THE PRACTICE OF CORPORATE SOCIAL RESPONSIBILITY IN THE CASE OF ABYSSINIA AND AWASH TANNERIES

Abstract

This study explores the practice of Corporate Social Responsibility, focusing on Abyssinia and Awash Tanneries Addis Ababa, Ethiopia. In order to achieve its objective, the study has used questionnaires and semi-structured interviews to collect primary data. The study employed qualitative research design. Respondents of all stakeholders (creditor banks, employees, environment (environmental protection authority), and community (Bureau of Labor and Social Affairs)) were selected. Sample employees of 150 were selected as respondents. The data collected through questionnaires from managers (two general managers and three department managers) were summarized by using Likert scaling. A descriptive statistics (frequency and percentage) was used for summarizing and discussing employees’ response. The study showed higher managers had a positive attitude towards Corporate Social Responsibility practice; the companies were engaged in corporate social responsibility practices; had a better concept of the same though there are still measures which should be undertaken. There was no specifically designed set of policies and principles in the organizations regarding corporate social responsibility. The companies’ motives to engage in corporate social responsibility include increased reputation; companies could have the advantage of increased access to bank credit but not enhanced ability to attract skilled man power because of their involvement in corporate social responsibility practice. The study recommends that managers of the companies need attitudinal changes in favor of implementing and enhancing corporate social responsibility. Moreover, training has to be given for responsible personnel in the organizations by the Environmental Protection Authority. The companies need to have a specifically designed set of policies and principles about corporate social responsibility. Finally, the study has the limitation that it cannot be generalized to all tanneries because it was limited to only two companies and five of their stakeholders. Therefore, further study which includes other companies in other industries and all of their stakeholders was recommended.