THE NECESSITY OF CORPORATE SOCIAL RESPONSIBILITY FOR ORGANIZATIONAL GROWTH
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND STUDY
The broadest definition of corporate social responsibility is concerned with what is – or should be – the relationship
between global corporations, governments of countries and individual citizens.
More locally the definition is concerned with the relationship between a corporation and the local society in which it
resides or operates. Another definition is concerned with the relationship between a corporation and its stakeholders.
The issue of corporate social responsibility (CSR) has been debated since the 1950s. Latest analyses by Secchi
(2007) and Lee (2008) reported that the definition of CSR has been changing in meaning and practice. The classical
view of CSR was narrowly limited to philanthropy and then shifted to the emphasis on business-society relations
particularly referring to the contribution that a corporation or firm provided for solving social problems. In the early
twentieth century, social performance was tied up with market performance. The pioneer of this view, Oliver Sheldon
(1923, cited in Bichta, 2003), however, encouraged management to take the initiative in raising both ethical standards
and justice in society through the ethic of economizing, i.e. economize the use of resources under the name of
efficient resource mobilization and usage. By doing so, business creates wealth in society and provides better
standards of living. The present-day CSR (also called corporate responsibility, corporate citizenship, responsible business and corporate
social opportunity) is a concept whereby business organizations consider the interest of society by taking
responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and
other stakeholders as well as their environment. This obligation shows that the organizations have to comply with
legislation and voluntarily take initiatives to improve the well-being of their employees and their families as well as for
the local community and society at large.
CSR simply refers to strategies corporations or firms conduct their business in a way that is ethical and society
friendly. CSR can involve a range of activities such as working in partnership with local communities, socially sensitive
investment, developing relationships with employees, customers and their families, and involving in activities for
environmental conservation and sustainability.
1.2 STATEMENT OF THE PROBLEM
The growth of an organization is determined by the collective imput of the customers, employee, stakeholders and the
environment. It has been observed most organizations are failing in their corporate social responsibility.
Most organization releases exhaust gas from manufacturing process in to the environment therby putting the people
of the community at risk. It is however the responsibility of the organization to take the safety of the host community at
high esteem. One an organization’s social responsibilities are community development, the organization is expected
to give back to the host community.
The productivity of any organization is determined by the input of the employees. If the employees are treated
unfairly, this will affect the productivity of the organization. The welfare of employees is one of the social
responsibilities of organization. The welfare of employees should be paramount of the management of organizations
but most organization treats their employees unfairly.
The level of sales made by an organization is dependent on the patronage of customers. Customers must be
addressed properly and not harshly. It is the social responsibility of an organization to reverence its customers. This
study is carried out to examine the necessity of corporate social responsibility for organizational growth.
THE NECESSITY OF CORPORATE SOCIAL RESPONSIBILITY FOR ORGANIZATIONAL GROWTH