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The study explored the Practices of Corporate Social Responsibility (CSR) both theoretically and practically. CSR has recently attracted worldwide attention. Social responsibility refers to companies involvement in communities in their social and environmental problems. Awareness and a sense of necessity for practicing CSR is becoming more and more pronounced as a country tries to adapt itself to the process of globalization. Globalization has made CSR practice an imperative for Ethiopian businesses as well. The benefits of CSR for companies are many such as strengthened brand positioning, enhanced corporate image, increased ability to attract, motivate and retain employees, decreased operating costs, increased profits, customer loyalty, and trust are well documented. However, there have been tremendous misunderstandings on the concept of CSR and the practice of CSR in both the academic circle and among businesses. Empirical study indicates that about 50% of the respondents to the survey agree that the company lacks CSR seriously. Thus,it is recommendable that companies should practice in reducing environmental impact and market policy for its business sustainability.