INTRODUCTION

1.1 BACKGROUND OF STUDY

Profit maximization was regarded as the primary mission and

over-reaching economic motive of any business enterprises little or no

attention was paid to the fact that in pursuit of their profit objective

business enterprises have to be ask to assemble the resource from the

local environment and have the stable socio-political and investment

climate in which to operate successfully. If business organization relies

on society for existence it is only logical that this environment be

acculturated and nurtured to ensure its continuity. It is in this regard that

the orientation of the modern business manager has changed to reflect the

increasingly important interdependence between organizations and there

environments with these there is an increasing public glamour that

business should participate actively in the well being and environment in

which they operate and make their profit.

However the aim of establishing any business is to provide

competitive goods and services to the consumer and society at large. This

does not however mean that they have concluded their obligation to the

people especially to the host community where the business is sited and

operated.

Although there is no law as what form of services the host

community should benefit from the business it is morally obliged to

cater for at least their host. This they do by aiding the development of

infrastructures such as access roads where necessary and the provision of

good water for domestic use and also the provision of electricity of the

local population. Other forms of services that could be rendered for the

young members of that community and of course the provision of gainful

employment for those who have graduated from college.

There are a lot of other services that the host community can

benefit from the business such as the provision of safety measures against

pollution other air or water. On the other hand to the business also look

forward to the local populace for continued patronage and also for

ensuring the safety of lives and properties of the business and employees

of that business who are not from that community. Therefore the

recognition by businessmen of the need to keep the good of society as a

whole to mind while conducting business in the bed-rock of social

responsibility.

1.2 STATEMENT OF THE PROBLEM

The controversy about the public clamor that business should

participate actively in the well being and welfare of the community

society environment in which they operate and make their profit are the

problems among others this research intend to solve. Has business social

responsibility any part to play in the total marketing effort of business

organizations or enterprises?

Does business social responsibility contribute anything to the total

revenue of the company? Is the conception that there is no need for

business enterprise to be socially responsible to its society “SHELL

PORT-HARCOURT” true or false? Of what use is business social

responsibility to the general public? The problem for this research is what

the responsiveness of companies to social responsibility is.

The following research hypothesis are formulated for the purpose

of carrying out this project of which:

HYPOTHESIS I: Ho: socials responsibility of business does not

significantly enhance the success and development of the host

community

Hi: social responsibility of business significantly enhances the success

and development of the host community.

HYPOTHESIS 2 I: Ho: There is no significant relationship between the

success of business and its social responsibility.

H1: There is a significant relationship between the success of business

and its social responsibility.

1.3 OBJECTIVES OF THE STUDY

This research work was conducted with the following main

objectives:

a. To met up with the requirement in partial fulfillment for the award

of B.Sc in the department of Business Administration Caritas

University Enugu.

b. To examine and determine the extent of benefits that the company

shell company has contributed to the development of Port Harcourt

in response towards to the business social responsibility.

c. To investigate the causes of business enterprise nonchalant

attitudes towards business social responsibility to the development

of its host community.

d. To advance solution of the problems of business social

responsibility to the development of her host community.

1.4 SIGNIFICANCE OF THE STUDY

This research is significant in the sense that it provides the basis

for further research into the topics by providing related data.

This study is also of important for the fact that business have been

criticized on ethical moral economic and political grounds. Businesses

have also contributed to the determination of our physical environment

the case of SHELL company’s pollutants like poisonous waste materials

have been buried in abandoned plant sites; solid wasters have been

thrown into lakes and seas or rivers; poisonous gases have been released

into the air we breathe etc. Trying to be socially responsible involves

extra cost or expenses for industries.

This study is important because it will be useful to “SHELL

COMPANY” and its customers by helping them understand and

appreciate more of the effort it has made. If any it will also be useful to

the government and registration because it will help them make more

meaningful and useful legislature and help them to set achievable

standards concerning social responsibility of businesses.

1.5 RESEARCH QUESITIONS.

This study intends to provide answers to these questions.

1. Does social responsibility of business organization enhance the

development of the community?

2. In what way has the company carried out their social responsibility

in community?

3. To know the extent of implementation of this policy the problems

argument and difficulties facing the company in carrying out their

social responsibility in their host community.

1.6 SCOPE AND LIMITATIONS OF THE STUDY

The scope of social responsibilities of business in relation to this

project focus on obligation which business have voluntarily imposed on

themselves to ensure the survival of the system under which they thrive.

In order to give the reader a board base from which to see all of the

implications of the social responsibilities of business it is necessary to

examine such responsibilities from the perspective of consumers

employees and general public shell Port Harcourt.

Time and financial constraints are the two limitation of this study.

Subsequent difficulty in obtaining data from other companies led to the

selection of shell company Port Harcourt as a case study.

This limits the generalized ability of the conclusions of the research to

shell Port Harcourt and no other company in the country.

Another problem was the shortage of literature on related topics

and non- availability of shell publications in libraries. The absence of

accurate and up to date statistical figures because of the recent of events

as regards the research topic.

Again in regarded as confidential it was very difficult to get the

company to release the required information. The problem of gateman

and messengers stopping the researcher from entering was another

constraint to this study.

Lastly the case of official’s absence in the company to field work and

other assignments constituted other major constraints to the research this

work.

1.7 DEFINITION OF TERM

(BSR) Business Social Responsibility

(NNPC) Nigeria National Petroleum Corporation

(ITT) International Telecommunication Technology

(SPDC) Shell Petroleum Development Company.