ASSESSMENT of CORPORATE SOCIAL RESPONSIBILITY PRACTICE on CONSTRUCTION INDUSTRY of HARARI PEOPLE’S REGIONAL STATE

Abstract

Now a days, construction works in Harari region is operating at alarming rate and this needs emplacing system to minimize the negative impacts of construction works and maximize the positive impacts. Here comes the role of CSR practice in the region. So, the purpose of this study is to assess the practice of CSR on construction industry of Harari region. Currently, there are 45 construction companies/contractors operating in the region. The researcher used qualitative research design. Regarding data collection instrument, semi structured interview question was used as data collection instruments. Regarding sampling technique, non-probability sampling techniques was applied. Concerning the specific non probability sampling technique, purposive sampling technique was used as the specific sampling technique to select interview respondents. Regarding data analysis, qualitative methods of data analysis was employed through narration. The findings of the study in relation to Construction Companies Perception of their Status of CSR Practice in the region indicate that CSR is not practiced in construction industry of Harari region. But employees benefit issues, community benefit issues, environment related issues and ethical issues which are included in the existing working methodology of construction companies as well as concerned government organizations are more or less considered and these issues are the integral concepts of CSR. Concerning the barriers of CSR practice, the finding of the study indicates barriers like lack of information, lack of knowledge, lack of training and lack of awareness about CSR; lack of regulation and standard and company culture (i.e., No laws concerning laws); there is no effective controlling mechanism in the regulatory office; Poor understanding of CSR from top to bottom government officials; and Shortage of financial resource for CSR practice. The finding of the study also indicated the strategies to overcome the barriers which hinder CSR practice in Harari region. Based on the findings, the study recommended that Awareness creation through encouragement of participation and discussion with community and other concerned stakeholders should be carried out; To get the benefits of CSR practice, introduction of some mandatory practices at federal and regional level that all organizations comply with need to be availed; Developing initiatives that inform and encourage companies to implement CSR should be employed through developing incentive mechanisms for CSR implementation; Developing initiatives that inform and encourage construction companies to implement CSR should be employed through developing incentive mechanisms for CSR implementation; The government bodies should also devise appropriate monitoring and evaluation system which is based on legal document that encourage the construction companies to incorporate CSR plan and CSR reporting to fully practice CSR through enforcement of the legal provisions and leaders must give due attention for the implementation of the recommendations forwarded by the researcher to enhance CSR practice. Moreover, the researcher recommends further researches to be carried out on actual consideration of issues like employees’ benefits, issues of community benefit, issues of environment and ethical issues on construction companies and concerned government organizations through involvement of all concerned stakeholders.