THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) ON EMPLOYEE ENGAGEMENT: THE CASE OF HEINEKEN ETHIOPIA

Abstract

Introduction: Corporate Social Responsibility (CSR) involves ethical and voluntary initiatives undertaken by companies to contribute positively to society, going beyond mere profit-making. In the context of the beverage industry, where attracting and retaining a dedicated workforce and fostering optimal working conditions are increasingly challenging due to increased competition and dynamic business environments, CSR plays a crucial role. Objective: The primary objective is to assess the Internal CSR Practices at Heineken Ethiopia and evaluate their influence on Employee Engagement. Methodology: The study employed a cross-sectional study among 332 employees. The data were collected through standardized self-administered questionnaires. The study focused on permanent employees of Heineken Ethiopia, specifically those stationed at the primary brewery in Addis Ababa. Systematic sampling was employed to collect data from employees. Descriptive and inferential statistical analyses, facilitated by SPSS 25, was executed. Analytical tools, bivariable and multivariable linear regression analysis, was performed for comprehensive inferential statistical analysis. Results: A total of 329 study participants took part in this study. The mean (±SD) score for work engagement was 95.35 (±14.70), with 199 (60.5%) respondents scoring above the mean. The level of work engagement was significantly associated with the organization’s commitment (β: 1.23; p=0.035), having good labor practices (β: 1.48; p<0.001), having good health and well- being conditions (β=0.87, p<0.001), receipt of employee benefits (β: 1.66; p<0.001), and opportunities for skill development(β: 1.43; p<0.001). Conclusion: The study found that the median (±SD) score for job engagement was 95.35 (±14.70), with only 60.5% of respondents scoring above the mean, highlighting the need for further attention. Thus, the managers at various level of the company should work on various dimensions of CSR with due emphasis on enhancing organizational commitment to make favorable working environment. The organisations also need to prioritise skill development via training to excel in their roles and engagement. In addition, due emphasis need to be given for assuring employee benefits to enhance retention and work engagement