Abstract:
The main purpose of this study is to determine the effect of corporate social responsibility on the
financial performance of Ethio Telecom. In order to achieve the research objectives, the
researcher adopted both a descriptive and explanatory research design. Structured questionnaires
were used to gather data from the targeted group of the study, where the random sampling
technique was employed to draw a sample of 112 using excel RAND formula and sorted from
smallest RAND value to largest to select those 112 respondents. The collected data were presented
and analyzed using the STATA (version 13.0) statistical software package. A multiple linear
regression model was applied to see the effect of CSR on financial performance of the company.
The study showed that economic responsibilities, legal responsibilities, ethical responsibilities and
philanthropic responsibilities affect financial performance of the company, have a positive
relationship, and are statistically significant. It was concluded that community relations are
critical to ensuring a suitable environment for company success through corporate social
responsibility.
