Corporate Social Responsibility Practices and Stakeholders’ Awareness: Case of Ethiopia

Dakito Alemu Kesto and Jaladi Ravi
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Dakito Alemu Kesto: Research Scholar, Department of Commerce and Management Studies, Andhra University, Vizag, INDIA
Jaladi Ravi: Professor, Department of Commerce and Management Studies, Andhra University, Vizag, INDIA

American Journal of Trade and Policy, 2017, vol. 4, issue 2, 79-86

Abstract: The main aim of this review is to explore the corporate social responsibility practices and stakeholders’ awareness of firms’ CSR in Ethiopia. Corporate Social Responsibility (CSR) came into existence to show the responsibilities the business should take from the shoulders of the government and NGOs, particularly in developing nations. Since the living standard of society is low in emerging economies, the CSR expected from business firms is much higher than it used to be in advanced economies. Ethiopia is one of the least developed countries; thus, the private sector's involvement is crucial since the government does not fulfill all needs of the society. In one way or another, businesses are economic entities that can change corporate social responsibility activities into business opportunities. Several studies suggest that companies may receive external benefits from implementing CSR policies. However, the success of practicing CSRs depends upon stakeholders’ awareness. Specifically, in conducting the survey, the reviewer was motivated by the following research questions, which constitute the objectives of the article: (1) where do firms in Ethiopia categorize in Carroll’s 1991 pyramid; and (2) what was the level of awareness of different stakeholders in the country. Therefore, this review explores the CSR practices of firms and the level of stakeholders’ awareness of the concept in Ethiopia. The paper employed a qualitative research approach by reviewing 16 research articles that address CSR policies of firms in Ethiopia. The finding shows that the firms' most critical stakeholders are customers who contribute to profitability. This shows that firms in Ethiopia are at the lower level of Carroll’s CSR pyramid: economic responsibility. Furthermore, stakeholders’ awareness regarding the firms’ CSR practice in Ethiopia is low. To summarize, corporate social responsibility practice in Ethiopia is at its infancy stage and, thus, needs much more improvement from both firms and the government.

Keywords: Stakeholders; awareness; review; corporate social responsibility; practices (search for similar items in EconPapers)
JEL-codes: M14 (search for similar items in EconPapers)
Date: 2017
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