Effect of Corporate Social Responsibility (CSR) Practice on Organizational Perfromance of Large-scale Agricultural Investments (a survey on South West Ethiopia Private investments)

Abstract

Background: Corporate social responsibility, undoubtedly, is one of the top priorities for organizations today, especially for investments where the labor accounts for a large ratio of what customers pay for. Therefore, this study aimed to examine the effect of corporate social responsibility on organizational performance of large-scale agricultural investments in Southwest Ethiopia. Methods: A cross-sectional study was conducted at South west part of Ethiopia. A total of 381 study participants were recruited using proportionate random sampling technique. The data were collected using a pretested self-administered questionnaire. The collected data were entered into SPSS version 23. Descriptive statistics such as mean and standard deviation were used. Inferential statistics of multiple linear regression was done to analyze the effect of independent variables Results: Among the variables identified four of the independent variables (legal responsibility, ethical responsibility, philanthropic responsibility, environmental responsibility had statistically significant effect on organizational performance with a p-value of α=0.05). Conclusion: all the explanatory variables used to explain organizational performance were found to be capable of explaining the organizational performance in the sector as well. Therefore, the investments should work on the identified explanatory variables to increase their organizational performance.