The Role of Corporate Social Responsibility on Employees Organizational Commitment: A Case of Gondar City Bank Sectors, Ethiopia

Abstract

Success of a business heavily depends on the quality of its human resource. Hence, high quality human resource base is essential for all types of organizations. The idea of social responsibility of business is based upon the concept that business is something more than a purely economic institution. That is why an important issue facing today's organizations are whether corporate sector has some responsibility to improve the society or only to improve their earnings.

This study investigates the role of corporate social responsibility on employee's organizational commitment. The study population was Bank sectors employees operating at Gondar city. The data was collected with the help of structured questionnaire from 153 employees, the study were used proportional stratified sampling and simple random sampling method as sample design.

The instrument to measure employee's perceptions towards CSR actions of corporation was adopted from Turker (2006). The scale contains 17 and incorporates four dimensions of CSR including such as economical, legal, ethical and discretionary responsibility. Meye, Allen and Smith   (1993) revised Organizational Commitment Scales were used to measure the dependant variable organizational commitment. The Pearson's correlation and Regression were used to analyze the data.

The major findings of the study were, employee's organizational commitment has significant relationship with Legal, Ethical and Discretionary responsibilities. In addition jointly corporate social responsibility factors significantly predict organizational commitments.