Practices and Challenges of Corporate Social Responsibility in Ethiopia: The Case of Dangote Cement Factory, Ada’a Berga District, West Shoa Zone, Oromia Regional State

Corporate social responsibility (CSR) is the way organizations integrate social, environmental and economic concerns in a transparent and accountable manner. Studies done in the past overstressed the financial aspect of CSR and provided less attention to the environmental and social perspectives. The study was aimed at assessing practices and challenges of CSR in Dangote cement factory of Ethiopia. Specifically, the study addressed issues pertaining to environmental protection, employment creation and challenges of its implementation. Survey respondents, FGD discussants and key informants were selected using simple random, convenience and purposive sampling techniques respectively. Questionnaires, key informant interviews and focus group discussion checklists were used to collect primary data. While the quantitative data were analyzed using descriptive statistics (frequency and percentage) and presented using tables, qualitative data were analyzed through narrative and thematic analysis. With regard to environmental protection, the findings of the study revealed that ‘fog of dust which emitted during transportation covered all over the area. Large number of vehicles and workers continuously flocking in the vicinity of the cement factory also overcrowded the local environment and this in turn increased the volume of wastes. Though the company created employment opportunities for the local communities, most of the employment opportunities were found to be below-profile and less attractive. Furthermore, the findings indicated that lack of commitment on the part of the factory’s top management and over-ambitious expectations on the side of the local community were the major challenges to implement corporate social responsibility. These challenges call for collaboration of the company owners, management bodies, the government, and the local communities to properly implement corporate social responsibility.