EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON ORGANIZATIONAL PERFORMANCE: IN THE CASE OF MANUFACTURING SECTORS IN WOLDIA CITY ADMINISTRATION

ABSTRACT Although planned CSR is crucial to improve organizational performance in some capacity and may involve targeting one or more of five categories: philanthropic, environmental, economic, social and legal little is known whether CSR in manufacturing is implemented properly or not. To fill this gap the study examined the effect of CSR on organizational performance. Thus, the study directed by five research objectives which pursued answer for the effect of CSR on organizational performance at manufacturing sectors, in Woldia city administration. The study employed the descriptive and explanatory research designs due to its intent to examine the current status of CSR practice and the effect of organizational change on the Performance of manufacturing industries. Employees and management groups of the four manufacturing industries in Woldia city administration were selected by using purposive and stratified simple random sampling. To collect data from respondents the study used structured questionnaires in form of a five point likert scale and semi structured interview. The data was analyzed using scientific package for social sciences (SPSS). Then after, for the data analysis the study used linear regression analysis through SPSS software version 26 and all of the regression assumptions have been tested. Results like the values of R, R-square and Adjusted R-square shows that, CSR has significant effects on organizational performances of the manufacturing industry. The ANOVA table also reveals that the overall model was statistically significant and the coefficient table shows that independent variable has significant effect on dependent variable, which is CSR have significant effect on organizational performance. This means that the most significant variable is philanthropic responsibility followed by legal responsibility among the five independent variables. It was concluded that for the existence of business industries community relation is key to ensuring conducive atmosphere for business to succeed. The study was recommended among others the management of the company should pay more attention to corporate social responsibility as it will improve their image and ensure their survival in the industry.