Corporate social responsibilities contribution for sustainable community development: evidence from industries in Southern Ethiopia

Yodit Abebe Mamo, Abrha Mesele Sisay, Behailu Dessalegn WoldeSilassie and Kiflie Worku Angaw

Cogent Economics & Finance, 2024, vol. 12, issue 1, 2373540

Abstract: This study interrogates the contribution of corporate social responsibility to community development from socioeconomic, environmental, ethical, and philanthropic perspectives. A total of 401 households were selected randomly and proportionally from the Southern Nations Nationalities and Peoples Regional State and Hawassa City from the Sidama Region. Survey data were collected from local communities using the paper-assisted personal interview (PAPI) technique. Interviews with government officials and focus group discussions with local community members. Data were analyzed using a mixed research approach, where quantitative data were analyzed using a structural equation model and descriptive statistics, and thematic analysis was used for qualitative data. The study found that CSR contributes to many aspects of local community development. Our empirical model confirms that proper implementation of CSR initiatives substantially contributes to social development β = 0.913, economic development β = 913, environmental sustainability β = 0.784, ethical aspect 0.767, Philanthropic activities β = 0.814, and overall local development β = 0.960 where p ≤ 0.001 statistically significant level. The study reasserts and reiterates the need to design appropriate policy instruments and law enforcement techniques, in addition to promulgating regulatory provisions and legal frameworks. The study sheds light on the imperativeness of CSR for smooth human-environment and business-resource relationships. The study contributes to literature, debate, and policy implications on emerging issues of CSR-business, and development discourses.Our study passionately explores how Corporate Social Responsibility (CSR) initiatives by industries in Southern Ethiopia significantly enhance sustainable community development across socioeconomic, environmental, ethical, and philanthropic dimensions based on first-hand data. Well-implemented CSR programs lead to substantial improvements in social development, economic progress, environmental sustainability, ethical standards, and philanthropy. However, there is a critical need for well-designed policy instruments and regulatory enforcement to promote CSR and foster harmonious human-environment and business-resource relationships. Without this, industrial activities inevitably cause adverse effects, such as pollution and health damage, exacerbated by poor regulatory control and corruption. Industries must engage responsibly with local communities to benefit them while promoting efficient communication. This research offers valuable insights for policymakers, scholars, and practitioners on the importance of CSR in achieving sustainable development goals, emphasizing its relevance in contemporary business and development discourse and providing substantial implications for policy and practice in emerging economies.

Date: 2024
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DOI: 10.1080/23322039.2024.2373540

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