Traditionally, corporations were responsible only to their owners; their primary objective was profit maximization. Corporations’ responsibility towards the community and the environment in which they operate was overlooked. Hence, Corporations’ responsibility towards the community and the environment, which is commonly known as corporate social responsibility, is a recent development in the area of corporate governance.

Ethiopia is the home to more than 80 ethnic communities with different languages, cultural and religious diversity. Except in a few urban areas such as the capital city, most of Ethiopia's ethnic communities predominantly live in their respective distinct geographic areas of habitation. There is no ethnic community in Ethiopia a majority that comprises a population of more than 50% of the total population of Ethiopia.  But  there  are  relatively  significant  majority  ethnic  communities  such  as  the Oromo and Amhara. Most of Ethiopia's ethnic communities are divided along mainly two religious cleavage lines: Islam and Orthodox Christianity. By crosscutting Ethiopia's ethnic cleavage lines, religion plays a moderating role in limiting the intensity of the ethnic factor in politics, giving rise to overarching loyalty.