Corporate Social Responsibility In Multinational Corporations Commerce Essay

Corporate Social Responsibility In Multinational Corporations trading EssayThe inflow of foreign direct investment (FDI) has the ability to mulct an important role in the contributions to the development of local economy of a developing country. Such role includes capacity building, employment opportunities and the transfer of applied science (Ite, 2004). Corporate Social Responsibility is a fantasy that has created global awareness. Its popularity hinge upon as a result of globalization and information technology.According to the knowledge domain Business Council on Sustainable Development (WBCSD) CSR is the continuing commitment by ancestry to behaving estimablely and contributing to economic development while amend the quality of life of the workforce and their family as well as of the federation and rescript at large while (Frederick, 1994) sees it as an obligation of phone line to contribute to friendly wel uttermoste beyond their role of producing goods and providi ng services.Multinational Corporations (MNCs) hence has a major role to play through CSR initiatives, foc exploitation on the development of a developing economy such as Nigeria. However, for galore(postnominal) MNCs, CSR is an outcome of public pressure arising from their operations in developing countries in relation to human right, environmental pollution and labour issues. In early(a)wise words, it has generally being a pragmatic response to consumer and civil indian lodge pressures (Raynard Forstater, 2002).This proposal seeks to focus on CSR utilizations and understanding how CSR theories relates to its practices by MNCs in Nigeria using vitrine Petroleum Development Comp both (SPDC) as an example. Various researches that defend been carried out foc practised on the activities of the MNCs and they rush revealed that t present was a ascent evidence of gap between the stated intention of business leadership and their actual behaviour and impact in the real world(Fry nas, 2005). Little has been researched on how CSR theories relates to its practices by MNCs such as case in Nigeria. Nigeria was elect because it is the most(prenominal) populous black nation in the continent and the largest producer of fossil oil in sub Saharan Africa. The question this intention seeks to ask is, how far is beat up Petroleum Development Company improving on the well-disposed welfare in Nigeria? In separate words were they able to practice CSR.LITERATURE REVIEW.The literature on CSR has produced much definition over the ten dollar bill since its emergence on the business scene (Carroll, 2004). The concept CSR has evoked gobs of debate among students. It is sometimes referred to as business virtue or societal responsibilities. It means different things to different people. To some, it means the idea of legal function or obligation and to others it means social responsible behaviour which is sometimes seen as a charitable contribution to the society.Accord ing to the foremost scholar of CSR Carroll (1983) CSR involves the conduct of a business so that it is economically profitable, law abiding, ethical and socially supportive. The commission of European communities defined CSR as a concept whereby companies integrate social and environmental concerns in the business operations and in their interaction with their stakeholder in a voluntary basis. As good as the notion of CSR may seem there are different views by different scholars as to what constitute CSR. According to parsons (1961) CSR possibility is rooted in four aspects of hypothesisIt can be observed in any social system.It adapts to its environment i.e. its relation to resourcesGoal attainment i.e. its relation to regimeSocial integration and pattern maintenance i.e. its relation to culture and values.From these hypotheses aforementioned, CSR theory was then classified into four groupsInstrumental theory- here it is assumed that confederacy is an instrument for wealth creatio n. According to friedman (1970), the only obligation of business towards society is the maximisation of profits to the shareholders within the legal framework and the ethical economic consumption of the country. Any organisation that adopt CSR initiative allow always have to answer the question to whom are we responsible? the answer to this question is normally to the stakeholder. Stakeholders here include the employees, customers, shareholders, staff in the supply chain and the biotic friendship living in vicinity where the fraternity is located.Political theory here the social power of corporation is specifically empha surfaced in its human relationship with the society and its duty in the political environment. Davis (1960) introduced business power in the CSR debate. He proposed that business is a social institution that must use its power responsibly. In his own words whoever does not use his social power responsibly forget lose its position in the society. endogenic t heories it is considered that business ought to integrate social demand. Social demand implies the way in which society relates with business through certain legitimacy and prestige. This goes further to beg off that business depends on society for its continuity and existence.Ethical theory faithful ought to accept social responsibility as an ethical obligation supra any other servant. Donaldson and Dunfee (1999) proposed the integrated social contract theory. This theory was meant to put across managers to make decision in an ethical way in other words, to get involved with the society.To cynics, CSR is antithetical to sound business practice and serves to die its focus on wealth creation ( Clement-Jones,2005 Murray, 2005). Advocates however characterises CSR as obligatory for successful business operations and as a gateway for business to look beyond wealth creation and as well as take into consideration the social welfare of the society in which they operate (Jackson N elson, 2004 Rudolph 2005). In other words, businesses that are socially responsible can help to solve life-or-death environmental and social problems. Some studies consider CSR to involve ethical responsibility while philanthropic responsibility is seen as an add on ( Longo et al 2005). Other studies have made discrepancy between CSR as wide-eyed legal compliance and CSR as carrying out business operations with uplifted regards to morality (Juholin, 2004). Henderson (2001), attempt to show that CSR distorts the market by distracting business from its primary(a) role of wealth creation. These different views by scholars have led to awe as to what CSR practices in truth entail. Based on the fact that little has been discussed on how CSR practice fit or does not fit with CSR theories, my main project pass on involve critical analysis of CSR theory and how it relates to its practices by Shell in Nigeria.RESEARCH OBJECTIVE AND RESEARCH QUESTIONThe central accusing of this researc h isTo develop a better understanding of CSR theories and practices.To investigate on the CSR policies of Shell Petroleum Development company and how it relates to the CSR theories.To investigate the effect of their CSR activities in Nigeria.These objectives will be looked into in order to ascertain if Shell really dependable their CSR policies and to what extent does the policy create effect in the residential district which they operate.Therefore my research question will be to what extent is Shell improving on the social welfare in Nigeria?RESEARCH excogitationThe research strategy that will be adopted for this research will be a case believe approach. A case study approach is a single unit of analysis such as a company, an event or group of events. In this case a company i.e. Shell Petroleum Development Company will be employ. The case study type is exploratory as well as explanatory in nature. It involves gathering detailed information about the company over a period of ti me with a view to guard an in-depth knowledge (Collis et al 2003).A qualitative approach will be adopted for this research because it is designed to study social and cultural phenomena. It will be aimed at conducting an in depth analysis of how Shell practiced Corporate Social Responsibility in Nigeria. Questionnaires will be used as an instrument for this research. These questionnaires will be administered to the host company where Shell is operating because it is assumed that the community understands the subject matter that is been analysed. The sample size of this research will be classified according to age, gender, academic cogency and the number of years of residency within the community.Simple Random consume Techniques will be used to administer the questionnaires to the member of the host community because it gives each member of the nation an equal chance of being chosen and it also guarantee that the sample was a representative of the entire population (Saunders et al 2007)DATA COLLECTION AND ANALYSISData would be put in using questionnaires. Through face to face interaction, the respondents would be gathered at a particular place and instruction would be given to them as to how to fill out the questionnaires. I intend to give out one hundred fifty questionnaires. The data that would be collected will include the age, gender, education qualification and the number of years of residency within the community. Secondary data would also be collected from sources like industry journal and other relevant published and unpublished articles.Descriptive method of data analysis would be used to analyse the responses from the questionnaires collected. This method includes the use of charts and tables to describe the data generated.LIMITATIONS coyness to finance will be one of my major limitations for this research because it will entail me to travel to the Niger Delta region in Nigeria which is the region where Shell operates. due to the fact that the questionnaires would be handed out by myself, some members of the community would want to be paid before they fill out the questionnaires.