Assessment of Corporate Social Responsibility practice: the Case of selected Manufacturing Companies in Addis Ababa

Abstract

The overall objective of this study is to assess the practice of corporate social responsibility in the case of selected manufacturing companies; specifically the study try to investigate the company’s activity and concern towards the Environment, Legal & Ethical, Customer, Community, and Employee. The research design is a descriptive design, and is basically designed to assess the practice of corporate social responsibility of the companies. The study were used both primary and secondary sources of data. The primary data were collected from respondents through questionnaires. Secondary data were obtained from documents and other different books that are relevant to the study. 5-likert scale Questionnaires was designed and distributed to the societies that are found in surrounding of the companies and employees of the companies. Three manufacturing companies were selected purposely for the study purpose. These companies comprise 1499 employees in number. Out of this, samples of 306 employees were taken to conduct the research. Moreover, the study was considered 385 societies for the study purpose. Consequently, the data collected from the respondents were analyzed using quantitatively i.e. by using descriptive statistical analysis and Non parametric test i.e Friedman test and Cochran test were conducted. The finding of this study concerning the implementation of CSR towards Environment, Customer, Community, Employee Legal and Ethical; indicates that the firms do not properly carryout CSR activities. Depending on the findings the study proposed that Firms should have to see that CSR activities integrate broader societal concerns into business strategy and performance. In addition, to building trust with the community, and giving firms an edge in handling effectively the environment, customers, and employees, the firms should have to act responsibly within the society.