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CORPORATE SOCIAL RESPONSIBILITY A NECESSITY TO NIGERIA BUSINESS ORGANIZATIONS

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND TO THE STUDY

The concept of business social responsibility has continued to evolve and expand. Currently, the adequate and efficient use of resources to make profit is still seen as the primary social responsibility of business organizations. The idea of corporate social responsibility started in the early stage of the twentieth century. Interestingly and good enough, it began from business executives who believed that corporations have an obligation to use their resources in ways that would benefit the entire society. Nevertheless, the role of business firms is that of producing good sand services at a profit social expectations of business have increased so well that there is a need for social attention in order to narrow the gap between expectations and response and keep business in tune with the society. While an organization is concentrated in establishing its goals, objective developing and executing strategies for achieving its stated purpose, it should also recognized the fact that it operates within an environment which expects it to operate in such a manner that would not harm the particular environment.

Furthermore, this issue is so important to business organization in that if adequately maintained, it brings about good relationship between the organization and the society. In view of these, study which is narrowed down to Guinness Nigeria Plc can approximately be described as one of the most prominent and well-known company in the country. The company  celebrated its 50th year (Golden Jubilee) in the year 2002. now, it is obvious that it has been in existence since the past 53 years in Nigeria and the demand for its product, no doubt has continued to grow and it has indeed remained consistently high all through the years. This company majors in the production of small and big Guinness stout beer, harp, gulder, spasrk, malta Guinness, it also produced satzenbrau beer. This company has brouches in various pasrts of the country since early seventies, precisely 1974. its first production plant was established at Ikpoba scope in Benin city. Till today, the company has continued to grow and it remains of the most dominant and prominent companies in the brewery industry.

1.2   STATEMENT OF THE PROBLEM

A majority of Nigerian business organization have not shown sufficient interest to social responsibility. At present, many Nigerian businessmen’s attitude to social responsibility is that of non-challancy, they don’t see it as their responsibility. Nowadays this belief has resulted in conflicts especially in this era where  greater number of people now believe that corporation should actively exist between the people and the organization. For this enhances the smooth running of business by the organization and maximum support by the society. In order to the maximum support by the society, the organization has to employ the following strategies reducing population, plans to educate the people, institute as public health care, employ the people of the  area, it should also engage herself in environmental protection prgramme, see to the welfare of the people at large.

The issue of corporate social responsibility is treated within the context of this research work in relation with Guinness Nigeria Plc Aba activities with respect to consumers, employees and the public (community) perception to the issue by both community members and management of Guinness Nigeria seem to differ based on each group preferential needs, motives, valves, goals and aspirations. Guinness Nigeria is constantly maximizing profit but not much attempt have been made in balancing ethics with economics. A balance has to be struck between the actions of Guinness Nigeria which is profit maximization and the community wants. In the light of the above, this study attempts to determine the extent at which Guinness Nigeria Plc Aba has been socially responsible to the needs of  the country.

1.3     PURPOSE OF STUDY

Social involvement has not replaced the basic economic role of business in society, but it does not introduce new goal for business to pursue and new constraints on how business will operate. Thus, this study has to highlight on these goals and constraints.

The following aims and objectives of this study came to mind in the choice of this topic:

(1)  To evaluate the extent of Guinness Nigeria Plc Aba city involvement in social affairs.

(2)  To identify the role it is expected to play in the area of corporate social responsibility.

(3)  To know the impact of social responsibility an a company and the society

(4)  To ascertain public impression, opinion and perception on the company.

1.4    SCOPE OF STUDY

In order to be able to effectively evaluate the activities of business corporations and the community in which they operate in terms of their social responsibility, this study will narrow down to determine how socially responsibility (Guinness Nigeria Plc Aba and the inhabitants of the environ.

1.5   RESEARCH QUESTION

The following questions have been raised in order to emphatically test the result from the questions in my questionnaire. The result of these questions in will form the basis for my conclusions and recommendations:

(1)  Is the company concerned about the welfare of the people

(2)  Does Guinness Aba contribute positively to the standard of living of the country.

(3)  Does the community derive any benefit from the company at all.

(4) What is the perception of the public on the company about its involvement in social responsibility.

Answers to these questions would be a immense benefit in making meaningful recommendations which will aid the business corporate and government in its policy formulations.

1.6  SIGNIFICANCE OF THE STUDY

“A healthy business and a sick  society are hardly compatible”, noted Peter Drucker (1980: 10). Business corporations constantly exercising responsibility is a way to reduce or avoid public criticism that leads to government regulations and which is made do make business corporations respond to the societal demands. This is because the long run self interest of business are served by energetic social responsibility.

Since Guinness Nigeria Plc is part of a major multinational corporation operating in Nigeria, becomes necessary to embark on a study of a multinational;  corporation and its social responsibility with special attention on Guinness Plc’s actions Aba. It is expected that finding would be useful to the organization in decision making and will help government in policy formulation. Furthermore, this study will serve to broaden the frontiers of knowledge and drop the attention of business corporations in the role they are expected to play in the society in which they operate. The emphasis of this study is on business society relation.

1.7   LIMITATION OF STUDY

The limitations of the study are associated with the diverse nature, attitude and perception of managers, most of whom did not consider it worthwhile offering their assistance in providing answers to the questionnaire. Majority were skeptical in providing required information. There were problems of generating information from respondents as most of them were illiterates. There was also the problem of financial restraints which did not enable me travel far and wide and as frequent as necessary. These problems invariably lead to time and constraints.

1.8   DEFINITION OF TERMS

Corporate social responsibility:This is what business should do to tackle and solve the problem of the society.

Corporate social responsiveness:This means knowing how to manage a company’s relationship with external social political and government forces

Ethics:This means the principle of conduct used to govern decision making.

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