The Effect of CSR Practices on Organizational Performance: The Case of Five Star Hotels in Addis Ababa
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Date
2024-10
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Addis Ababa University
Abstract
This study aimed to investigate the effect of Corporate Social Responsibility (CSR) on organizational performance of Five Star Hotels in Addis Ababa. The study explores five CSR dimensions, namely: employees-oriented CSR practices, community-oriented CSR practices, environment-oriented CSR practices and ethical CSR practices. The study covered sample of 135 employees which were selected based on stratified random sampling from four purposively selected five Star Hotels in Addis Ababa, namely: Sheraton Addis, Hyatt Regency, Radisson Blu and Marriot Executive Apartments. The findings revealed a generally positive orientation towards CSR among sampled hotels, with a strong focus on customer-oriented practices and moderate emphasis on employees, community, and ethical conduct. However, there were opportunities for improvement, particularly in environmental CSR practices. Significant challenges included limited financial resources, resistance from management, and regulatory hurdles, emphasizing the need for comprehensive strategies to address these barriers. Importantly, the study demonstrated that customer-oriented, employees-oriented, community-oriented, and ethical CSR practices positively influence organizational performance. Whereas environment-oriented CSR practices is not significantly affecting the organizational performance of Five Star Hotels in Addis Ababa. These results underscore the importance of integrating CSR into hotel operations to improve stakeholder relations and achieve long-term sustainability goals. Moving forward, hotels should prioritize investments in staff training, communication of the business case for CSR, and the development of clear policies to enhance CSR implementation and maximize its positive impact on organizational performance and societal outcomes.
Key Words: Organizational Performance, Corporate Social Responsibility (CSR), Five Star Hotel.