CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

In recent time, business organizations have failed to accept the fact that they owe a social responsibility to the community in which they operate, apart from their main objective which is to maximize profit. This has led to frequent dispute and counter accusations between business organization and their host communities. This is why it has become necessary for researchers to critically look into business and their social responsibility using Nigeria Gas Company, Warri Delta State as a case study.

1.2    STATEMENT OF THE PROBLEMS

The need for social responsibility in Nigeria, especially in the oil companies cannot be overemphasized. This is because of the rampant occurrence of dispute between business and the community in which they are situated. Is it that the company does not fulfill their agreement with the host community to compensate them for the use of their land and for oil spillage caused by the company? The unrest or youth restiveness is it as a result of lack or insufficient provision of basic infrastructural amenities such as good road, electricity, hospital, school, etc? Are the youths or inhabitants given scholarship or employment opportunities in their company operation?

It has been discovered that much attention in terms of research has not been carried out in regard to this topic. The researcher has therefore decided to evaluate the social responsibility in the course of this study to provide useful suggestion to business management as regard the formulation and implementation of effective social responsibilities in our organization.

1.3    OBJECTIVES OF THE STUDY    

It has been expected that the findings from the research work with the findings will be very useful to industries especially Nigeria Gas Company, in discovering the area where the company has been negligent in the process of adopting social responsibilities and thereby taking a corrective measures.

Also, it is hoped that the findings will help the company to identify areas where amendment needs to be done so that effects should be directed towards the areas concerned.

1.4    RESEARCH QUESTIONS

This study will answer the following questions:

a)   Is social responsibility being rendered in the community/society?

b)   How is social responsibility being rendered in the company?

c)   What is application of social responsibility procedure in lime specified areas like workers, customers and the society?

d)   What are the strength and weakness in exercising social responsibility in the organization and in area where it is applied?

e)   Is there an establishment of’ Social Audit Department which is responsible for ensuring that corporate policy as regard social service is followed as specified by management?

f)     Negative inputs of social responsibility e.g. chain reaction of sharing compensation pay or sharing of facilities such as scholarship, location of schools, and hospital.

1.5    SIGNIFICANCE OF STUDY

The study shall contribute to research in the field of social responsibilities in the development in organization in Nigeria. It shall attempt to unraveling the potentials effect of social responsibilities in development programmes in the industry.

The study will prove valuable to the Nigeria Gas Company, as it will reveal areas of improvement in the existing social responsibilities development programmes in use in the organization.

The study shall also be beneficial to individual employees of the company and others as it will highlight the various social responsibilities imperative to guarantee improved performance and productivity.

1.6    SCOPE OF THE OF STUDY

This study is limited to Nigeria Gas Company, Warri Delta State. It shows how social responsibility is been implemented n the organization in an orderly and efficient and manner.

To this end, it covers the following: director, workers, customers and the people living in that environment

1.7    LIMITATION OF THE STUDY

This study has greatly dependent on the co-operation of the management -staff customers and the people living in the place where the company is situated.

This co-operation was needed in conducting personal interview with them having access to various documents which where needed for the research including oilier evidence shown by customers and the populace.

Secondary, it was not easy to cover all the geographical areas of the company’s operation due to wide coverage, hence this study ws restricted to just head office in Ekpan, Warri Delta State. 

Finally, there were problem of time and finance. This study was undertaken during the normal course of the study and was not possible to travel to Lagos, Kaduna, and Port-Harcourt where the company has branches of operation due to financial constraints.

1.8    OPERATIONAL DEFINITION OF TERMS

The following terms will be used in the course of explaining the topic.

Business can be define as any organization that us harmed to produce and supply goods and services to satisfy consumers needs and wants in an profitable manner.

Social responsibility: A concept commonly used which is unclear, that business has a responsibility for social problem.

Social audit: A systematic evaluation of company’s social responsiveness usually under taken by a committee of the board of directors or Staff reporting to top management.

Planning: It relates to selection of goods and the means of realizing them, choosing among alternative course of actions, deciding in advance what to do, how to do it and when to do it.

Social action: The demand and pressure of people living in a particular society for certain reasons or things such as conducive atmosphere clear air and water, health insurance and safety.

Profit: The measure of the surplus of business income (corn sales over expenses incurred in producing tile product and serve sold. Profit of any business serves as a source of capital to the business and judge tile level of success attain by the business.

Business of business: Economic enterprise whether big or small, whether private or public owned, have as their purpose, the production of sales of goods or services to the people who want and can afford them.

Concept: Mental image of anything generalization from a particular word or term.

Effectiveness: The achievement of’ an end sought, to produce a desire effect

Society: A system whereby people live together in organised communities. It is a social way of life.

Community: Group of people living in one place, district. It is a segment of the entire country.

Industry: Firm that retires or transform raw material into finish products or goods. They convert raw material in to finish or semi-finished goods e.g. crude oil into petrol, gas, diesel, etc.

Social responsiveness: The necessity for any company to be aware of any action or response of the element of the society element such as people or community inhabitants, their desire, attitude, belief, degree of intelligence, education, etc.

Obligation: This refers to promise, duty or condition that indicates what action ought to be taken. It usually occurs when somebody is indebted or owed another not necessary in monetary terms.

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