The evolution of thought in sustainable development theory often implies that societal contribution of businesses in the form of corporate social responsibility (CSR) leads to sustainable development in the relationship between business and society. However, most of the propositions made by CSR scholars have been described as being normative and prescriptive in nature. The implication of this is that the process through which outcomes are generated from the implementation of CSR lacks adequate exploration and has remained relatively unknown. To explore the problem noted above, a literature review was carried out. The need for a paradigm shift from responsiveness paradigm to a performance based paradigm in the practice of CSR was observed. A performance based paradigm entails the generation of expected outcomes from the implementation of CSR through creating value alignment between business' values and stakeholders' values. From the literature review, three recommendations were generated. They include the need for a shift towards a performance based paradigm of CSR, need for the exploration of the interactive process in the relationship between business and society, and the need for more empirical based studies with focus on the interactive process of CSR as a means of predicting CSR outcomes.
In the past few years, there has been a gradual re-orientation taking place in the relationship between business and society in the Nigerian petroleum industry. The re-emergence of democracy has led to an increased awareness about the role of oil companies in their host-communities. Oil companies are aware of this, and have devoted increased effort towards contributing to their host-communities. Despite the fact that, of recent, these oil companies are contributing more than ever, there is an increase in the conflict between these companies and the stakeholders in their host-communities. This is threatening their sustainability. This problem highlights a gap in theory and practice of CSR. In recent times, there have been calls for shift of scholarly focus towards a performance based CSR theory and practice. This paper empirically tested this performance based perspective by exploring the interactive process that leads to CSR outcomes. This was done through a quantitative research study. 623 members of Eket and Ibeno youth councils took part in a survey from which 591 valid samples were generated. A structural equation modelling (SEM) statistical technique was employed. The results showed a positive relationship between strategic proactivity and perceived CSR, with perceived economic value dimension demonstrating partial mediating impact on the relationship.
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