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Why Socially Responsible? Determinant Factors of Organizational Performance: Case of Dangote Cement Factory in Ethiopia

Author

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  • Anna Dunay

    (Institutes of Economics Science, Hungarian University of Agriculture and Life Sciences, 2100 Gödöllő, Hungary)

  • Abebe Ayalew

    (Department of Management, Colleges of Business and Economics, Ambo University, (+251) 19 Ambo, Ethiopia)

  • Gemechu Abdissa

    (Doctoral School of Economics and Regional Sciences, Hungarian University of Agriculture and Life Sciences, 2100 Gödöllő, Hungary)

Abstract

The main purpose of this study is to examine the effect of corporate social responsibility on the organizational performance of the Dangote cement factory in Ethiopia. In order to achieve the research objectives, the authors adopted both a descriptive and explanatory research design. Structured questionnaires were used to gather data from the targeted group of the study, where the probability and non-probability sampling technique was employed to draw a sample of 179. The collected data were presented and analyzed using the SPSS (version 20) statistical software package. A multiple linear regression model was applied to see the effect of CSR on organizational performance. The study showed that philanthropic activities, ethical activities, and legal activities affect organizational performance, have a positive relationship, and are statistically significant at a 1% confidence interval. It was concluded that for the existence of business industries, the community relation is key to ensuring a conducive atmosphere for the business to succeed.

Suggested Citation

  • Anna Dunay & Abebe Ayalew & Gemechu Abdissa, 2021. "Why Socially Responsible? Determinant Factors of Organizational Performance: Case of Dangote Cement Factory in Ethiopia," Sustainability, MDPI, vol. 13(9), pages 1-23, April.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:9:p:4783-:d:542854
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    References listed on IDEAS

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    Cited by:

    1. Ma Ying & Gashaw Awoke Tikuye & He Shan, 2021. "Impacts of Firm Performance on Corporate Social Responsibility Practices: The Mediation Role of Corporate Governance in Ethiopia Corporate Business," Sustainability, MDPI, vol. 13(17), pages 1-21, August.

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