EFFECT OF CORPORATE SOCIAL RESPONSIBILITY PRACTICE ON EMPLOYEE SATISFACTION IN ETHIO TELECOM

Abstract

The purpose of this study is to investigate CSR’s effect on employee satisfaction. Four variables are used as the measuring instruments the CSR, Human Resource Development and Intellectual Capital, Health and Safety at work, Intra-organizational justice and Adaptation to Change. The study examined a total sample population of 287, out of nearly 1035 the frontline and back office employees who work in contact center advisor, activation and provisioning support and retention and loyalty section of Ethio Telecom in Addis Ababa. An explanatory research design was applied to explain the effect of CSR on employee’s satisfaction. The data for the study was collected from primary and secondary sources and primary data was collected using self-administered questionnaires and interview from the samples and secondary data was collected from books, research journals and articles conducted on CSR and other related titles and unpublished materials of Ethio Telecom. A stratified sampling technique of probability sampling was conducted to select the samples. Descriptive statistics, correlation and regression analysis were used to analyze the study by using SPSS version 20 software. Finding of the study shows that Human Resource Development and Intellectual Capital, Health and Safety at work, Intra-organizational justice and Adaptation to Change were found to be positively and significantly affecting employee satisfaction as they were hypothesized. The results showed that the effect of health and safety at work on employee satisfaction was rather strong. The intra-organizational justice variable, on the other hand, turned out to have a weak effect on employee satisfaction. Moreover, there is positive significant relationship between all the CSR variables and employee satisfaction. Therefore, the study concluded that corporate social responsibility is vital for employee satisfaction. It is recommended that the management executives and formulators of CSR programs in the company should consider the potential influence of these programs on employees and their subsequent behaviors towards them.