Abstract:
Habtie Alemnew Belay1*, Fentaye Kassa Hailu1 and Gedif Tessema Sinshaw1
Abstract: The central research question in the area of corporate social responsibility
(CSR) has been “Why do some businesses act responsibly, while others do not?” To
contribute to answering this fundamental question, the study aimed at empirically
determining the influence of stakeholders, which is operationalized as stakeholder
pressure, on stakeholder-oriented CSR practices. Because of its generic and versatile
nature, this link has been posited as being moderated by organizational culture. For
doing so, large manufacturing firms in the Amhara region of Ethiopia, with a sample
size of 53, were the target units of analysis. Randomly chosen 473 employees rated
the current CSR and organizational culture practices of the firms. Because it is mainly
felt by managers, internal stakeholders’ pressure has rather been judged by managers
(sampled 253). Consequently, the aggregated process produced data at the
organizational level. According to analysis using structural equation modeling, (1)
internal stakeholders’ pressure and organizational culture have both been identified
as potential factors influencing CSR practices and (2) organizational culture has
a moderating role in the relationship between internal stakeholders’ pressure and
CSR practices. Notwithstanding its limitations, the study has provided useful insights
into both the theory and practice of CSR. Similar studies with tailored designs are
encouraged
