Corporate Social Responsibility (CSR) is the concept that companies or organizations have a commitment to elements in the public other than investors are past that endorsed by law or Union contract (Davis, 1960). Corporate social responsibility is getting increasing consideration particularly in ongoing decades. For instance, in excess of 50 percent of global executive recognize CSR as their utmost priority (Barton, 2007). The usage of a CSR approach may create a trsuting connection between the organization and stakeholders to wind up focused on the organization through activities, for example, customers’ steadfastness, stockholder capital venture and provider speculation (Garriga ; Mele, 2004). CSR alludes to organization exercises and status identified with its perceived societal or stakeholder commitments (Lee, 2008) underlying the intrigue and concern for CSR is in the way that organizations don’t work in vacuum, rather they can be seen as “Open system” contingent upon a few variables and influential to others through trading yield and change society. Keeping in mind the end goal is to survive and flourish resources assets must be held to in any event cover costs of expenses and overabundance benefit is viewed as beneficial. In order words there should be effective firms along these lines working tenaciously on achieving their objectives. Their exercises are planned and led by enhanced performing actors with self-interests.
In the improved CSR technique put forward by the European Commission in 2011 and in numerous past and ongoing scientific publications, an extensive spotlight is being determined to the advantage of CSR to society all in all. Thusly, much effort is being made to progress CSR in all member states and organizations all things considered. Also, member states are not simply asked to improve their individual CSR procedures, yet in addition to prepare for some further administrative aims. Some business associations (e.g. the German Chamber of Commerce and Industry) are fairly hesitant to recognize compulsory CSR requirements progressed by the Commission, despite the way that the regard and significance of CSR for society is perceived. Moreover, there is progressively concern that CSR activities are simply of magnanimous nature, as well as add to a positive image of the organization, to expanded employee and customer satisfaction and additionally to other delicate variables that should be considered while evaluating business accomplishment (Malte & Marieta, 2012).
The present-day CSR (likewise called corporate obligation, corporate citizenship, responsible business and corporate social opportunity) is an idea whereby business organizations think about the enthusiasm of society by assuming liability for the effect of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders and their environment. This commitment demonstrates that the organizations need to agree to legislations and intentional take initiatives to enhance the prosperity of their employees and their families and in addition for the local community and society at large. CSR essentially alludes to strategic corporations or firms conduct their business in a way that is moral and society well disposed. CSR can include a scope of exercises, for example, working in association with local communities, socially sensitive venture, creating associations with employees, customers and their families, and including in exercises for environmental protection and sustainability (Maimunah, 2009).
1.2 Statement of Research Problem
Promoters of CSR observed that desires for different groups in the general public are not being met by the organizations. These groups are leasers, present and resigned workers, customers, providers, contenders, all level of government, the community, the environmentalist and the human right organizations. These desires ranges from protected and important occupations, clean air and water, great pay bundle and magnanimous gifts, safe items, supporting of scholastic research, scholarship awards, and so on.
In Nigeria and most countries of the world, the aforementioned expectations are not being met rather organizations maximize profit by the provision of goods and services needed but not taking into consideration the negative impact it has on people’s lives and the environment. More often, in recent years many organizations who fail to carry out their CSR claim that this is because of low productivity and lack of adequate finance to carry out their CSR activities. This has led to attacks on these organizations by different group of people and human right organizations in form of boycotting of product, destruction of lives and properties etc. Damages resulting from attacks causes fall in organizational productivity, irreplaceable worker might leave the organization, capital intensive equipment destroyed and production capacity fall. If swift measures are not taken to stop falling capacity, the organization may shut down as a result of this factors.
The problem which led to this research paper lies in the claim of many organizations who fail to carry out their CSR as they claim that they lack the necessary resources as well as the claim of the society against the organizations for failing to give hears to their demands. Going by the following issues, this paper aims at examining the effects of CSR on organizational productivity and the satisfaction of their customers who make up the larger environment.