Corporate Social Responsibility Practice of Multinational Companies in Ethiopia: A Case Study of Heineken Brewery S.C

Abstract

Multinational profit-making organizations are expected to carry out their Corporate Social Responsibilities (CSR) in order to protect the environment and the safety of people living in the surrounding of their plants. The main aim of this study was to explore the CSR practices of a multinational brewery company in Ethiopia, Heineken brewery, with specific reference to the brewery plant in Kilinto. The researcher explored the CSR practices with respect to Elkington’s CSR triple bottom line and a specific focus on the people and planet perspectives. Relevant literature was reviewed to describe multinational company's CSR practices in developed and developing country's perspectives. The qualitative research method was used in the study with a Case study approach since this research is about a specific case in a specific company. Semi-structured interviews, observation, and document analysis were used to collect data. The qualitative content analysis method was used to analyze the qualitative data and describe the meaning. The researcher examined the data in a systematic way in relation to the research questions reducing the data by coding and categorizing to draw meaning. The findings indicate that Heineken lacked balanced CSR practice in its environmental and social CSR practices. Though the company took part in some philanthropic CSR activities, its CSR approach was short term and reactive instead of being proactive. Heineken’s CSR strategy needs modification to customize its global CSR strategies into local contexts to solve local problems. Based on the findings, the researcher recommended that Heineken needs to make improvement in its CSR to sustainably address environmental and social needs with stronger community engagement and communicating its CSR efforts through effective PR practice.