CORPORATE SOCIAL RESPONSIBILITY AND ITS EFFECT ON ORGANIZATIONAL PERFORMANCE
 CHAPTER ONE
INTRODUCTION
  1.1 BACKGROUND TO THE STUDY
 Corporate engagement with society was termed corporate Social responsibility (CRS) has become a commonly used term In contemporary society and refers to one process by which An organization expresses its corporate culture and society consciousness. (Rupp, Deborah E, Ganapathi, Iyoti (2006) and Calderon, Mario (2011)  CSR has been receiving lots of attention from various backgrounds of researchers worldwide. (Isamail 2011).  Clark (1916) emphasized the importance of transparency bin business dealings, he said if men are responsible for the known results of their actions, business responsibility must  include the  known results of business dealings weather these have been recognized by law or not. (CSR  QUEST, 2009).
  In Nigeria the origin of the concept can be traced to concerns for the fundamental rights of  Human  beings (Onwuchekwa 1999:59). This era was filled with legislation designed to regulate business and industry in Nigeria and it was clear that business would have to accommodate public interest if free enterprise was to survive( Onwuchekwa 1999:59).
Over the years, one issue that has frequently been addressed is, for what and whom companies are  responsible to when pursing business? This is because many believe that the only  responsibility of a business is to ensure maximum profit to its shareholders who in turn will  determine how to use resources (Andriof and McIntosh, 2001:12). This is line with Friedman’s  statement that “the business of business is2business”. Friedman stated that “companies should  not take on any additional responsibilities since that will diminish the profit making focus and
maybe most importantly, companies lack both the democratic and legal base to pursue such societal activities (Andriof and McIntosh, 2001:15). Others argue that Corporate Social  Responsibility (CSR) is a “fashionable nonsense” (Overall, 2002:2). It is not good for companies  to start weighing the merits of competing social, economic and environmental goals that is the  job for elected governments. Instead, managers should serve the people, who pay their salaries,  (Overall, 2002:3). A radically different view, is that of those who argue that, a company is
responsible for all its stakeholders and  should therefore take greater responsibility for the society  at large and seek to solve social and environmental problems in its market (Deresky, 2005:12) .
1.2  STATEMENT OF RESEARCH PROBLEMS
   Like many of management and social science concepts, Corporate Social Responsibility (CSR)   is fraught with definitional problems, which makes it difficult for a uniform platform to asses  firm’s responsibilities to it. Musa (2008:540) conceives a firm as nothing other than an instrument to achieving economic efficiency, cost reduction, and thus wealth Maximization which is the view of the classical economists. Since a lot of companies see  Corporate Social Responsibility as a financial burden, this study investigated the benefits accruable from the adoption Corporate Social Responsibility strategy by companies using Dufil Prima foods plc  Indomie Nigeria as a case study. The basic questions this study hopes to answer are as follows
The basic questions had been what relationship exist between corporate social responsibility and corporate performance.
In which key area of operations should the organization formulate corporate social responsibility strategy
What specific ways has the organization adopted in integrating the corporate social responsibility strategy with its operations
How can corporate social responsibility strategy improved upon in other to improve the organizations performance
1.3 OBEJECTIVE OF THE STUDY
   The broad objective of this study is to evaluate the relationship between Corporate Social  Responsibility and Organizational Performance in Prima foods plc Indomie Nigeria and using it  to draw a relationship between Corporate Social Responsibility and the growth and development of companies. Derived from the above broad objective are the following specific  objectives:
To identify the relationship between Corporate Social Responsibility and organizational performance..
To identify the key areas in which Dufil Prima foods plc formulate their Corporate Social Responsibility strategy.
To examine the specific ways that Dufil Prima foods plc has adopted in integrating  the Corporate Social Responsibility strategy with the organizations operations.
To identify how the Corporate Social Responsibility strategy can be improve upon in order to improve organizational performance.
1.4 RESEARCH HYPOTHESIS
The following hypotheses have been formulated to test the research
questions.
HO1: There is a significant relationship between the performance of Corporate Social Responsibility and organizational productivity.
HO2: The non-integration of Corporate Social Responsibility strategy does not result to poor organizational performance.
HO3: Improvement on the Corporate Social Responsibility strategy does not lead to improved organizational performance.
 1.5 SIGNIFICANCE OF THE STUDY
   Corporate social responsibility is a fundamental issue that needs to be addressed in order to ensure any organizations long term success. This study will be of immense benefit to students, privately owned businesses and public corporations. 9Specifically, this study will be of great significance to directors, managers and executive officers in all business organizations. The  study will also be beneficial to government agencies, students and research fellows. For directors, mangers and executive officers in business organizations, the study will help them to discover the true essence of Corporate Social Responsibility, its working principles and how it  can be used to enhance organizational performance both on short and long tern basis. The  study will help them determine how to work in harmony and to operate their businesses within ethical standards. For government agencies, the study will help them apply the existing policies relating to Corporate Social Responsibility and organizational activities, thereby, determining
areas requiring improvement .Finally, students, including research fellows will find the study  very beneficial in the area of future studies and referral reports.
1.6 SCOPE OF THE STUDY
    The study focuses on corporate social responsibility and corporate performance in Dufil prima foods Indomie Nigeria  It addresses the effect corporate social responsibility has on the performance of the organization.  The researcher investigates the key areas in which Indomie  Nigeria  formulates its Corporate Social Responsibility strategy, ways in which the strategy could be integrated with organization’s operations and how the Corporate Social Responsibility  strategy could be improved upon, believing that its findings could also be applied to other Organization.
1.7  LIMITATIONS OF THE STUDY
    The researcher was constrained by factors as time, finance, lack of sufficient reference materials on the subject matter and reluctance on the part of some respondents to give out  information relevant to study.
1.8 DEFINITION OF TERMS
SOCIAL  RESPONSIBILITY: Social responsibility as used in this styudyis a demonstration of certain
behavior on the part of the public and private sector toward society and environment.
STAKEHOLDER: This study describe stakeholder as a person or group of persons with direct intrest, involvement or investment in a business organization e.g the employee, shareholders, customers, suppliers etc.
HYPOTHESES: A hypotheses is a tentative statement about relationship that exist between two
or among variables. It is a conjectural statement about a relationship that need to be tested and subsequently accepted or rejected.
THEORIES AND LAWS: A hypothesis if it is true state a law, therefore hypothesis is a law lijke statement. Law is defined as a statement of invariant relationship among observable or measurable properties.