Corporate Social Responsibility Practices in Tannery Industry The case of Selected Firms at Akaki Kality Sub –City
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Date
2018-06-02
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Addis Ababa University
Abstract
The study aimed to serve as a guide line for investors who are involved and going to involve in the industry and as awareness creation document by out lining the right of the general public from the industry by studying the levels of Corporate Social Responsibility, factors that motivates and its challenges of practices different dimensions of Corporate Social Responsibility in Ethiopian tannery industry by taking Ethio leather industries, Batu, and Newwing tanneries as case studies corresponding to the determinants namely economic, legal, and ethical and philanthropy responsibilities of the firm. In relation to the methodology it was mixed approach (both quantitative and qualitative) simple random sampling technique was used in selecting respondents. The study has been conducted on the basis of the quantitative and qualitative research techniques to assess the levels, factor motivate and challenges of Corporate Social Responsibility practice and its determinants in the selected three tanneries. 80 32 and 50 workers in Ethio leather industries, Batu, and New wing tanneries respectively were selected from the total employees of 560,250 and 300 in each tannery. Data were collected through questionnaire. Moreover semi-structured interview have been also conducted with managers of the companies through open ended questions which are designed to elicit their perception about the nature of Corporate Social Responsibility their respected companies. Finally, the data collected through the questionnaires were coded, entered into computer and analyzed and presented in the form of tables using Statistical Package for the Social Sciences version 23 Software. Hence, it is through analysis of the direct relationships that insight is developed between the dependent and independent variables. Corporate Social Responsibility (dependent variable) was found to have a strong positive relationship with economic, legal, ethical and philanthropy responsibilities. The result of the study is economic legal and ethical responsibilities practices are at the begging stage whereas firms are not practicing philanthropy responsibilities ,competitive advantage, social & political legitimacy, employees motivation and. reputations, are the most motivating factors of Corporate Social Responsibility ,and challenges to practice corporate social responsibility in the firm lack of specific legislation, lack of institutions assist or low government intervention, poor stake holders integration, lack of clear guidelines & standardized metrics and lack of corporate skill ,And there is lack of awareness about the concept of Corporate Social Responsibility .Thus strengthen legal infrastructures/ enforcement and integrating stakeholders should be critical in the sector in particular for corporate sectors in general
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Keywords
corporate, responsibility, tannery