MARYLAND INTERNATIONAL COLLEGE

MASTER OF BUSINESS ADMINISTRATION

INTERNAL CORPORATE SOCIAL RESPONSIBILITY AND EMPLOYEE

SATISFACTION IN THE CASE OF KAIZEN EXCELLENCY CENTER

PREPARED BY

MEKDES BEKELE

Advisor: Dr. Gashaw

November, 2023

ADDIS ABABA, ETHIOPIA

 TABLE OF CONTENTS
TABLE OF CONTENTS.....................................................................................................................i

CHAPTER ONE..................................................................................................................................4

1. INTRODUCTION.......................................................................................................................4

1.1. Background of the study.................................................................................................................4

1.2. Problem statement...........................................................................................................................5

1.3. Research questions..........................................................................................................................6

1.4. Objective..........................................................................................................................................6

1.4.1. General objective.................................................................................................................6

1.4.2. Specific objective..................................................................................................................6

1.5. Significance of the study..................................................................................................................6

1.6. Scope of the study............................................................................................................................7

1.7. Limitations of the study...................................................................................................................7

1.8. Organization of the study................................................................................................................8

CHAPTER TWO...............................................................................................................................10

2. LITERATURE REVIEW.........................................................................................................10

2.1. Corporate Social Responsibility...................................................................................................10

2.2. Theoretical Framework.................................................................................................................10

2.3. Development of CSR.....................................................................................................................12

2.4. Importance of CSR........................................................................................................................13

2.5. CSR Practices from the perspective of Developing Countries...................................................13

2.6. Conceptual Framework.................................................................................................................14

2.6.1. Internal Corporate Social Responsibility.........................................................................14

2.6.2. Employee Satisfaction........................................................................................................15

2.6.3. Linkages between ICSR and Employee Satisfaction.......................................................15

2.6.4. Mediating and Moderating Variables..............................................................................16

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 CHAPTER THREE...........................................................................................................................17

3. RESEARCH METHODOLOGY.............................................................................................17

3.1. Research approach........................................................................................................................17

3.2. Research design.............................................................................................................................17

3.3. Data types and source....................................................................................................................17

3.3.1. Primary data source...................................................................................................................17

3.3.2. Secondary data source...............................................................................................................18

3.4. Study population, Sampling procedure and techniques, size.....................................................18

3.4.1. Study population........................................................................................................................18

3.4.2. Sampling procedure and techniques.........................................................................................18

3.4.3. Sample size..................................................................................................................................18

3.5. Data collection method..................................................................................................................19

3.6. Method of data analysis.................................................................................................................19

3.7. Reliability and Validity test..........................................................................................................19

3.8. Ethical consideration.....................................................................................................................19

CHAPTER FOUR.............................................................................................................................20

4. RESEARCH TIMELINE AND BUDGET PLAN...................................................................20

4.1. Time schedule................................................................................................................................20

4.2. Budget schedule.............................................................................................................................21

REFERENCES..................................................................................................................................22

APPENDICES...................................................................................................................................25

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 LIST OF ABBREVIATIONS

CFTs Cross-Functional Teams

CSOs Civil society organizations
CSR Corporate Social Responsibility
EKI Ethiopian Kaizen Institute
FDI Foreign Direct Investment
HDI Human Development Index
ICSR Internal Corporate Social Responsibility
JICA Japan International Cooperation Agency
KEC Kaizen Excellency Center
KPTs Kaizen Promotion Teams
PPPs Public-Private Partnerships
QCC Quality control circle
SD Standard Deviations
SDGs Sustainable Development Goals
SPSS Statistical Package for Social Sciences
TPM Total Productive Maintenance
TPS Total Production System
TQM Total Quality Management

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 CHAPTER ONE

1. INTRODUCTION
1.1. Background of the study

Corporate social responsibility (CSR) is becoming increasingly integrated into the economic
and investment policies of various countries and is being implemented through different
approaches. In Ethiopia, existing literature indicates that CSR practices have been limited,
both among local and international organizations, resulting in fragmented efforts. Therefore,
the aim of this research is to examine the implementation of corporate social responsibility
specifically within the Kaizen Excellence Center.
The first phase of the Kaizen Project was initiated in October 2009 in Ethiopia, and following
the successful verification of Kaizen transferability, the Kaizen Unit was upgraded to the
Ethiopian Kaizen Institute (EKI) in October 2011. Subsequently, the second phase of the
Kaizen Project commenced in November 2011.
The Kaizen Excellency Center, founded by the Ethiopian government and with the technical
support of JICA (Japan International Cooperation Agency), has been dedicated to transferring
and disseminating the Kaizen management philosophy to manufacturing and service
industries. Its mission is to enhance the quality, productivity, and competitiveness of these
industries. Since its establishment, the center has consistently adapted to changing
circumstances and achieved promising results. It offers training and consultancy services to
assist its customers in implementing the Kaizen management philosophy, systems, tools, and
techniques. These services aim to bring comprehensive improvements to attitudes towards
working culture, quality, and productivity. Additionally, the center provides evaluation and
recognition services to motivate implementing companies, Kaizen Promotion Teams (KPTs),
and individuals, thereby promoting the philosophy to new companies and the public. By
categorizing the philosophy's systems, tools, and techniques into different levels, KEC tailors
its services to meet the specific needs of its customers. Customers have benefited from first-
level Kaizen activities, such as workplace standardization, waste elimination, quality control
circle (QCC) teamwork, QC story problem solving, the utilization of 7 QC tools, and general
improvement activities. At the second level, KEC offers training and consultancy on Total
Quality Management (TQM), Total Production System (TPS), and Total Productive
Maintenance (TPM). These initiatives have resulted in significant improvements in the

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quality and productivity of companies, particularly in selected activity themes, through the
involvement of cross-functional teams (CFTs).

1.2. Problem statement

In the context of a research proposal, it is imperative to investigate the future implications of

understanding the impact of internal Corporate Social Responsibility (CSR) on employee
satisfaction. Firstly, job satisfaction plays a pivotal role in motivating, engaging, and
enhancing the performance of employees. Organizations that prioritize employee satisfaction
often experience heightened productivity, reduced turnover rates, and foster a positive work
environment. Thus, exploring the relationship between internal CSR initiatives and employee
satisfaction can provide valuable insights into optimizing overall organizational performance.
The absence of a comprehensive evaluation of the relationship between internal CSR
practices and employee satisfaction within the Kaizen Excellency Center hinders the
organization's ability to optimize its efforts in fostering a positive work environment. Without
a clear understanding of how internal CSR initiatives, such as employee welfare programs
and work-life balance policies, influence employee satisfaction, the organization may
struggle to implement targeted strategies to improve employee well-being and job
satisfaction.
Secondly, the current level of emphasis on internal corporate social responsibility (CSR)
practices within the Kaizen Excellency Center is not well understood, hindering the
organization's ability to effectively promote employee satisfaction. The lack of clarity
regarding the extent to which internal CSR initiatives are prioritized and integrated into the
organizational culture poses a problem in identifying the potential impact of these practices
on employee satisfaction levels.
Finally, in light of intense competition within the job market, organizations attach great
importance to attracting and retaining top talent. Internal CSR initiatives can serve as a
distinguishing factor for employers, appealing to socially conscious individuals.
Consequently, understanding how internal CSR influences employee satisfaction becomes
crucial for businesses striving to attract and retain talented individuals. The presence of
potential gaps or challenges in the implementation of internal CSR practices within the
Kaizen Excellency Center poses a significant obstacle to achieving high employee
satisfaction levels. Without identifying and addressing these gaps, which may include
inadequate training and development opportunities or ethical considerations, the organization

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may fail to fully capitalize on the potential benefits of internal CSR initiatives, leading to
lower employee satisfaction and reduced overall performance.

1.3. Research questions

This study will raise the following questions
1. To what extent does the Kaizen Excellency Center prioritize internal CSR initiatives
in its organizational culture and practices?
2. How do internal corporate social responsibility (CSR) practices within Kaizen
Excellence Center impact the overall satisfaction of employees?
3. What specific components of internal CSR, such as sustainability, accountability,
transparency, and philanthropy, contribute to employee satisfaction within Kaizen
Excellence Center?
4. What are the potential gaps or challenges in the implementation of internal CSR
practices within the Kaizen Excellency Center, and how do they impact employee
satisfaction levels?
1.4. Objective
1.4.1. General objective

The primary aim of this study is to evaluate the internal corporate social responsibility
practices of Kaizen Excellence Center and their impact on employees' satisfaction.

1.4.2. Specific objective

 To investigate the current internal components of corporate social responsibility (CSR)
practices within KEC.
 To assess the influence of sustainability, accountability, transparency, and philanthropic
practices on employees' satisfaction.
1.5. Significance of the study
In summary, this study will hold significance as it will have the potential to inform
organizational practices, improve employee well-being, and contribute to scholarly
understanding regarding the impact of internal CSR on employees' satisfaction. By
investigating this relationship, the research will contribute to the advancement of knowledge
in the field of CSR and will offer practical recommendations for organizations aiming to
cultivate positive work environments that promote employee satisfaction and drive
organizational success.

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This research will hold significance in the following areas:
 Academic contribution: The study will contribute to the existing body of knowledge
by specifically examining the impact of internal CSR practices on employees'
satisfaction. By focusing on the internal aspects of CSR, the research will address a
gap in the literature and offer a deeper understanding of how CSR initiatives within
organizations will affect employee well-being and job satisfaction.
 Practical implications for organizations: The findings of this study will provide
valuable insights for organizations seeking to enhance employee satisfaction and
engagement through CSR practices. These insights will guide organizations in
implementing effective CSR strategies that will positively influence employee well-
being and overall organizational outcomes.
 Organizational performance and productivity: Satisfied employees will be more likely
to be engaged, committed, and productive. By uncovering the relationship between
internal CSR and employees' satisfaction, this study will provide organizations with
insights into leveraging CSR practices as a means to enhance organizational
performance, productivity, and gain a competitive advantage.
1.6. Scope of the study
This study will focus on the case of Kaizen Excellence Center (KEC) and will be limited to
specific individuals, including kaizen trainers, researchers, accreditation directorates, and
management staff comprising fifteen directorates. Due to various constraints such as
manageability and accessibility, the scope of the study will be restricted. It aims to examine
the impact of CSR activities on employees' satisfaction within the internal community by
addressing the research question. Additionally, the study will confine to four dimensions of
internal CSR: sustainability, accountability, transparency, and philanthropy.
1.7. Limitations of the study
1. Sample Size and Generalizability: The study may have been limited by a small
sample size or a specific sample from a single organization, such as the Kaizen
Excellency Center. This could impact the generalizability of the findings to other
organizations or industries in Addis Ababa or Ethiopia as a whole. The results may
not be representative of the broader population, limiting the ability to draw broader
conclusions or apply the findings to a larger context.
2. Lack of Control Group: If the study did not include a control group or a comparison
group, it becomes challenging to establish a causal relationship between internal

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 corporate social responsibility (CSR) and employee satisfaction. Without a control
group, it is difficult to determine whether the observed effects are solely due to
internal CSR practices or influenced by other factors.
3. Social Desirability Bias: This study may have been susceptible to social desirability
bias, where participants may have provided responses that they believed were
expected or socially desirable rather than their genuine opinions or experiences.
Employees might have felt pressured to provide positive feedback about internal CSR
initiatives due to their perceived impact on their employment or career prospects.
4. Self-Reported Data: The study may have relied on self-reported data, such as surveys
or interviews, to measure employee satisfaction and perceptions of internal CSR
practices. Self-reported data can be subject to recall bias or subjective interpretations,
potentially leading to inaccuracies or limited reliability of the findings.
5. Contextual Factors: The specific context of the Kaizen Excellency Center and Addis
Ababa may introduce unique factors that could limit the generalizability of the study's
findings. Factors such as cultural, economic, or organizational differences may
influence both internal CSR practices and employee satisfaction differently in other
contexts or regions.
6. Limited Timeframe: The study might have been conducted within a limited
timeframe, which can restrict the ability to capture the long-term effects of internal
CSR on employee satisfaction. It may not account for changes that could occur over
time or consider the potential lagged effects of internal CSR initiatives.
1.8. Organization of the study
To achieve this, the study will be structured into five chapters, each addressing specific
aspects of the research.
Chapter 1: Introduction
The first chapter will provide an overview of the study, including the introduction, statement
of the problem, basic research questions, objectives, significance, delimitation, and an outline
of the chapter organization.
Chapter 2: Literature Review
The second chapter will conduct a detailed review of the theoretical and conceptual
frameworks related to internal corporate social responsibility and employee satisfaction in the
case of the Kaizen Excellency Center. It will explore existing literature on the concepts of
internal CSR, employee satisfaction, and their interplay.

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Chapter 3: Methodology
The third chapter will outline the methodology that will be employed in this research. It will
describe the research design, data collection methods, and data analysis techniques that will
be utilized to investigate the relationship between internal CSR and employee satisfaction.
Chapter 4: Data Collection, Analysis, and Interpretation
The fourth chapter will focus on the data collection process, data analysis methods, and the
interpretation of the findings obtained from the research. It will provide a comprehensive
analysis of the collected data and draw meaningful conclusions.
Chapter 5: Summary, Conclusion, and Recommendations
The fifth and final chapter will summarize the key findings from the research, present the
conclusions drawn based on the analysis, and provide recommendations for organizations.
By following this structure, the study aims to provide a thorough analysis of the relationship
between internal CSR and employee satisfaction in the context of the Kaizen Excellency
Center, ultimately offering valuable insights and recommendations for both theory and
practice.

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 CHAPTER TWO

2. LITERATURE REVIEW
2.1. Corporate Social Responsibility
Corporate social responsibility (CSR) is recognized under various alternative terms, such as
corporate responsibility, corporate accountability, corporate ethics, corporate citizenship or
stewardship, and responsible entrepreneurship. Broadly speaking, CSR refers to the
incorporation of social, environmental, and economic considerations into the core values,
culture, decision-making processes, strategies, and operations of companies. This integration
is carried out in a transparent and accountable manner, with the aim of fostering enhanced
practices within the organization, generating prosperity, and advancing society (Abagail
McWilliams 2000).
Internal Corporate Social Responsibility (ICSR) refers to the ethical and socially responsible
practices adopted by organizations towards their employees. It involves prioritizing the well-
being and satisfaction of employees, fostering a positive work environment, and promoting
their personal and professional growth. This literature review aims to explore the relationship
between ICSR and employee satisfaction, focusing specifically on the case of Kaizen
Excellency Center.
2.2. Theoretical Framework
This literature review is guided by several theoretical frameworks that help explain the
relationship between ICSR and employee satisfaction. The following frameworks are relevant
in understanding the concepts and their interplay:

1. Social Exchange Theory: The Social Exchange Theory proposes that individuals
engage in relationships based on the expectation of reciprocal benefits. In the context
of ICSR and employee satisfaction, this theory suggests that when organizations
invest in social and ethical initiatives, such as providing employee development
programs, promoting work-life balance, and ensuring fair treatment, employees are
more likely to reciprocate with higher levels of job satisfaction, increased
commitment, and improved performance.
2. Stakeholder Theory: Stakeholder Theory emphasizes the importance of considering
the interests and well-being of all stakeholders, including employees, in
organizational decision-making. According to this theory, organizations that prioritize
the needs of their employees through ICSR initiatives are more likely to create a

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 positive work environment, enhance employee satisfaction, and foster long-term
relationships. By recognizing employees as key stakeholders, organizations can build
a culture of trust, engagement, and loyalty.
3. Psychological Contract Theory: The Psychological Contract Theory focuses on the
unwritten expectations and obligations between employees and their organizations.
When organizations fulfill their social responsibilities internally, such as providing
fair compensation, opportunities for growth, and a supportive work environment,
employees perceive a positive psychological contract. This, in turn, leads to increased
job satisfaction, organizational commitment, and a willingness to go beyond formal
job requirements.
4. Organizational Justice Theory: Organizational Justice Theory suggests that
employees' perceptions of fairness and justice within an organization significantly
impact their satisfaction and commitment. By implementing ICSR practices, such as
equitable policies, transparent decision-making processes, and inclusive work
cultures, organizations create an environment that fosters trust and fairness. When
employees perceive justice in their treatment, they experience higher levels of
satisfaction and are more likely to engage in positive organizational behaviors (Shuja
Ilyas Chaudhary 2022).
5. Self-Determination Theory: Self-Determination Theory asserts that individuals are
motivated when their psychological needs for autonomy, competence, and relatedness
are fulfilled. ICSR initiatives that empower employees, provide opportunities for skill
development, and promote a sense of belonging contribute to the fulfillment of these
needs. Consequently, employees experience higher levels of satisfaction, motivation,
and well-being (Edward L. Deci 2017).
The theoretical frameworks discussed above provide valuable insights into the
relationship between Internal Corporate Social Responsibility (ICSR) and employee
satisfaction. By adopting ICSR practices, organizations like Kaizen Excellency Center
can create a positive work environment that fosters employee satisfaction, engagement,
and commitment. The Social Exchange Theory, Stakeholder Theory, Psychological
Contract Theory, Organizational Justice Theory, and Self-Determination Theory
collectively support the idea that investing in employees' well-being and fulfillment of
their needs leads to positive outcomes for both employees and organizations. Further
empirical research is needed to validate and enhance our understanding of this
relationship in the specific context of Kaizen Excellency Center.
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2.3. Development of CSR
In terms of academic literature, the existence of corporate social responsibility (CSR) can be
traced back to earlier times. (Epstein 2007)acknowledges that the concept of corporate
responsibility from an ethical standpoint has a long-standing history. Scholars such as
(Archie B Carroll 2008) argue that the emergence of CR can be attributed to the Industrial
Revolution of the late 1800s, which brought about a new organizational form of conducting
business.
H. R. Bowen is credited with initiating the contemporary CSR debate. In 1953, Bowen
introduced the term CSR, suggesting that businesses should align their objectives and values
with those of society (Steven L. Wartick & Philip L. Cochran 1985). However, (Windsor
2001) has traced the roots of CSR back to the 1920s, considering it an ideological movement
aimed at legitimizing the power of large corporations. Going even further, (A. K. Archie B.
Carroll 1989)claims that Adam Smith's classic economic model, "the invisible hand," from
the 19th century exemplified early social responsibility in business. In essence, Smith argued
that by responding to market demands, businesses would fulfill societal needs (A. K. Archie
B. Carroll 1989).
In the United Kingdom, the concept of businesses considering social issues alongside
economic matters can be traced back to the industrial revolution. Visionaries like Robert
Owen and others advocated for a more responsible approach towards the well-being of those
who did not benefit from the industrial revolution. They argued that treating workers well
would yield positive responses, leading entrepreneurs to initiate various welfare activities,
including investments in public health and education (Bichta 2003).
The era of global corporate citizenship in the 2000s marked a new phase in the corporate
world. The business community became captivated by the idea of sustainability or sustainable
development, which became an integral part of all CSR discussions (Shabana, 2010).
According to (W. Visser 2006),the field of responsible business, sustainability, corporate
citizenship, and business ethics is ushering in a new era in the relationship between business
and society.
These new dimensions of responsible business, as outlined by (W. Visser 2010),are
characterized by innovative practices, stakeholder consultation, a shift from centralized to
decentralized power relations, and a transition from mainstream responsible business
practices to shared value. The concept of shared value as a means of responsible business was
also emphasized by Porter and Kramer (Michael E. Porter 2011).They argued that
corporations should take the lead in reconciling business and society by creating economic
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value or shared value that also generates positive outcomes for the communities in which
they operate. This can be achieved through various means such as developing new products
and markets, targeting the base of the pyramid (the poorest of the poor), engaging different
stakeholders in the value chain, focusing on resource and water management, improving
working conditions and employee health and safety, and supporting local cluster development
through partnerships (Michael E. Porter 2011).
2.4. Importance of CSR
Implementing social responsibility activities brings multiple advantages to a business,
ensuring its sustainability, profitability, reputation, goodwill, and competitive advantage in
the industry it operates. Corporations can leverage their CSR efforts to enhance their
competitive position (Michael E. Porter and Mark R. Kramer 2002). Highlighting the
importance of CSR activities for business performance, (Abagail McWilliams 2000) asserts
that supporting CSR can establish a reputation for a firm as reliable and honest. Consumers
may assume that a reliable and honest firm produces high-quality products. Thus, promoting
CSR attributes can help build a reputation for reliability, honesty, and quality, which are
important but challenging for consumers to evaluate. Such advertising creates awareness
among consumers regarding product quality and differentiation based on CSR attributes.
At the firm level, a business that effectively fulfills its CSR obligations experiences stability
in its operations, increased productivity, secure business practices, and cost reduction through
proactive CSR implementation, among other benefits. At a broader level, national and
international activities carried out by governments, industries, civil society, and non-
governmental organizations (NGOs) regarding the natural environment, social development,
and social inclusion play a significant role in the overall well-being, development, and
sustainability of society (Bichta 2003).
2.5. CSR Practices from the perspective of Developing Countries
According to researchers, the stages of Economic Growth model propose five stages:
traditional society, preconditions for take-off, take-off, drive to maturity, and age of mass or
high consumption. However, most literature on CSR has typically classified countries into
only two categories: developing or developed. The "developing" category encompasses
countries in various stages, which may impact their response to CSR issues.
Apart from economic factors, the United Nations' Human Development Index (HDI)
considers life expectancy, education, and income to assess both social and economic
development. Recognizing the importance of these concepts, CSR considerations should
consider the manifestations of social and economic development (UNDP 2015). (Shameema
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Ferdausy 2009) explains that globalization, Sustainable Development Goals (SDGs), and
Public-Private Partnerships (PPPs) play crucial roles in addressing sustainable development
challenges, including poverty and food crises, in developing countries. Business enterprises,
civil society organizations (CSOs), and governmental organizations collaborate to achieve
sustainable development goals, significantly influencing CSR efforts.
(Juan-José Ganuza 2012) emphasizes the importance of integrating social and environmental
concerns into business operations for sustainable development. This approach aims to restore
and protect the environment for future generations.
However, developing countries face significant challenges due to differences in their industry
environments compared to developed countries. The issues influencing CSR practices can
vary widely based on the local context. Economic and political uncertainties, weak legal
controls, and inadequate investor protection often hinder corporate engagement in CSR.
Governments in developing countries tend to prioritize Foreign Direct Investment (FDI) for
economic development rather than promoting standardized CSR practices among
corporations (Nicolae Cornel Jucan 2010).
2.6. Conceptual Framework
Internal Corporate Social Responsibility (ICSR) has gained significant attention in recent
years as organizations recognize the importance of creating a positive work environment and
fostering employee satisfaction and well-being. In the context of Kaizen Excellency Center
(KEC), an organization dedicated to promoting continuous improvement and excellence in
business practices, understanding the relationship between ICSR and employee satisfaction
becomes crucial. This literature review aims to provide a conceptual framework that explores
the linkages between ICSR initiatives and employee satisfaction within KEC (Maimunah
ISMAIL 2009).
2.6.1. Internal Corporate Social Responsibility
2.6.1.1. Definition and Dimensions
Internal Corporate Social Responsibility refers to an organization's commitment to promoting
social and ethical values within its internal operations. It encompasses various dimensions,
including employee well-being, work-life balance, career development, employee voice, and
organizational culture.

2.6.1.2. Theoretical Perspectives

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The literature suggests several theoretical perspectives that underpin ICSR, including
stakeholder theory, social exchange theory, and organizational support theory. These
perspectives provide a foundation for understanding the motivations and mechanisms by
which ICSR initiatives influence employee satisfaction.
2.6.2. Employee Satisfaction
2.6.2.1. Definition and Components
Employee satisfaction refers to the overall positive emotional state and contentment
experienced by employees within their work environment. It includes various components
such as job satisfaction, work-life balance, organizational commitment, and employee
engagement (Steven L. Wartick & Philip L. Cochran 1985).
2.6.2.2. Factors Influencing Employee Satisfaction
Numerous factors contribute to employee satisfaction, including leadership style,
organizational culture, communication, recognition and rewards, career development
opportunities, work-life balance policies, and job design. Understanding these factors is
essential to comprehending how ICSR initiatives can impact employee satisfaction.
2.6.3. Linkages between ICSR and Employee Satisfaction
2.6.3.1. Employee Well-being and Work-Life Balance
ICSR initiatives that prioritize employee well-being and work-life balance can positively
impact employee satisfaction. These initiatives may include flexible work arrangements,
wellness programs, employee assistance programs, and supportive policies that promote
work-life integration.
2.6.3.2. Employee Development and Career Growth
Providing opportunities for employee development and career growth through training
programs, mentoring, and performance feedback can enhance employee satisfaction. ICSR
initiatives that focus on nurturing employees' skills and competencies contribute to their job
satisfaction and motivation.
2.6.3.3. Employee Voice and Participation
ICSR initiatives that encourage employee voice, participation, and involvement in decision-
making processes promote a sense of ownership and empowerment. This, in turn, fosters
higher employee satisfaction, as individuals feel valued and respected within the
organization.

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 2.6.3.4. Organizational Culture and Values
ICSR initiatives that align with the organization's culture and values create a positive work
environment. When employees perceive congruence between their own values and those of
the organization, it enhances their job satisfaction and commitment.
2.6.4. Mediating and Moderating Variables
Several mediating and moderating variables can influence the relationship between ICSR and
employee satisfaction. These may include organizational support, employee engagement, job
characteristics, and individual differences. Understanding these variables helps in
comprehending the complex nature of the relationship.
This conceptual framework highlights the key linkages between ICSR initiatives and
employee satisfaction within the context of Kaizen Excellency Center. By considering
various dimensions of ICSR and their impact on employee satisfaction, organizations like
KEC can develop strategies and interventions to create a positive work environment that
enhances employee well-being, engagement, and overall satisfaction. Further empirical
research is required to validate and refine this conceptual framework and provide more
concrete evidence regarding the relationship between ICSR and employee satisfaction at
KEC or similar organizations.

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 CHAPTER THREE

3. RESEARCH METHODOLOGY
3.1. Research approach
To achieve the study objectives, a mixed research approach encompassing both quantitative
and qualitative methods will be utilized. The quantitative method will be suitable for
examining the relationship between multiple variables in the study and will primarily be
relevant for theory testing. On the other hand, the qualitative method will be appropriate for
exploring the phenomenon within the study context using interviews, observations, and
document reviews (Tsang 2014). Therefore, to uncover the CSR practices within the
organization, a mixed approach will be employed, incorporating both interviews and
questionnaire surveys.
3.2. Research design
For this study, the researcher will opt for a case study research design. This design will align
with the study's objectives as it will be well-suited to explore the internal corporate social
responsibility (CSR) practices of Kaizen Excellence Center (KEC). Compared to other
research designs, the case study design will be considered the most appropriate for analyzing
processes, programs, or activities within an organization (Gluesing J. 2013).
Within the case study research design, three basic approaches exist: explanatory, exploratory,
and descriptive (Robert K. Yin. 2014). In this study, an explanatory approach will be
employed, aiming to elucidate causal relationships and develop theories through a detailed
explanation of the phenomena under investigation. The research design will focus on
exploring the impact of internal CSR activities on employees' satisfaction in the case of
Kaizen Excellence Center (KEC). It will seek to identify the extent and nature of cause-and-
effect relationships. By adopting a causal research design, the study will aim to analyze a
specific problem or situation and provide explanations for observed phenomena, problems, or
behaviors, addressing the "why" and "how" types of questions.
3.3. Data types and source
3.3.1. Primary data source
The researchers will employ a quantitative approach to collect primary data. The data will be
gathered through a sample survey using questionnaires, which will capture numerical figures
and phenomena. The primary data will primarily be sourced from the target population of this
study, which will comprise employees at Kaizen Excellence Center (KEC). The

18
questionnaires will be distributed and collected using Microsoft Forms in Addis Ababa,
Ethiopia.

3.3.2. Secondary data source

The secondary data for this study will be gathered from various sources, including the annual
reports of KEC, the short and long-term strategic plans of KEC, the official website of KEC,
relevant journals, articles, and other existing reports. The utilization of these secondary data
sources will contribute to a more comprehensive understanding of the topic under the study.
3.4. Study population, Sampling procedure and techniques, size
3.4.1. Study population

The research target population will consist of senior consultants, researchers, and middle
management personnel within Kaizen Excellence Center (KEC), as they will be deemed
valuable sources of relevant and high-quality data for the study. However, employees with
less than two years of experience in the center will be excluded from the target population.

3.4.2. Sampling procedure and techniques

A suitable population sampling technique for the future study titled "Internal Corporate
Social Responsibility and Employee Satisfaction in the Case of Kaizen Excellence Center"
will be stratified random sampling.
First, the population of interest, which will consist of senior consultants, researchers, and
middle management personnel within Kaizen Excellence Center (KEC), will be divided into
distinct strata based on job positions. Each stratum will represent a specific group within the
population.
Next, a random sampling technique will be applied within each stratum to select participants.
This will ensure that individuals from each stratum have an equal chance of being included in
the study. The sample size for each stratum will be determined based on statistical
considerations, such as the desired level of precision and confidence. By employing stratified
random sampling, the future study will ensure representation from different job positions
within KEC, allowing for a more comprehensive understanding of the relationship between
internal corporate social responsibility and employee satisfaction.

3.4.3. Sample size

The selection criteria for participants will include experience, position, and seniority within
the study organization, assuming that senior staff members will have better experience and

19
knowledge regarding strategic issues. They will also be in a better position to understand and
identify the fundamental activities of internal CSR.

3.5. Data collection method

The researcher will use both closed-ended and open-ended questionnaires to gather
information about the effect of internal CSR on employees' job satisfaction at KEC.

3.6. Method of data analysis

The researcher will conduct data analysis and interpretation using the Statistical Package for
Social Sciences (SPSS) 26. Both descriptive and inferential analysis methods will be
employed to analyze the data. The major findings of the study will be interpreted based on
the results derived from the analysis. SPSS will be utilized for the analysis of all data, with a
descriptive approach that involves examining the mean, standard deviation, and correlation
matrix of the variables.

3.7. Reliability and Validity test

Reliability refers to the degree to which variables or a set of variables maintain consistency in
measuring what they are intended to measure. Reliability analysis will be employed to assess
the consistency of a questionnaire.
As per (Sekaran 2003)validity is considered the most crucial criterion as it determines the
extent to which the test items within a sample accurately represent the content that the test
aims to measure. Prior to conducting data analysis, the researcher will perform sorting,
coding, and reliability testing of the data. To analyze the data, the study will employ
descriptive statistics.

3.8. Ethical consideration

Prior to data collection, the researchers will ensure that all participants, including senior
consultants, researchers, and middle management personnel within Kaizen Excellence Center
(KEC), are fully informed about the purpose, procedures, and potential risks and benefits of
the study. The researchers will ensure that all data collected from participants are treated with
strict confidentiality. The findings of the study will only be reported in an aggregated and
anonymous manner, ensuring that no individual participant can be identified. The researchers
will take utmost care to minimize any potential harm or discomfort to the participants. The
researchers will maintain objectivity and impartiality throughout the research process. They

20
will strive to minimize any personal biases that may influence data collection, analysis, and
interpretation. The research study will adhere to the ethical guidelines and protocols set by
the university institutional review board or ethical committee

21
 CHAPTER FOUR

4. RESEARCH TIMELINE AND BUDGET PLAN

4.1. Time schedule

Duration in months
Activities
August September October November December

1 Title Selection

2 Preparing the proposal

3 Completion of the first draft

of the proposal

4 Accepting comments and

improving the
proposal

5 Research and Background,

Problem Statement and
Objectives, Methodology

6 Distributing questionnaire, Data

Collection, Data Analysis,
Results and Discussion

7 Research report writing,

Conclusion and Finalization,
Submission of draft report,

8 Submission of final report,

Presentation of the final
paper

22
23
4.2. Budget schedule

Items Unit Unit Quantity Total cost (Birr)

Cost

1 Research materials and resources 300

2 Literature review expenses Internet 200

(access to academic journals, books)

3 Data collection tools (surveys, Per day 1000

interview recording equipment)
Fee for data collectors

4 Travel and accommodation expenses 700

for presenting research

5 Stationary materials Pieces/packs 300

6 Secretarial service, Presentation Per page 6 50 300

materials (Draft printing, slide design)

subtotal 2800

Contingency (10%) 280

Grand total 3080 birr

24
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 EconomiaInternational.

Kappel, Christina. 2018. An employee perspective: the impact of CSR perception on job satisfaction
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Maimunah ISMAIL. 2009. "Corporate social responsibility and its role in community development:
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Michael E. Porter and Mark R. Kramer, M. 2006. "Strategy and Society: The Link Between
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Paul Hohnen. 2007. Corporate Social Responsibility: An Implementation Guide for Business. Edited
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Steven L. Wartick & Philip L. Cochran. 1985. "The Evolution of the Corporate Social Performance
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27
APPENDICES

MARYLAND INTERNATIONAL COLLEGE

MASTER OF BUSINESS ADMINISTRATION

This Questionnaire is to be filled by an employee of the Kaizen Excellency Center (KEC)

Dear Respondent:

Internal Corporate Social Responsibility describes the characteristics of the relationship

between the company and its employees that have an impact not only on its commitment to
live in the company but are committed to providing the best for the company based on
normative awareness. Internal CSR programs seek to add satisfaction, happiness, and fairness
to the lives of employees and internal stakeholders. This study is only for academic purpose
i.e. for the requirement of second degree in Master of business administration. Hence, your
responses will be kept confidential. The soundness and the validity of the findings highly
depends on your genuine responses. Therefore, I kindly request you to fill the questionnaire
carefully and submit it back to me as much as possible.

Thank you in advance!

Mekdes Bekele

Section 1: Information about Demographic data

1. Gender:

O Male O Female
2. Age:

O 8-25 years O 26-35 years O 36-45 years

O 46-55 years O 56 years and above

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 3. Academic Qualifications:

O BA/BSC O MA/MSC O PhD O other

4. Year of service in the organization:

O 2-5 years O 6-10 years O11 years and above

5. Level of knowledge om internal CSR:

O High O Moderate O Low

Section 2: Internal Corporate Social Responsibility (CSR)

Please indicate the degree of your agreement/disagreement with the following statements
associated with the four dimensions of internal CSR and select that best describes your view
by putting (√) mark in the column specified for the Five Point Likert Scale:

Sustainability practices

Item Description Strongly Disagree Neutral Agre Strongly

e Agree
Disagree

my organization has and apply strategies for the

sustainability and success of the company

my organization invests on employee training and

development programs

my organization actively engages and collaborates with

stakeholders for mutual benefit

my organization encourages innovation cultures and invest

on research and development to support new service
development

My organization establishes risk management process to

assess and mitigate risks

my Organization is committed to continuous improvement

in the aspect of service quality, customer satisfaction and

29
operational efficiency

my organization maintains sound financial management

practices to support the organization's long-term viability
and growth

Accountability Practices

Item Description Strongly Disagree Neutral AgreeStrongly

Disagree Agree

my organization comply with safety and environmental

regulations

my organization consistently and adequately efforts to

reduce waste and emissions

my organization is free from bias in recruitment,

promotion and employee treatment

my organization adequately make efforts to protect

employees' privacy and data security

Transparency Practices

Item Description Strongly Disagree Neutral AgreeStrongly

Disagree Agree

All internal corporate social responsibility activities are

effectively communicated all over the organization

I am always kept up to date on the objectives, plans, and

results of internal CSR initiatives.

I have access to comprehensive data about how CSR efforts

within my company affect the social and environmental
landscape.

30
 For feedback and inquiries regarding internal CSR activities,
there is a clear channel available.

Potential conflicts of interest or ethical issues are openly

discussed and dealt with within the organization.

Our CSR reporting is accurate, dependable, and transparent

thanks to the mechanisms in place.

The organization encourages employees to actively

participate in decision-making processes.

Philanthropic Practices

Item Description Strongly Disagre Neutral Agre Strongly

e e
Disagree Agree

My organization do activities not only by rules and regulations

but based on love and generosity

My organization has and gives me counselling on work- life

balance issues

My organization helps with financial and technical for those

employees who need it

The organization contributes to the local community through

social initiatives.

My organization prioritizes humanity over regulations

Section 3: Employees’ satisfaction

Please explain how you feel about your current employment, what you are content with and what you
are not comfortable with in each of the following statements. Please confirm with me () the extent to
which you believe each statement in relation to your job is true. Please indicate the degree of your

31
agreement/disagreement with the following statements associated with the four dimensions of internal
CSR and select that best describes your view by putting (√) mark in the column specified for the Five
Point Liker Scale:

Item Description Strongly Disagre NeutralAgreeStrongly

e
Disagree Agree

Work-life balance

I achieved a balance between job and social life.

I have a good work-life balance at Kaizen Excellency Center.

Proper time allocation for different activities helps me to

maintain work life balance.

Wellbeing at workplace

I feel satisfied with the overall work environment at Kaizen

Excellency Center.

I enjoy good health and safety benefits at my organization.

My job improves my emotional status.

I maintained good working relationship with my colleagues.

I am satisfied with the level of communication and

transparency within the organization.

Resilience

I can manage my emotions effectively.

I feel valued and appreciated as an employee at Kaizen

Excellency Center.

32
Job stress

I constantly don't lose interest in my job.

My job does not make me prone to insomnia. (a common

sleep disorder)

Performance sustainability

Internal CSR practice convinced me to work for my

organization for years to come.

I'm proud to be part of my organization because I enjoy good

internal corporate social responsibility

Motivational appraise

I am proud of my organization for its generosity

My organization is so philanthropic that it motivates me to do

my job with passion

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 Section 4: Additional Feedback

1. Based on the above views, which internal CSR practice contributes the highest job
satisfaction for you

O Sustainability O Accountability O Transparency O Philanthropic

2. What other internal CSR practices contributes to your job Satisfaction /
Dissatisfaction

3. In your opinion, how does internal corporate social responsibility affect employee
satisfaction at Kaizen Excellency Center? Please provide any specific examples or
experiences you have had.

4. Are there any specific internal corporate social responsibility initiatives or practices at
Kaizen Excellency Center that have positively or negatively influenced your job
satisfaction? Please explain.

5. Do you have any suggestions or recommendations for improving internal corporate

social responsibility practices at Kaizen Excellency Center? Please share your ideas.

Thank you!!!

34
Thank You for participating in this survey. Your responses will be kept confidential and used for research
purposes only.

35