Assessing the Corporate Social Responsibility Practices of Fincha Sugar Factory

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.