CHAPTER ONE

1.0    INTRODUCTION

The concept of social responsibility is perhaps the most current ideology in business management. In recent years management practitioners, industrialists and special interest groups have engaged in considerable debate over the issue of social responsibility.

The mass of articles, paper lectures and results of research conducted within the past decade of this era indicated the importance of social responsibility in our modern society.

Profit is traditionally believed to be the main motive behind the establishment of most business concerns except such humanitarian organization such as the churches and the schools. However, this research work will concern itself with the profit making business entity.

Therefore, we must agree that the intention of those businesses is to recoup any fund committed or invented and what actually motivates the entrepreneurs are the profit they make on the funds so invented.

Sometimes business social responsibility gets in the way of business’s fundamental goal, which is making profit and while trying to do justice to both, business can run into problems that affect us all. For instance, compliance with many of the government regulations aimed at controlling environmental pollution requires the installation of special equipment. Such additions can be costly and may force a firm to raise its prices or lower the overall quality of its products. When prices are raised, everyone notices it and many people complain about them. On the other hand, changes in quality are easier to gloss over, so it is not uncommon these days for a business to lower quality in order to keep the same selling price, on the theory that “what buyers don’t know won’t hurt them” in some cases, a manufacturer will raise prices and lower quality at the same time.

The singular profit motive has made the entrepreneur to exploit the environment where they operate to the extent that the communities now become restive which in most cases ends into demonstration and work stoppages, which also affects the profit of these companies. This development them promoted researchers and management scholars and some welfare economist to make series of studies, after which they submitted that the primary objectives of a business concern need not profit only, but that business should be made in relation to their environment and also to be seen to be responsive to compensate environment exploitation.

The idea of exploitation by business organization is fast becoming unpopular as communities are becoming conscious of their right. Thus, Drunker (1956) formally propounded the concept of social responsibility in business. He argued that any business that is not socially alive to its environment is bond to experience conflicts, lower profit and it’s not expected to live long.

Having briefly discussed what social responsibility of companies is, it becomes important at this stage to mention that the main points of this research work will be on the social responsibility of business concerns to their host communities as a managerial perceptions and practice of corporate social responsibility with special focus on Zodiac Hotels Ltd. And her host community.

1.1    STATEMENT OF PROBLEM

Business organization is economic agents that have certain objective. Primary among them is profit, but however, this primary objectives might not materialize as a result of increasing hostile nature of the host communities, which is as a result of perceived neglect either real or imaginary by the companies concerned. The hostile nature of these communities have forced the companies to combine both their primary objectives of profit making with social responsibility, which is faced with such problems:

i.             Performing procedure of social responsibility service.

ii.            Determining the extent of corporate social responsibility

iii.           Reporting of corporate social activities

iv.          Should managers be responsible for solving all manners of social problems?

1.2    PURPOSE OF THE STUDY

The role of social responsibility in corporate performance cannot be over emphasized. It is very clear from the problem that business organization requires an articulated corporate social responsibility in the course of their operation for survival in the light of the above. Our objectives or purpose for this research shall include:

a.           To critically examine social responsibility performance by Zodiac Hotel Limited in the area of operation.

b.           To evaluate the usefulness and adequacy of existing method of social responsibility performance of Zodiac Hotel Ltd. Enugu.

c.           To identify major shortcoming and assess the impact of non – performance of social responsibility in zodiac.

d.           To suggest measures aimed at achieving optimal social responsibility performance for Zodiac Hotel Limited so as to ensure smooth and uninterrupted operations.

1.3    SIGNIFICANCE OF THE STUDY

The study is very timely, especially today that many business organizations are faced with the issue of social responsibility. This study will be of immense benefit to both public and private business organization to determine the impact of social responsibility in the area of business operation. Also, to determine the extent business social responsibility affects profitability and conducive environment for carrying out of business. In addition, the study will equally throw to light various short coming associated with non – performance of business social responsibility such as low productivity, conflicts, unconducive or suitable environment and low market for the organizational product. It is expected that the findings will help to bridge any gap that may exist and to make these business enterprises more effective in carrying out social responsibility to their host communities. Through this investigation therefore, business organization will subsequently adopt measures aim at enhancing their social responsibility effectively.

1.4    STATEMENT OF HYPOTHESIS

The following hypothesis will be used in this study:

Hi:     Social responsibility performance has enhanced operational efficiency of Zodiac Hotel.

Ho:    Social responsibility performance has not enhance operational efficiency of Zodiac Hotels.

Hi:     Adequate performance of social responsibility has minimized the rate of conflicts between host community and company.

Ho:    Adequate performance of social responsibility has not minimized the rate of conflicts between host community and company.

1.5    SCOPE OF THE STUDY

The area to be covered in terms of this topic social responsibility will include: examining the performance of social responsibility by Zodiac Hotels Limited to her host community.

Critical analysis of argument for and against social responsibility, requirement of a social responsible company, contemporary issues in corporate social responsibility, actions necessary to affect social responsibility, the role of business in society, business and social responsibility, an evaluation of the “pros” and “Cons” of social responsibility. The study will be carried out in Enugu 5.7 Rangers Avenue Independence Layout Enugu. The study is a case study of Zodiac Hotel Limited.

1.6    LIMITATIONS OF THE STUDY

To carry out any research work is not easy, they all have their several and specific problems gathering relevant data. There were also the problem of time and financial constraint. It must be noted that in spite of these problems the research work must be carried out as its essence is to highlight the institution (Zodiac Hotels Ltd) critically and also provided a careful appraisal of the corporate social responsibility so that at the end sound body of knowledge that will be useful has been provided. The study is a starting block for further research.

1.7    DEFINITION OF TERMS

PERCEPTION – ability to see, hear or understand.

MANAGEMENT PRACTITIONER – Those engaged in management profession

EXPLOITATION – Expoliting or being exploited

CONFLICT – Struggle, serious disagreement