Abstract:
This study investigates the impact of Corporate Social Responsibility (CSR) on the profitability
of breweries in Ethiopia, using six years of financial data (2016-2021) from Heineken Ethiopia,
Dashen Brewery, Diageo, United Beer, Habesha Brewery, and BGI Ethiopia. The study
examines the relationship between CSR, net profit, return on assets (ROA), and return on equity
(ROE) through the lens of stakeholder theory. Data were collected from annual financial reports
of the companies and analyzed using descriptive statistics, correlation analysis, and regression
analysis. The findings suggest that CSR positively affects net profit, ROA, and ROE of the
breweries in Ethiopia. The results imply that CSR is not only beneficial for society and the
environment but also for the financial performance of companies. The study provides useful
insights for brewery companies and policymakers in Ethiopia and beyond to adopt and
implement CSR practices to improve their financial performance.
