social responsibility do that in pursuance of business’ wealth maximization. In other words, business’ practice of social responsibility is a product of the wealth maximization goal. The study therefore, concludes that wealth maximization goal of business is in accord with corporate social responsibility. Hence, it is recommended that business willful of maximizing its wealth should dedicate adequate/commensurate amount of attention and resources to social responsibility.

CHAPTER ONE

INTRODUCTION

1:1 Background to the Study

It is an axiom world over that every organization irrespective of their type, size and ownership structure have specific reasons for their existence; a well defined intention that inform their subsistence. For a business entity or firm, it is popularly one of profit maximization or wealth maximization. The profit maximization objective of a business firm has been widely criticized. It is contented according to Pandy (2016) that profit maximization objective assumes a situation of a perfect competition, and in the face of imperfect modern market, it cannot be a legitimate goal of a business. Further still, it is argued that the profit maximization as a business objective came into existence when business ownership structure were mostly self financing, private property and single entrepreneurship. The singular/common purpose of the owner is therefore, to increase personal wealth and influence, which could easily be satisfied by the profit maximization goal. Contrarily, the modern day business entity is characterized by divorce or distinction between the owners (shareholders) and management (agent) consequently, the firm’s activities can not be enhanced without the input of all other important stakeholders; Googins (2013) assert that “…profit ability (of afirm/business) is dependent on the stakeholders’ trust”. In modern day businesstherefore, profit maximization is regarded as unworkable, inappropriate, hazy and dissolute.

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Project information

Project Price

NGN5,000
Number of Pages

70
Number of Chapters

1-5
Additional Content

Abstract,Table of content and Questionnaire

AN ASSESSMENT OF THE IMPACT OF WEALTH MAXIMIZATION GOAL OF BUSINESS ON CORPORATE SOCIAL RESPONSIBILITY IN NIGERIA

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