A Comparative Study on the Practice of Corporate Social Responsibility of Two Ethiopian Public Enterprises: Ethio telecom and Commercial Bank of Ethiopia
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Date
2021-01
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AAU
Abstract
This study focused on a comparative study on the practice of corporate social responsibility (CSR) of two Ethiopian public Enterprises: The Case of Ethio telecom and Commercial Bank of Ethiopia. The main objective of the study is, therefore, to assess the corporate social responsibility practice in Ethiopian public Enterprises, specifically at Ethio telecom and Commercial Bank of Ethiopia (CBE). Kinds of CSR activities being implemented by these two organizations, understanding of public relation practitioners regarding CSR concepts in these two organizations, and their practice to integrate CSR to the core activities of their organizations are the specific objectives of the study. To this end, a mixed-method triangulation design was used to carry out this study in which quantitative and qualitative data were processed concurrently. A cross-sectional institution-based survey study design was employed to collect data from 62 respondents (31 from each organization). Besides, key informant interviews with CSR and Communication heads of the two organizations as well as heads and representatives of selective stakeholders were conducted. Relevant secondary documents were reviewed and synthesized on the report. The validity and reliability test are conducted using Cronbach's alpha and Pearson correlation test, respectively. The alpha coefficient for the Likert scale items is 0.719 which is good (greater than 0.7) while the Pearson correlation result showed that a Pearson correlation value greater than 0.5. And hence the Likert scale data are validity and reliability. The finding indicated that both Ethio telecom and Commercial Bank of Ethiopia are practicing the concepts of CSR as part of their public relations and strategic communication activities. However, as compared with Commercial Bank of Ethiopia, and in many parameters, the researcher founded that Ethio telecom used CSR more as part of its core activities to build and maintain its relationship with the society. It had been also engaged in variety of CSR initiatives. The research also recommended both organizations to incorporate inclusiveness and fairness issues into their CSR initiatives to address the marginalized parts of the society, including disabled people. Otherwise, these will have adverse effects on the image and reputation of the organizations. In addition to this, as both are operating throughout the country, they should also conduct CSR activities fairly in all regional governments. As the findings indicated, both companies had been focusing their CSR initiatives mainly in Addis and working together with the Federal government system. Moreover, the researcher recommended Ethio telecom to focus more on CSR projects than managing routine sponsorship and philanthropic related CSR activities. In this regard, the research finding indicated that CBE is found in a better position to engage in major social development activities which can create a sustainable and long-lasting corporate brand and reputation.
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Keywords
Corporate Social Responsibility, Public Relations, Stakeholders, Ethio telecom, Commercial Bank of Ethiopia