| 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. |
