CORPORATE SOCIAL RESPONSIBILITY PRACTICE IN GURAGE ZONE (THE CASE OF SELECTED MANUFACTURING COMPANIES)

Abstract

The purpose of this research paper was to assess the practices of manufacturing companies ‘corporate social responsibility in Gurage zone. The study found out the extent of companies’ implementation corporate social responsibility program and activity in Gurage zone and perception of the main stakeholder towards the corporate social responsibility implementations of the companies. I used the three major stakeholders (community, employees and environment) as a pillar of corporate social responsibility practices. For this study, employed descriptive research design and multi stage sampling techniques. The target population is companies’employees and local community besides sample size 167 employees and 120 community respondents. Furthermore, companies’ managers were interviewed. Both primary and secondary sources of data were used. The data collecting instruments employed in the study were Five point Likert scaled questionnaire, observational checklist and semi- structured interviews guides. The data were analysed using both descriptive such as percentage, mean, and standard deviations and inferential statistics such as t-test and analysis of variance with the help of statistics package for social science. The results of the study found out that the firm did not established independently business initiative in to strategy and exclusively departments to deal with corporate social responsibility issues. Also the most important stakeholders for this activity are owners. The finding shows that employee satisfaction and motivation as main motives and themain challenges to engage are the lack of specific legislation. Furthermore, economic and legal responsibility is main dimension for corporate social responsibility although a great extent on employees and environmental action. Generally, Gurage zone manufacturing companies’ continuum levels towards corporate social responsibility is fragmented levels. Based on findings, recommendations are to create specific policy and regulatory, arranging way to practice corporate social responsibility formally in priority manner, use communication channel to enhance awareness and integrated and conducting a dialogue of stakeholders.