NEXUS BETWEEN CORPORATE SOCIAL RESPONSIBILITY AND COMMUNITY GROWTH: A CASE STUDY OF KARU LOCAL GOVERNMENT AREA, NASARAWA STATE

1.1 Background of the Study Community development is fundamentally about increasing each member’s capacity to contribute to and benefit from shared progress. However, there is a growing consensus that the poverty and lack of sustainable development experienced in some communities can be traced to the negative effects of multinational corporations operating in those areas. Retnaningsih (2015) notes that the presence and activities of these corporations have significantly disrupted the social, economic, and environmental fabric of local communities. In many instances, multinational corporations have failed to fulfill their social obligations to host communities, thereby aggravating poverty and limiting access to essential services such as clean water, electricity, and healthcare. In response to such criticisms, corporations are increasingly turning toward self-initiated efforts that demonstrate a commitment to giving back to their host communities. Because multinational corporations typically possess ample financial, human, and material resources, they are in a strong position to support community development initiatives (Wiwoho, 2015). In recent years, the concept of Corporate Social Responsibility (CSR) has attracted widespread attention from scholars, business leaders, and the general public. Companies that aim to achieve sustainable long-term growth are increasingly realizing the importance of building strong ties with the communities where they operate. These firms are now more mindful of the effects of their operations on various stakeholders. In countries like the United States and the United Kingdom, many large corporations have embraced CSR as an integral part of their business strategies, ensuring that their social initiatives align with their core competencies (Zainal, 2020). Andrini (2016) asserts that multinational firms tend to have a more nuanced understanding of CSR and how it can be harnessed for strategic business benefits. However, such companies often continue to use conventional CSR approaches instead of adopting more progressive and modern models. In Nigeria, although many businesses recognize and practice CSR, their understanding often remains rooted in charity and philanthropic gestures rather than strategic or impact-driven engagement (Abugre & Nyuur, 2015). Ebert and Griffin (2017) define CSR as a company’s effort to balance its duties toward key stakeholders—including customers, shareholders, employees, suppliers, governments, and the community—in a fair and sustainable manner. At its core, CSR is a voluntary commitment by an organization to undertake activities that address the needs and improve the welfare of its stakeholders. Bahri (2016) posits that there is a positive correlation between a company’s financial success and its CSR involvement. When a firm acts responsibly, it not only boosts its own performance but also contributes positively to the social and economic development of the community. Businesses play a vital role in creating jobs, generating wealth, and delivering goods and services that improve quality of life. Arnold (2017) emphasizes that the most important benefit of CSR lies in strengthening the relationship between corporations and communities. Organizations that appreciate the value of CSR are more likely to develop policies, strategies, and practices that align their objectives with socially responsible goals. CSR goes beyond legal compliance; it involves implementing practices that exceed minimum legal standards and proactively seeking opportunities to improve the well-being of individuals and groups within society (Zainal, 2020). It is within this context that the present research seeks to examine "An Assessment of the Impact of Corporate Social Responsibility on the Growth of a Community: A Case Study of Karu Local Government Area, Nasarawa State." As Situmeang and Siwi (2017) explain, to bring about meaningful and lasting improvements in people’s lives, it is essential for individuals within a community to unite, collaborate, and actively engage in efforts aimed at enhancing their living conditions. According to Pratama (2019), community members must collectively identify their needs, plan together, and take deliberate action to achieve common goals. Community development serves as a platform that empowers and mobilizes individuals to participate in identifying, analyzing, and addressing issues that are important to them. 1.2 Statement of the Problem Corporate Social Responsibility (CSR) has evolved into a key benchmark for evaluating business practices and societal impact. In today’s highly competitive economic environment, businesses have come to realize that relentless profit maximization is not always the most effective path to sustaining competitive advantage (Selcuk & Kiymaz, 2017). Increasingly, companies face growing pressure from stakeholders to engage in socially responsible actions, especially when their operations have significant consequences for local communities. According to Osisioma, Nzewi, and Paul (2015), corporate entities are now being held accountable not just for their economic output but also for the broader social and environmental effects they produce. Unfortunately, many business operators have historically neglected the adverse impacts their operations have caused in host communities. These consequences can be quite severe, sometimes rendering daily life in these communities difficult and unstable. It is important to recognize that businesses are allowed to operate within society because society views them as part of a mutually dependent relationship. In recent times, the call for stronger social responsibility from corporations has intensified, spurred by global crises such as financial market instability, economic downturns, and widespread food insecurity. These developments have led to increasing demands from governments, investors, and the public for businesses to take urgent and meaningful action (Andrini, 2016). In response to these challenges, this study sets out to investigate "An Assessment of the Impact of Corporate Social Responsibility on the Growth of a Community: A Case Study of Karu Local Government Area, Nasarawa State. 1.3 Research questions The following questions have been prepared to guide the study i. What are the corporate social responsibility practices that promote community development in Karu LGA Nasarawa state? ii. What is the impact of corporate social responsibility on community development in Karu LGA Nasarawa state? iii. What are the challenges faced by corporations in implementing CSR initiatives in Karu LGA Nasarawa state? 1.4 Objective of the study The broad objective of the study is to investigate the An Assessment of the Impact of Corporate Social Responsibility on The Growth Of A Community: A Case Study of Karu Local Government Area, Nasarawa State" i. To examine the corporate social responsibility practices that promote community development in Karu LGA Nasarawa state ii. To assess the impact of corporate social responsibility on community development in Karu LGA Nasarawa state iii. To identify the challenges faced by corporations in implementing CSR initiatives in Karu LGA Nasarawa state 1.5 Research hypotheses The stated hypotheses have been formulated to guide the study H0: Corporate social responsibility does not have an impact on community development in Karu LGA Nasarawa state Ha: Corporate social responsibility does have an impact on community development in Karu LGA Nasarawa state. 1.6 Significance of the study The study will be significant for the following reasons Business corporations: the study will be significant to business corporation as it will reveal how corporate social responsibility (CSR) initiatives can be strategically aligned with community needs to achieve sustainable development. It helps corporations understand the tangible and intangible benefits of engaging in CSR, such as improved corporate reputation, stronger community relations, and increased customer loyalty. The findings can guide businesses in designing more effective CSR programs that not only fulfill their ethical obligations but also contribute positively to their bottom line. Academia: the study will be significant to the academic community as it will contribute to the existing literature, it will also contribute to library resources and serve as a guide to future researchers. 1.7 Scope of the study The study focus on the An Assessment of the Impact of Corporate Social Responsibility on The Growth Of A Community: A Case Study of Karu Local Government Area, Nasarawa State" . Empirically, the study will examine the corporate social responsibility practices that promote community development in Karu LGA Nasarawa state, assess the impact of corporate social responsibility on community development in Karu LGA Nasarawa state and identify the challenges faced by corporations in implementing CSR initiatives in Karu LGA Nasarawa state. Geographically, the study is delimited to Karu LGA Nasarawa state 1.8 Limitation of the study Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. The significant constraints are: Time: The researcher encountered time constraint as the researcher had to carry out this research alongside other academic activities such as attending lectures and other educational activities required of her. Finance: The researcher incurred more financial expenses in carrying out this study such as typesetting, printing, sourcing for relevant materials, literature, or information and in the data collection process. Availability of Materials: The researcher encountered challenges in sourcing for literature in this study. The scarcity of literature on the subject due to the nature of the discourse was a limitation to this study