Practices Of Corporate Social Responsibility In The Oil Industry Sector: Case Study From Three Oil Copmpanies In Addis Ababa
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Date
2020-03
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A.A.U
Abstract
In the current business world, there is a consensus that companies apart from profit making they are expected to fulfill their CSR to make their business engagement socially responsible. The main objective of this study is to assess, describe and examine, existing CSR practices/performances of the selected oil companies in Addis Ababa., (Total Ethiopia, Libya Oil Ethiopia and Yetebaberut Beherawi petroleum) based on employees’ level analysis. During the selection of the case companies primarily the researcher purposely intended to approach two national and two multinational companies but due to denial to get consent from one of the national companies, the study solely based on three case companies. In determining the sample size, the study applied standard statistical sample size determination technique and used mixed sampling techniques such as purposive and proportionate random sampling. As part of the research’s methodological approach, the study used the mixed method (quantitative and qualitative). The primary data was collected through questionnaire survey and key informant interview from entry level employees, middle and top-level managers of the case oil companies, and theoretical and empirical literatures used as secondary data sources. The finding of the study depicts that all the three case companies invariably involved in all categories of the CSR but with variation in the level of performance. Thus, Total Ethiopia Share Company’s performance highly surpassed the rest of the two case oil companies, in areas of economic, legal, ethical and philanthropic responsibilities. On the other hand, Libya oil Ethiopia and YBP showed a relatively higher level of performance in areas of economic and legal responsibilities. While in philanthropic responsibility the two oil companies showed a lower level performance. And Libya oil Ethiopia and YBP have also shown high and moderate performance in the area of ethical responsibilities respectively. As to drives for CSR all case companies are mainly engaged in CSR activities due to internal drives, for companies’ interest or benefit to meet (business case, employment retention, corporate internal values, company’s reputation and image, improved financial performance). However, external drivers including requirements from regulatory frameworks as well as pressure from media, civil society and consumer activism, didn’t adequately give rise to CSR initiative in all the three oil companies. Finally, the major challenges for CSR engagement were found to be product and innovation challenges for Total Ethiopia, policy and procedure challenges for Libya Oil Ethiopia and shareholders attitude towards CSR and policy and procedures challenges for YBP. Accordingly, recommendations were extended to both Libya oil Ethiopia and YBP to devise policies and procedures, institutional set up and working system as well as to regularly allocate resources so as to enhance the implementation of CSR Practices. Furthermore, the two companies are also recommended to advocate and lobby shareholders to see CSR as an opportunity than a cost to make business in socially responsible way And Total Ethiopia is also strongly advised to engage in product and innovation practices to accommodate the emerging high demand.
Description
A Research Project Submitted In Partial Fulfillment Of The Requirements For The Degree Of Executive Master Of Business Administration
Keywords
Corporate Social Responsibility (CSR), External Drivers, Internal Drivers