Abstract

The aim of every private organization is to maximize profit. Profit maximization strategies have therefore, been employed by different organizations. In the 21st century, innovative strategies have been found to enhance higher profit to the organizations than the conventional methods like compensations. Therefore this study aimed at ascertaining the effects of social relevance and social integration on the profitability of five starhotels, especially in the period of economic recession in Nigeria. The study used cross-sectional design and in particular, the descriptive survey method. Questionnaire was used for data collection. Regression analysis and Partial Correlation were used for data analysis. The study found that both social relevance and social integration have no significant effect on organizational profitability. This means that despite the obvious tendency that the lack of socially responsible and integration policies in an organization may demotivate employees; the extent of such de-motivation may not be enough to affect its corporate profitability. The study recommended that the hotel industry should streamline its priorities not to focus so much emphasis on social relevance in trying to enhance organizational profitability because of the need to cut cost. Also, although there is nothing bad forging cordial relationship between the management cadre and the operational staff, it is not advisable for organizations in the hotel industry to dissipate their energy on trying to enhance integration among staff and between the staff and the management especially if there are other managerial and financial issues that require urgent attention.