THE EFFECTS OF SOCIAL RESPONSIBILITY OF BUSINESS ORGANIZATION IN ENUGU STATE (A CASE STUDY OF EMENE RICE MILLING COMPANY)

(Business Administration and Management)

THE EFFECTS OF SOCIAL RESPONSIBILITY OF BUSINESS ORGANIZATION IN ENUGU STATE

(A CASE STUDY OF EMENE RICE MILLING COMPANY)

ABSTRACT

            The trend contemporary to the business organizations of our time is that the business organizations owe certain responsibilities to the area, more specifically, inhabitants of the environment in which the business operates. Among these responsibilities is social responsibility.  Every organization is expected to show interest on the issues relating to its responsibilities, and should by no way attempt to evade or ignore it.

            An organization’s sensitivity to its social responsibilities measures its reputation and standard in the society and also improves the attainment of both efficiency and prosperity by its efforts.

            In essence, there is an irrefutable need for consideration of an organization’s reaction to its social responsibilities.  This need is manifest in the fact that such organizational reaction or behaviour, reflects the humanitarian or philanthropic disposition of the business organization towards the people living in the environment where it is operating.

            Consequently, this research work conducts an introspective and analystical surveillance on the effects of social responsibility on business organizations.  This project also has an array of suggestions on how to encourage and improve the organizational behaviour in such a way to sensitize them on the need to discharge their social responsibilities.

            In the introducing chapter which include the statement of the problem, and the significance of the study shows that even the research question and hypothesis are all necessitated this research and as such will guide to easy comprehension of the study.

            The second chapter elaborated on reviews of related literature, carried out by authors that are variously experts on certain components of the research topic.  The result of these reviews are tactically employed to throw more light on this present study.

TABLE OF CONTENTS

CHAPTER ONE     

1.0       Introduction                                                               

1.1       General Background to the Subject Matter   

1.2       Problems Associated with the Subject Matter           

1.3       Problem(s) that the Study will be Concerned with.  

1.4       The Importance of Studying the Area                       

1.5       Definition of Important Terms                                  

1.6       References                                                     

CHAPTER TWO

2.0       Literature Review                                                      

2.1       The Origin of Subject Area                            

2.2       Schools of Thought within the Subject Area             

2.3       The School of Thought Relevant to Subject Area/problem of Study

 2.4      Different Methods of Studying the Area                  

2.5       Summary                                                                    

2.6       References                                                                 

CHAPTER THREE

3.0       Conclusion                                         

3.1       Data Presentation (Highlights of the Problem)          

3.2       Analysis of the Data                          

3.3       Recommendation                                                       

3.4       Conclusions                                                    

3.5       References                                                                 

CHAPTER ONE

1.0       INTRODUCTION

            Responsibility means accountability.  Therefore social responsibility means or may be defined as an obligation to fulfill certain positive duties in one’s environment or society.

            Social responsibility of business therefore suggests the obligation a firm must undertake to discharge on its are of operation or to individuals working for such firm or organization.

            From the above expostulations, it is evident that the social responsibility of a form consists of both internal and external commitments.

            The essence of scrutinizing the degree to which a firm fulfills its obligation to the society and its employee is a direct measure of the integrity of that firm, as well as the determinant of its place in this era of modern business conventionalities.

            Also very important to note is the fact that a business in discharging its social responsibilities satisfactorily simultaneously attracts to itself both prestige and progress – as the people are more want to patronize its product and acclaim its modesty.

            Moreso, just like Shakespeare wrote “The abuse of greatness is when it disjoins remorse from power”… it will be a gross anti-humanity for a firm to enjoy all it benefit alone, without remembering the goose that lays the golden eggs. Common sense therefore demands that production other manufacturing firms should for some of their activities that releases adverse social effects viz environmental pollution, decay, health hazards, displacement of human settlement etc. discharge certain compensative duties.

            Some developed countries, especially the industrialist countries of the western block, out of altruism and not compensation, fulfill certain gratis to the poor undeveloped countries that are its raw materials procuring sources.  This shows that apart from the commitment by reason to ameliorate adverse effects initiated or caused by its activities on the people and place of its operation, that a business can also carry out certain services of the society, on a pure Samaritan or humanitarian basis.

            A business that is conscious of its social responsibilities is a sure tool for securing economic upliftment and growth.  It is therefore very laudable of every business to always accommodate its social responsibilities when drafty its annual budgets – and also perform other social functions that contribute positively to its area of activity.

1.1       GENERAL BACKGROUND OF THE STUDY

            To discuss in entirely all the outlets through which businesses carryout their social responsibilities to the society, and its employees may be a Herculean task.

            Nevertheless, the social responsibility of business organizations fall under three basic captions viz:-

(a)                Eradication of poverty and discrimination

(b)               Ecology and environmental protection

(c)                Consumerism

It therefore the background of the study to emphasis on the effects of social responsibilities on business organization in Enugu State.

The instance social responsibility is mentioned what quickly comes to the mind is an obligation which the business is bound to, or expected to fulfill to the society in which it is operating.

It also should be noted that act observation of its social responsibility by a business is an indication of morality and sound social ethnics as virtues of such business, and is not in any way a deviation from the companies stated objectives.

Saddeningly, some firm observes its social obligations not because of consciousness of duty but because of the effects of this observation on the business.

To this end, organization certainly will do better if appropriate legislation are passed unto its activities by the government, with respect to its relationship with both human and environment factor in its area of activities.

Taking the aforementioned, three basic classification of social responsibilities of business organizations one by one, and synoptically too, let us see how it affect the social sphere.

(a)        Eradication of Poverty and Discrimination

            The business owes the society the obligation of helping in the war against poverty and discrimination.  This is done visa-avis provision of employment opportunities and offering of gratis or bonus pays.  It also fights discrimination by condemning tribalism or ethnicsm in its internal operations especially as relates to personnel or staff matters.

(b)        Ecology and Environmental Protection

            The society should endeavour to minimize the degree of pollution it causes by its activities. Construction and rehabilitation of drainage and disposal systems will ensure this. Medical facilities should also be built to salvage the victimized masses of the area.

(c)        Consumerism

            The business organization should be co-operative with government’s endeavours to protect consumer interests.  This the business can do by clinical and hygienic production culture and respect for quality standards.

1.2       PROBLEM ASSOCIATED WITH SUBJECT MATTER

            Based on this research work, business organizations encounter some problem that affect the organization negatively.  Some of these problems are as follows:-

A.        FINANCIAL DEFICIENCY

            Some organization have insufficient managerial and financial resources with which to offset social changes.

 B.       DISPARITY OF ORGANIZATIONS WITH GOVERNMENT REGULATION    

            Owing to the over cumbersome social demands on businesses by some state government’s legislations, some business organization could not fit in.

C.        CONFLICT OF SOCIETAL VARSUS COMMUNAL VIRTUE

            Social values and cultural dispositions of some communities affect the operation activities of business organizations.

D.        PERSONNEL PROBLEMS

            The contribution of social problem based personnel responsibility affect negatively, the business organizations. This can be proved by observing the high rate of exploitation, embezzlement, corruption, bribery, ethnicusm and discriminations going on in offices.  All this vices most often sums up to create a disrepute or motoriety for the business and consequently leads to poor ornately liquidation.   

1.3       PROBLEM(S) THAT THE STUDY WILL BE CONCERNED WITH   

            The aim of the study is to analyze and evaluate the effects of social responsibilities on business organizations in Enugu State.  Every organization is bound both by common sense and legislations to execute certain responsibilities, through of social nature, to both the communities, it is operating in and the individuals working in it.  Employees. 

The research also aims at obtaining a specific goals for this discharging of duty by organizations for the social benefits of the community in which it operates.

Ultimately, we can observe that the business organization owe social responsibilities to societies in its different environment, viz.

(i)                           Market environment

(ii)                         Societal environment

(iii)                       Internal environment

Referring to the business environments cited above, we can also observe that in the market environment the business have the consumers to please, at the societal environment. The common unity and finally in its internal environment, the manpower or its employees.

1.4       THE IMPORTANCE OF STUDYING THE AREA

            The significance of this research work lies in the fact that it will enable business organizations in Enugu State to be more sensitized towards carrying out appropriately, its social responsibilities to the society and its own manpower.

            The research will also examine the weakness inherent in a business organization, with respect to its discharging of its social responsibility to the society.

            The study will expose these weakness trace their possible causes, and suggest ways of solving them.  It also shall create a reference source to further study by other school and professionals.  This is understandable as execution of research studies or projects relies more in literature reviews and collection of data from secondary sources.

            Also among the merits of this study is the possibility of discovering other latent situations, which when keenly assessed, will contribute immensely towards the business growth discoveries that may be likened to what industrial processes and science call a by-product.

1.5       DEFINITION OF THE IMPORTANT TERMS

            Below is a list of important and consequently the most recurring term in this report;

1.         BUSINESS

(i)         A corporate/registered,

(ii)        A group of people performing certain activities for actualization of common goal which are profit and survival and growth.

2.         ORGANIZATION

(i)         A word used synonymously with business.

(ii)        The factor responsible for coordination, directing and managing at all the other factors of production.  Also called entrepreneur.

3.         OBLIGATION

            A task something or some one should and must do.

4.         RESPONSIBILITY

The state of being liable or accountable to something.  In this case, the business repetorie for the society.   

5.         LEGISLATIONS

            Laws or decrease emphasized in the constitution of Nigeria, which must be obeyed.

6.         FIRM

            A business unit producing only one product type or performing the same activities.

7.         INDUSTRY

            A group of firm producing different  items or operating at different stages of production.

8.         COMPANY

            A duly registered business which may be a firm.

9.         ECOLOGY

            The totality of both living and non-living components that makes up our environment (the study of this aspect of Biology).

10.       CONSUMALISM  

            The concept of emphasizing on the well being and comfort of the consumers or customers.

11.       SOCIAL RESPONSIBILITY

            A duty which something or someone owes to the society and individuals.

12.       GRATIS

            A blessing, a gift given without expectation of reward.

13.       ANNUAL BUDGETS

            The comprehensive estimate of expectation income and expenditures of an organization for one business fear.

14.       PRODUCT

            Anything that can satisfy a want in this context, the out put of a firm or business.

15.       MARKET ENVIRONMENT

            All the forces encountered by a business in its marketing or selling frontier or environment.

16.       SOCIETAL ENVIRONMENT 

            All the human resources that are directly related to an organization.

17.       INTERNAL ENVIRONMENT

            All the internal structures, especially human in nature, and its associated coordination in a business.

18.       Man Power

            All the human resources that are available for and willing to work in an organization.

19.       MANAGEMENT

            The same thing with organization (i)

20.       COORDINATION

            A management function which bases on how to correlate the activities of different departments in a business for a maximum benefit.

21.       SENSITIZATION

            To infuse sense into. To make something or some one aware of something.

22.       ADMINISTRATION

            The directorial duties of a manager or management

23.       Growth

            The state of increase in size or standard.

24.       COMMUNAL

            Relating to community life, virtues, culture etc, endemic to a particular people

25.       OPERATIONS

            The activities of a business organization.

26.       POLICY

            A set down rule to which a management must conform its actions to in order to achieve a desired objective.

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