VOlUME 05 ISSUE 06 June 2026
Chernet Zerga
Wolkite University School of Graduate Studies
DOI : https://doi.org/10.58806/ijsshmr.2026.v5i6n12Google Scholar Download Pdf
ABSTRACT
This study examines factors influencing corporate social responsibility (CSR) practices among manufacturing companies operating in Gurage Zone Ethiopia, focusing on humanistic culture, community participation, government policy, customer knowledge, and employee attitudes. Using a quantitative method approach with 297 respondents, the research found that these factors significantly and positively impact CSR practices. Specifically, a company’s humanistic culture had the strongest influence (44.5%), followed by employee attitude (23.0%), community participation (18.3%), customer knowledge (8.1%), and government policy (7.5%). The findings suggest that CSR success depends on internal culture, stakeholder engagement, and regulatory compliance. For effective CSR implementation, companies should prioritize community involvement, employee well- being, and responsiveness to government and media expectations. Understanding these determinants can help firms enhance their CSR strategies, improve stakeholder relations, and contribute to sustainable development. The study underscores the importance of addressing specific, tangible issues in CSR communication to increase public receptivity.
KEYWORDS:Customers knowledge, employees’ attitude, community participation, government policy, humanistic culture, and corporate social responsibility.
REFERENCES1) Abdissa G., Ayalew, A., Illes, C. B., & DUNAY, A. (2020). Effects of Corporate Entrepreneurship Dimensions on Organizational Performance: Case of Small and Medium Enterprises in Holeta Town, Ethiopia. Journal of Open Innovation: Technology, Market, and Complexity, 7(4), 234.
2) Abebe, G. M. (2020). Corporate social responsibility and financial performance: evidence from the Ethiopian leather industry. Journal of Commerce and Accounting Research, 9(1), 50.
3) Afsharipour, A. & Rana, S. (2013). The emergence of new corporate social responsibility regimes in China and India. UC Davis Bus. LJ, 14, 175.
4) Agarwal, R. (2016). CSR to be or not be. Global Journal of Enterprise Information System, 8(1), 21- 25.
5) Ajao, O. S., Festus, A. F., & Promise, O. T. (2020). Investment in Corporate Social Responsibility and Performance of Quoted Manufacturing Firms in Nigeria. Afr. J. Account. Financ. Res, 3, 2682-6690.
6) Al-Ghamdi, S. A. A., &Badawi, N. S. . (2019). Do corporate social responsibility activities enhance customer satisfaction and customer loyalty? Evidence from the Saudi banking sector. Cogent Business & Management, 6(1), 1662932.
7) Bedada, S. M., &Eshetu, M. S. (2011). Ethiopian Floriculture Industry from CSR and Governance Perspective:" How Is CSR Practiced in Ethiopian Floriculture Industry and Does It Has a Linkage with The Governance System?".
8) Bučiūnienė, I., &Kazlauskaitė, R. (2012). The linkage between HRM, CSR and performance outcomes. Baltic journal of management, 7(1), 5-24.
9) Canh, N. T., Liem, N. T., Thu, P. A., &Khuong, N. V. (2019). The impact of innovation on the firm performance and corporate social responsibility of Vietnamese manufacturing firms. Sustainability, 11(13), 3666.
10) Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39-48.
11) Carroll, A. B., & Shabana, K. M. (2010). The Business Case for Corporate Social Responsibility: A Review of Concepts, Research, and Practice. International Journal of Management Reviews, 12(1), 85–105.
12) Carroll, A. B., &Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International journal of management reviews, 12(1), 85-105.
13) Casteel, A., &Bridier, N. L. (2021). DESCRIBING POPULATIONS AND SAMPLES IN DOCTORAL STUDENT RESEARCH. International Journal of Doctoral Studies, 16(1).
14) Cohen, J. (1988). "Statistical Power Analysis for the Behavioral Sciences." Lawrence Erlbaum Associates.
15) Cohen, R .J, Swerdlik, M. E. (2002). Psychological testing and assessment: an introduction to test and measurement, Mountain view California: Mayfield publication company.
16) Colombo, S., Guerci, M., &Miandar, T. (2019). What do unions and employers negotiate under the umbrella of corporate social responsibility? Comparative evidence from the Italian metal and chemical industries. Journal of Business Ethics, 155, 445-462.
17) Cortado, F. J., &Chalmeta, R. (2016). Use of social networks as a CSR communication tool. Cogent business & management, 3(1), 1187783.
18) Davila, A., Rodriguez-Lluesma, C., & Elvira, M. M. (2018). Engaging stakeholders in emerging economies: The case of Multilatinas. Journal of Business Ethics, 152, 949-964.
19) Desta, A. &. (2019). Challenges of Corporate Social Responsibility in Ethiopian Manufacturing Companies. Journal of Business and Development Studies, 5(3), 45–60.
20) Draper, N. R., & Smith, H. (1998). Applied Regression Analysis (3rd ed.). Wiley.
21) Dunay, A., Ayalew, A., &Abdissa, G. (2021). Why socially responsible? Determinant factors of organizational performance: Case of dangote cement factory in Ethiopia. Sustainability, 13(9), 4783.
22) Espasandín-Bustelo, F., Ganaza-Vargas, J., & Diaz-Carrion, R. (2021). Employee happiness and corporate social responsibility: The role of organizational culture. Employee Relations: The International Journal, 43(3), 609-629.
23) Esubalew, G., & Berihun, T. (2019). Challenges and opportunities of corporate social responsibility in Ethiopian manufacturing firms. Ethiopian Journal of Business and Economics, 9(2), 45- 60.
24) Eyasu, A. M., &Endale, M. (2020). ). Corporate social responsibility in agro-processing and garment industry: Evidence from Ethiopia. Cogent Business & Management, 7(1), 1720945.
25) Famiyeh, S., Asante-Darko, D., Kwarteng, A., Gameti, D. K., &Asah, S. A. (2020). Corporate social responsibility initiatives and its impact on social license: some empirical perspectives. Social Responsibility Journal, 16(3), 431-447.
26) Field, A. (2013). Discovering Statistics Using IBM SPSS Statistics (4th ed.).
27) Fox, J. (2016). Applied Regression Analysis and Generalized Linear Models.
28) Galbreath, J., & Benjamin, K. (2010). An action-based approach for linking CSR with strategy: Framework and cases. In Innovative corporate social responsibility (pp. 12-36). Greenleaf Publishing.
29) Hassis, S. M., Othman, M. A., &Saleh, Y. (2022). The impact of total quality management on corporate sustainability in the manufacturing sector: corporate social responsibility as a mediator abstract. The TQM Journal.
30) Hatak, I., Floh, A., &Zauner, A. (2015). Working on a dream: sustainable organisational change in SMEs using the example of the Austrian wine industry. Review of managerial science, 9, 285-315.
31) Helmig, B. S. (2016). Under positive pressure: How stakeholder pressure affects corporate social responsibility implementation. Business & Society, 55(2), 151-187.
32) Industry., M. o. (2020). Industrial Development Strategy of Ethiopia: Achievements and Challenges. Addis Ababa, Ethiopia.
33) Iwamoto, H., & Suzuki, H. (2019). An empirical study on the relationship of corporate financial performance and human capital concerning corporate social responsibility: Applying SEM and Bayesian SEM. Cogent Business & Management, 6(1), 1656443.
34) Jamali, D. &. (2017). Capturing advances in CSR: Developed versus developing country perspectives. Business Ethics: A European Review, 26(4), 321-325.
35) Kesto, D. A. (2017). The impact of corporate social responsibility practices on financial performance of banking sector in Ethiopia. Global Journal of Management and Business Research, 17(D1), 29-44.
36) Khalid, R., &Sajjad, T. Y. M. (2012). Impact of Animated Advertisement on Adult Impulse Buying Behavior of Pakistan. Marketing, 22(2016).
37) Klewitz, J., & Hansen, E. G. (2014). Sustainability-oriented innovation of SMEs: a systematic review. Journal of cleaner production, 65, 57-75.
38) Kothari, C. R. (2004). Research design: Qualitative, quantitative, and mixed methods approaches.New Age International. New Delhi, 12-15.
39) Kumar, D., Goyal, P., & Kumar, V. (2019). Modeling and classification of enablers of CSR in Indian firms. Journal of Modelling in Management.
40) Kutner, M. H., Nachtsheim, C. J., Neter, J., & Li, W. (2005). Applied Linear Statistical Models (5th ed.). McGraw-Hill.
41) Lambooy, T. E. (2010). Corporate social responsibility: legal and semi-legal frameworks supporting CSR: developments 2000-2010 and case studies. Leiden University.
42) Likert, R. (1932). A Technique for the Measurement of Attitudes. Archives of Psychology, 140, 1- 55.
43) Maimunah, I. (2009). corporate social responsibility and its role in community development: An international perspective. Journal of International Social Research, 2(9), 199-209.
44) Mandurah, S., Khatib, J., & Al-Sabaan, S. (2012). Corporate social responsibility among Saudi Arabian firms: An empirical investigation. Journal of Applied Business Research (JABR), 28(5), 1049-1058.
45) Mekonnen, K. (2018). An Assessment of Corporate Social Responsibility Practice of Sanofi Aventis in Ethiopia (Doctoral dissertation, St. Mary's University).
46) Mensah, H. K. (2017). The effect of corporate social responsibility on organizational commitment of employees of rural and community banks in Ghana. Cogent Business & Management, 4(1), 1280895.
47) Migwa, D. O., &Wanjala, M. Y. (2019). Factors influencing sustainability of corporate social responsibility projects in the energy sector. A case of Kenya Electricity Generating Company. Strateg. J. Bus. Chang. Manag, 6, 572-593.
48) Mohammed, S. M. M., AbdalrazzaqAloqool, A. H. O. A., AlGasawneh, J. A., Hammouri, Q., &Nusairat, N. M. (2021). Work Ethics and Corporate Social Responsibility: The Mediating Role of Marketing Competence. Annals of the Romanian Society for Cell Biology, 25(6), 17647-17665.
49) Moyeen, A., &Courvisanos, J. (2012). Corporate social responsibility in regional small and medium- sized enterprises in Australia. Australasian Journal of Regional Studies, The, 18(3), 364-391.
50) Nguyen, V. H., Choi, B., &Agbola, F. W. (2020). Corporate social responsibility and debt maturity: Australian evidence. Pacific-Basin Finance Journal, 62, 101374.
51) Nidumolu, R. P. (2009). Why sustainability is now the key driver of innovation. Harvard business review, 87(9), 56-64.
52) Öberseder, M., Schlegelmilch, B. B., & Murphy, P. E. (2013). CSR practices and consumer perceptions. Journal of Business Research, 66(10), 1839-1851.
53) Oginni, O. S., &Omojowo, A. D. (2016). Sustainable development and corporate social responsibility in sub-Saharan Africa: Evidence from industries in Cameroon. Economies, 4(2), 10.
54) Oktavianawati, L. &. (2019). Factors affecting corporate social responsibility (CSR) disclosure.Accounting Analysis Journal, 8(2), 110-117.
55) Peloza, J., & Shang, J. (2011). What business leaders should know: Investing in CSR to enhance customer value. In Director Notes Series, The Conference Board Governance Center (Vol. 3, No. 3).
56) Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 89(1/2), 62-77.
57) Rahman, N. &. (2012). Measurement issues in environmental corporate social responsibility (ECSR): Toward a transparent, reliable, and construct valid instrument. Journal of business ethics, 105, 307-319.
58) Riyadh, H. A., Sukoharsono, E. G., &Alfaiza, S. A. (2019). The impact of corporate social responsibility disclosure and board characteristics on corporate performance. Cogent Business & Management, 6(1), 1647917.
59) Rogerson, J. M. (2012). The greening of urban hotels in South Africa: Evidence from Gauteng. In Urban forum (Vol. 23, pp. 391-407). Springer Netherlands.
60) Samer, A., Rawan, M., & Omar, L. (2018). The role of corporate social responsibility in local community development: A study of the Jordan Ahli Bank. International Journal of Academic Research in Business and Social Sciences, 8(5), 197-212.
61) Shahzad, M., Qu, Y., Javed, S. A., Zafar, A. U., &Rehman, S. U. (2020). Relation of environment sustainability to CSR and green innovation: A case of Pakistani manufacturing industry. Journal of Cleaner Production, 253, 119938.
62) Shikalepo, E. E. (2020). Defining a conceptual framework in educational research. Retrieved from: at: https://www. researchgate. Net/publication/342010918.
63) Siddiq, S., &Javed, S. (2014). Impact of CSR on organizational performance. European Journal of Business and Management, 6(27), 40-45.
64) Siegel, D. S. (2001). Corporate social responsibility and economic performance. Journal of Productivity Analysis, 26, 207-211.
65) Strand, R., Freeman, R. E., &Hockerts, K. (2015). Corporate social responsibility and sustainability in Scandinavia: An overview. Journal of business ethics, 127, 1-15.
66) Suwala, L., & Albers, H. H. (2020). Corporate spatial responsibility and sustainable development goals. In Decent Work and Economic Growth. Encyclopedia of the UN Sustainable Development Goals (pp. 141-153). Berlin, Heidelberg: Springer.
67) Tadele, G. (2022). CSR Practices and Their Impact on Sustainable Development in Ethiopian Regional Zones. Ethiopian Journal of Development Studies, 10(4), 99–117.
68) Tewari, R. (2011). Communicating corporate social responsibility in annual reports: a comparative study of Indian companies & multi-national corporations. Journal of Management and Public Policy, 2(2), 22-51.
69) Tsegaw, S. (n.d.). Factors Affecting The Practices Of Corporate Social Responsibility In The Health Sector: Empirical Evidence From Local Hospitals In Ethiopia.
70) Visser, W. (2006). Revisiting Carroll’s CSR Pyramid: An African Perspective. In Corporate Citizenship in Developing Countries: New Partnership Perspectives. Edward Elgar Publishing.
71) Visser, W. (2018). Corporate social responsibility in developing countries. In A. Crane, A. McWilliams, D. Matten, J. Moon, & D. Siegel (Eds.), The Oxford Handbook of Corporate Social Responsibility (pp. 473-499). Oxford University Press.
72) Wang, Z., Hsieh, T. S., &Sarkis, J. (2018). CSR performance and the readability of CSR reports: too good to be true? Corporate Social Responsibility and Environmental Management, 25(1), 66- 79.
73) Zhou, G., Sun, Y., Luo, S., & Liao, J. (2021). Corporate social responsibility and bank financial performance in China: The moderating role of green credit. Energy Economics, 97, 105190.
Cite this Article:Zerga, C. (2026). Factors Affecting Practice of Corporate Social Responsibility in Case of Manufacturing Companies Operating in Gurage Zone, Wolkite, Ethiopia. INTERNATIONAL JOURNAL OF SOCIAL SCIENCE HUMANITY & MANAGEMENT RESEARCHS, 5(6), 1400-1447. https://doi.org/10.58806/ijsshmr.2026.v5i6n12