AN ASSESSMENT OF THE IMPACT OF WEALTH MAXIMIZATION GOAL OF BUSINESS ON CORPORATE SOCIAL RESPONSIBILITY IN NIGERIA


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TABLE OF CONTENTS

Title Page
Table of contents
Abstract

CHAPTER ONE     
Introduction
1:1       Background to the study
1:2       Statement of the problem
1:3       Research questions
1:4       Objectives of the study
1:5       Basic research assumptions
1:6       Statements of hypotheses
1:7  Significance of the study
1:8       Scope of the studies
1:9       Limitations of the study
1:10     Definition of terms

CHAPTER TWO
Literature Review
2:1       Introduction
2:2       Definitions of corporate social responsibility (CSR)
2:3       Historical context of corporate social responsibility
2:4       Approaches to corporate social responsibility
2:5       The business case for corporate social responsibility
2:6       Critical Analysis (corporate social responsibility from a business perspective)
2:7       The enlightened self interest model
2:8       Classical and neo-classical views of corporate social responsibility
2:9       Organizational stakeholders’ theory
2:10     Organization’s responsibilities to its stakeholders
2:11     Arguments for and against corporate social responsibility
2:12     Drivers of corporate social responsibility
2:13     Criticism against social responsibility
2:14 The future of corporate social responsibility

CHAPTER THREE
Research Methodology
3:1       Introduction
3:2       Research type
3:3       Population of the study
3:4       Sampling techniques and sample size
3:5       Data collection instruments
3:5:1 Test for validity and reliability of data collection instruments
3:6       Method of data analysis
3:7       Justification for methods used

CHAPTER FOUR
Data Presentation and Analysis
4:1       Introduction
4:2       Data presentation and analysis
4:3       Tests of Hypotheses

CHAPTER FIVE
Summary, Conclusion and Recommendations
5:1       Summary of major findings
5:2       Conclusion
5:3       Recommendations
            Bibliography
            Appendices



ABSTRACT

The project is an exposition towards determining the impact of business goal on the exercise of business’ social responsibility. The research was conducted by the analysis of field data collected through questionnaires, interviews, personal observation and by a critical review of related literatures. Data were collected from at least two businesses in three sectors across the Nigerian economy covering the range of year 2005-2007, data presentation and interpretation is by simple tables and percentages and hypotheses was tested using Chi-Square statistical technique at 95% level of significance. The study established that over 70% of businesses that engage in social responsibility do that in pursuance of business’ wealth maximization. In other words, business’ practice of social responsibility is a product of the wealth maximization goal. The study therefore, concludes that wealth maximization goal of business is in accord with corporate social responsibility. Hence, it is recommended that business willful of maximizing its wealth should dedicate adequate/commensurate amount of attention and resources to social responsibility.




CHAPTER ONE

INTRODUCTION



1:1        Background to the Study



It is an axiom world over that every organization irrespective of their type, size and ownership structure have specific reasons for their existence; a well defined intention that inform their subsistence. For a business entity or firm, it is popularly one of profit maximization or wealth maximization. The profit maximization objective of a business firm has been widely criticized. It is contented according to Pandy (2006) that profit maximization objective assumes a situation of a perfect competition, and in the face of imperfect modern market, it cannot be a legitimate goal of a business. Further still, it is argued that the profit maximization as a business objective came into existence when business ownership structure were mostly self financing, private property and single entrepreneurship. The singular/common purpose of the owner is therefore, to increase personal wealth and influence, which could easily be satisfied by the profit maximization goal. Contrarily, the modern day business entity is characterized by divorce or distinction between the owners (shareholders) and management (agent) consequently, the firm’s activities can not be enhanced without the input of all other important stakeholders; Googins (2003) assert that “…profit ability (of a firm/business) is dependent on the stakeholders’ trust”. In modern day business therefore, profit maximization is regarded as unworkable, inappropriate, hazy and dissolute.


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