The Effect of Corporate Social Responsibility on Organizational Performance in Ethiopia (A Case of Dangote Cement Factory)

Abstract

Corporate social responsibility is an overbearing concept that is progressively being considered and reformed worldwide. All over the world, CSR has become more and more common in the business community. The studies on CSR have discovered conflicting result that is some studies discloses CSR to have a positive effect while others have publicized to have a negative effect. This leads towards of information asymmetry The objective of this study was to examine the effects of corporate social responsibility(CSR) on organizational performance in Ethiopia, the case of Dangote cement factory located at Adabarga. The researcher used descriptive and explanatory research design. The target population of the study was the current permanent employees of Dangote cement factory from management and non-managements positions with the sample size of 179 employees from which 166 questionnaires are valid by using Yemane formula to decide the sample size through probability and non-probability sampling techniques. The collected data were presented and analyzed by using SPSS (version 20) statistical software and multiple linear Regression Analysis was also used to test the hypotheses of the study and the model results like the values of R, R-square and Adjusted R-square shows that, CSR has significant effects on organizational performances of the Dangote cement factory. The ANOVA table also shows that the overall model was statistically significant and the coefficient table shows that independent variable has significant effect on dependent variable, which is CSR have significant effect on organizational performance. This means that the most significant variable is ethical activities followed by legal activities among the three independent variables. It was concluded that for the existence of business industries in Ethiopia, community relation is key to ensuring conducive atmosphere for business to succeed. The study was recommended among others the management of the company should pay more attention to corporate social responsibility as it will improve their image and ensure their survival in the industry.