CHAPTER ONE
INTRODUCTION
1.2
Background Of The Study
Towards
the end of
1800’s to the
e firms was exclusively economic. During this period, the cardinal
purpose of business owners is to make as much profit as possible. 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 m 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.
The concept of social responsibility of and
responses to the issues beyond narrow economic, technical and legal requirement
of the firm. It is the f making process the effects of its decision on the
external social system in a
manner that should
accomplish social benefits along with the traditional economic gains which the
firm seeks for. 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
Oil spillage in some of
the oil producing state is alarming and some pollution caused by industries in
our country is on the high rate. The problems of the communities where the oil
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, gas flowing in the communities.
Therefore, the problem to be looked into in this research is that a corporate
organisation 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
organisation.
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