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MULTI NATIONAL COMPANIES AND OTHER SOCIAL RESPONSIBILITIES IN THEIR HOST COMMUNITIES

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Profit maximization was considered the first mission and broader economic pattern all little or no attention was given to companies that in the pursuit of their profit target, companies must ask assemble the resource of the local environment and have the socio-political climate and stable investment to operate successfully. If the organization of the company based on the company for existence, it is logical that this environment is acculturated and nurtured to ensure its continuity. It is in this regard that the orientation of the modern entrepreneur has changed to reflect the interdependence increasingly important between organizations and environments with these, there is a public glamorous increase that companies should participate actively in the well-being and environment in which they operate and make their profit.

However, the purpose of establishing any business is to provide competitive products and services for consumers and society as a whole. This does not mean that they have concluded their obligation to the people especially in the host community where the company is located and operated. Although there is no law that that form of the host community services should benefit from the company, he is morally obliged to meet at least their host. They do this by helping to develop infrastructure such as access roads in case of need and the provision of water for domestic use and also the supply of electricity to the local population. Other forms of services that could be made for young members of the community and of course the provision of a lucrative business for those who have obtained a university degree. There are many other services that the host community can benefit from the company such as the provision of security measures against the other air pollution or water. Moreover, the company also welcome the local population, for the continuous patronage and also to ensure the safety of lives and property of the company and the employees of this company who are not from this community. Therefore, the recognition by the businessmen of the need to keep the good of society as a whole in mind while conducting business in the rock bed of social responsibility.

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