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Corporate social responsibilities contribution for sustainable community development: evidence from industries in Southern Ethiopia

Author: Mamo, Yodit Abebe,Sisay, Abrha Mesele,WoldeSilassie, Behailu Dessalegn,Angaw, Kiflie Worku
Publisher: Abingdon: Taylor & Francis
Year: 2024
DOI: 10.1080/23322039.2024.2373540
Source: https://www.econstor.eu/bitstream/10419/321531/1/10.1080_23322039.2024.2373540.pdf
Mamo, Yodi Abebe; Sisay, Ab ha Mesele; WoldeSilassie, Behailu Dessalegn;
Angaw, Ki lie Wo ku
A icle
Co po a e social esponsibili ies con ibu ion o
sus ainable communi y de elopmen : e idence om
indus ies in Sou he n E hiopia
Cogen Economics & Finance
P o ided in Coope a ion wi h:
Taylo & F ancis G oup
Sugges ed Ci a ion: Mamo, Yodi Abebe; Sisay, Ab ha Mesele; WoldeSilassie, Behailu Dessalegn;
Angaw, Ki lie Wo ku (2024) : Co po a e social esponsibili ies con ibu ion o sus ainable
communi y de elopmen : e idence om indus ies in Sou he n E hiopia, Cogen Economics &
Finance, ISSN 2332-2039, Taylo & F ancis, Abingdon, Vol. 12, Iss. 1, pp. 1-23,
h ps://doi.o g/10.1080/23322039.2024.2373540
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/321531
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Cogen Economics & Finance
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Co po a e social esponsibili ies con ibu ion o
sus ainable communi y de elopmen : e idence
om indus ies in Sou he n E hiopia
Yodi Abebe Mamo, Ab ha Mesele Sisay, Behailu Dessalegn WoldeSilassie &
Kiflie Wo ku Angaw
To ci e his a icle: Yodi Abebe Mamo, Ab ha Mesele Sisay, Behailu Dessalegn WoldeSilassie
& Kiflie Wo ku Angaw (2024) Co po a e social esponsibili ies con ibu ion o sus ainable
communi y de elopmen : e idence om indus ies in Sou he n E hiopia, Cogen Economics &
Finance, 12:1, 2373540, DOI: 10.1080/23322039.2024.2373540
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© 2024 The Au ho (s). Published by In o ma
UK Limi ed, ading as Taylo & F ancis
G oup
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DEVELOPMENT ECONOMICS | RESEARCH ARTICLE
Co po a e social esponsibili ies con ibu ion o sus ainable
communi y de elopmen : e idence om indus ies in Sou he n
E hiopia
Yodi Abebe Mamo
a
, Ab ha Mesele Sisay
a
, Behailu Dessalegn WoldeSilassie
b
and
Ki lie Wo ku Angaw
c
a
Depa men o Public Adminis a ion and De elopmen Managemen , Dilla Uni e si y, Dilla, E hiopia;
b
Depa men o
S a is ics, Dilla Uni e si y, Dilla, E hiopia;
c
Public Go e nance Ins i u e, KU Leu en, Belgium
ABSTRACT
This s udy in e oga es he con ibu ion o co po a e social esponsibili y o commu-
ni y de elopmen om socioeconomic, en i onmen al, e hical, and philan h opic pe -
spec i es. A o al o 401 households we e selec ed andomly and p opo ionally om
he Sou he n Na ions Na ionali ies and Peoples Regional S a e and Hawassa Ci y om
he Sidama Region. Su ey da a we e collec ed om local communi ies using he
pape -assis ed pe sonal in e iew (PAPI) echnique. In e iews wi h go e nmen o i-
cials and ocus g oup discussions wi h local communi y membe s. Da a we e analyzed
using a mixed esea ch app oach, whe e quan i a i e da a we e analyzed using a
s uc u al equa ion model and desc ip i e s a is ics, and hema ic analysis was used
o quali a i e da a. The s udy ound ha CSR con ibu es o many aspec s o local
communi y de elopmen . Ou empi ical model con i ms ha p ope implemen a ion
o CSR ini ia i es subs an ially con ibu es o social de elopmen b¼0.913, economic
de elopmen b¼913, en i onmen al sus ainabili y b¼0.784, e hical aspec 0.767,
Philan h opic ac i i ies b¼0.814, and o e all local de elopmen b¼0.960 whe e
p0.001 s a is ically signi ican le el. The s udy easse s and ei e a es he need o
design app op ia e policy ins umen s and law en o cemen echniques, in addi ion o
p omulga ing egula o y p o isions and legal amewo ks. The s udy sheds ligh on
he impe a i eness o CSR o smoo h human-en i onmen and business- esou ce ela-
ionships. The s udy con ibu es o li e a u e, deba e, and policy implica ions on
eme ging issues o CSR-business, and de elopmen discou ses.
IMPACT STATEMENT
Ou s udy passiona ely explo es how Co po a e Social Responsibili y (CSR) ini ia i es
by indus ies in Sou he n E hiopia signi ican ly enhance sus ainable communi y de el-
opmen ac oss socioeconomic, en i onmen al, e hical, and philan h opic dimensions
based on i s -hand da a. Well-implemen ed CSR p og ams lead o subs an ial
imp o emen s in social de elopmen , economic p og ess, en i onmen al sus ainabili y,
e hical s anda ds, and philan h opy. Howe e , he e is a c i ical need o well-designed
policy ins umen s and egula o y en o cemen o p omo e CSR and os e ha moni-
ous human-en i onmen and business- esou ce ela ionships. Wi hou his, indus ial
ac i i ies ine i ably cause ad e se e ec s, such as pollu ion and heal h damage, exa-
ce ba ed by poo egula o y con ol and co up ion. Indus ies mus engage espon-
sibly wi h local communi ies o bene i hem while p omo ing e icien
communica ion. This esea ch o e s aluable insigh s o policymake s, schola s, and
p ac i ione s on he impo ance o CSR in achie ing sus ainable de elopmen goals,
emphasizing i s ele ance in con empo a y business and de elopmen discou se and
p o iding subs an ial implica ions o policy and p ac ice in eme ging economies.
ARTICLE HISTORY
Recei ed 7 Ma ch 2023
Re ised 31 May 2024
Accep ed 23 June 2024
KEYWORDS
Co po a e social
esponsibili y; local
de elopmen ; en i onmen-
al sus ainabili y;
communi y de elopmen ;
Sou he n E hiopia
REVIEWING EDITOR
Robe Read, Economics,
Uni e si y o Lancas e ,
Lancas e , Uni ed Kingdom
SUBJECTS
De elopmen S udies;
De elopmen Policy;
De elopmen Theo y;
Sus ainable De elopmen
CONTACT Yodi Abebe Mamo [email p o ec ed] Depa men o Public Adminis a ion and De elopmen Managemen , Dilla
Uni e si y, Dilla, E hiopia
ß2024 The Au ho (s). Published by In o ma UK Limi ed, ading as Taylo & F ancis G oup
This is an Open Access a icle dis ibu ed unde he e ms o he C ea i e Commons A ibu ion License (h p://c ea i ecommons.o g/licenses/by/4.0/), which
pe mi s un es ic ed use, dis ibu ion, and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed. The e ms on which his a icle has been
published allow he pos ing o he Accep ed Manusc ip in a eposi o y by he au ho (s) o wi h hei consen .
COGENT ECONOMICS & FINANCE
2024, VOL. 12, NO. 1, 2373540
h ps://doi.o g/10.1080/23322039.2024.2373540
1. In oduc ion and p oblem analysis
Co po a e Social Responsibili y lacks a p ecise de ini ion and a common concep ual unde s anding. The
Wo ld Business Council o Sus ainable De elopmen (Wa s e al., 1999), de ines CSR as a business’s
commi men o ac e hically and con ibu e o de elopmen is-
a- is imp o ing he quali y o li e o i s
employees and local communi y well-being a la ge. The Eu opean Commission de ines CSR i is
‘businesses ha olun a ily in eg a e social and en i onmen al issues in o hei business ope a ions and
ela ionships wi h hei s akeholde s’(Eu opean Union, 2002). O cou se, in ad anced economies, i
becomes bo h he legal and mo al obliga ion o business en e p ises o engage in en i onmen al sus-
ainabili y. CSR is mo e ele an in ex ac i e indus ies, ha consumes signi ican amoun s o esou ces.
I is because nowadays, sus ainabili y is a g ea conce n whe e human ac i i ies pa icula ly ex ac i e
indus ies ha e b ough undoub edly unp eceden ed en i onmen al impac s (Zhang e al., 2023).
Howe e , CSR ecei es less a en ion o lacks clea policy amewo ks in de eloping coun ies such
as E hiopia (Mamo e al., 2023), ega dless o he de as a ing mul i ace ed c ises on human and animal
heal h and he en i onmen al impac s o gold ex ac i e indus ies (Regassa, 2022). The unde de eloped
socioeconomic condi ions and high unemploymen a e o eme ging economies coupled wi h
neglec ed go e nmen esponsibili y in p o iding app op ia e policy and s a egic amewo ks owa ds
CSR o p omo e local communi y de elopmen and ensu e en i onmen al sus ainabili y esul s in mul-
iple bu dens on local communi ies as esou ce on ie s, he en i onmen , and e en o business com-
panies (Ba soum & Re aa , 2015; Regassa, 2022). Consequen ly, companies’CSR ini ia i es do no e lec
communi ies’expec a ions, exace ba ing business-en i onmen -de elopmen in e aces (Ba soum &
Re aa , 2015).
The e a e h ee dynamics o esou ce and economic de elopmen . Fi s , coun ies need o imp o e
hei s a e’s economic s a us. Second, he local communi y a he g ass oo s le el is en i led o bene i
om esou ces, bo h di ec ly and indi ec ly. Thi d, he en i onmen should emain sus ainable and sa e
o u u e gene a ions (see also Pe deli Demi kan e al., 2021). Gi en his p emise, many eme ging
economies depend la gely on hei na u al esou ces, especially in he ea ly s ages o hei economic
de elopmen (Dogan e al., 2020). CSR plays a c ucial ole in ha companies a e obliga ed o balance
his dynamic and maximize hei p o i ma gins. Howe e , in E hiopia, o example, ex ac i e indus ies
cause p o ound unp eceden ed damage o bo h human and en i onmen al heal h and nega i ely a ec
en i onmen al sus ainabili y (Regassa, 2022). In he li e a u e, his is e e ed o as a su oga e o he
na u al esou ce-cu se hypo hesis (Dogan e al., 2020).
Empi ical e idence asse s ha despi e some a emp s o implemen CSR ini ia i es, esou ce- ich
coun ies and communi ies, such as E hiopia, s ill ace mul i ace ed human-en i onmen c ises, income
inequali ies (Dogan e al., 2020; Regassa, 2022), con lic s, a med iolence o e access o and con ol o
esou ces (Idemudia, 2008), poli ical ins abili y, and in e wo en ac o ne wo ks o in e es (Robbins,
2011). All o hese a e asc ibed mainly o he p esence o he na u al esou ce ex ac i e indus y ei e -
a ing he eimagina ion and econcep ualiza ion o CSR p ojec s owa ds an h opocen ism (c .
Sh i as a a, 1995; Wal e & E ans, 2023). Bu le (2015) indica es ha CSR obliga es businesses o engage
in sus ainable de elopmen agendas. Mu hu i e al. (2012) highligh he need o CSR o sus ainable
de elopmen in de eloping coun ies, whe e high a es o po e y, illi e acy, disease, maladminis a ion,
and lack o good go e nance a e common phenomena.
Thus, businesses a e expec ed o play a c ucial ole in sol ing hese p oblems. Fo example, compa-
nies make a signi ican con ibu ion o sus ainable in as uc u e de elopmen , such as he cons uc ion
o schools and heal h cen e s, and o en i onmen al p o ec ion o compensa e o indus ial c ises ha
ha m human li e and he na u al en i onmen (Newell & F ynas, 2007; Sh i as a a, 1995). The manu ac-
u ing indus y’s CSR is hough o be linked o he g ow h o he communi y in which i ope a es
(Mamo e al., 2023). Communi y de elopmen ac i i ies can ei he be a ge ed owa d imp o ing eco-
nomic challenges, such as po e y and unemploymen , o commi men o communi y wel a e and en i -
onmen al sus ainabili y (Sh i as a a, 1995).
E hiopia’s businesses p ima ily aim o maximize p o i ma gins a wha e e cos o employees, con-
sume s, supplie s, en i onmen s, and esiden s o esou ce on ie s (Ayele, 2008; Regassa, 2022; S ebek,
2012). Fo his eason, businesses, pa icula ly la ge and medium-sized manu ac u ing indus ies in
2 Y. ABEBE MAMO ET AL.
E hiopia, a e con inuously causing de as a ing human and en i onmen al damage and sociocul u al c i-
ses (Mamo e al., 2023; Regassa, 2022). Mo e impo an ly, poo policy implemen a ion ins umen s ha
go e n he ela ionship be ween businesses, esou ce owne s’local communi ies, and he en i onmen
ha e become mo e p oblema ic. F equen ly, in E hiopia, he local communi y is disappoin ed, wi h an
imbalance be ween wha he indus ies p omised and hei ac ual pe o mance (Mamo e al., 2023). On
he one hand, he e is e idence o a lack o p ope law en o cemen and policy ins umen s, ega dless
o he go e nmen o E hiopia p o iding a ious egula o y amewo ks o businesses. On he o he
hand, de as a ing human-en i onmen al damages con inue o occu whe e indus ies a e ope a ing
(Mamo e al., 2023; Regassa, 2022).
P e ious CSR s udies in E hiopia had se e al limi a ions. Fo ins ance, Mamo e al. (2023) s udied he
socioeconomic con ibu ion o CSR o local communi y esiden s, and a s udy by Regassa (2022) limi ed
he en i onmen and human heal h c isis o ex ac i e indus ies by elying on a quali a i e app oach
om a single ex ac i e indus y. S udies by Robe son (2009), and Kellow and Kellow (2021) emphasized
a concep ual unde s anding o CSR, and Eyasu and colleagues s udied he causal ac o s o CSR and
business ope a ions. Howe e , he explici con ibu ions o indus ies o holis ic local communi y de el-
opmen s o manu ac u ing indus ies emain la gely uns udied. Fu he mo e, me hodologically, p e ious
s udies ha e been limi ed o explo a o y, desc ip i e, o s o y na a ion. Agains his backd op, he cu -
en s udy a emp s o ill hese gaps by e alua ing he explici con ibu ion o manu ac u ing indus ies
o local de elopmen s –socioeconomic, en i onmen al, and philan h opic wellbeing using a s uc u al
equa ion model (SEM) based on da a ob ained using a mul ime hod mixed esea ch app oach. The s udy
aimed o answe cen al ques ion: To wha ex en a e indus ies con ibu ing o local communi y de el-
opmen s (socioeconomic, en i onmen al, legal, and philan h opic) well-being?
The s udy uses he s akeholde heo y pe spec i e o answe his esea ch ques ion. S akeholde he-
o y s a es ha business i ms a e esponsible o many s akeholde s besides sha eholde s. Employees,
supplie s, cus ome s, go e nmen , in es o s, communi y, and en i onmen (K isnawa i e al., 2014) ha
business i ms owe co po a e accoun abili y owa d a b oad ange o s akeholde s’in e es s. The pape
makes a h ee old con ibu ion: Fi s , we y o ill me hodological gaps in p e ious s udies by using
SEM on CSR and communi y de elopmen . Second, i sheds ligh on he ele ance o CSR o p omo ing
sus ainable de elopmen om he de eloping [E hiopia] coun ies con ex , whe e empi ical s udies a e
lacking. Thi d, ou esul s con ibu e o CSR li e a u e, deba e, and policy implica ions.
2. Concep o CSR, communi y de elopmen , and hypo hesis o he s udy
CSR as a manage ial p ac ice o igina ed in he 19 h cen u y when people became c i ical o and began
o ques ion he ole o businesses in socie y (Visse e al., 2010). This was when indus ial ac i i ies
inc eased emendously and impe ialism was a he oo o he as -de eloping global economic sys em.
CSR has become a global conce n (Saiia e al., 2003). Business i ms bene i he communi y’s well-
being and en i onmen al sa egua ding (Blow ield & F ynas, 2005; Ca oll, 1999; Du e al., 2013). In add-
i ion, CSR is a concep unde s ood as whe e in companies in eg a e social and en i onmen al conce ns
in hei business ope a ions and hei in e ac ion wi h hei s akeholde s olun a ily’(Eu opean Union
(2002). In o he wo ds, CSR is a ‘way in which companies achie e a balance o economic, en i onmen al
and social impe a i es’(Rai & Bansal, 2014).
Businesses’p ac ice o co po a e social esponsibili y owa d hei hos communi ies has a - eaching
communi y de elopmen bene i s. Businesses and o ganiza ions mus pay mo e a en ion o Co po a e
Social Responsibili y o a oid dispu es, which can obs uc he achie emen o he company’s speci ied
goals (Nwoba & Michael, 2016). Mo eo e , many ju isdic ions ha e been using CSR as a ool o socioe-
conomic de elopmen , ecognizing ha employees a e a esou ce o be alued, e hical issues a e cen al
o he o ganiza ion, and co po a ions ha e been equi ed o wo k somewha wi h supplie s and cus om-
e s (Mu phy & Schlegelmilch, 2013).
In addi ion o he oles o go e nmen s, eligious ins i u ions, and adi ional au ho i ies, indus ies
also play a signi ican ole in communi y de elopmen (Adewuyi & Olowooke e, 2010). In line wi h his,
acco ding o Moon (2007), businesses mus u ilize CSR o imp o e sus ainable Communi y De elopmen ,
pa icula ly in hei hos communi ies, o aise hei social s a us and s eng hen hei abili y o exis .
COGENT ECONOMICS & FINANCE 3

Due o his signi ican ole, co po a ions’goals mus include helping communi y de elopmen s akehold-
e s achie e hei own inancial goals. Pa icipa ion in CSR has become inc easingly en icing as a esul o
s akeholde s’g owing awa eness o i and he expec a ions ha businesses suppo CD.
The e o e, CSR is necessa y o o se i esponsible co po a e ac ions (Ko chen & Moon, 2012). In he
mode n wo ld, s akeholde s a e equen ly exposed o news epo s in he media ega ding he ha m ul
e ec s on sa e y, heal h, and he en i onmen caused by he ope a ions o companies in he ex ac i e
sec o (Une man & O’Dwye , 2007). Many economically iable ac i i ies in hos communi ies, such as
a ming and ishing, may be a ec ed by he ope a ions o companies in he ex ac i e indus y. Mining
and oil explo a ion ha e epo edly had an impac on ecosys ems all o e he wo ld, which has led o
he loss o local peoples’means o subsis ence. CSR e o s include c ea ing al e na i e means o subsis -
ence o locals h ough skill aining, ag icul u al p ojec s, and educa ional sponso ships.
Addi ionally, CSR in de eloping coun ies is mos ly p o-poo . CSR p og ams can be implemen ed
in e nally o comba po e y among s a membe s, as well as ex e nally in he communi y. A he local
le el, Medina-Mu~
noz and Medina-Mu~
noz (2020) claimed ha p og ams such as skill aining o local
communi ies can aid in educing po e y. Communi y suppo is equi ed, including dona ions and ol-
un ee wo k o aid he needy, suppo educa ional and medical ins i u ions, and in ol emen in ini ia-
i es o alle ia e hunge .
One o he CSR heo ies applied in his s udy is s akeholde heo y. F eeman (2002) s a es ha s ake-
holde heo y sugges s ha a company’s obliga ion is no only o maximize p o i and inc ease s ake-
holde sa is ac ion. Acco ding o F eeman and McVea (2005) and F iedman and Miles (2006),
s akeholde s a e people in e es ed in a company’s ac i i ies. The ollowing is wha s akeholde s expec
om hei o ganiza ions: owne s ( inancial, added alue), employees (pay, wo k sa is ac ion, aining),
cus ome s (supply o goods and se ices, quali y), communi y (sa e y and secu i y, con ibu ion o com-
muni y), and go e nmen (compliance, imp o ed compe i i eness) (Cannon, 1994). Mo eo e , Di e en
au ho s (Fassin, 2009; Kassinis & Va eas, 2006) de ine s akeholde p essu e as he abili y and capaci y o
s akeholde s o a ec an o ganiza ion by in luencing i s decisions. Ex ending his heo y, di e en
esea che s ha e poin ed ou se e al dimensions o CSR: cus ome s, employees, sha eholde s, socie y,
en i onmen , media, and o he s (Maignan e al., 1999; Tu ke , 2009).
2.1. The concep o communi y de elopmen
In he con ex o his s udy, we adop ed he widely used meaning o communi y de elopmen gi en by
he Uni ed Na ions. Acco ding o he Uni ed Na ions’de ini ion, communi y de elopmen is an e o o
indi iduals in a communi y conduc ed in such a way as o help sol e communi y p oblems wi h min-
imum help om ex e nal o ganiza ions. Ex e nal o ganiza ions include go e nmen and non-go e nmen
o ganiza ions and co po a ions o a ious ypes and sizes, such as small and medium en e p ises (SMEs)
and mul ina ional co po a ions (MNCs). The UN’s de ini ion o communi y de elopmen emphasizes c e-
a i i y and sel - eliance in he communi y o sho - and long- e m goals, while main aining a ious busi-
ness i ms’CSR oles. Hence, he Indus y’s CSR ole in communi y de elopmen in he con ex o his
s udy is a combina ion o any di ec and indi ec bene i s ecei ed by he communi y as a esul o ul-
illing he social, economic, en i onmen al, philan h opic, and e hical ole o commi men o co po a-
ions o he o e all communi y and social sys em.
2.2. Hypo hesis
CSR o e s p ospec s o communi y de elopmen and po e y educ ion in de eloping coun ies (Ashley
& Haysom, 2006; I e, 2004).
Fi s ly, CSR p esen s a signi ican oppo uni y o go e nmen s in de eloping coun ies o collabo a e
wi h he p i a e sec o o op imize he impac s o CSR on communi y de elopmen in poo communi ies
(Fox e al., 2002). Impe a i ely, his asse s ha go e nmen s a e p esen ed wi h he oppo uni y o ha -
ness CSR po en ial and align CSR ini ia i es wi h communi y de elopmen p io i ies. The e a e also op i-
mis ic a gumen s om a business pe spec i e ha CSR is a s a egic concep ha no only imp o es he
compe i i eness o a co po a ion bu also con ibu es o he well-being o he socie y o communi y
4 Y. ABEBE MAMO ET AL.
wi hin which i ope a es (Bu ke & Logsdon, 1996; Po e & K ame , 2002,2006). Some schola s ha e
e en sugges ed ha CSR should be b oadly oo ed in he unde s anding ha co po a ions and socie y
need each o he (Po e & K ame , 1999,2011).
Communi y de elopmen h ough CSR in he indus y is essen ial o he go e nmen because compa-
nies and indus ies can complemen he go e nmen ’s e o s in communi y de elopmen and po e y
educ ion.
Secondly, companies and indus ies exis in he same communi ies as he poo and, he e o e, ha e
he closes i s -hand expe ience o he needs o neighbo ing communi ies and he bes o mos app o-
p ia e solu ions o mee hose communi y needs.
Thi dly, CSR p o ides an essen ial oppo uni y o he go e nmen and p i a e sec o o inc ease he
pool o esou ces o ackle communi y de elopmen challenges h ough CSR in a mo e di ec , inno a-
i e, and sus ainable way (Mi chell & Ashley, 2006). Fu he mo e, some schola s ha e a gued ha , once
p ope ly ha nessed, in ce ain ci cums ances, CSR can o e mo e oppo uni ies o he p i a e sec o o
posi i ely impac communi y de elopmen and po e y educ ion han he go e nmen and i s de elop-
men pa ne s (Spenceley & Meye , 2012).
Based on hese a gumen s and ac s, he ollowing hypo hesis is p oposed.
2.2.1. Economic esponsibili y and CSR
Ca oll (1991) asse s ha i ms ha e ou undamen al esponsibili ies, he mos signi ican o which is
economic esponsibili y gi en ha A ican na ions a e a lic ed by high unemploymen , o eign loans,
and po e y. The economic esponsibili y o indus ies pa icipa ing in CSR ac i i ies includes de eloping
he local economy, p e en ing co up ion and all o ms o inducemen , paying axes o he ede al, s a e,
and local go e nmen s, and employing locals o p o ide jobs, decen wo king condi ions, pe sonal
unds, and o he bene i s (Amponsah-Tawiah & Da ey-Baah, 2016).
Mul ina ional coope a ion in ansi ional economics is alued by policymake s and he communi ies
in which hey ope a e because o hei ole in po e y educ ion and job c ea ion, acco ding o Locke
e al.’s(2006) analysis o CSR esea ch conduc ed in A ica. In e na ional co po a ions, like Cisco Sys ems
and Shell, es ablish new ope a ions and open b anches in de eloping na ions o c ea e jobs o local
people and lowe po e y- ela ed unemploymen . Thus, we hypo hesize as ollows:
H
1a
: The e is a posi i e ela ionship be ween indus ies’economic esponsibili y and co po a e social
esponsibili y.
2.2.2. Social esponsibili y and CSR
P omo ing social ameni ies like oads, clean wa e , and heal h, as well as educing po e y in local com-
muni ies, a e among he main esponsibili ies o indus ies’Co po a e Social Responsibili y. The deg ee
o which a company engages in co po a e social esponsibili y o assis he communi y in he a eas o
heal h, educa ion and he a s is posi i ely co ela ed wi h he company’s ma ke sha e wi hin i s indus-
y (S
anchez, 2000).
H
1b
: The e is a posi i e ela ionship be ween CSR and he social esponsibili y o indus ies and co po a e
social esponsibili y.
2.2.3. E hical issues and CSR ac i i ies
Ca ying ou business ope a ions in a us wo hy and hones manne (a oidance o une hical beha io ),
us ing he p omise and ac ions and con ibu ing o he be e men o socie y and local communi ies.
Co po a e success has been shown o a o ably co ela e wi h e hical beha io and conce n o people
and he en i onmen (C ow he & A as, 2008).
H
1c
: The e is a posi i e ela ionship be ween an indus y’s e hical aspec s and co po a e social esponsibili y
2.2.4. En i onmen al esponsibili y and CSR
CSR helps o p o ec he en i onmen . I canno be denied ha some o he wo ld’s la ges co po a ions
ha e made an e iden commi men o CSR, o example, h ough ini ia i es aimed a educing hei
COGENT ECONOMICS & FINANCE 5
en i onmen al oo p in (Ismail, 2009). Co po a ions belie e ha inancial and en i onmen al pe o m-
ance can wo k oge he o d i e co po a e g ow h and social epu a ion. This a i ude can only enhance
he employmen alue p oposi ion, such as in e es in ‘going g een’and gaining ac ion (Pe in, 2016).
En i onmen al-based CSR p og ams a e essen ial o p omo ing human well-being, main aining eco-
logical in eg i y, and p o ec ing he en i onmen and i s na u al esou ces. This includes he a ailabili y
and accessibili y o assu ed esou ces such as clean ai and wa e , and adequa e li elihoods.
H
1d
: The e is a posi i e ela ionship be ween he en i onmen al aspec s o indus ies and co po a e social
esponsibili y.
2.2.5. Philan h opic esponsibili y and CSR
Philan h opy is exp essed as a business o ganiza ion’s desi e o enhance wel a e ac i i ies o he com-
muni y and socie y h ough social and economic se ices. Acco ding o Daka e e al. (2011), a business
o ganiza ion can p o i om using na u al communi y esou ces. Thus, he communi y needs o be com-
pensa ed di ec ly o indi ec ly o wha is aken ou o he communi y.
H
1e
: The e is a posi i e ela ionship be ween he philan h opic esponsibili y o indus ies and co po a e social
esponsibili y.
2.2.6. Co po a e social esponsibili y (CSR) and communi y de elopmen
As socie y expec s business o ganiza ions o ise in he di ec ion o hei signi ican ole-playing in he
communi y, some companies a e inding ways o in eg a e CSR in o long- e m business s a egies in
mu ually bene icial ways o bo h communi ies and en e p ises. CSR ela es o business, go e nmen ,
and ci il socie y collabo a ion, wi h he bo om line being he achie emen o a win-win si ua ion
(Ismail, 2009).
A CSR p og am can be iewed as an aid o alle ia e po e y. Acco ding o Masum e al. (2020), man-
age s and employees need o pa icipa e in olun a y and cha i able ac i i ies wi hin hei local com-
muni ies, especially in p ojec s ha enhance a communi y’s quali y o li e. Success ully implemen ing
CSR p og ams in communi y de elopmen p omo es g ow h, educes po e y, and is inancially bene i-
cial o membe s o socie y. De elopmen discou se claims ha CSR o e s new p ospec s o add essing
po e y and unde de elopmen in de eloping coun ies (Bohdanowicz & Zien a a, 2008; Moon, 2007;
Po e & K ame , 2006). Fo ins ance, he Uni ed Na ions (UN) has o icially ecognized he p i a e sec-
o ’s impo an ole in de elopmen and called o a ‘global pa ne ship’ o de elopmen (Uni ed
Na ions, 2012). S a e go e nmen s ha e been ansla ing and domes ica ing his pa ne ship, pa icula ly
in de eloping coun ies.
H
2
: The e is a posi i e ela ionship be ween CSR and Communi y de elopmen .
3. Ma e ials and me hods
3.1. Concep ual amewo k o he s udy
The concep ual amewo k o he s udy illus a es he posi i e con ibu ion o indus ial CSR ac i i ies o
sus ainable communi y de elopmen based on he a iables shown in he igu e below. Howe e , hese
indus ies ine i ably expe ience ad e se en i onmen al and heal h consequences. Empi ical da a (Mamo
e al., 2023; Regassa, 2022) show he ad e se e ec s o indus ial ac i i y on E hiopia’s local communi y
and en i onmen . Mamo e al. (2023) indica ed ha he soap and be e age indus ies in Hawassa, he
lowe ac o y in Welki ie, and he ex ile ac o y in Bu aju a owns, especially he soap ac o y, dispose
o hei was e in he open en i onmen wi h li le ea men . This exposes he su ounding communi y
o a ious heal h p oblems such as as hma due o oul odo s and skin diseases. P egnan women who
wo k in hese indus ies o li e nea by ace an inc eased isk o abo ion because o was e. Fu he mo e,
he heal h and p oduc i i y o ca le (e.g., goa s, sheep, and cows) a e inc easingly damaged when hey
d ink ac o y- eleased was e liquids (Mamo e al., 2023). Regassa (2022) poin s ou he ex en o nega i e
en i onmen al and heal h consequences o he ex ac i e gold mining indus y.
6 Y. ABEBE MAMO ET AL.
Ne e heless, he explici con ibu ion o manu ac u ing indus ies o sus ainable communi y de elop-
men in e ms o socioeconomic and en i onmen al sus ainabili y, e hical compliance, and o he socio-
philan h opic ac i i ies emains la gely uns udied. The e o e, his s udy, in conjunc ion wi h p e ious
s udies, will p o ide a signi ican impe us o policy o mula ion and assis he go e nmen in p epa ing
legal guidelines o indus ies (Figu e 1).
3.2. Desc ip ion o he s udy a ea
One o E hiopia’s egional s a es is he Sou he n Na ions, Na ionali ies, and People’s Region (SNNPR).
Kenya (including a small po ion o Lake Tu kana) bo de s he SNNPR on he sou h, he Ilemi T iangle (a
egion claimed by bo h Kenya and Sou h Sudan) on he sou hwes , Sou h Sudan on he wes , he
Gambela Na ional Regional S a e on he no hwes , and he O omia Na ional Regional S a e on he
no h and eas . The egion is expec ed o ha e a popula ion o 14,929,548, wi h 7,425,918 men and
7,503,630 women (Cen al S a is ical Au ho i y [CSA], 2007). Ru al esiden s comp ised 13,433,991 people
(89.98%), whe eas ci y dwelle s comp ised 1,495,557 people (10.02 pe cen ). Acco ding o hese es i-
ma es, SNNPR is E hiopia’s mos u al a ea. Wi h an es ima ed a ea o 105,887.18 squa e kilome e s, his
egion has a popula ion densi y o 141 people pe squa e kilome e . This egion has 3,110,995 house-
holds, wi h an a e age o 4.8 people pe home (3.9 pe sons pe household in u ban a eas and 4.9 pe -
sons pe household in u al a eas).
Sidama, he second s udy a ea egion, has become E hiopia’s newes 10 h egional s a e since June
2020 and is loca ed app oxima ely 275 km sou h o Addis Ababa. Sidama became E hiopia’s en h
egional s a e in No embe 2019, a e se ing as one o he adminis a i e zones o E hiopia’s So he n
Na ions Na ionali ies and People’s Regional S a es. Sidama is ound be ween 6100and 7050no h la i-
ude and 38210and 39110eas longi ude. I is la gely bo de ed o he sou h, no h, and eas by he
O omia a ea, o he sou h by he Gedeo zone and O omia, and o he wes by he Bila e Ri e .
A o al o 8 manu ac u ing indus ies loca ed in Gedeo, Gu age, Wolay a, Gamo Zones and Buga ija
ci y in he SNNPR egion, and Hawassa Ci y in he Sidama egion, we e pu pose ully chosen based on
he ecommenda ion o SNNPR and Sidama Region In es men o ice and he le el o local communi y
esides a ound hese indus ies.
METAD Ag icul u e De elopmen PLC om Gedeo Zone, Tinaw Flowe Fac o y and Des aw Tex ile
om Gu age Zone, Dilbe Ali Plas ic PLC and Floo ac o y om Wolai a Zone, A ba Minche Tex ile ac o y
Figu e 1. Concep ual amewo k o he s udy. Sou ce: au ho s’concep ualiza ion.
COGENT ECONOMICS & FINANCE 7
analysis ( esampling ¼5000) was u ilized o es ima e he pa h coe icien s o he s uc u al model. The
indings show ha economic aspec s ha e a signi ican posi i e ela ionship wi h CSR p ac ices
(b¼0.761, p¼0.000). The e o e, H
1a
was suppo ed. The social aspec has a signi ican posi i e ela ion-
ship wi h CSR p ac ices (b¼0.913, p¼0.000), H
1b
is suppo ed, e hical issues ha e a signi ican posi i e
ela ionship wi h CSR p ac ices (b¼0.814, p¼0.000), H
1c
is suppo ed, en i onmen al esponsibili y has
a signi ican posi i e ela ionship wi h CSR p ac ices (b¼0.784, p¼0.000), H
1d
is suppo ed, and philan-
h opic ac i i ies and CSR ac i i ies ha e a signi ican posi i e ela ionship (b¼0.767, p¼0.000), H
1e
is
suppo ed. A signi ican posi i e ela ionship be ween CSR p ac ices and communi y de elopmen
b¼0.960 was ound o be signi ican a p¼0.000. As a esul , hypo hesis H
2
was suppo ed: CSR has a
signi ican e ec on communi y de elopmen , as shown in Figu e 4.
The e ec o an independen a iable on a dependen a iable is known as he di ec e ec . Figu e 4
and Table 8 show he signi icance o each pa h coe icien , which was used o calcula e he eg ession
coe icien es ima e be a, p- alue a 5% signi icance, and e ec size (
2
).
This s udy calcula ed he e ec sizes o a ious ac o s (see Table 8). Acco ding o Sulli an and Feinn
(2012), bo h s a is ical signi icance (p- alue) and he highes signi icance should be epo ed in he
esul s. To compu e he e ec size (
2
), which explains he highes e ec o he omi ed a iable on he
endogenous a iable, Hai e al. (2014) ecommend ha changes in R should be s udied when an
exogenous a iable is omi ed om he model. (Sawilowsky, 2009; Selya e al., 2012) p o ided commonly
used s anda ds o e ec size, which a e 0.02, 0.15, and 0.35 o small, medium, and signi ican e ec s,
espec i ely.
Acco ding o Ak e and Hani (2011), he s udy used he e ec size (
2
) o all alues, which can be
used as a cu -o o he alida ion o he PLS model, and was es ima ed using he c i e ia p o ided by
We zels e al. (2009). The e ec size (
2
) o he s udy model was highe han he h eshold alue o 0.35
o he highes e ec size o R
2
sugges ed by Ak e and Hani (2011).
Table 8. S uc u al model esul s.
Rela ionship Hypo hesis pa h coe icien (b)pValue Resul
2
Social Aspec !CSR H1a 0.761  Suppo ed 0.389
Economic Aspec !CSR H1b 0.913  Suppo ed 0.678
E hical Issue !CSR H1c 0.767  Suppo ed 0.358
En i onmen al Responsibili y !CSR H1d 0.784  Suppo ed 0.465
Philan h opic !CSR H1e 0.814  Suppo ed 0.425
CSR Communi y De elopmen H2 0.960  Suppo ed 0.710
Sou ce: Au ho s. No e. Signi ican a 0.05 le el, Signi ican a 0.001 le el.
Table 7. Tes ing o mul icollinea i y assump ion.
Cons uc s I ems/Indica o VIF Tole ance (1/VIF)
Social Aspec SA1 3.012 0.332
SA2 1.511 0.662
SA3 3.101 0.322
SA6 3.003 0.333
SA7 2.815 0.355
Economic Aspec ECO1 2.897 0.345
ECO4 3.129 0.320
ECO5 2.288 0.437
ECO6 2.340 0.427
ECO8 2.867 0.349
E hical Issue ENV4 2.872 0.348
ENV5 3.063 0.326
ENV7 1.399 0.715
ENV8 3.005 0.333
En i onmen al Responsibili y ETH4 1.163 0.860
ETH6 2.153 0.464
ETH7 2.092 0.478
Philan h opic PHI1 1.332 0.751
PHI2 1.887 0.530
PHI3 1.843 0.543
Sou ce: Au ho s.
14 Y. ABEBE MAMO ET AL.

5. Discussion
High al i udes o po e y, illi e acy, disease, poo go e nance, unemploymen , co up ion, and lack o
in as uc u e in de eloping coun ies lead o unde de elopmen . To o e come his p oblem and
enhance communi y well-being, companies play a i al ole in add essing hese p oblems h ough
Co po a e Social Responsibili y (Figu e 5).
5.1. Social esponsibili y and CSR
The esul s in Table 8 and Figu e 4 show he signi ican o posi i e ela ion o he social esponsibili ies
o indus ies wi h co po a e social esponsibili y and communi y de elopmen .
Social esponsibili y o indus ies and CSR a e signi ican posi i e ela ionships indica ed in Table 8
(H2, b, 0.913, p alue 0.001), which has been ound s a is ically signi ican a a 1% signi icance le el. This
means ha indus ies ul ill hei social esponsibili ies such as being ac i ely in ol ed in local commu-
ni y p ojec s and ac i i ies, building schools o he communi y, and p omo ing heal hca e deli e y o
he local communi y. Indus ies in Sou he n E hiopia ac i ely pa icipa e in p o iding educa ional ma e -
ial o local communi y child en, building o con ibu ing o school buildings, handing o e suppo ing
ma e ials o poo people, and unding o educa e and ca e o au is ic child en in he communi y. This
Figu e 4. The e ec o co po a e social esponsibili y.
Figu e 5. Finding o he s udy. Sou ce: Au ho s.
COGENT ECONOMICS & FINANCE 15
inding is in line wi h Knudsen (2015), who s a ed ha dona ing o communi y educa ion is a way o do
good, and demons a es a co po a ion’s esponsibili y o he communi y o imp o e social li ing s and-
a ds by enhancing he quali y o educa ion. In addi ion, indus ies a e pa icipa ing in heal h p o ec ion
ac i i ies such as plan ing ees in hospi als, dona ing blood, ea ing elde ly people, and co e ing med-
ical ees. This cons uc ion o he CSR con ibu ion o communi y heal h ca e deno es co po a ions’
dona ing policies o help he communi y ega ding heal h issues o imp o e he heal h condi ion o
communi y membe s (Eweje, 2006; Mahmud e al., 2020).
Wi hin his, no all indus ies a e in he same posi ion and ul ill social esponsibili ies like o he com-
panies. The FGD we held wi h he local communi y also s essed his poin . The local communi y indi-
ca es ha e en hough he indus ies a e p omised o p omo e communi y well-being by p o iding
clean wa e , building schools, and cons uc ing oads o in e connec u ban and u al a eas, his has no
ye occu ed in ou local a ea. F om ou obse a ions, we can con i m his ac , and some indus ies in
he s udy a ea s ill need o ul ill he equi ed and p omised esponsibili ies.
5.2. Economic esponsibili y and CSR
Economic esponsibili y o indus ies and CSR, a e signi ican posi i e ela ionship indica ed in Table 8
(H1, b, 0.761, p alue 0.001), has been ound s a is ically signi ican a a 1% signi icance le el.
In his con ex , indus ies assessed in sou he n E hiopia ul ill hei economic esponsibili ies h ough
employmen c ea ion in he local communi y, especially o educa ed bu unemployed you h. This will
lead o po e y educ ion and imp o e he well-being o he local communi y. An in e iew wi h he
egional in es men commission indica ed ha mos egional companies lack in eg a ion, which may be
help ul in he ans e o echnology, a skilled wo k o ce, economic scale-up, and addi ional job oppo u-
ni ies. Acco ding o Youssou ou (2014), a socially esponsible business o ganiza ion mus be able o in e-
g a e ac ions in o he na ional economy, and he in e -indus y linkage be ween he g oup’s ac i i ies
and o he sec o s o he economy can measu e i .
The h ee p ima y obliga ions o he indus ies a e hi ing local wo ke s, which ensu es he supply o
employmen oppo uni ies and good wo king condi ions. In ou case, indus ies a e p oducing job
oppo uni ies o local communi ies, bu he wages, wo king condi ions, and wo king en i onmen do
no bene i he company’s employees.
E en hough hese indus ies c ea e employmen oppo uni ies o locals, hey equi e job secu i y
and a sui able wo king en i onmen . Low income and long wo k hou s wi hou elaxa ion impai
employees’physical and psychological well-being acco ding o a ocus g oup wi h indus y employees
and hei amilies. Consequen ly, mos employees abandon hei jobs. Fu he mo e, co po a ions ha do
no p o ide aining and u u e employmen oppo uni ies, as well as employee sa e y, a e no consid-
e ed. Alemayehu (2017) s a es ha co po a ions a e e y ca e ul ega ding CSR ini ia i es in ol ing
employee sa e y, secu i y, bene i s, de elopmen , and o e all well-being.
5.3. E hical esponsibili y and CSR
The Resea che s hypo hesized ha CSR would posi i ely a ec he e hical issues o indus y ac i i y, as
shown in Table 8 (H3, 0.767, p alue 0.000). This inding po ays he signi ican ela ionship be ween
co po a e social esponsibili y and e hics. Acco ding o an in e iew wi h he manage s o companies in
Hawassa Ci y and Gedeo zone, gedeb wo eda in e s ha hei companies espec he no ms, belie s, and
alues o communi y membe s, which has helped hem o c ea e good ela ionships wi h local commu-
ni y membe s. This esul is consis en wi h he indings o Szczecin (2014). Responsible companies can
gene a e p o i s by simul aneously de eloping bo h in-house and ex e nal social ela ionships.
5.4. En i onmen al esponsibili y and CSR
The esul exp essed in Table 8 (H4, b, 0.784, p alue 0.000) shows ha CSR posi i ely and signi ican ly
a ec s he en i onmen . Thus, o he hings ha emain cons an , CSR in ol e en i onmen al conse a ion
and p o ec ion. The e is a posi i e co ela ion be ween en i onmen al esponsibili y and co po a e
16 Y. ABEBE MAMO ET AL.
epu a ion, as pollu ion educ ion enhances con idence and sa e y o employees, communi ies, and con-
sume s (Ganescu & Dindi e, 2014). Acco ding o in e iews wi h he manage s o he METAD indus y in
he Gedeo zone, he co ee p ocessing indus y, and he a me s a ound he si e con i med ha he com-
muni y, h ough he help o he indus y plan ing ees e e y yea , has a dual ad an age o he a ms
and he en i onmen al ehabili a ion. This se ed as a shel e o g owing co ee plan s and p o ec ed he
a ea om e osion. Companies wi h bo h CSR and En i onmen Managemen Sys ems (EMS) will ha e
highe p o i s han hose ha ha e only one o hem (Dub a sk
a e al., 2020). In con as , indus ies in
Hawassa ci y, such as he ETAB soap ac o y, pollu e he en i onmen , dispose o was es o he commu-
ni y, and se iously a ec he heal h condi ion o he local communi y and ca le in he a ea (Mamo e al.,
2023). This is because he Hawassa ci y adminis a ion’s inabili y o p ope ly implemen en i onmen al
policies and egula ions and ake co ec i e measu es has played a signi ican ole in pollu ing he en i -
onmen and a ec ing he communi y’s heal h.
5.5. Philan h opic esponsibili y and CSR
Based on he esul (H5, b, 0.814, p alue 0.000), indica es he ela ionship be ween philan h opyand
CSR is s a is ically signi ican . This indica es ha companies pa icipa e in cha i able ac i i ies o suppo
communi ies.
In mos company si es, he communi y membe s a ound he business o ganiza ion s a e ha he
companies p o ide hem wi h ee se ices, especially TINAW lowe companies, which p o ide ee
heal hca e se ices o elde s and p egnan women. In mos o he su eyed zones, companies co e
educa ional expenses o poo you h. Acco ding o in e iews wi h company manage s, hey help poo
and elde ly o phan child en by p o iding exe cise books, pens, books, and chai s o communi y schools;
sponso ing a and cul u al ac i i ies; and sponso ing you h o spo s e en s.
5.6. CSR and communi y de elopmen
The Resea che s hypo hesized ha CSR ac i i y would ha e a signi ican posi i e e ec on communi y
de elopmen ; he esul in Table 8 (H6 50.960, p¼0.000) was ound o be s a is ically signi ican a he 1%
signi icance le el. Indus ies may con ibu e o sus ainable communi y de elopmen by maximizing posi-
i e economic, social, en i onmen al, and e hical ac i i ies, and inc easing philan h opic ac i i ies in he
local communi y. This sugges s ha CSR plays a key ole in communi y de elopmen . Acco ding o he FGD
communi y membe s in Welki e and Bu aji a in he Gu age zone, and Gedeb wo eda in he Gedeo zone
con i med ha he companies in hei communi y ha e con ibu ed o hei communi y de elopmen in
a eas such as he cons uc ion o ibu a y oads ha link Kebele o Kebele, and b idges ha link kebele o
Wo eda, p o ision o wa e supply which help o he day o day ac i i ies, suppo ing he poo people, c e-
a e employmen oppo uni y and alle ia e po e y, plan ing ees o p o ec he en i onmen deg ada ion.
5.6. Resea ch p oblem, solu ions, and he heo e ical con ibu ion o he s udy
This s udy aims o ill he heo e ical, empi ical, and me hodological gaps ha ha e no been add essed
in p e ious s udies. The p ima y objec i e o his s udy is o assess he ex en o indus ies’socioeco-
nomic, en i onmen al, e hical, and philan h opic esponsibili y o enhance sus ainable communi y de el-
opmen . This s udy was based on and suppo ed he s akeholde app oach, which claims ha co po a e
o ganiza ions ha e s akeholde s in addi ion o sha eholde s o whom hey own obliga ions. Business
o ganiza ions owe co po a e accoun abili y o a wide ange o s akeholde s’in e es s, including hose o
hei wo ke s, supplie s, consume s, go e nmen , in es o s, communi y, and he en i onmen . The s udy
ound and demons a ed a posi i e ela ionship be ween CSR and communi y de elopmen .
Fi s , companies play a cons uc i e ole in he social de elopmen o hei local communi ies by
ac i ely becoming in ol ed in ini ia i es and e en s such as building oads and po able wa e sys ems
and enhancing he quali y o li e o esiden s.
Second, he e is a s ong and posi i e co ela ion be ween companies’CSR ac i i ies and local com-
muni ies’economies. This indica es ha indus ies a e he p ima y sou ce o employmen o local
COGENT ECONOMICS & FINANCE 17
communi ies, ha ce ain indus ies supply ag icul u al supplies o a me s, and ha some indus ies
ans e skills o communi ies loca ed nea by indus ies.
Thi d, he s udy ound ha , excep o he indus ies ound in he Hawassa ci y adminis a ion, which
ha e ha m ul e ec s on he o e all heal h o socie y, indus ies in es in sani a ion and heal h acili ies
o p e en indus ial spillo e e ec s on he en i onmen and esiden s’heal h.
Fou h, he e hical e ec s o companies on he neighbo hood a e posi i e. Excep o some o he
indus ies indica ed abo e, indus ies ope a e in acco dance wi h he mo al and e hical s anda ds es ab-
lished in he communi y and ha e conduc ed en i onmen al impac assessmen s in conjunc ion wi h
local communi ies.
Finally, indus ies occasionally play cha i able oles in nea by communi ies. Fo ins ance, he obse ed
indus ies a e ac i ely in ol ed in esponding o a ious c ises (na u al o man-made), olun a ily p o id-
ing inancial and non- inancial suppo o socie y’s mos ulne able g oups (child en, he elde ly, women,
e c.), and con ibu ing o you h spo s es i als.
In conclusion, indus y-wide CSR ini ia i es suppo communi y de elopmen o bo h he local com-
muni y and gene al social and economic g ow h o he na ion.
6. Policy sugges ion
To mi iga e he ad e se impac s o indus ies on he en i onmen and socie y, he go e nmen should
impose s ingen egula ions on hese sec o s and assess exis ing policies, ules, and egula ions con-
ce ning indus ies in ela ion o hei implemen a ion. Me ely p o iding egula o y amewo ks does no
gua an ee success unless app op ia e policy ins umen s and legal en o cemen a e p o ided. In add-
i ion, he indus ies ca ied ou hei esponsibili ies, bene i ed he communi y, and discussed wi h hem
o p omo e e icien communica ion and handle issues ela ed o local communi y de elopmen .
Addi ionally, he communi y needs o suppo he indus y’s de elopmen agenda and play a cons uc -
i e ole in i s de elopmen s a egy o he communi y.
7. Conclusion
The conclusions o his s udy, which only examined wo Sou he n E hiopian egions om he iewpoin
o he local popula ion, a e gene alizable o he a ea. Addi ionally, his s udy excluded indus y wo ke s,
who need o be in es iga ed.
The s uc u al equa ion model esul s show ha indus ies ha e a posi i e and signi ican con ibu ion
o communi y de elopmen bu no o he expec a ion le el o he communi y. Some indus ies’ac i -
i ies ha e ad e se side e ec s on communi ies li ing nea he indus y. Indus ies mus ul ill hei
esponsibili ies o enhance sus ainable communi y de elopmen and p o ec he communi y om he
spillo e e ec o hei business ac i i ies. The esponsibili ies o companies o e he communi ies a e
social, economic, en i onmen al e hical, and philan h opic.
Acco ding o he s udy’s conclusions, indus ies’CSR posi i ely con ibu es o he sus ainable de elop-
men o communi ies. Acco ding o ou indings, indus ies play a posi i e and ac i e ole in social, eco-
nomic, e hical, en i onmen al, and philan h opic endea o s ha imp o e he communi y’s s anda d o
li ing. Howe e , no all con ibu e equally o he communi y’s sus ainable de elopmen . Some indus ies
ha e ad e se impac s on he en i onmen and he local communi y, which leads o a ious diseases; he
a ming a eas o he communi y a e a ec ed by he poo ly ea ed wa e eleased by he indus ies, and ca -
le die as a esul o his e ec , which incu s unnecessa y cos s and de elops a nega i e pe cep ion o he
indus y as a esul o poo con ol mechanisms, co up o icials, and i esponsible ac i i ies o companies.
Acknowledgmen s
We a e g a e ul o he local communi y, indus y manage s, and go e nmen o icials who pa icipa ed in his s udy
o hei hones and coope a i e esponses o all ques ions solici ed in his esea ch. We would also like o hank
he Dilla Uni e si y, Resea ch, and Dissemina ion O ice o he inancial suppo we ecei ed o ca y ou he
esea ch p ojec on which his a icle is based. We a e g a e ul o he anonymous e iewe s and edi o s o hei
18 Y. ABEBE MAMO ET AL.
cons uc i e sugges ions, which imp o ed he quali y o he pape . Howe e , any e o s ha emain in his a icle
emain ou in ellec ual esponsibili y.
Disclosu e s a emen
The au ho s decla e ha hey ha e no con lic o in e es .
Funding
The s udy was unded by he Dilla Uni e si y.
Abou he au ho s
Yodi Abebe Mamo is a Lec u e and Resea che a Dilla Uni e si y, Dilla, Sou he n E hiopia. She
has BA deg ee in Public Adminis a ion and De elopmen Managemen and MA deg ee in Public
Managemen and Policy. He esea ch in e es s include Public Policy, De elopmen Policy, Public
Sec o Re o m, Gende , Capaci y Building and Empowe men , In o mal Economy, Li elihood and
Communi y De elopmen . The g oup’s main esea ch ocus a eas a e communi y de elopmen ,
public policy, de elopmen policy, and policy e o m. This esea ch wo k add esses he means o
communi y de elopmen and he esponsibili ies o he public, business, and o he sec o s in
achie ing sus ainable local communi y de elopmen .
Ab ha Mesele Sisay is a lec u e and esea che a Dilla Uni e si y. He has MA deg ee in De elopmen Managemen .
His esea ch in e es include de elopmen , small scale en e p ise, po e y, empowe men , go e nmen e o m and
go e nance.
Behailu Dessalegn Woldeselassie is a lec u e and esea che a Dilla Uni e si y. He has MA deg ee in Applied
S a is ics. His esea ch in e es includes heal hca e dynamics, educa ional de elopmen , ag icul u al inno a ion,
desc ip i e and in e en ial s a is ical analysis.
Ki lie Wo ku Angaw is PhD esea ch ellow a he Public Go e nance Ins i u e, KU Leu en, Belgium. His esea ch
in e es s include public adminis a ion and policy aining, policy wo k, policy capaci y, ci il se ice sys ems, policy
ad iso y, policy analysis, and digi al go e nance. Fo mo e in o: h ps://soc.kuleu en.be/io/english.
ORCID
Yodi Abebe Mamo h p://o cid.o g/0000-0002-8558-2876
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