ASSESSING THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY PRACTICES ON ORGANIZATIONAL PERFORMANCE IN CASE OF GURAGE ZONE BOTTLED WATER INDUSTRY

Abstract

The purpose of this study was to assess the impacts of CSR practices towards meeting organizational performance the case of bottled water industry of Gurage Zone. Quantitative and qualitative data were collected in the cross-sectional survey using five-point Likert scale questionnaires and interviews respectively. Both primary and secondary sources of data were also employed and analyzed through descriptive and explanatory research designs. Cronbach alpha coefficient indicated that the questionnaire was reliable. A knowledge gap of previous v studies in identifying the forces motivating companies to practice CSR and scant studies of CSR on bottled water company perspective in Ethiopia necessitated studying it. The study used stratified and simple random sampling techniques, distributed 384 questionnaires, and collected 345 questionnaires, of which 13 of them were incomplete; finally analyzed 332 (86.5%) of sample questionnaires using SPSS version-20. Descriptive statistics was used and revealed that that Fair operating practices, Labor practice, Customer issues, help to meet CSR and it is not sure whether organizational governance and Community involvement are challenging to meet CSR. The correlation analysis result showed that all CSR practices have positive relationship with the organizational efficiency. The regression analysis result revealed that all independent variables have significant effect on organizational efficiency. Therefore, stakeholders, policy makers, and the government should enforce mineral water companies in order to improve corporate social responsibilities.