ASSESSING THE SOCIAL RESPONSIBILITY INITIATIVES OF THREE- AND FOUR-STAR RATED HOTELS AND THEIR POSITIVE IMPACT ON THE LOCAL COMMUNITY: A CASE STUDY OF MEKELLE CITY

Abstract

Nowadays, hospitality industry establishments, especially hotels, are the major component and innovators in the corporate social responsibility (CSR) concept, the major concern of this century's business enterprise. As a vital economic sector, the hospitality industry plays a significant role in promoting corporate social responsibility (CSR) to ensure the well-being of local communities. Corporate social responsibility (CSR) of hotels is considered an ideal vehicle for ensuring the local community's well-being, and this industry has been chosen as one of the top priorities for economic growth in Ethiopia. However, CSR practices in developing countries are taken the wrong way and abused due to limited empirical evidence and many investigations. So, this paper examines the CSR initiatives of three- and four-star hotels in Mekelle City, Tigrai, focusing on their alignment with community needs, the positive impact on local development, and associated opportunities and challenges. Primary and secondary sources of data were used. To meet the objectives of the study, a mixed-methods approach was used, the research integrates quantitative data from surveys and qualitative insights from interviews with hotel managers, employees, and community leaders. The researcher uses probability (simple random sampling) and nonprobability (purposive sampling) as sample designs. The study employed a descriptive case study research design to investigate the social responsibility initiatives of three- and four-star hotels in Mekelle City and their positive impact on the local community. A descriptive method of data analysis and descriptive statistical analysis was used to analyze the impacts of social responsibility initiatives on the local community and to describe the mean, percent, frequency, and standard deiation through the SPSS software application as well. The findings of the study show that while CSR practices in Mekelle's hotel sector include local employment, and environmental initiatives; their alignment with the community's socio-economic priorities remains inconsistent. Hotels face challenges such as limited financial resources, lack of government support, and insufficient awareness of CSR principles. However, opportunities exist to enhance brand reputation, employee satisfaction, and community relations through strategic CSR implementation