The Practice Of Corporate Social Risponsibility(CSR) Performed By Private Commercial Banks In Ethiopia

Abstract

The objective of the study was to assess the practice of CSR by private commercial banks in Ethiopia. The research has followed quantitative research approach, survey as a strategy and structured questionnaire adopted from previous works of Samour (2016), Kesto (2017), & Mensah (2015) as data collection instrument. The research used census method on the private commercial banks in Ethiopia since the target population is simple to manage to collect the data from the target population. The data was collected from staff of marketing department found at head offices of each private commercial bank. Proportionate stratified sampling method along with random sampling techniques was applied in order to identify respondents proportionately from each private commercial bank. Both primary and secondary data sources were used to gather data. The study has utilized a statistical tool called SPSS V.25 for doing the analysis. Descriptive statistics such as frequencies, percentage, mean, and standard deviation were used for summarizing and presenting the data. The study found that there is modest extent and practice of corporate social responsibility (CSR) across private commercial banks in Ethiopia. Furthermore, the study revealed that private commercial banks in Ethiopia are largely familiar with the concept of CSR. The study concluded that private commercial banks in Ethiopia tends to disclose more on their contribution to government development plans than any other aspects of CSR activities. In contrary, the engagement of private commercial banks in Ethiopia in community development among other CSR activities considered as the least followed by stakeholders’ engagement in planning and implementing CSR activities. The study recommended that Corporate Social Responsibility requires more for the private commercial banks to pay special attention towards integration CSR activities in their business operations.