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Tuesday 1 September 2015

APPRAISAL OF CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES OF CONSTRUCTION COMPANIES IN FCT.






 







CHAPTER ONE

INTRODUCTION

1.1            BACKGROUND TO THE STUDY


The concept of Corporate Social Responsibility (CSR) focuses on ethical and moral issue which impact corporate decision making and behaviour. CSR for short, is a concept that emphasizes responsive and extended social contribution of businesses to the society. Likewise, globalization has reinforced the relevancy of CSR in business operations. This is because globalization has introduced new challenges and opportunities emanating from increasing linkages between social, political, economical and environmental roles of businesses. 


Thus, businesses are confronted with new risks in the global dynamic environment. The implication is that businesses need to be profitable and respond positively to emerging societal expectations accordingly. The main purpose of CSR is to ensure that firms are accountable and responsible to the society and environments they operate. Firms deal with a wide range of stakeholders, including: shareholders, customers, employees, trade unions and community (Carroll, 1991; Hillenbrand & Money, 2007; Carroll & Shabana, 2010; Kemper et al., 2013).
Since business have limited resources to devote to CSR activities; hence, firms need to identify, prioritize and incorporate CSR in decision-making. Naturally, business seeks to maximize its profits and is self-interest (Fisher & Lovell, 2009; Hooker, 2011).

CSR practices have become a component of business organization that enhance competitive advantage and long-term sustainability (Porter & Kramer, 2006;).

Dunning (2003) urges the development of what he names a Responsible Global Capitalism that should not be considered as an end in itself, but as a means of social transformation of societies to create a better life for its citizens. According to Dunning no single religion or philosophy can force its unique values and standards upon others but each religion or philosophy can contribute to a sustainable moral ecology. In this transformation process it is difficult not to consider the private business sector as one of the main stakeholders in transforming and improving society.

The Bali Roundtable on developing countries in 2002 recognized the business sector as a primary driver of economic development and the World Summit for Sustainability identified business involvement as critical in alleviating poverty and achieving sustainable development (www.un.org).
Corporate Social Responsibility (CSR), the set of standards to which a company subscribes in order to make its impact on society, has the potential to make positive contributions to the development of society and businesses. More and more organizations are beginning to see the benefits from setting up strategic CSR agendas.
A number of studies indicate that the understanding and practice of CSR is socio-culturally framed (Amaeshi, Adi, Ogbechie & Amao, 2006). Despite this fact, research on management and CSR in Africa is relatively scarce and to a large extent based on a developing-developed world paradigm (Jackson, 2004).

This study has as its entry point CSR from a Nigerian perspective. Nigeria has a long experience of managing cultural diversity and multiple stakeholders and its citizens and business leaders have to manage cross cultural dynamics on a daily basis. There ought to be lessons and experiences drawn from good practice in Nigeria that can contribute, not only to managing in Africa but to managing throughout the world.
To underscore the above assertion, Milton Friedman (1972:88) had contended that the only responsibility of the business is to make as much profit as it can for the owners. Today, partly due to the interdependencies of many groups in our society, the values, goals and attitudes of the society changed significantly. This accounts for the complexity in the society in the area of social, economic as well as environmental problems which have been experienced. This situation is in consonance with the view of Ackerman (1973:89), when he opined that the people increased awareness has brought some expectation and demand to bear on companies to be socially responsible to the society in which they operate. Thus we often talk about the social responsibility and social responsiveness of all organizations although the focus of this study shall be on corporate organizations. There is a question as to what the social responsibility of business really means.


The concept of social responsibility is not new, although the idea was already considered in the early part of the twentieth century. The modern discussions of social responsibility got a major impetus with the book “social responsibility of business suggested that business actors should consider the social implications of their decisions, society being awakened with respect to the urgency of social problems is asking managers and owners of business what they are doing to discharge their social responsibility to the society in which they operate given negative social impacts of their business on the society such as pollutions of all kinds air, water, solid waste noise to mention but a few.

However, Harper D. (1976) a classical economist consistently argued against the need to do anything that negates profit maximization. He sees business social responsibility as an aberration Harper, (1976).


1.2            STATEMENT OF THE PROBLEMS

The problems of the communities where the construction companies operate bring these problems constructively to the attention of the companies with which they have developed regular form for meetings. These companies have created ecological disaster in the communities. Therefore, the problem to be looked into in this research is that a corporate organization does not bother about their social responsibility to the environment where they operate. Furthermore, poverty, lack of essential facilities and unemployment are increasing is alarming proportion. As a result the needs and expectation of the society are not met by the business organization.


1.3            OBJECTIVES OF THE STUDY

The corporate organizations naturally have its own mix and different emphasis. The overall objectives of every organization are survival, growth, profit, economic contribution and social obligation. It is known fact that firms in Nigeria usually lay more emphasis on profit maximization. The objective of this research work includes the following:


i.                   To appraise the general attitude of construction companies towards social responsibility.

ii.                 To examine the consequences of these companies ignoring its social responsibilities.

iii.              To evaluate the problems which hinder the performance of social responsibility practice by these construction companies.

iv.              To recommend possible solutions for the identified problems.



1.4            RESEARCH QUESTIONS

To ensure an in-depth research work with a view to providing best solutions to problems identified, the study will make use of the following questions:

i.                   Could business organization carryout a successful social responsibility practice?

ii.                 Should social responsibility be legalized?

iii.              In what form should social responsibility be performed?



1.5            STATEMENT OF  HYPOTHESES/DEVELOPMENT  

Based on the research questions already mentioned, the following

Hypotheses were formulated:  

There are two types of hypothesis, the Null hypothesis that takes the negative form and the Directional or Alternative hypothesis that takes the positive form.
Let H0         stand for Null hypothesis
Let H1         stand for Alternative hypothesis

HYPOTHESES I

H0:      Business organizations cannot carry out a successful corporate social responsibility practice.

H1:      Business organizations can carry out a successful corporate social responsibility practice.

HYPOTHESES II

Ho:     Business corporate social responsibility should not be legalized.

Hi:      Business corporate social responsibility practices should be legalized.

HYPOTHESES III

Ho:     Corporate Social Responsibility practices cannot be achieved in any form.

Hi:      Corporate Social responsibility practice can be achieved in different form.



1.6            SIGNIFICANCE OF THE STUDY

The importance of the study cannot be over-emphasized given the Interdependencies of many groups in our society. The study is therefore important because, it will not only appraise the attitude of business organization towards the issue of corporate social responsibility but will go a long way to help these organizations on policy making and decision in order to eliminate the negative effects and consequences of these attitudes in the discharge of corporate social responsibility practices. The study will be of immense benefit to researchers and students looking for more information on this topic.

Another significance of this research is that, it will help in finding ways to improve relationship between companies and the communities in which they operate. It enables manager of different organizations to know actually what corporate social responsibility is all about. The study will equally be beneficial to private and public sector organizations.


1.7            SCOPE OF THE STUDY.

The study aims  at  appraising  the  corporate social responsibility practice by construction companies  in FCT using SETRACO as case study. 



The study is therefore, is restricted to the study of the SETRACO as a corporate organization in Abuja, F.C.T.

It is, however, expected that the study of SETRACO, Abuja would give enough information on how business corporate social responsibility can successfully be rendered by other construction firms.



1.8            LIMITATIONS OF THE STUDY

In the course of carrying out this research work, some difficulties were encountered. These constraints were however managed. Among these were time, materials and financial constraints.

TIME: Time factor was one of the constraints faced by the researcher; however, the researcher took time management seriously, as the study was successful. So many useful times was involved to make the study as the researcher had to combine full time employment with the collection of data for the work.

MATERIALS: It is not easy for the materials to be collected or obtained due to limited books, journals and other reference materials, particularly obtaining information from the case organization was a tedious exercise, as some information was termed confidential despite the purpose and intentions to which they were requested for. But some management staff and senior supervisors were very helpful as they assisted in providing necessary data that formed the basis for this project write-up, conclusion and recommendations.

FINANCE: Financial problem was also encountered by the researcher in the course of the work- going to various libraries, stay connected online for materials etc.. But notwithstanding the above constraints, the quality of the research work could not be impaired.


1.9            DEFINITION OF TERM


CSR:           Short form of “Corporate Social Responsibility”

SETRACO:  Setraco was established in 1977 and started by constructing township and district roads in what was then Bendel State. Over the last thirty years the Company has rapidly grown to become one of the largest construction companies in Nigeria specialized in roads and bridges. With a presence today in around 20 states; Setraco has played a key role in developing Nigeria’s infrastructure as the Country strives towards becoming a developed nation.
ORGANIZATION:  an organized group of people with a particular purpose, such as a business or government department.         






















REFERENCES

Ackerman, R. and Bauer, W. (1973). Corporate Social Responsibility; The Modern Dilema, New York: Preston Publishing Company Inc.

Harper, D. (1976). A View of the Corporate Role in the Society, Houston: Carriage Melon University Press

Milton Friedman, (1972). Capitalism and Freedom, Chicago: University of

Chicago Press

Enudu, T.O. (2005). Corporate Planning in Modern Organizations: A Fundamental Approach, Lagos: Johnkens and Willy Publications Ltd.














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