THE IMPACT OF SOCIAL RESPONSIBILITY ON BUSINESS ORGANIZATIONS IN AKWA IBOM STATE
1.1 Background to the Study
Sustainable development and poverty reduction are now generally acknowledged as crucial challenges that governments, especially in developing nations, must address. The government, on the other hand, will need support from the business sector in order to handle this issue. Policymakers are paying special attention to the possible contribution of the private sector to these objectives. As the problem of sustainable development grows more urgent, CSR has grown into a component that tackles these issues, hence increasing its significance in the day-to-day operations of enterprises. Being a socially responsible corporation may enhance a company’s reputation and brand. Segun, O.J. (2018) argues that workers with a sense of social responsibility may use the available company resources to accomplish good. Formal corporate social responsibility initiatives may raise staff morale and productivity. Corporate social responsibility refers to the influence of a company’s actions on the interests of its stakeholders. CSR has a huge influence on the success of a firm.
Corporate Social Responsibility (CSR) as a term refers to the voluntary incorporation of social and environmental improvement into a company’s business strategy and activities. A commercial firm is founded mainly to produce value by delivering products and services that society requires. Company Social Responsibility (CSR) is one of the moral and ethical challenges surrounding corporate decision-making and conduct. Therefore, the issue of whether a firm should engage in particular activities or avoid from doing so based on whether they are good or detrimental to society is essential. Regardless of stakeholder demands, managers should consider the social implications of business operations when making decisions when it comes to social concerns. Nevertheless, others contend that the contribution of notions such as Corporate Social Responsibility (CSR) is only a reminder that the pursuit of profit should be restricted by social concerns and the pursuit of social justice (Heslin, P. & Achoa, J. 2018).
Corporate Social Responsibility (CSR) entails a company recognizing its stakeholder groups and integrating their needs and values into its strategic and operational decision-making. It is a technique for examining the interdependencies between enterprises, the economic system, and the communities in which they operate (Umar, G. 2018). Corporate Social Responsibility (CSR) is a method for addressing the scope of a company’s responsibility to its immediate society, for suggesting policy proposals on how those obligations may be fulfilled, and for identifying the advantages to a company of achieving those commitments. Consequently, the environmental aspect of Corporate Social Responsibility (CSR) is viewed as the obligation of business organizations to cover the environmental implications of their operations, products, and facilities, eliminate waste and emissions, maximize the efficiency and productivity of their resources, reward for externalities, and minimize unethical practices that may negatively impact the enjoyment of the community where they are located and the nation’s resources (Brammer, S., Millington, A., & Rayton, B. 2017). Although companies throughout the globe struggle with this new duty, which is to satisfy the requirements of the current generation without jeopardizing the future generations’ capacity to meet their own needs. Organizations are being urged to account for the effects of their activities on society and the natural environment. A demonstration of the incorporation of social and environmental issues into corporate operations and relationships with stakeholders is also required. Too often, Corporate Social Responsibility (CSR) is understood from the perspective of business generosity to community projects and charitable donations, but this fails to capture the most valuable contributions that a company has to offer as their focus has shifted from promoting product differentiation at the product and firm levels to looking beyond the business environment.
1.2 Statement of the Problem
In the expanding global economy, where the Internet, the news media, and the information revolution shine light on global business practices, corporations are increasingly evaluated based on their environmental responsibility. Business partners and customers are interested in the inner workings of a firm. According to Anyanwu E. (2021), many commercial organizations see themselves as stuck between societal demands and short-term profit maximization. It is now thought that stakeholder value and shareholder value are scarcely compatible. Consequently, modern organizations have both a fiduciary obligation to shareholders and a social responsibility to other stakeholders.
The firms of today seem to be undergoing a morality test. Being moral has expenses, most notably the maintenance of ethical behaviors while interacting with clients and consumers in their surroundings. Thus, research has showed that the majority of businesses do not have a CSR strategy because they shy away from giving back to society and participating in charitable initiatives in their local community. While the majority have become excessively profit-driven, they no longer accept the need for social responsibility, citing interference from too many stakeholders and stockholders. Despite considerable literature on the role of corporate social responsibility in the environment and society, there is a large knowledge gap about how corporate social responsibility promotes company performance owing to a lack of recorded proof of the advantages. Consequently, the goal of the study was to determine the effect of CSR on commercial banks and if these institutions achieve any returns on the amount they spend on social responsibility.
1.3 Objectives of the Study
Determine the impact of CSR on corporate organizations.
To identify the obstacles to social responsibility inside a corporation.
To determine if CSR policy should be included into the strategic goals of the firm.
Determine the link between corporate social responsibility and company performance.
1.4 Research Questions
What are the major impacts of CSR on corporate organizations?
What obstacles exist to corporate social responsibility?
Are there CSR policies to be included into the strategic goals of the organization?
4.What is the link between corporate social responsibility and company performance?
1.5 Significance of the Study
It is anticipated that the study’s findings would contribute to understanding about the dissemination of information about Corporate Social Responsibility to corporate entities. It will educate business organizations about their social responsibility, which will increase their profitability as the majority of their environmental obligations go unnoticed by customers and the community, despite the fact that the majority of them prefer to invest in CSR activities that are conspicuous to customers as opposed to those that are inconspicuous. The research will provide stakeholders and shareholders with a variety of information on the ways and tactics for implementing CSR policies into other policies in order to support the sustainable growth of their business environment. Students and academics will use the study as a resource for future research in related subjects.
1.6 Scope of the Study
Impact of Corporate Social Responsibility on corporate organizations is the focus of the research. This research will identify the obstacles to corporate social responsibility. However, the research is restricted to chosen organizations in Uyo, Akwa Ibom State.
1.7 Limitation of the Study
The primary element restricting this study is funding restrictions. Inadequate funding tends to limit the researcher’s efficiency in locating relevant resources, literature, or information and in collecting data (internet, questionnaire and interview). Moreover, due to time constraints, the researcher will conduct this study alongside other academic duties. This will subsequently reduce the time spent doing research. Lastly, respondents’ attitudes toward the staff who are to provide the necessary information regarding the impact of Corporate Social Responsibility on their organization, as the majority of them were unwilling to collect the questionnaire and those who did so were unable to answer the research questions in detail.
1.8 Definition of Terms
Organization: This refers to a group of individuals or individual efforts collaborating in pursuit of certain shared objectives known as organization goals.
Social Responsibility: Social Responsibility is the commitment of companies to contribute to sustainable economic growth by working with workers, their families, the local community, and society in general to enhance their lives in ways that are beneficial to both company and development.
Corporate Social Responsibility: –It is the process through which corporations voluntarily incorporate social and environmental improvement into their business philosophies and operations.
THE IMPACT OF SOCIAL RESPONSIBILITY ON BUSINESS ORGANIZATIONS IN AKWA IBOM STATE