THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON IMPROVING ORGANIZATIONAL IMAGE: THE CASE OF CBE

Abstract

The concept of corporate social responsibility (CSR) has gained extensive consideration in recent years. Nowadays firms are using CSR to gain competitive advantage and to establish long lasting relations with its stakeholders. This study identifies and investigates the Effect of CSR improving organizational image. Accordingly, Economic Responsibility, Legal responsibility, Ethical responsibility and Philanthropic responsibility were specified as a determinant the effect of CSR improving organizational image. The research design employed descriptive and explanatory research design. Each variable is measured using 5-point Likert-scale. Using primary data collection method, questionnaires were distributed to target respondents of 399 sampled customers of Commercial Bank of Ethiopia, Purposive sampling and Systematic sampling technique. Descriptive statistics analysis was done through Statistical Package for Social Sciences (SPSS) version 20.The findings of this study revealed that CSR has a significant positive role on organizational image. However, CSR can be subdivided into economic responsibility, legal responsibility, ethical responsibility and philanthropic responsibility. Economic Responsibility and Legal responsibility were the high significant Effect improving organizational image whereas; Ethical responsibility and Philanthropic responsibility were found to be slightly significant factors in this study. The study suggests CBE must keeping and investing in the strong position of its Economic Responsibility and Legal responsibility activities and also by creating strong consumer communication for customer to give pay attention to Ethical and philanthropy responsibility the organization (CBE)must strategically embrace CSR to achieve a sustainable positioning of their corporate image and long term positive benefits for society, CSR initiatives should come forth form on the benefits the organization can offer to society, creating a win-win scenario for the organization and for society.