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Abstract
The study was determined to examine the relationship between corporate social responsibility and community relations. The case study research design that one in which the researcher is interested in having an in-depth knowledge of what is been studied. The population is made up of 100 employees from Shell Nigeria Plc Port Harcourt, Rivers State. Self-designed questionnaires on corporate social responsibility and host community relations was used and administered for the collection of data from the respondents in Shell Nigeria Plc Port Harcourt, Rivers State. The structured questionnaire is adopted. The Taro Yemen’s formula was used to determine the sample size as 80. The simple percentage was used to analyze the response. The Chi-Square statistical tool was used to test the hypotheses. Findings reveals that there is a significant relationship between corporate social responsibility and host community relations in Shell Nigeria Plc Port Harcourt. Based on the findings of the study summary, conclusion and recommendations were made that multinational companies should improve in her activities of corporate social responsibility, that corporate social responsibility should be properly addressed on the company and For the fact that corporate social responsibility is the appropriate mechanism for organizational effectiveness, therefore, shell Nigeria companies should go ahead with it.
Table of Contents
Title page i
Declaration ii
Certification iv
Dedication v
Acknowledgments vi
Abstract vii
CHAPTER 1 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 3
1.4 Research Question 4
1.5 Significance of the Study 4
1.6 Research Hypothesis 5
1.7 Scope/Limitation of the study 5
1.8 Definition of Terms 6
CHAPTER 2 9
REVIEW OF RELATED LITERATURE 9
2.1 Conceptual Framework 9
2.1.1 Concept of Corporate Social Responsibility 10
2.1.2 Dimensions of Corporate Social Responsibility 14
2.1.3 Host Community Relations 15
2.1.4 Measures of Host Community Relations 16
2.1.5 Corporate Social Responsibility and Host Community Relations 17
2.2 Theoretical Framework 18
2.2.1 Stakeholder Theory 18
2.3 Empirical Framework 20
CHAPTER 3 25
RESEARCH METHODOLOGY 25
3.1 Research Design 25
3.2 Population of the Study 26
3.3 Questionnaire Design 27
3.4 Source and Method of Data Collection 27
3.5Sample and Sampling Technique 28
3.6 Data Analytical Method 30
3.7 Reliability and Validity 30
CHAPTER 4 31
DATA PRESENTATION AND ANALYSIS 31
4.1Questionnaire Administration and Retrieval 31
Table 4.1: Questionnaires Administration and Retrieval 32
4.2 Data Analysis 33
4.3 Hypothesis Testing 39
4.4 Discussion of Findings 41
CHAPTER 5 44
SUMMARY, CONCLUSION AND RECOMMENDATIONS 44
5.1 Summary 44
5.2 Conclusion 44
5.3 Recommendations 44
References 46
Appendix I 50
Appendix II 51
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
Effective host community relations can only be achieved when an organization recognizes its interdependence with other institutions. When the management recognizes the many ways its organization can impact on the local community and the extent of reciprocal dependence, it will help to establish social balance. The practice of good community relations assists the organization in securing its needs from the community while it also provides what the community expects. Also, it helps to secure the company’s investments, increase sales of products, the value of stocks, and improve the general operating climate of business.
Community relations are not about window dressing; rather, it is about protecting the host community. As Baskinm (1997) point out, even the staff of the organization would be productive when proper community relations is carried out. Considering the fact that most of the staff of any organization live in that community, any improper or inconsiderate attitude displayed by the management can endanger their lives, as can be seen in the kidnap cases in the Niger Delta. One of the ways an organization can have good relationship with host communities is by practicing corporate social responsibility. Corporate social responsibility is a nebulous concept that has been described in a number of ways; it is widely used in literature of sociology, anthropology, economics, politics and business administration. Most writers on corporate social responsibility see the concept as the disposition of an organization to exhibit ‘missionary’’ rather than “mercenary’’ attitudes toward the society. Corporate social responsibility in relation to business is the obligation of a business organization to pursue those lines of action, which are desirable in terms of objectives, and values of society. (Lawal & Sulaimon, 2007) defined it as ‘’ intelligent and objective concern, which restrains individual or corporate behaviour from ultimately destructive activities, no matter how immediately profitable, and leads to the direction of the positive contribution to human betterment. Presumably, corporate executives as agents of the owners are to be responsible for conducting the business in accordance with the desire of the owner while conforming to the basic rules of the society. The responsibility has three broad facets (Ikpeze, 2001).First, contribution to charity. Second, elimination of social costs. The third facet of social responsibility is the adoption and observance of ethical codes aimed at reducing business malpractices.
Oil exploratory firms in Nigeria and other types of business must be seen in many actions domains can pursue social responsibility in areas such as: concern for ecology and environment, commitment to quality, truth in advertisement, customer satisfaction and education. Other concern include service to community needs, fair employment practices, progressive labour relations, employment assistance and corporate philanthropy.(Ogbeuchi, 2008). This study proxies corporate social responsibility with economic, legal, ethical and discretionary responsibility while host community relation was proxies with three non-financial outcomes associated with Shell Nigeria PLC namely; Adaptability, community involvement and community opinion.
1.2 Statement of the Problem
The purpose of this study is to investigate corporate social responsibility and host community relations. It attempts to determine how an organization carries out its obligation to the stakeholders which serves as a strategy for carrying out business activities peacefully. Most times claims made by various stakeholders are too much on the organization, yet they are expected to get actively involved in getting them solved. In trying to meet up these expectations, most organizations indulge in some unethical acts which most times return on them.
This study attempt to understand which CSR elements have the ability to influence the corporate reputation. The study also attempt employees’ perception on their organization’s corporate image affects their behavior as well as how they promote their organization to the other stakeholders.
Previous researchers indicated certain elements of CSR (such as organizational ethics) as having impact on employees’ perceived corporate image that can affect their commitment to their organizations well as host community relations (Ikpeze, 2001). From the foregoing, therefore this study seeks to examine the relationship between corporate social responsibility and host community relations in Shell Nigeria PLC Port Harcourt, Rivers State.
1.3 Objectives of the Study
The main objective of the study is to examine the relationship between corporate social responsibility and host community relations in Shell Nigeria PLC Port Harcourt. The following objectives are to be achieved:
i. To examine the relationship between economic responsibility and host community relations in Shell Nigeria PLC Port Harcourt.
ii. To examine the relationship between legal responsibility and host community relations in Shell Nigeria PLC Port Harcourt.
iii. To examine the relationship between ethical responsibility and host community relations in Shell Nigeria PLC Port Harcourt.
iv. To examine the relationship between discretionary responsibility and host community relations in Shell Nigeria PLC Port Harcourt.
1.4 Research Question
The following research questions are posed to guide the study:
i. To what extent is economic responsibility associate with host community relations in Shell Nigeria PLC Port Harcourt?
ii. To what extent does legal responsibility associate with host community relations in Shell Nigeria PLC Port Harcourt?
iii. To what extent is ethical responsibility associate with host community relations in Shell Nigeria PLC Port Harcourt?
iv. To what extent is discretionary responsibility associate with host community relations in Shell Nigeria PLC Port Harcourt?
1.5 Significance of the Study
One of the main reasons this study is being conducted is because society’s expectation on organizational CSR effort is gaining momentum and fast becoming a standard business practice. Many organizations have started implementing CSR as part of their organization practices as well as to fulfill their legal obligation. However, in order for CSR to be effective and bring to bring value to the organization (such as improving the corporate image and employees commitment), organization and employees’ need to have a deeper insight to the benefit of investing in CSR prior to embarking on this time consuming, resources demanding and costly project.
This study is also significant because it has been able to unveil the roles of corporate social responsibility and host community relations in Shell Nigeria PLC Port Harcourt.
1.6 Research Hypothesis
The following research hypothesis are postulated to guide the study:
HO1: There is no significant relationship between economic responsibility and host community relations in Shell Nigeria PLC Port Harcourt.
HO2: There is no significant relationship between legal responsibility and host community relations in Shell Nigeria PLC Port Harcourt.
HO3: There is no significant relationship between ethical responsibility and host community relations in Shell Nigeria PLC Port Harcourt.
HO4: There is no significant relationship between discretionary responsibility and host community relations in Shell Nigeria PLC Port Harcourt.
1.7 Scope/Limitation of the study
The study is delimited under the following heading: content scope, geographical scope and unit of analysis.
Content Scope: The content scope of this study involves an investigation to ascertain the relationship between corporate social responsibility and organizational effectiveness. The independent variable is corporate social responsibility measured by Economic responsibility, Legal responsibility, ethical responsibility and discretionary responsibility. While dependent variable is host community relations, measured by community relation, Adaptability, Community Opinion and Community Involvement.
Geographical Scope: This study is delimited in Port Harcourt Metropolis with special reference to Shell Petroleum Development Limited in Port Harcourt, Rivers State.
Unit of Analysis: The unit of analysis in this research involves the individuals at the time of carrying out the study.
In carrying out an investigation of this nature the researcher must of necessity be faced with the following constraint; Time, poor response from respondents and finance.
This study involves an investigation of corporate social responsibility in relation to organizational effectiveness. Hence it is a micro level study.
1.8 Definition of Terms
The following terms are operationally defined below:
CORPORATE SOCIAL RESPONSIBILITY
Corporate Social responsibility is firm’s obligation to constituent groups in society other than shareholders and beyond that prescribe by law or union contract.
ECONOMIC RESPONSIBILITY
This is base level of the itinerary; it involves returns to owners and shareholders, creations of job, fair play for workers, innovation, efficient utilization of resumes etc.
LEGAL RESPONSIBILITY
This relates to complying with legal legislations imposed by the government and regulatory agencies. It means that corporations that want to be ethical must be the economically, and legally responsible.
ETHICAL RESPONSIBILITY
Those activities expected of corporations as members of the society, which are not defined by laws. This shows corporation as being moral, doing things, just and fair.
DISCRETIONARY RESPONSIBILITY
This concerns group activities and actions that are the result of organizations discretions rather than legal demands or ethical norms. Examples are philanthropic contributions, sponsorship, and educational development.
ADAPTABILITY
It is a change by an organization in response to external changes. Successful organizational adaptation may result in a more effective organizational structure and process, replacement of outmoded and a better fit with emerging environmental conditions.
COMMUNITY OPINION
It is a judgment, viewpoint or statement that is not conclusive. It may deal with subjective matters in which there is no conclusive findings, or may deals with facts which are sought to be disputed by the logical fallacy that one is entitled to their opinion.
COMMUNITY INVOLVEMENT
This is where the community is allowed to involve in the decision making process.
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