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THE EFFECT OF COMMUNITY RELATIONS TO CORPORATE IMAGE. A STUDY OF CELTEL (NIGERIA) LIMITED

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CHAPTER ONE 

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The complex nature of the business world, couple with economic, social and environmental inequalities have raised the issue of community relations and corporate image. From time immemorial, organisations have tried in one way or the other to be identified by the community where they are operating. This need for identity and communication led to the development of public relations which community relations are part and parcel of. Public relations is a major tool in building good relations with the organisations’ various publics (community) by obtaining favourable publicity, building up a good corporate image, and handling, or heading off unfavourable rumours, stories and events, (Kotler and Armstrong, 2006). Organisation or company is dependent on community relations if it is to be successful. Therefore, the purpose of public relations practice to community relations is to establish a two-way communication that will help to create and sustain mutual relationship and understanding between the organisation and the host community. Communities are the main part of business plan that help in promoting the sustainable development of business activities of corporate organisation through partnership activities that help them to realised their potentials to live a better life and prepare the future for generation yet unborn. The respect of the culture of our community is part of the global plan for symbiotic relationship between humanity and its society for the progress of all (Chiejina, 2001).

The above assertion explains the importance of every organisation to be responsible and responsive in the community to ensure a proper balance of business activities that promote their corporate image in the eye of the community members.

The CELTEL Communications LTD which is a corporate organisation needs to take community relations programmes as part of their “CORPORATE SOCIAL RESPONSIBILITY” if it is to sustain their growth. As part of their social responsibilities, CELTEL must be responsible and responsive to their host communities by sponsoring community-oriented programmes. One of the channel through which organisations reach out to their host communities are through a deliberate community relations strategy, usually facilitated by Public Relations department of the organisations (Ajayi, 1997).

In the early 1900s, the mission of business firm was exclusively economic. Today, partly due to the interdependence of the many groups in our society, the social involvement of business has increased through proactive community relations programmes. The imperativeness of community relations actually necessitates their full involvement in socially oriented programmes in the host communities.

The concept of social responsibility which stimulates community relations programmes among most companies is not new. Although the idea was already considered in the early part of the 20th century, the discussion of community relations programmes by organisations got a major impetus with the book social responsibilities of businessmen by Howard Bowen, who suggested that businesses should consider social implications of their decisions (Koontz and Wellrich, 1988; Jefkins, 1998).

This appears to be consensus among researcher on the specific meanings of social responsibility which gives birth to community relations. It has been agreed by many that corporate social responsibility is seriously a means of considering the impact of the company’s action on society (Steiner, 1985). In addition, some researchers have viewed community relations programmes as pragmatic attempt by organisations to be socially responsive; which also in simple terms means, “the ability of a corporation to relate its operations and policies to the social environment in ways that are mutually beneficial to the company and the society” (Paluszek, 1986). There has been a protracted argument on why business organisations should embark on community relations activities irrespective of diversity in the

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