EFFECTIVE CORPORATE SOCIAL RESPONSIBILITY AS A BUSINESS SURVIVAL STRATEGY IN A DEPRESSED ECONOMY

1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY

In the early 1930, the mission of business is primarily economic. But within the past few decades there have been pronounced changes in the views of many business managers and markets about their social responsibility, which have parallel and part reflected the changing priorities and operation of society about business society functions. This is because businesses rely on the society for their continuous existence. In view of this, the inter-relationship between organizations and their environment has become interestingly important. As a result, organizations especially in the manufacturing sectors are no longer viewed as private endeavours that are free to pursue their own ends as long as they do not break any law. Instead, their actions are seen as having consequences that goes beyond serving customers and paying attention to owners. The outcome of this notion is rising public clamour for social response on their part of business firms as well as other social organizations. But the business makers have the task of knowing what to do to meet the demand of the demand of various claimants of social responsibility. All these claims have made the issue of social responsibilities a great concern in the business world. Social responsibility is essentially concerned with public interest. It is the intelligent and objective concern for the welfare of society which restrains individual and corporate bodies from resorting to ultimately destructive activities no matter how immediately profitable it is. The idea of social responsibilities recognizes that each person is attached to an extended social system in which he or she is partly dependent. Consequently, certain obligations or social responsibilities arise from this attachment business owners should also consider that needs and interest of others might be affected by their actions. Business operates in a dynamic environment benefits to society and business. The society gains through better neighborliness and employment opportunities. Clean and safer neighborhoods on the other hand mean a more stable community in which to operate. Fewer employed person reduce the change of social unrest. Educated members of the community provide a more attractive labour pool from there to draw personnel. People make up societies. Human being today is part and parcel of the social organization and is utterly depended on it. Human society makes possible the production and distribution of goods and services. Business can only exist within an organized society, when people are totally self sufficient, the concept of business has no place in their lives. The organization of society then makes it possible for people to engage in business activities. In return, those in business must make contribution to the society that sustains their existence that is business owners have obligation to the society in which they operate and responsibility is to other who live in the society with them. While an organization is busy establishing goals, objectives developing and executing strategies for achieving its states propose, it should recognize that it operate within an environment which expects it to operate in such a manner that would not disrupt its existence. Furthermore, the environment in the community also expects the organization to assist in tackling its socio-economic problems. It is the contribution of the organization to the development of its environment that constitutes social responsibility. Peter Drucken (1999:10) suggest two major way by which demand for social responsibilities arise in the first place it arises firm the social impacts business organization. In other words, the negative consequence of business activities like rapid organization and rural urban drift, traffic hold-ups, environment pollution, deceptive advertising, defective series offered for sales, television and avoidance, all create disenchantment and demand for more socially responsible behavior. Secondly, corporate social responsibility also arise from the problems of society itself including failing standard of living, illiteracy, poor infrastructural facilities and social amenities and the growing disenchantment with government and its inability to solve major social problems. Hence, society has come to expect business with their successful operation to solve major part of these problems by developing effective social responsibilities objectives and strategies.

The business system is made up of internal and external components of the community, the schools, the churches, customers, government, shareholders and suppliers and all members of the external components and the business organization depends on the for survival. Hence, they owe some obligations in the way of discharging certain social responsibilities to them. Similarly, within the internal component of the business system are the employees, the management and other social organization. The equally demand that they should reap from the surplus generated by the organization which they have given their best.

1.2 STATEMENT OF THE PROBLEM

The fulfillment of social responsibilities as a business management sustainability strategy, companies like United Bank for Africa Plc face lots of problems such as when all the claims made b the various stakeholders are too much in that organization cannot solve all society’s problems with their limited resources yet they are expected to get actively involved in getting them solved. To the government, the organization’s social responsibilities include payment of taxes and other financial obligations which are seen to be costly to business and restrict its flexibility in decision making. In trying to avoid the wrath of the regulation on them, most organizations bribe their way out which of course, will not be recorded anywhere. But long run when he records will be reviewed these organizations will still be seen as owing. Likewise in the community, must times organizations are expected to create job opportunities. But in the process of doing that, the organization encounters problem like not getting qualified personnel for a particular job or position within the organization which may discourage the organization from employees who are also stakeholder to the organization.

Employee who are also stakeholder to the organization and who are also affected by the actions of the organization sometimes constitutes problems to the organization, such as delays of salaries, lack of motivations and incentives to the employees. This could lead to stoppage of work (strike) which could lead to the reputation of the organization tarnished.

1.3 OBJECTIVE OF THE STUDY The primary purpose of this study is to determine and identify, the impact of fulfillment of social responsibilities on PZ Cussons Plc. In more specified terms, other purpose includes: a. To find out whether fulfillment of social responsibilities can contribute to the sustainability of a business. b. To find out or study the modalities adopted by the companies to its environment. c. To find out importance and advantages derived from the fulfillment of social responsibilities to the environment. d. To determine the various by which organizations can carry out their social responsibilities to the environment.

e. To proffer solution to problem areas where deficiency in the fulfillment of social responsibilities.

1.4 RESEARCH QUESTIONS Fulfillment of social responsibilities has really contributed greatly to the business survival of organizations especially for organizations with long term plan. This is so because if an organization winds up before the long or medium run because of a hostile environment cased by non-fulfillment of social responsibilities all the efforts grateful towards survival in the long run becomes fruitless. a. How does the organization utilize the usefulness of fulfillment of social responsibility? b. To whom is the organization socially responsible? c. What the organization and its environment expect from each other? d. How does the environment define social organization? e. What is the need of corporate social responsibility in an organization? f. What should the need of corporate social responsibility be given priority?

g. Why is corporate social responsibility regarded as a strategy for the sustainability of a business?

1.5 RESEARCH HYPOTHESES Hypothesis is a proposition put forward as a basis for reasoning on suggestion formulated from proven observation and presentation as a temporary explanation of experience in order to establish future research. To come out with significant result, the following hypotheses were formulated. Ho: Fulfillment of social responsibilities has not play significant in a firm’s business sustainability. Hi: Fulfillment of social responsibilities has to play significant in a firm’s business sustainability. Ho: Engagement in the discharge of corporate social responsibility does not distract business from their primary objective.

Hi: Engagement in the discharge of corporate social responsibility distracts business from their primary objective.

1.6 SIGNIFICANCE OF THE STUDY In essence, research work is aimed at serving certain significance in relation to individual, group of individuals or a particular event. The significance leis in the fact that the success of an organization’s business sustainability in its environment is dependent to large extent on fulfilling the organization’s social responsibilities to its environment. The role of business should not only concentrate on rendering services to customers but also should focus attention to the need and aspiration of factors within its environment.

As a result of the above, fulfillment of social responsibilities is very significant toward the sustainability of a business.

1.7 SCOPE OF THE STUDY
This research work on effective of corporate social responsibility as a business survival strategy in a depressed economy. The study will centered on United Bank for Africa Plc, Owerri, Imo State.

1.8 LIMITATIONS OF THE STUDY Problems are encountered, that is high cost of transportation could reduce the limit in information gathering due to inability to reach some places or areas that will call for high transportation cost. Every researcher encounter the problem of finance in the sense that no matter how small it might be, it needs to be financed and this study would not be an exception.

The respondents are the people through which information about the study are gathered, some respondents are not willing to release vital and required information for the study. This poses lot of problem and affects the study.

1.9 DEFINITION OF TERMS Social Responsibility: This is a managerial obligation to take action and improve both welfare of the society and the interest of the organization. Unethical: Behaviour that fall short or below the generally acceptable standard or expectation. Stakeholders: These are the various groups to which an organization is socially responsible. Resurgence: The return and growth of an activity that had stopped.

Charter: A written statement describing the rights that a particular group of people should have.

1.10 BRIEF HISTORY OF UNITED BANK FOR AFRICA PLC (UBA) United Bank for Africa Plc (UBA) is a Nigeria bank with business offices in 19 countries in Africa, and also in the United State, United Kingdom and France. United Bank for Africa Plc (UBA) is a large financial services provider in Nigeria with subsidiaries in 20 sub-sahara countries, with representative offices in France, the United Kingdom and the United State. It offers universal banking services to more than 7 million customers across 626 branches. Formed by the merger of the commercially focused United Bank for Africa Plc (UBA) and the retail focused standard trust bank in 2005, the bank purports to have a clear ambition to be the dominant and leading financial services provider in Africa. Listed on the Nigerian Stock Exchange in 1970, UBA claims to be rapidly evolving into a pan African full service financial institution. The group adopted the holding bank model in July 2011. As of December 2011, the validation of United Bank for Africa Plc (UBA) group’s total assets was approximately US $12.3 billion (NGN: 1:94 trillion), with shareholders equity of about US $ 1.07 billion (NGN: 170 billion). Today’s United Bank for Africa Plc (UBA) is the product of the merger of Nigeria’s third (3rd) and fifth (5th) largest banks, namely the old UBA and the erstwhile Standard Trust Bank Plc (STB) respectively, and a subsequent acquisition of the erstwhile Continental Trust Bank Limited (CTB). The union merged as the first successful corporate combination in the history of Nigeria banking.

UBA’s history dates back to 1948 when the British and French Bank Limited (BFB) commenced business in Nigeria and the erstwhile STB and CTB both in 1990. Following Nigeria’s independence from Britain, UBA was incorporated in 1961 to take over the business of BFB. UBA is listed on the Nigeria stock exchange, where it is publicly traded under the symbol UBA.

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