Academic journal article Journal of Finance, Accounting and Management

Effect of Corporate Social Responsibilities of Banks on Their Host Communities: A Case of Godfrey Okoye University, Enugu, Nigeria

Academic journal article Journal of Finance, Accounting and Management

Effect of Corporate Social Responsibilities of Banks on Their Host Communities: A Case of Godfrey Okoye University, Enugu, Nigeria

Article excerpt

Introduction

Corporate social responsibility (CSR) can simply be defined as the act of taking care of one immediate community. It could be through provision of electricity, pipe bore water Building of good Roads and ensuring security in the society or Environment where you are situated. The ability of banks or firms to care for its immediate community is what we refer to as social responsibility it could be through monetary or non monetary donations to the community. Earlier before non, societal expectations from business organizations did not go beyond efficient resource allocations and profit maximizations but now, it has changed, modern businesses must think beyond profit maximization in order to be at least socially responsible to its society at which it operates. Corporate social responsibility is primarily regarded as the financial and human resources to make significant social investment (Ezeoha 2006) corporate social responsibility in another words, means that a company needs to be responsible for it's actions socially, ethically and environmentally social responsibility entails or has to do with developing business with a positive relationship to the society which they operate in.

Bank commit huge amount of money in undertaking CSR activities especially in their host communities. The goal of such activities usually is to attract deposit and customers to them. Their major Reason for going into CSR Activities is to bring back deposit to them from people in the society that their actions has affected positively this will at the end bring back profits and returns to them. Wiston Churchi says, that "we make a living by what we get, but we make a life by what we give".

Dare (2004) noted that, there is a going global trend towards both government mandated and voluntary corporate disclosure of information on the environmental, labour human rights and social impacts of business practice, this is because people have known that it is their right to benefit from the firms or corporate bodies that is around them or situated around them socially and this right should not be denied of them the firms should see it as obligations that they are to the host communities where they operate.

Corporate social responsibility could be viewed as a symbolic relationship that exists between a firm and all the stakeholders this stakeholders include the customers, government, public, stakeholders etc.

Ramathan (1996) stated that there exist a social contract between the organization and the societyJagyi andzhao (2006), agreed with the social view when they argue that organization do not exist in a vacuum but are part of society, which creates and support them. They affirm that social responsibility is a part of the total environment in which business operates.

In modern business world, corporate social responsibility has been emphasized by stakeholder as a driving tool for success to be accomplished. It has become an increasing evident and crucial component of overall performance of business organizations generally. Conscious of this concept ordinary citizen, potential investors pressure groups, politicians, insurance companies and a wide Range of other stakeholders are increasingly demanding organizations to account for their social Natural environment and Economic impact that they have on every community in which they operate (Nwachukwu, 2012).

Ethim (2011) defined CSR as a concept where by a company indulges in continuous, responsible activities that point to it's good intention as a corporate citizen. Mc Williams and Siegel (2001) also defined CSR as a situation where a firm carries out "actions that appear to further some social good beyond the interest of the firm and that which is required by law it sees CSR as voluntary actors by a corporate entity pursuant of social good. This agrees with EU's Green paper, on CSR which defined it as a concept whereby companiesintegrate social and environmental concerns in them businessoperations and in their interaction with stakeholders on voluntary basis

The history of corporate social responsibility can be traced to practices in the oil and gas sector driven by western MNCS. …

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