CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Organizational performance comprises of the actual output or results of an organization as measured against its intended outputs, goalsand objectives. In other words, organizational performance comprises real results or outputs compared with intended outputs. Theanalysis focuses on three main outcomes, first, shareholder value performance; second, financial performance; and third, marketperformance. It is a broad construct which captures what organizations do, produce, and accomplish for the various constituencies withwhich they interact. Performance is seemed to be the fulfillment of an obligation in a manner that released the performer from all liabilitiesunder the contract. This means that an employee must be properly appraised in terms of their productivity, skills, taken decision and totalcommitment to their jobs so as to enable the organization to achieved expected goals (Kuvaas, 2006). One way an organization can performis by practicing corporate social responsibility. Corporate social responsibility is a nebulous concept that has been described in a number ofways; it is widely used in literature of sociology, anthropology, economics, politics and business administration. Most writers on corporatesocial responsibility see the concept as the disposition of an organization to exhibit ‘missionary’’ rather than “mercenary’’ attitudes towardthe society. Corporate social responsibility in relation to business is the obligation of a business organization to pursue those lines of action,which are desirable in terms of objectives, and values of society. (Lawal & Sulaimon, 2007) defined it as ‘’ intelligent and objective concern,which restrains individual or corporate behavior from ultimately destructive activities, no matter how immediately profitable, and leadsto the direction of the positive contribution to human betterment. Presumably, corporate executives as agents of the owners are to beresponsible for conducting the business in accordance with the desire of the owner while conforming to the basic rules of the society. Theresponsibility has three broad facets (Ikpeze, 2001).First, contribution to charity. Second, elimination of social costs. The third facet ofsocial responsibility is the adoption and observance of ethical codes aimed at reducing business malpractices.Oil exploratory firms in Nigeria and other types of business must be seen in many actions domains can pursue social responsibility in areassuch as: concern for ecology and environment, commitment to quality, truth in advertisement, customer satisfaction and education. Otherconcern include service to community needs, fair employment practices, progressive labour relations, employment assistance andcorporate philanthropy (Ogbeuchi, 2008). This study proxies corporate social responsibility with economic, legal, ethical and discretionaryresponsibility while organizational performance was proxied with three outcomes associated with selected catering services in Khana LocalGovernment Area, Rivers State, namely; profitability, effectiveness and efficiency.

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