Assessing The Practice of Corporate Social Responsibility (Csr): The Case of Selected Commercial Banks in Ethiopia
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Date
2025-09
Authors
Ephrem Girma
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Publisher
Addis Ababa University
Abstract
Corporate Social Responsibility (CSR) has emerged as a crucial strategic practice for businesses worldwide, particularly in sectors that directly interact with society, such as banking. In Ethiopia, although CSR awareness is growing, its application within the banking industry remains inconsistent and largely underdeveloped. This study assesses the practice, awareness, and intensity of CSR activities among selected commercial banks in Ethiopia. Utilizing a quantitative research approach, data were collected from 181 employees working in the marketing departments of 15 commercial banks with over 15 years of operational experience. The findings reveal that while most banks demonstrate awareness of CSR and have formal policies in place, the implementation tends to be reactive, focused on philanthropic initiatives rather than integrated, strategic programs. Key CSR activities are primarily centered around labor practices, customer relations, community development, and limited environmental engagement. The study identifies regulatory gaps, limited training, and lack of strategic alignment as major challenges hindering effective CSR implementation. Based on these insights, the research recommends strengthening institutional frameworks, enhancing employee training, and embedding CSR into banks' core business strategies to promote sustainable development and long-term stakeholder value.
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Keywords
Corporate Social Responsibility, Commercial Banks, Ethiopia, CSR Practices, Stakeholder Engagement, Sustainability, Regulatory gaps.