Impact of CSR on Business and key Stakeholders: A Systems Approach for Socially Responsible Organizations

Abstract

The term corporate social responsibility (CSR) refers to practices and policies undertaken by corporations that are intended to have a positive influence on their sphere of influence. The key idea behind CSR is for corporations to pursue prosocial objectives in addition to maximizing profits. CSR is a self-regulating business model that helps a company be socially accountable to itself, stakeholders, and the public, through the impact they make in all aspects society, including but not limited to economic, social, and environmental facets. This paper aimed at finding out the perception of CSR undertakings of Shell companies in Nigeria’s Niger-Delta region, by its stakeholders, because of the environmental externalities and degradation, occasioned by oil exploration and exploitation, vis-à-vis the profit maximization and continued business operation in the region. Methodologies employed in the research included qualitative and quantitative analyses on a sample of 55 stakeholders, including residents of the Niger-Delta region. Earlier research revealed that the stakeholders were unhappy with the activities of the company in the region, hence the hostility towards its operations. However, the results from this study does not tell the same story. A good number of respondents were indifferent to the questions asked in the questionnaire.