Corporate Social Responsibility and Profitability in Selected Business Firms of Kasese District- Uganda.

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Kampala International University, College of Economics and Management Sciences .
The study was set to establish the relationship between Corporate Social Responsibility (CSR) and profitability in selected business firms of Kasese District. The study had its specific objectives as; (i) To find out the level of corporate social responsibility in the selected business firms of Kasese District, (ii) To examine the role of corporate ethical business practices on profitability of Business firms in Kasese District. (iii) To find out how the corporate legal and economic responsibility of business firms translates into profits. (iv)To examine the relevance of the Philanthropic responsibilities of a business firm to its profits. The study employed descriptive and correlational design; data was collected using a researcher devised questionnaire and interview guide. The researcher used the judgmental Pearson’s correlation coefficient(r) and the regression linear analysis were used to establish the relationship between CSR and the profitability of business firms in Kasese District In regard to the demographic characteristics, the study was dominated by respondents in the age bracket 31- 4oyears (82, 41 %), majority were male (62%) and mostly the married (121, 60.2%) with Degree holders 108(54%) being the majority. Results showed the overall average mean on the level of CSR as (3.78) interpreted as satisfactor3. In regard to the corporate ethical business practices, a very satisfactory average mean of 4.11 was established as respondents confirmed that good business ethical practices attract and influences consumer behavior (4.31) and that the fair and right pricing improve sales (4.29). In regard to the level of profitability, the researcher established a satisfactory level of profitability with an average mean of 3.87 through increased sells; enjoy an increased level of returns on equity of the business firm (4.28) and profitability in business firms taking an upward trend (4.27). The results suggested a positive and strong correlation between CSR and Profitability (r = 0.908, Sig.= 0.000) an implication that the prevalence of CSR in a business firm is directly responsible for business firms’ profit improvement. The regression analysis showed a very significant relationship (Sig. 0.000**) between CSR and profitability with a 99% level of significance given the “Adjusted R-Square” that shows 80.3% of the variance accountable for profitability with “R-Square 0.825’ that reveal the dependence of profitability on the corporate social responsibility. The researcher concluded by highlighting a great linkage of CSR with the profits of any business firm. The researcher recommends that all business firms’ stakeholders now have a food for thought for further establishment of any gaps to consolidate and put right the corporate social responsibility to improve on their business firms profits.
A thesis submitted to the College of Higher Degrees and Research in Partial Fulfillment of the Requirements for the Award of a Degree of Master of Business Administration of Kampala International University.
Corporate, Social responsibility, Profitability, Business Firms, Kasese District