The Effect of Corporate Social Responsibility Practice on Building of Brand Equity: Case Study on Commercial Bank of Ethiopia

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Addis Ababa University


Internationally, organizations include corporate social responsibility practice as one of their marketing strategy to attract socially and environmentally conscious customers. Commercial bank of Ethiopia has made a deliberate effort to demonstrate leadership in Corporate Social Responsibility initiatives in the country. But, the practice is not assumed as means to attract customers. The objective of this study was to explore the effect of corporate social responsibility practice on building the company's brand equity. The study used both quantitative and qualitative research approaches and explanatory and descriptive types of research design were employed. Interview and questionnaire were used to collect the data. The questionnaire was administered to conveniently selected, 371 samples of respondents. The data were analyzed using descriptive statistics, correlation and linear regressions models. The findings of the study showed that most of respondents were aware of the CSR practice of the bank. The study revealed that the corporate social responsibility practice of the bank make a significant contribution to the company's brand equity. Moreover, CSR practice of the bank also has a significant with individual brand equity dimensions (brand awareness, brand image, brand credibility, brand feeling and brand loyalty). In addition, interview was undertaken to know the existing CSR practice of the bank. The study finding shows that, the bank's CSR practice is not well structured, it didn't disclose on medias and it is not meant to attract customers. Therefore; knowing that the practice is valued by the customers and it has a significant effect on the company's brand, Commercial Bank Ethiopia T should consider publicizing to the public via media outlets in more organized way in order to get the return from its good deeds and the practice should be guided by a clearly defined policy to apply its CSR activities



Corporate social responsibility, brand equity, brand awareness