Corporate Social Responsibility for Social Dimension of Human Development in Ethiopia: A Conceptual Paper

Abstract

CSR is an important agent of change to address the challenges of social dimension of human development However, Ethiopia lagged behind the concept of Corporate Social Responsibility (CSR) guideline and framework. The central theme of this paper is to analyze how Corporate Social Responsibility (CSR) is important for human development. Based on analysis of 50 scholarly papers and research journals, books and organizational website products/ leaflets, the importance of CSR for human development is discussed in relation to the experiences of Japan and South Africa and their relevance to Ethiopia. CSR is an essential concept for the accumulation of social capital (in the form of social networks development and activities of voluntary associations) thereby facilitating greater participation in civic and political associations, trust, honesty, reliability, and developing collaboration in the society. Ethiopians and CSR are compatible because Ethiopians are “open minded” and receptive towards socio-cultural life as reflected by the extended family structure; “collectivism” is a dominant national culture. It is suggested that it is essential that Ethiopians practice CSR by focusing on indigenous opportunities that are available locally without dogmatic copying of other countries.

Keywords: Collectivism, Corporate Social Responsibility (CSR), Human development, Social Capital.