Effect of Stakeholders’ Pressure on Corporate Social Responsibility Practices: The Case of Leather Factories in Ethiopia, Oromia, Lume District.
Keywords:
ManagementAbstract
The primary aim of this study was to investigate the effect of stakeholders’ pressure on corporate social responsibility (CSR) practices in the context of leather factories in Ethiopia, specifically in the Oromia region, Lume district. To analyze data collected through questionnaires, researchers used Pearson correlation and ordinal logistic regression analysis. The study’s findings reveal that a positive, moderate, and statistically significant relationship between stakeholders’ pressure and CSR practices (r=pressure has a positive, moderate and statistically significant relationship with CSR practices (r= 0.677, P-value < 0.001). In addition, the results of the research indicate that government pressure, community pressure, and media pressure are found to have a substantial effect on CSR practices of leather factories (Z-value =1.976, 1.713, and 1.797, P-value=0.021, 0.041, and 0.038), respectively. However, the effect of owner’s pressure, employee’s pressure, customer’s pressure, supplier’s pressure, creditor’s pressure, competitor’s pressure, non-government organization’s pressure and leather factory association’s pressure are found to be insignificant on leather factories’ CSR practices (Z-value= 0942, 0.427, 0.532, 0.586, 0.078, 0.566. 0.175, and 0.514, p-value 0.130, 0.101, 0.412, 0.210, 0.307, 0.102, 0.062 and 0.091), respectively. The findings of the study have implications for governing bodies to promote stakeholders’ engagement in exerting pressure on leather factories to play their corporate social responsibilities.
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