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A Review of Corporate Social Responsibility Practices in Ethiopia

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Doing Business in Africa

Abstract

The purpose of this chapter is to examine the status of corporate social responsibility (CSR) in Ethiopia in terms of the legal and policy framework and practices. Corporate social responsibility is well defined and integrated in the mindsets of companies in developed countries. In Africa, there is a growing understanding of the role of CSR and the need to integrate them into national policies. This chapter reviews global and African practices in CSR; in the case of Ethiopia, determinants of CSR practices are identified and discussed. The methodology employed to conduct this brief study is a review of reports and research written on corporate social responsibility. Accordingly, 30 reports were assessed. The findings established that the predominant culture in Ethiopia is one of philanthropy rather than CSR. It is very common for companies to contribute to community development activities, grand projects of the government and relief support in times of natural disasters. Systemic integration of CSR into company strategies and business planning is not visible even in the largest corporations. There is also a policy gap on the government’s part as there are no clearly defined policies and strategies towards encouraging CSR.

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Kellow, A., Kellow, N. (2021). A Review of Corporate Social Responsibility Practices in Ethiopia. In: Apitsa, S.M., Milliot, E. (eds) Doing Business in Africa. Palgrave Studies of Internationalization in Emerging Markets. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-50739-8_9

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