The Effect of Corporate Social Responsibility on Organizational Performance: In the Case of Ethio-Leather industry Company
No Thumbnail Available
Date
2023-06-08
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
This study aims to evaluate The Effect of Corporate Social Responsibility on organizational performance in Ethio Leather Industry Company. Corporate social responsibility has been a topic of interest for many scholars until nowadays and it is very debatable. As per the reviewed literature, the subject has been given low attention in developing countries despite the contribution it has in bringing good reputation for the firms and the controversy in the subject is considered as a gap for this study. This study is Explanatory research which observes causal effect of the three variables (Philanthropic, Legal and Ethical Responsibilities) used to measure CSR by using quantitative research approach. In order to collect data Questionnaire has been distributed for a total sample size of 277 respondents. These questionnaires were distributed to the staff members of ELICO, and all of the responses were collected. Then after, for the data analysis the study uses linear regression analysis through SPSS software version 27 and all of the regression assumptions has been tested. According to the findings the beta value for Philanthropic responsibility=0.37, Beta value for Legal responsibility and Ethical responsibility has been found to be 0.24 and 0.38 respectively. Since the P value for every variable is >0.001, this implies that by keeping constant the other variables, for a unit increase in Philanthropic, Legal and Ethical responsibilities Organizational performance will be enhanced accordingly. Since the independent variable measures has direct and significant effect in performance, it is concluded that CSR has a positive and significant effect in organizational performance. Based on this conclusion it is recommended that the company needs to keep investing this CSR practices in an organized manner and they have to add this CSR practices in their strategic plan and they have to examine and measure the long term effect in the organizational performance.
Description
Keywords
Corporate Social Responsibility, Philanthropic responsibility, Legal responsibility, Ethical responsibility, Organizational Performance and Balanced Score Card