Abstract:
This study was conducted in Oromia Regional state, Horo Guduru Welega Zone at Fincha Sugar
Factory. The purpose of the study was to assess the Corporate Social Responsibility (CSR)
practice of Fincha Sugar Factory, to determine the level of local Community Engagement in the
CSR projects and to examine the challenges faced in practicing the CSR. The study employed
both qualitative and quantitative research approach. The population of the study was the
management group of the factory, permanent employees of the Fincha Sugar Factory and the
local community members in Agamsa town kebele 01. A questionnaire and interview methods
were used to gather data for the study. Using questionnaires, data were collected from 134
research participants (114 permanent employees of the factory and 20 participants from the
local community). The interview was conducted with four Fincha Sugar Factory management
members and seven local community elders and or Aba Gadas. The data gathered through
questionnaire from survey was analyzed using Statistical Package for Social Science (SPSS)
version 25 and presented the result in the form of frequency and percentages. And the qualitative
data were analyzed thematically. The study findings revealed that the factory's CSR practices in
terms of employee treatment and Philanthropic activities were good, but environmental
protection was not. The level of local community participation in the factory‟s CSR Projects was
very limited. Lack of awareness about CSR, lack of government regulation and incentives; and
lack of interest by the management are the most critical challenges faced in practicing CSR that
are found in this research. Therefore, the researcher suggests the factory need to know the
advantage of engaging in CSR. The researcher understood and forward a strong comment that
so as to make visible the value of working in CSR, governments, media, non-governmental
organizations, civil societies and scholars play decisive role.
