Analyzing the Impact of Corporate Social Responsibility on the Profitability of Multinational Companies: A Descriptive Study

Abstract

In today's business environment, corporate social responsibility (CSR) is becoming more and more significant. Companies should be concerned about the interests of their stakeholders, but they should also focus greater attention on areas other than just profit-making. Most individuals used to believe that firms exploited customers. This research work intends to find the impact of corporate social responsibility on the profitability of the selected Multinational Companies in India. Five multinational companies were randomly selected and relevant information was collected from the higher officials (n=263) of the selected companies. The study employed techniques including frequency analysis, f-test analysis, and correlation analysis. The results revealed that corporate social responsibility influences corporate reputation and corporate financial satisfaction. In addition, CSR impacts customer satisfaction and customer loyalty. Accordingly, the study suggested that multinational corporations step up their commitment to giving back to society by developing a framework for CSR spending to raise Indians' standards of living to the point where their good reputation will result in a positive and significant increase in profitability, as this is necessary for their continued operation in the nation.