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The Economic Scope of Corporate Social Responsibility and Factors in Nigeria

Economic Responsibilities refer to the set of activities, or programmes embarked upon by the management of organisations which have direct impact on the owners and employees (Carroll, 1996). A failure in properly carrying out economic responsibilities will affect the fortunes of the business in terms of employees’ interests and owners’ expectation. Economic responsibility therefore focuses on the financial viability of the business which translates to employees’ and owners’ satisfaction. Economic responsibility factors include:

– Integrity and transparency in reporting, such as full disclosure of risk and returns to owners.

– Corporate governance: making sure that the firm’s market share is competitively attractive to the public.

– Community economic development, such as provision of rural telephony, agricultural aids, etc.

– Fighting economic crimes: not participating in money laundering and over bloating of contract figures, etc.

– Tax payments and obligations: prompt payment of taxes and levies to the appropriate authorities.

– Local content involvement: engaging local labour and suppliers, compliance with the local content act.

– Fair pricing: goods and services are made available to consumers at affordable prices.