Perceived Ethical Leadership,Organizational Culture And Corporate Social Responsibility:A Case Of Ethiopian Manufacturing Firms

The purpose of this paper is the exploration of the mediating roles of the main four corporate cultures(clan culture,adhocracy culture,hierarchical culture and market culture)in the relationship between ethical leadership and corporate social responsibility dimensions.Besides the general objective,the research also explored the role of managerial demographics and firm characteristics on the different corporate social responsibility dimensions.The number of sampled firms for this paper is 274 manufacturing companies currently operating in Ethiopia.To ensure the data is free from common method bias problem,the researcher together with the data collector team collected data on three waves.The three waves had a one month difference with in each and employees working on the different levels of management.On the first wave,corporate social responsibility data was collected from CEOs / general managers and on the second wave corporate culture data was filled by human resource managers / operation mangers of each respective organization and the third wave was used to collect ethical leadership data from employees who didn’t assume managerial positions.As an analysis tool,the study employed different statistical tools.Descriptive statistics like mean values(average),multiple analysis of variance(MANOVA),multiple hierarchical regression analysis and structural equation modeling for evaluation of mediation effects was employed.The findings of the study revealed that managerial demographics partly impact corporate social responsibility initiatives.Differences in age range significantly impact corporate social responsibility towards employees and the variations in education make differences in corporate social responsibility efforts towards community and the differences in experience make changes in corporate social responsibility towards community,customers and government.Besides managerial demographics,both of the firm characteristics variables(firm age and size)have a significant impact on the accomplishment of CSR.In regard to the mediation models,the research have explored the best fit organizational cultures in the association of perceived ethical leadership and corporate social responsibility dimensions.Specifically,clan culture is a significant mediator between perceived ethical leadership and corporate social responsibility towards employees.Adhocracy culture on the other hand successfully mediate the relationship between perceived ethical leadership and corporate social responsibility towards community,employees and customers.The other organizational culture variable,hierarchical culture significantly mediate the association between perceived ethical leadership and corporate social responsibility towards community,employees and government.Market culture is also significantly intervene perceived ethical leadership and corporate social responsibility towards customers.