CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Corporate Social Responsibility (CSR) as a concept entails the practice whereby corporate entities voluntarily integrate both social and environment upliftment in their business philosophy and operations. A business enterprise is primarily established to create value by producing goods and services which society demands. The notion of Corporate Society Responsibility (CSR) is one of ethical and moral issues surrounding corporate decision making and behaviour, thus weather a company should undertake certain activities or refrain from doing so because they are beneficial or harmful to society is a central question. Social issues deserve moral consideration of their own and should lead managers to consider the social impacts of corporate activities in decision making regardless of any stakeholders’ pressures. However, some argument that the contribution of concepts such as Corporate Society Responsibility (CSR) is just a reminder that the search for profit should be constrained by social considerations (Manuel and Lúcia, 2007) and increasingly Corporate Society Responsibility (CSR) is analysed as a source of competitive advantage and not as an end in itself (Branco and Rodrigues, 2006).
Today, managers of Nigerian banks have found a need that the environment in which they operate should be provided for because their intermediate and macro environments have a direct impact on the attainment of the corporate goals, objectives and mission statement. The purpose of all profit-making organizations, and even the non-profit making organizations, is to maximize profit and in turn minimize cost, through optimal utilization of available resources to achieve the best results they are capable of. Profitability is an important factor to all banks, because it is one of the major purpose for which the banks are established. Corporate Society Responsibility (CSR) involves a business identifying its stakeholder groups and incorporating their needs and values within the strategic and day-to-day decision-making process, thus a means of analyzing the inter-dependent relationships that exist between businesses the economic systems and the communities within which they are operating. Corporate Society Responsibility (CSR) is a means of discussing the extent of obligations a business has to its immediate society; a way of proposing policy ideas on how those obligations can be met; as well as a tool by which the benefits to a business for meeting those obligations can be identified (Corporate Society Responsibility Guide). Corporate Society Responsibility (CSR) is also referred to as ‘corporate’ or ‘business responsibility’, ‘corporate’ or ‘business citizenship’, ‘community relations’, ‘social responsibility’.
The Nigerian banks seek to conduct Corporate Society Responsibility (CSR) so that they meet there financial, social and environmental responsibilities in an aligned way, their financial, social and environment responsibilities in an aligned way. At its core, it is simply about having a set of values and behaviours that underpin its everyday activities, its transparency, its desire for fair dealings, its treatment of people, its attitudes towards and treatment of its customers and its links into the Community. As a result, the environmental aspect of Corporate Society Responsibility (CSR) is seen as the duty to cover the environmental implications of the company’s operations, products and facilities, eliminate waste and emissions, maximize the efficiency and productivity of its resources, reward for externalities and minimize unethical practices that might adversely affect the enjoyment of the country’s resources by future generations. In the emerging global economy, where the Internet, the news media and the information revolution shed light on business practices around the world, companies are more frequently judged on the basis of their environmental stewardship (CIBN). Partners in business and consumers want to know what is inside a company. This transparency of business practices means that for Nigerian banks, Corporate Society Responsibility (CSR) is no longer a luxury but a requirement. Mazurkiewicz (2004) recognizes that concept has been developing since the early 1970s.
There is no single, commonly accepted definition of “Corporate Social Responsibility” (CSR); there are different perceptions of the concept among the private sector, governments and civil society organizations. Depending on the perspective, Corporate Society Responsibility (CSR) may cover: a) A company running its business responsibly in relation to internal stakeholders (shareholders, employees, customers and suppliers); b) The role of business in relationship to the state, the nationa, as well as to global institutions or standards; and c) Business performance as a responsible member of the society in which it operates and the global community. The first perspective includes ensuring good corporate governance, product responsibility, employment conditions, workers rights, training and education. The second includes corporate compliance with relevant legislation, and the company’s responsibility as a taxpayer, ensuring that the state can function effectively. The third perspective is multi-layered and may involve the company’s relations with the people and environment in the communities in which it operates, and those to which it transacts business.