The operational policies of business enterprise are continuously influenced by therninteraction between various groups of society viz. owners, creditors, customers,rnemployees, community government etc. These different groups exercise their social,rnpolitical and economic influence to change the corporate policies in their favor. In the oldrnage economic system, the size of the business enterprise was very small and that too wasrnentirely controlled by the owner managers. Other contracting groups were not influentialrndue to lack of education and awareness. Therefore in the corporate influence system, thernowners were framed to suit their interests. But with the change in social, political andrneconomic environment, the size of the business enterprise grew and it began to play arnpivotal role in the society. It started affecting the interest of other social groupsrnsubstantially. In this respect the impact of considering corporate social responsibility inrnthe business performance has to be traced.rnHence the project has interest to understand the state of non financial reporting: CSR andrnenvironmental reporting practices in Ethiopian corporate firms and NGOs.rnData for the study was from secondary sources and primary sources. The annual reportsrnof sixty organizations have been reviewed. And the higher officials of the EthiopianrnEnvironment Protection Agency have been interviewed.rnThe project has revealed that there is the practice of reporting CSR and environmentalrnissues in Ethiopian NGOS in full. In addition many public enterprises used to report theirrnCSR and environmental issues with in their corporate annual reports since they are forcedrnby the Privatization and Public Enterprises Supervising Agency (PPESA). With regard tornthe privately owed corporate firms the company characteristics has influence on nonrnfinancial reporting: CSR and environmental reporting