LEADERSHIP COLLEGE OF MANAGEMENT AND LEADERSHIP

FACULITY OF BUSINESS AND LEADERSHIP

GRADUATE DEPARTMENT OF BUSINESS ADMINSTRATION

ETHICS AND SOCIAL RESPONSIBILITY TERM PAPER

IN COMMERCIAL BANK OF ETHIOPIA

MULUGETA EJIGU ASRES (MBA)

August 2015

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Assessment of ethical and social responsibility of commercial bank of Ethiopia

Background of central bank of Ethiopia

After the Ethiopian-English victory over Fascist Italy, the new government established the state bank of
Ethiopia a proclamation issued in August 1942. State bank of Ethiopia commenced full operations on 15
April 1943 with two branches and 43 staffs. It served both as the Ethiopia’s central bank with the power
to issue bank notes and coins as the agent of the ministry of finance, and as the principal commercial bank
in the country. In 1945 the Ethiopian government granted the bank the sole right of issuing currency. The
first governor of the bank was an American, George Blowers. He inaugurated the new national currency,
which owed its successful introduction to the United States. The United States provided to silver for 50
cent coins whose intrinsic value insured popular acceptance of the new paper money to a population used
to the circulation of the of the morale Theresa thaler.

In 1958, the state bank of Ethiopia established a branch in Khartoum, Sudan, that the Sudanese
government nationalized in 1970. Over time grow to number 21 branches. In the 1950’s, SBE established
a branch in Djibouti. In 1920 the bank of Abyssinia opened a transit office in Djibouti. At some point
after its creation, the state bank of Ethiopia reopened the transit office which in time becomes a branch.

In 1963, the Ethiopian governments spikethe state bank of Ethiopia in to two banks, the national bank of
Ethiopia (the central bank), and the commercial bank commercial bank of Ethiopia (CBE). Seven years
after, the Sudanese government nationalized the commercial bank of Ethiopia’s branch in Khartoum.

The Ethiopian government merged Addis bank of Ethiopia in 1980 to make CBE the sole commercial
bank in the country. The government had created Addis bank from the merger of the newly nationalized
Addis Ababa bank, and the Ethiopian operations of Bunco Di Roma and Bunco Di Napoli, Addis
Abababank was officiated that National and Grind lays bank had established in 1963 and of which it
owned 40%. At the time of nationalization, Addis Ababa bank had 26 branches. The merger of Addis
Ababa bank with CBE made CBE the sole commercial bank in Ethiopia, with 128 branches and 3633
employees. In 1991, when Eretria achieved its independence, CBE lost its braches formed the base for
what become in 1994, the Ethiopian government recognized and reestablished CBE.

In 2004, CBE closed its branch in Djibouti due to problems with loan losses. In January 2009, CBE
received regulatory approval to open a branch in Juba, southern Sudan. CBE expanded its presence in
southern Sudan to Five branches in Juba and Melaka, but ongoing conflict in the country has forced CBE
to close all but two branches in Juba.

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A few years ago, the government restructured CBE and signs a contract with royal bank of Scotland for
management consultancy services.

Currently, commercial bank of Ethiopia have more than 22,000 employees, more than 50 branches and
the leading African bank with assets of 276.3 billion birr as on April 30 th 2015 and plays a catalytic role
in economic progress and development of the country.

Description of ethical and social responsibilities

Business ethics (also corporate ethics) is a form of applied and/or professional ethics that examines
ethical principles and moral or ethical problems that arise in a business environment. It applies to all
aspects of business conduct and is relevant to the conduct of individuals and entire organization. Business
ethics has normative and descriptive dimension. As a corporate practice and a career specialization, the
field is preliminary normative. Academies attempting to understand business behavior employee
descriptive net had. The range quantity of business ethical issues reflects the interaction of profit-
maximizing behavior with non-economic concerns interest in business ethics accelerated dramatically
during the 1980’s and 1990’s, both within major corporations and within academia. For example, most
major corporations to day promote their commitment to non-economic value under heading such as ethics
codes and social responsibility. Government use laws and regulations to point business behavior in what
they perceived to beneficial directions. Ethics implicitly negulates are as and details of behavior that lie
beyond governmental control. The emergency of large corporations with limited relationships and
sensitivity to the communities in which they operate accelerated the development of formal ethics
regimes.

Ethics are the rules or standards that govern our decision. Many equate “ethics” which the consequence or
simplicity sense of “right” and “wrong”. Others would be say that ethics internal code that governs and
individuals conduct, i.e. rained in to each person by family, faith, tradition, community, law, and personal
mores. Ethics are the set of moral principles that guide operations behavior. These morals are shaped by
social norms, cultural practices and religious influences. Ethics reflects beliefs about what is just what is
unjust, what is good, what is bad, in terms of human behavior. They serves as a compass to direct how
people should behave toward each other, understand and fulfill their obligation to society, and live their
lives. While ethical beliefs are held by individuals, they can also be reflected in the values, practices and
policies that shape the choices made by decision makers on behalf of their organization. The phrases
business ethics and corporate ethics are often used to describe the application of ethical values to business
activities. Ethics applied to all aspects of conduct and is relevant to all the action of individuals, groups,
and organizations.

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In addition to individual ethics and corporate ethics there are professional ethics. Professionals such as
managers, lawyers, and accountants are individuals who exercise specialized knowledge and skills when
providing services to customers or to the public. By virtual of their profession they have obligation to
those they serve. Ethical responsibility is the duty to follow a morally correct path. Business has ethical
responsibilities to their employees, customers and society as a whole.

As a part of more comprehensive compliance and ethics program, many companies have formulated
internal policies pertaining to then ethical conduct of employees. These policies can be simple
exhortations in broad, highly generalized language (typically called a corporate ethics statement) or they
can be more detailed policies, containing specific behavioral requirements (typically called corporate
ethics codes). They are generally meant to identify the companies expectations of workers and to offer
guidance on handing some of the more common ethical problems the might arise in the course of doing
business. It is hoped that having such a policy will lead to better ethical awareness, consistency in
application, and the audience of ethical disaster.

Corporate social responsibility – is defined as an organizations responsibility to consider the impact of its
decision on society. The broadest definition of corporate social responsibility is considered with what is
or should be the relationship between global corporations, governments of countries and individual
citizens. More locally the definition is concerned with the relationship between a corporation and local
society in which it resides or operates. Another definition is concerned with the relationship between
corporation and its stakeholder. The central tent of social responsibility however is the social contract
between on the stakeholders to society, which is an essential requirement of civil society.

Social responsibility also requires a responsibility towards the future and towards future member of the
society. There is however no agreed definition of CSR so these raises the question as to what exactly can
be considered to be corporate social responsibility.

According to the W commission [ (2002)347 final :5] “… CSR is a concept where by companies
integrates social and environmental concerns in their business operations and in their interaction with
their stakeholders on a voluntary basis”.

Corporate social responsibility CSR refers to the operating the business in a manner that accounts for the
social and environmental impact created by the business. CSR means a commitment to developing
policies that integrate responsible practices in to daily business operation, and to reporting on progress
made toward implementing thus practices.

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Corporate social responsibilities (CSR) also called corporate conscience, corporate citizenship or
responsible business – is a form of corporate self regulation integrated in to a business model CSR
policies functions as a self regulatory mechanism whereby a business monitors and ensure its active
compliance with the spirit of law, ethical standards and national or international norms.

Business dictionary defines CSR as “1. Company’s sense of responsibility towards the community and
environment (both ecological and social) in which It operates. Companies express this citizenship through
their waste and pollution reduction processes 2. By contributing educational and social programs and 3.
By earning adequate returns on the employed resources. ” CSR is the continuing communicate by the
business to behave ethically and contribute to economic development while improving the quality of the
work force and their families as well as of the local community and society at large. In addition, the CSR
definition used by business for social responsibility is:

Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public
expectation that society has of a business. Many companies ad mare a sense of corporate social
responsibility by being environmentally friendly or by giving their employees good health and financial
benefits. Definition of corporate social responsibility (CSR) vary based on a number of factors including
industry sector, organizational structure, location and relative business importance CSR have these
principle, such as :- sustainability, transparency and accountability.2.2.2. THE NATURE OF
CORPORATE GOVERNANCE AND CSR REGULATIONS

Why do companies bother to implement corporate governance and think about corporate social
responsibility? Do companies adopt corporate governance and corporate social responsibility as voluntary
actions or only as obligatory enforcement? If companies see corporate governance as an obligatory action,
would the adoption have any impact on corporate social responsibility practices?

Why do companies implement corporate governance and corporate social responsibility? To answer this
first question, I will turn to market and non-market forces. Market and non-market forces may be the
important reasons of why companies adopt corporate governance and corporate social responsibility.
Market forces may be in the forms of capital market force where capital market may react negatively on
adverse events, and may be in the forms of competition and consumer demands that may drive
organizational change in companies (Eden et al, 2005; D’Aunno et al, 2000; Bi & Levy, 1993). Non-
market forces may include public opinion and political forces (LoIs& Pass, 2007). I will start my
discussion about fundamental reasons of implementing corporate governance and corporate social
responsibility by presenting first a discussion about the impacts of market forces on the management of a

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company and on the organizational templates of a company, before presenting my discussion about non-
market forces.

IMPACTS OF MARKET FORCES ON CORPORATE GOVERNANCE AND CSR ADOPTION

The fact that capital market reacts negatively on negative news or events may give management of a
company incentives to minimize negative news or events. In general, the management of a company is an
agent whose obligation is to maintain shareholders’ wealth, or the principal’s wealth. In return, people
involved in the management of a company will receive benefits. As management receives benefits to
compensate its works, presenting picturesque company may be one of important goals of all activities
done in a company. When that goal itself starts to dominate management’s perspectives, conflicts of
interests and moral hazard can present additional risks to a company due to the condition that
management of a company is paid based on their performance. In order to prevent conflicts of interest and
moral hazard, corporate governance structure will be established. Without the presence of any corporate
governance regulation, corporate governance established is a voluntary practice.

Competition and consumer demands could also create additional incentive for the management of a
company to present good and healthy condition of a company. Within low demand but highly competitive
market, companies are forced to make substantial changes on their organizational core activities in order
to gain competitive advantage (D’Aunno et al, 2000). Unfortunately, it is not always clear whether
demand or market competition is the main factor which significantly forces a company to adjust its
organizational core activities. In the case of presenting good image and having strong market share, it is
possible that companies will try to meet their customers’ demands. If customers demand environmentally
friendly products and also expect sustainable practices from companies, adjustments with these demands
could be expected to happen. In the environment of highly competitive market and low market demands,
a strategic decision of a company to implement corporate social responsibility will initiate similar
practices in other companies. If competition and customers’ demands are the underlying reasons for
implementing corporate social responsibility, then corporate social responsibility is a voluntary practice.

1.2.1. Problem of a statement.

Corporate social responsibility (CSR), also known as corporate responsibility, corporate accountability,
corporate ethics, corporate citizenship or stewardship, responsible entrepreneurship, and “triple bottom
line”, (Honen & Potts 2007). The triple bottom line is the development of business practices and process
in three areas: economic, environmental and social.

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A definition appears by lord Holmes & Richard watts stating that “CSR is the continuing commitment by
business to be have ethically and contribute to economic development which improving the quality of life
of the work place and their fascicles as well as of the local community and society at large ”(Baker, 2008)

During the past years, CSR has been developed and implemented in most companies having a vital role
not only in big but also in small and medium enterprise (SME). The majority of the companies are new
developing ways to explore this new marketing scheme.

Nowadays CSR is becoming a marketing strategy more widespread as a factor of differentiation and
awareness for customers, mainly due to the lack of product differentiation and the tendency of people to
choose the company that provides a better relationship with the customers and other stakeholders. The
companies that embrace CSR can obtain competitive advantage over the other competitors, such as good
public image, good image among employees, good profitand return of the investment, which is important
for supporting events not directly related with core business.

In a time when governments are reducing their spending, the private sector has been playing an important
role by supporting sectors as culture, arts, science, sport, health, among others through a wide range of
funding types as donations, sponsors, patronages, and cause related marketing (SMART company;2005)

Nevertheless CSR practice has also been a subject to debate and criticism considering that there is a
strong business interest in this practices.

Simply put ethics involves learning what is right or wrong, and with in doing the right thing-but “the right
thing” is not nearly as a straight forward as conveyed in a great deal of business ethics literature. (many
ethicist assert there’s always right thing to do based on a moral principle and other believe the right thing
to do depend on the situation ultimately it’s up to the individual.) Many ethicists consider emerging
ethical beliefs to be “state of the art” legal matters, i.e. what becomes an ethical guide line today is often
translated to low regulation or rule tomorrow. Values which guide how we ought to behave are
considered more values. E.g. values such as respect, honesty, fairness, responsibility, etc. statements are
lend how these values are applied are sometimes called moral or ethical principles. Wallace and pekal
explain that attention to business ethics is critical during times of fundamental change-times like those
faced now by business, both non-profit or for profit.

Consequently, there is no clear moral compass to guide leaders through complex dilemmas about what is
right or wrong. Attention to ethics in the work place sensitizes leaders and staffs to how they should act.
Perhaps most important attention to ethics in the work place helps ensure that when leaders and managers
are straggling in times of crises and confusion, they retain a strong moral compass. “All organization have

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ethics program, but they most don’t know that they do. ” wrote business ethics professor Stephen Brenner
in the journal of business ethics (1992, v11, pp. 391-339). A corporate ethics program is made of values,
policies and activities which impact the property of the organization behavior. Organization can be
manage ethics in the work place by establishing an ethics management program.

1.2.2. Hypothesis/Questions

The researcher is expected to answer the following questions which are critical regarding ethics and
corporate social responsibility.

- What is understanding and reason for ethics and social responsibility in commercial bank of
Ethiopia?
- To what extent does organizational culture in commercial bank of Ethiopia support the use of
universal measure for ethics and corporate social responsibility?
- How can CBEorganize and established an appropriate ethics and social responsibility agenda?
- How do CBE implement ethics and corporate social responsibility?
- How does ethics and social responsibility affect a firm’s reputation?
- In what way can competitive advantage be achieved (resource based)?

1.3. Objective and significance.

1.3.1. Objective of the study.

1.3.1.1. General objective

This term paper will examine the evaluation of the ideas following ethics and CSR and it will try to
investigate to what extent ethics and CSR as a strategy tool can lead to improved market performance.

1.3.1.2. Specific objective

- Identify the relevant theoretical models and support the importance of ethics and CSR in the
academic literature.
- Examine whether the ethics and CSR models are implemented within commercial bank of
Ethiopia (CBE) and to what extent.
- Help CBE in improving their market performance and the overall services by adopting ethics and
CSR related strategies.

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 - To critically evaluate the effect these ethics and social responsibility strategies have on their
market performance and allover service.

1.3.2. Significance of the study.

Assessing corporate social reports is as important as assessing financial reports because corporate social
performance is seems as related to financial performance of accompany (Epstein 2008; wad dock and
graves, 1997). Thus in the cause of corporate social responsibility reporting or, corporate social reporting,
users of corporate social reports should be able to assess reported activities and also the underlying
management culture which is reflected in the structures of corporate social responsibility in companies.

To expect users of corporate social reports assessing corporate social reports means that the users should
have appropriate tools. Engaging stakeholders in the center ethics and corporate social responsibility
discussion is in alignment with stakeholder theory. However, seeing stakeholders as the victims of any
issues possible practice of companies may not also always help to explain scandalous pheromone that I
often see recently. When studying stakeholder roles in a scandalous business setting, stakeholders often
engage in multi roles and thus, make the term stakeholders itself difficulty to be defined in the setting. In
any case, providing tools for stakeholders in order to give them more direct involvement in assessing
ethics and CSR in companies may empower stakeholders to avoid any kind of involvement in
irresponsible business practices. In addition, the study will also serve as an alternative to conduct study in
the area of organizational culture. The study on the dynamic processes in organizational culture is will
provide deeper understanding on how values are constructed to form an organizations identity (Hatch,
1993) instead of focusing on the artifacts and shared values.

2. Methodology

2.1. Theoretical and/or empirical support

Teleological or consequentialists theories are family of ethical theory rather than a single ethical view in
most ethical literatures, the following theories are considered as pertinent theories that fall under
teleological mains train.

Egoism + hedonism

Hedonism is ethical doctrine that pleasure is the highest goal, and production of pleasure.

Egoism comes from Greek word ego “I” and is therefore literally “ism”.

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Egoistic-hedonism is the doctrine that the pursuit and production of one’s own pleasure is the highest goal
and criterion of the right action.

Egoism

Moral egoists believe that the morally correct action is the one that maximizes the good for the moral
agent i.e. a company act in its own self interest (radian batch and robin, 1948: crane and motley 2007).
thus a company ought to do good or reform from doing harm only if its good forth company, normally
meaning if it help to maximize profit.

CSR thus is not concerned with a moral obligation to benefit others: it is only concerned with benefiting
the company, which means that the company must worry about its employees, the local community or the
ready strangers, like poor Africans, only if it is the company’s self interest.

Libertarianism

Libertarianism believe in the existence of negative highest like freedom of speech, freedom of religion,
freedom from coercion etc, but not in positive duties like donating the charity. Thus, people have people
have a moral obligation not to do harm, but they have no moral obligation to positively help anyone
(Nozick, 1974). In relation to CSR, libertarians believe that companies have no moral obligation to
positively help anyone; they are only obligated not to violate anyone’s negative rights.

Utilitarianism –

Utilitarian’s believe that moral agents always have to promote the best possible outcome seen from an
important perspective for utilitarian’s the best possible outcome maximizes the total sum of happiness
(singer,1972; SMART, 1973). In relation to CSR, Utilitarian’s believe that companies have a moral
obligation to promote the best possible outcome, i.e. maximizes happiness from an impartial perspective.
In this regard, impartiality means that one is impartially in relation to who the benefactor and who the
beneficiary is thus companies are equally obligated to promote the happiness of the total strangers, for
example poor Africans and those closely related to the company for the example the employees even
though it is an empirical questions, i.e. which action is likely to maximize happiness, Utilitarian position
appears, however, vary demanding suggesting that companies use a greater deal of their resources to help
the poor, sick and hungry masses around the world Utilitarian s have generally argued that helping the
poor and hunger people, for example, in Africa, rather than relatively well-off people for example, in
Denmark , seems to maximizes happiness as seems from an important point of view, other things being
equal (Singer, 1970 ).

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Common sense morality

Supporter’s common sense morality sense morality believes in the existence of both negative rights and
positive duties. In relation to CSR, supporters of the common sense orientation believe that companies
have a moral obligation not violate anyone’s right and that they also have positive duties towards certain
groups, such as employees, local community and other closely related to the company. This orientation
which is identical to the position Kagon refers as ordinary morality is in accordance with our immediate
intuitions i.e. we ought to follow moral principles that are in accordance with our immediate moral
intuitions (Kagon, 1989).

Stakeholder’s theory

A fundamental aspects of Stakeholder theory, in any of its aspects of, is that it attempts to identify
numerous different faction within a society to whom an organization may have some responsibility. It has
been criticized for failing to identify these factions (Argetenti, 1993) although some attempts have been
made. Indeed Strainberg (1997) suggests that the seconds of Freeman’s definition of stakeholder. (which
is now the more commonly used has increased the number of stakeholders to be considered by
management adopting a stakeholders approach to in fact definition includes virtually everything whether
alive or not).

However attempts have been made by stakeholder’s theorists to provide a framework which is relevant
stakeholders of an organization can be identified Clarkson (1995) suggests that a stockholder is relevant if
they have invested something in the organization and are therefore subject to some risk from that
organization activities. He separated those in to two groups the voluntary stakeholders who choose to deal
with an organization and the involuntary stakeholders who do not choose to entire in to nor can they
withdrawal from a relationship with the organization. Mitchell, Agle and Wood (1997) develop a
framework for identifying and ranking stakeholders in terms of their power, legitimacy and urgency if a
stakeholder is powerful, legitimate and urgent then its needs will require immediate attention and given
primacy.

3 .Finding

-CBEhave their own ethical code of conduct based on what the industry needs in the context of country
do satisfy customers, to develop good will.

The ethical principles of CBE

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Integrity

– This shows employees and officials should for away from illegal and unethical behavior.

-The bank employees must work with diligent, endurance and efficient toavoid wastage of resources.

- The bank employees and officials shouldn’t do any activity which hurts the banks reputation and
images of the customer image all about the bank.
Loyalty

– All employees and managers of the bank must respect the rules and regulation of the country and must
respect the rules, regulation, procedures, and practices of the bank. In addition when in the time of
activities of the bank should be faith full for the bank staff and should avoid discussing employees and
managers.

- All employees and officials should avoid using the banks resource and time for personal use.
- All the bank employees and officials shouldn’t delay any activities without enough reason.
Transparence
- Every member of the bank in the time of the activities of the bank should be clear.
- Every employees and officials of the bank should give relevant description and response for
customer based on rules, regulation and procedures of the bank.

Confidentiality

– Every employees and officials of the bank shouldn’t give any information that is getting being
employee of the bank for the other third person illegally or unethically.

- The banks employee and officials shouldn’t give and describe information hurts the bank
consciously or unconsciously.
- Every employee and officials of the bank shouldn’t give or use working procedures and rules
consciously or unconsciously for unallowed body.

Honesty

- Every employees and officials of the bank should respect the work, being sincerity by being
faithful from fraud, theft, cheating and exercising powerin equally.
- Any banks employees and officials shouldn’t do any activities that hurt the customer’s
advantages unconsciously.

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- Any employees and officials being faithful from accepting gifts and invitation that creates trouble
for decision making power.
Accountability
- The employees and managers of the bank should have responsibility to respect and to be
respected rules and regulations implemented by the government.
- The employees and managers of the bank being responsible for bank and the community for their
activities and decisions.

Serving the public interest

The employees and officials of the bank shouldn’t have respect advantage for self, family, friends,
other body and groups but activities should have respect advantage of the community and the bank.

- The employees and managers of the bank shouldn’t have exercising activities which create
conflict to formal activities to get unnecessary advantage.
Exercising Legitimate authorities
- The employees and managers of the CBE must give fair decision based on rule, regulation and
procedures whenexercising activities depend on power.
- The bank manager shouldn’t exercise action hurting employees and banks without the rule.
- All employees and managers shouldn’t have exercising and using power and deciding illegally
exercising power.
- The employees and managers of the bank should have responsibility and obligation to decide
based on banks on banks rules and procedures logically and fairly.

Respecting low

- All employees and officials should give command and decisions are not contradict with rules and
procedures.
- Every employees and officials of the bank should (work) depends on the banks working time and
working manuals.

Responsiveness

- Every employees and managers of the bank should give the necessary activities by receiving
customers based on the slogan “customer is aking”.
- Every employees and managers of the bank should give information for customer correct and not
contradict.

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 Leadership

Employees and officials of the bank should promote and support these principles by taking the lead
and setting examples, demonstrating the highest standards expected of role model

When we see the real situation many of the employees are violate ethical principles of the bank.

- “Customer is aking” it is the mostly only slogan not practicing in the ground.
- Some of the employees and managers of the bank exercising irresponsible and violating power
they have.
- The CBE is not regularly following if it is going formally accepted and implemented by
customer.
- CBE misses the current situation and environment.
- CBE ignores to communicate its ethical principles to the employees, the community and the
society at large.
- Absence of appropriate measurements and punishments for unethical behavior of employees and
management.

Corporate social responsibility of CBE

- When we see the mission statement of the CBE its stated as follows

Mission

We are committed to best realized stakeholders needs through unbalanced financial intermediation
globally and supporting national development priorities, by deploying highly motivated, skilled and
disciplined employees as well as state of the art technology. We strongly believe that winning the public
confidence is the basis of our success.

-When we see the stakeholders need, there are different kinds of stakeholders are attached to the CBE
internal stakeholder, which are employees. CBE will not pay that fulfills the needs of the customer. In
addition CBE payments are unbalanced with their outcome and performance.

For community– when CBEopen branches in different areas gives service for community when we
compare the other banks but CBE is not hiring employees from the community, when the company
existed. Many of the community are complain about it.

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 - For competitor – CBE gives loans for different private banks when they are established and gives
different services for the private banks. CBE on competitor because CBE controls governments
transaction like, for condominium house
- For society at large – the company more priority for national development policies. CBE gives
loans for national development activities covered 63% of national development activities, but
most customers complaining CBE only gives loan for investment and national development
activities of the country.

As general activities the CBE now following the partial activities stated in the mission and value
statement the company should focused on fulfilling all stakeholders need.

Commercial bank Ethiopia supports the society through by giving loan tofederal government; regional
government and local government for the activities of developing facilities.in addition CBE create
greatest contribution for the country development.

CBE involving supporting activities in the society like, by sponsoring media for business reports in EBC
and CBE establishing football sport clubs to support sport activities of the country.

4. Leading and Managing change process

- Preparing for change

- Prepare for change the manager

- Assessing the change

- Strategy development

- Managing change

- Detailed plan which shows every step

- Implementation or change the planned change to the action change

- Rain forcing change

- Data gathering the effect of the change getting feedbacks

- Connective action – If is a problem modifying that recognition.

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5. CONCLUSION
CBE have its own ethical principle that follows Ethiopian low.

Ethical principles of commercial bank of Ethiopia

Integrity

Loyalty

Honesty

Transparence

Confidentiality

Accountability

Serving the public interest

Exercising legitimate authority

Impartiality

Respecting the low

Responsiveness

Leadership

Corporate social responsibility of CBE

-supporting national development

-sponsorship different activities of the society

-participating in sport activities to support sport

- gives loan for investor and for the competitor

-gives loan for federal, regional and local government

-CBE have established value

-great contribution for sustainable development

-delivering service for different rural area without profit

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