Social Responsibilities of Commercial Bank in Economic Development of Nigeria

Social Responsibilities of Commercial Bank in Economic Development of Nigeria (A Study Of Union Bank Of Nigeria Plc Awka Branch)

DEFINITION OF SOCIAL RESPONSIBILITY

These is policy and not goal, it is a means to an end not end to means itself, although the activity of social and business organization, the argument for both and against business social responsibility exist, the are several reasons of argument of activity.

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2.1     IMPORTANT OF SOCIAL RESPONSIBILITY

1        To promote and improve communities: organization as number of society, have a moral obligation to help society deal with its problem and to contribute to its welfare.

  1. To improve public image of firm: It include providing good value for money the safety availability of product or services, standard after services.

3        Improving stock price: To having the action of social responsibility of an organization will need supplier and business associate more confident to the organization.

4        Resource guing by the organization to solve the problem: the measurement of social investment dea the decree to which organization is investing both money and human resources to solve community social problem.

It is categories into three namely:

a        Social obligations

b        social reactions

c        Social responsiveness

Social obligation: According to an organization engages in social responsibility behavour when it pursues a profit within the categories of loan improves the society because they support business by allowing it exists. Business is obligated to repay the society for the right by making profit also in the banking sector. Thus, legal behaviour in pursuit of the business profit is sais to be scroll irresponsible. These ideas supported by free man an economist and others who believes that society create business firms to pursue special purpose, rendering of service and their to engage in other pursuit enggerrate the legitimate place of business transaction in the society.

As Freeman 2000 stated, there is one and only are society responsibility of business to use its resources and engages in activities designed to increase its profit so long as it stays within the rules of the game which is to say, engage is open and free competition without deception of fraud, therefore the idea that banking sector should limit is self to continue maintaining its profit making with the land reflects a particular view of the rightful place for operations.

SOCIAL RESPONSIBILITY AS SOCIAL REACTION

The second meaning of social responsibility is that is reaction to current renouncing to social norms, value and performance expectation (Smith 1986) the review emphasis that society has expectation for business, and co-operate behaviour goes beyond the provision of their services.

Minimum business operation must be aaccountale for the environmental and social cost in armed by its action of maximum business, must react and contribute towards sohung the social expectation as exchange banking service in both rural and urban areas of the economy.

According to Max (2001) social responsibility is seen as the activities of man and time are expanded for issues affecting number of society and which socially desirabale by numbers of society. These social responsibilities need I or companies are retain their social powers.

Source: field survey 2013.

Source: Fundamental of management by Donnelly Gibsan and Titank. This continuum shows new from an organization or sector that engages of self as a freely economic sector or organization that pensive, both economic as well as social. Responsibility base demanded by society (Soaal reactive) and finally if level of organization as well as co-operate citizen such as sector do my want anticipated future society needs and their customer  so that social and economic problem should be presented (socially responsible). And finally it leads to organization that deals economic, legal as well as co-operate citizenship. Such sector do not the society to demand for responsibility rather that firm act on anticipated future society legislation a socially responsibly banking industry activity seeks for way to solve social problem of it’s customers and the society at large, progressive managers according to this view apply skill an resources to every problem form random loan sing to youth employment from local school to small business on creation, replace the time meaning for social responsiveness advocates and then manager committee the organization to such enauar, they are fidelity to receive distentions public appraisal social responsibility it place manager and the organization directly attributed them since there are centers of health and technology

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The contribution of respect to this is that organization are located a restrictive interpretation for social responsibility.

SOCIAL RESPONSIBILITY AS SOCIAL RESPONSIVENESS

According to this view social responsible behaviour are anticipating and preventive rather than reactive and restructure (Graford and Gran 2002). This term social responsiveness has become hardly used in recent years to refers to an action (Kefer A. and Malton Grammen 1952) the characteristics of socially responsive behaviour including taking stand on public issues, accounting bewitchingly for action to any groups or institution anticipating factor needs to the society in which you operate and maung towards satisfying them and communicating with the government regarding and and anticipating social desirable view because its not voluntary action by the employer neither the bands action are voluntary or consolatory, a broader interpretation of social raction vired**** certified as socially responsible these action goes beyond the law. Imposition of responsibility for removed form traditional, are being concerned either economic gain only. The assumption of this view is that commercial banks especially union bank of Nigeria Plc should be involved as well as solving social and economic problem of its customers hence they are perhaps the most effective problem solving centers.

2.2     THE CONTINUUM OF SOCIAL RESPONSIBILITY

Three (3) general meaning of social responsibility can be depicted and continuum as show below.

SOCIAL OBLIGATIONS SOCIAL REACTIONS SOCIAL RESPONSIVENESS
The organizations economic and legal responsibility The Nigeria economic and legal responsibility The organization economic legal and citizen relationship.

 

Social reaction that is involves only voluntary actions. This interpretation seeks to separate action that is initiated by voluntary action rustic motive.

A form of not being social responsible of merely compile with a minimum requirement of the land social responsibility of a firm accept law, any financial institution of a firm that accept social obligation in reaction to pressure group customer. Boycott or advast would not be secretly responsibly of instance the union bank of Nigeria Plc contribute 2.5% to the employers account of not a social responsibility tah social and economic problem should be parented (socially responsive)

2.3     CONTROVERSY OVER THE CONCEPT BUSINESS SOCIAL RESPONSIBILITY

The doctrine of social responsibility is however seen to differ very much from all other ecologists and have hopefully if should be more successfully. No one can yet be sure but what is significant is that as professors crayon said. Any business operation itself has angle that co-operate resolution is now unprocessed which has resulted in revolution discretion of business goals and objectives and broad social spheres.

According to Andy M.C. 2006, business of self would see that most vocal advocate of co-operate social responsibility, unlike most of the other sociologists which were authorized outside the business sector so also banking industries. Such things must be stated for the adherence of economic goals the impression are form that social responsibility is not there fizzy.

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The best explanation may perhaps suggest that it’s the current manifestation of that accountability which goes with power, in this view management has no responsibility outsider the maximization of shareholder welfare. Another roots cause of thijuus opposition is the contribution that co-operation action in he social responsibility is outside the value of the market system, and hence it I not subject to the usual vigorous test of efficiency the price mechanism but there are also cities assume that co-operate accounting also takes into account that all social cost such as ever, society is making optimist profit in other words, thus would comply that what is good for the business is also good for the society. Therefore, customer’s employer and the society demand for social and economic development interaction between people and staff or banking industry.

2.4     COOPERATE SOCIAL RESPONSIBILITY IN NIGERIA

The success of the union bank of Nigeria Plc should not be seen in term of operation alone because of it has all long been adopted its activities not only to met the need of it’s customer buy also to faster the prosperity of society as a whole therefore, union bank of Nigeria Plc, as a corporate entiry has been by discharging it social and economic responsibility by contributing towards the social economic and educational development of the country.

Since no organization operate in a core system air woman, the operation of a business, therefore, union bank is affected by the environment in which a firm choose to do business, therefore, union banks of Nigeria Plc as form must be socially responsible by providing recreational facilities, sanctions award of scholarship to deserving members of the society, sponsoring educational programmers on radio and television paying adequate compensation to those that acquired their land maintaining peaceful and cordial relationship with the community that operate union bank of Nigeria Plc operation must be in line with laid down rules and regulation that are aimed at regulating their activities firms operate in accordance with their rules formulated by he government therefore must be legally responsible by obeying and accepting government rules and regulations that regulate business operation.

Several other social activities expected in business are now receiving active support from many Nigeria business firms, some f this social cases contributing to education donation to orphanage and re validation center, rural development apprentices has schemes for the unemployed to game and sport etc.

2.5     CHALLENGES OF WINNING THE MARKET

Companies or organization are mainly interested in practical action and specific result freedom of input-output result and not too interested in philosophical or social responsibility discussion, union bank of Nigeria Plc, is more interested in the amount on profit made and the amount of dividend to be provide to shareholder, therefore neglecting the co-operate social responsiveness of the business.

The issues of social responsibility of business have been supported by the proponent of the concept and some have equally opposed the view to the end we shall examine the argument in favour of social responsibility is in the best interest of a business to promotes and improve the communities where it carryout its business hostel to the form.

Social responsibility is an ethical thing do of help to improve the public image of the firm social responsibility of the stakeholders best interest, it will help to increase price of stock in the long-run, because the stock market will view the company as less risky and open to public fraction and therefore award it’s a higher price reaming reaction when the firm involve or embark on social responsibility and government regulation shorting are avoided it then becomes profitable to the firm.

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In defection argument against social responsibility are seen as the cost of social responsibility is too great and would increase price of goods and service since the cost of the activities are automatically transferred to the consumer social responsibility violate profit maximization of a form embark for social responsibility it primary purpose for the business is clutched hence the zeal to pursuit it’s goals is divided and the primary purposes may be jeopardized.

Nevertheless for any business to be successful in the environment is advisable that hey be committed and be responsible to it.

CONTRIBUTION OF CSR TO ECONOMIC GROWTH AND DEVELOPMENT

There has been an upsurge in voluntary initiative association with codes of content. Improvement in environmental management systems improved the health and safety standards, company reapportion on social and environmental policy and performance participation in certification and labeling scheme an increase in co-operate social environment for example, community development project and philanthropy, large companies are also participating in so-called multi share holder initiation and public – private partnership with NGO’s and government or multi-lateral organization the united nation has played an important role in promoting partnership with TNCS through arrangement such as the global compact, various global health partnership and numerous imitative brokered or announced there world summation sustainable development held in Johannesburg in 2002.

DEVELOPMENT IMPACT OF CSR (CORPORATE SOCIAL RESPONSIBILITY)

But apart from accessing the scale scope and implementation of specific CSR policies and institutional arrangement, it’s important to consider the wider developmental implication of CSR. There is a fairly generalized perception is shared by many shape of form must be good for social development and environmental protection and therefore for development more generally. This assumption needs to be lorded at careful giver the characteristics and impact of CSR.

  • CSR may have protectionist implication by restricting access of southern firms to Northern manuals
  • CSR and partnership may enhance the competitive advantage of TNCS of the expenses of firm the developing countries.
  • The CSR agendas often ignore the bigger parts or the structural cause under development such as certain macro-economic policies inequitable in Northern and south relationship as well as patterns of investment and economic growth that have negative social and environmental impact.

2.1     IMPORTANCE OF SOCIAL RESPONSIBILITY

  • To provide and improve the communities organization as member of society have a moral obligation to help society, deal with its poem and to contribute to it welfare.

Improve public image of he firm it includes providing good value for money and availability of product, or services standard after sales services.

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ACCOUNT NUMBER: 3066880122

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