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CORPORATE SOCIAL RESPONSIBILITY AS A TOOL FOR SUSTAINING ORGANISATIONAL SURVIVIAL AND GROWTH

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CORPORATE SOCIAL RESPONSIBILITY AS A TOOL FOR SUSTAINING ORGANISATIONAL SURVIVIAL AND GROWTH

 

(A STUDY OF AIRTEL NIGERIA)

 

CHAPTER ONE

INTRODUCTION

1.01     BACKGROUND TO THE STUDY

As the survival of every organisation depends on the accomplishment of its objectives. The two broad categories of business objectives expected to be accomplished include economic objectives and social objectives. While economic objectives are the targets to be accomplished in the marketing efforts of an organization, social objectives are associated with the aims of an organization towards satisfying the interest of its shareholders, employees, and the general public (Rao and Krishna, 2002). This study focused on the social objectives otherwise known as social responsibilities of business. Corporate social responsibility as defined by Pearce and Robinson (2011) is the obligation which a firm has to satisfy the financial interest of its stockholders as well as to meet the needs of the society. Social responsibility has been in practice for centuries. It can be traced back to the Quakers in 17th and 18th centuries whose business philosophy was not targeted at profit maximization only but also, to add value to the larger society. In their view, there is interdependence between business and the society meaning that they rely on each other for survival (Moon, 2002). In Nigeria, corporate social responsibility gained importance in the 1990s as a result of the interest shown by the international communities in the conflict between oil and gas companies and their host communities (Oguntade and Mafimisebi, 2011).

Corporate social responsibility arises out of the interdependence of an organization with the society and the environment where it is operating (Mullins,2002). McShane and Glinow (2003) defined social responsibility as a person’s or an organization’s moral obligation towards others who are affected by his or her actions. It serves as a source of motivation in solving societal problems. Corporate social responsibility is combined with corporate social responsiveness to produce what is known as corporate social performance. A good social performance is socially responsible and also improves organizational profitability (Stoner, Freeman and Gilbert, 2008). In the words ofOnwuchekwa (2000), an organization is socially responsible when it does not restrict itself within the minimum requirement of 

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CORPORATE SOCIAL RESPONSIBILITY AS A TOOL FOR SUSTAINING ORGANISATIONAL SURVIVIAL AND GROWTH

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