Effect Of Corporate Social Responsibility Practices On Organizational Performance: The Case Of Mugher Cement Factory: Oromia Regional National State, Ethiopia

Abstract

The main purpose of this study was to examine the effect of corporate social responsibility on organizational performance in the case of the Mugher Cement Factory in the Oromia regional national state, Ethiopia. To achieve the research objectives, the researcher adopted both descriptive and explanatory research designs. The study used both primary and secondary data sources and a quantitative research approach was used. Structured questionnaires were used to gather data from the targeted group of the study, and the probability sampling technique was employed. Five Likert scale structured questionnaires were used for data collection. The validity and reliability of the questionnaire were checked by using the pilot test and Cronbach's alpha test, respectively. The study targeted employees of Mugher Cement Factory with more than one-year of work experience and the local community of Mugher town. Yamane sample size formula was used to obtain 253 respondents from 690 company employees and the Freidman sample size was used to obtain 384 respondents from the local community of Mugher town. Data was collected using a closed and open-ended questionnaire. Data collected were coded and analyzed using both descriptive statistics and inferential statistics. The study showed that economic activities, legal activities, philanthropic activities, and ethical activities affect organizational performance, have a positive relationship, and are statistically significant. The company is better if give support to the local community such as reducing the price of its product for the local community compared to the price that sells to other residents since the waste from the factory is being blown away over the society and town. The company has to work on CSR activities and community-related activities that increase the benefit of the community and increase their profit