The Effect Of Corporate Social Responsibility On Financial Performance Of Companies: The Case Of Ethio Telecom

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.