Internal Corporate Social Responsibility Practice, Challenge and the Effect on Employee Engagement: The case of BGI Ethiopia

Abstract

The purpose of this study was to examine the Internal CSR Practice and the effect on Employee Engagement in BGI Ethiopia and the challenges faced on implementation are also examined in this study. Finding ways to attract and retaining a dedicated staff additionally determining working conditions that stimulate employees to give their best is becoming challenging in today’s business. In regard to research design both Descriptive and Explanatory research design was applied for analysis. The study used mixed approach of the quantitative and qualitative research techniques. Both secondary and primary data source were used to answer the research questions. Primary data was collected through Standard and adopted questionnaire measured by five-point likert scale and semi structured interview. The secondary data were used as supplemental of primary data collected from web and publications carried by BGI Ethiopia. The target population of this study is the permanent employees of BGI Ethiopia working on the main factory located in Addis Ababa among the entire branch with the highest number of employees. Stratified sampling technique was applied to collect data from different strategic business division. Additionally purposive sampling was used to select concerned department heads to conduct interview. Questionnaire was distributed to 272 respondents further Simple random sampling technique was used to determine the study sample subjects. Data Analysis was accomplished by descriptive and inferential statistical analysis using SPSS 23. In Inferential statistical analysis Pearson Correlation and multiple linear regression analysis tools were employed. The Findings show that all independent variables dimensions of internal CSR; Commitment to Internal CSR Practice, Human Right Practice and labor practice have positively affected Employee Engagement of BGI Ethiopia, at P<0.01. Finally, the study concludes that Employee Engagement is affected by Internal CSR. The finding of the study implies there is effective CSR Practice and challenges faced during implementation of internal CSR is that the firm lack a clear guidelines & standardized reporting mechanism to evaluate the CSR performance. Based on the finding the researcher recommend that BGI Ethiopia should prepare a clear CSR guideline and reporting mechanisms so as to act accordingly and evaluate CSR performance to enhance Employee Engagement.