The Role Of Private Commercial Banks On Corporate Social Responsibility In Ethiopia

The focus of this research is on the role of private commercial banks on corporate social responsibility inrnEthiopia. The major objective of this study is to assess the role of private commercial banks on CorporaternSocial Responsibility in Ethiopia. The study has employed both descriptive and qualitative researchrnstrategies. The variables considered under this study are four factors: these are internal management –rnimplementing meaningful strategy, process and people management; external management –rnaccountability for creditability and external management -consideration of stakeholders. Primary data wasrncollected via questionnaire from seven private commercial banks out of sixteen private commercial banks.rnSince stated owned and private commercial banks are different in many aspects. Stated owned commercialrnbanks not included in study. The data was analyzed using likert 5 scales. For statistical interpretation meanrnand standard deviation was used. Statically Packages for Social Science software was used since it isrnappropriate for the study.rnFindings of the study has shown that private commercial banks of Ethiopian has looser attitude to supportrngreener industries, lower lending options to low income individuals and small business, less engage inrncommunity development and less understanding on poor financial management in banking organizationsrnwhich results to adverse effect to the environment and society, and less understanding on the idea that it isrnnot fair holding more than three building collaterals which are offered by different mortgagors when arnbank granting loan to single borrower. Since, it is not fair when a bank has offered to sell it viarnforeclosures which are owned by more than three different mortgagees for a single borrower which werernheld as collaterals by the bank for the loans and advance granted.rnThe study has conclude that Corporate Social Responsibility requires more for the private commercialrnbanks to pay special attention towards integration of social and environmental concerns in their businessrnoperations to achieve sustainability. So understanding the concept of corporate social responsibility in thernbanking sector and linking the concepts and frameworks and key elements of Corporate SocialrnResponsibility in the banking policies and procedures is very vital to reduce risks emanate from notrnadhering Corporate Social Responsibility concepts. The relevance of knowing the Corporate SocialrnResponsibility of banking has so many benefits to the bank and society at large.rnThe researcher has recommended that the management of private commercial banks in Ethiopia shouldrnadhere to the need for Corporate Social Responsibility requires more for the banks to pay special attentionrnto design and built forth programs and policies to enrich wealth knowledge of banking service staff and tornunderstand their own position among the overall banking sector and also it is important for policymakersrnto judge the banking performance from the angle of corporate social responsibility.rnKey words: Corporate Social Responsibility, Role of commercial banks on Corporate SocialrnResponsibility, concepts and frameworks of Corporate Social Responsibility

Get Full Work

Report copyright infringement or plagiarism