To What Extent Does Corporate Social Responsibility Increase Profitability - Research Paper Example

To What Extent Does Corporate Social Responsibility Increase Profitability? Abstract The topic set for this research study is “To what extent does corporate social responsibility increase profitability?” As the topic suggests the study deals with various aspects of corporate social responsibility (CSR) activities carried on by the business organizations that ultimately lead to the profitability of the organizations. CSR has been a recent buzz in the business environment and it has become a concerning issue for most of the organizations operating its business activities worldwide. CSR is actually meant to improve the well being of a community through various activities performed by the business organizations. However most of those activities are supposed to be linked with the profitability position of the companies. The problem statement of this research study is to find out whether corporate social responsibility can add to the profitability of business organizations or not. Various research questions have been constructed in relation to this problem statement and in alignment with objectives of this research study. A literature review of the existing literature related to CSR and its relationship with profitability have been discussed in this study. The information from such studies has been used to attain the objectives study. Primarily qualitative research methodology has been used in this study making use of both primary and secondary data obtained through various sources. The research study has been conducted through semi-structured interviews and questionnaire survey method. The findings of this study suggest that there is a significant relationship between CSR and profitability levels of organizations. CSR actually increases the reputation of the organizations, increases its market share and enhances the revenues and profit generated by the organizations. Table of Contents Table of Contents 3 1.Introduction 5 1.1Problem Statement 6 1.2Research Questions 6 1.3Aims and Objectives of the Study 6 2.Literature Review 7 2.1CSR, its Purpose, Dimensions and Advantages 7 2.2Value of Corporate Social Responsibility 8 2.3 Evidences of Relation between CSR and Organizational Profitability or Performance 9 3.Research Methodology 11 3.1Types of Research 12 3.1.1Qualitative Methodology 12 3.1.2Questionnaire Survey 12 3.1.3Semi-structured Interviews 13 3.2Sources of Data 13 3.3Research Design and Tools 14 3.3.1Construct Validity 14 3.3.2Internal Validity 14 3.3.3External Validity 15 3.3.4Reliability 15 4.Findings and Analysis 16 4.1Results and Analysis of the Interviews 16 4.2Results from the Questionnaire Survey 18 5.Conclusion 19 Works Cited 21 Appendices 22 Appendix – 1: Interview Schedule 22 Appendix – 2: Questionnaire 25 1. Introduction This research study entails about corporate social responsibility (CSR) and its significance towards enhancing the profitability of a business organization. CSR has been a recent buzz in the business environment and it has become a concerning issue for most of the organizations operating its business activities worldwide. CSR can be defined as the means operating a business by an organization which meets or even exceeds the legal, ethical, public and commercial expectations which the society has from the organization. According to the requirements of CSR, every company is needed to have some obligations towards its society and environment at large (Kotler, and Lee 3). CSR is actually meant to improve the well being of a community through various activities performed by the business organizations. It has been recognized by many research scholars that business activities carried on by a firm has a significant impact on the external environment in which it operates its business and hence the organizations have a greater responsibility not only towards its shareholders but also towards its all other stakeholders (Crowther, and Rayman-Bacchus 3). Most of the large corporations are engaged in various CRS activities mainly because of the general notion that it can increase its profitability. However few managers and executives of those companies following CSR activities are actually aware of the research on this topic. This justifies the title of this research topic which is “To what extent does corporate social responsibility increase profitability?” Hence the scope of this research study is confined to find out various means through which CSR activities carried out by firms can add to its profitability in the long run. 1.1 Problem Statement The problem statement of this research study is to find out whether corporate social responsibility can add to the profitability of business organizations or not. 1.2 Research Questions Question 1: Can corporate social responsibility increase the profitability of a company? Question 2: What are the various means through which activities related to corporate social responsibility can increase the profits generated by an organization? 1.3 Aims and Objectives of the Study As the research topic suggests the primary aim and objective of this research study would be to find out various means through which CSR activities followed by business organizations can help to increase its revenue generation and thereby increasing its profits as well. The main objective of any organization is to maximize the wealth of its stakeholders. However it has been observed that most of the firms are mostly concerned about their shareholders and undertakes different activities which lead to the increasing value of its shareholders. CSR have had a renewed attention in recent times mainly because of the facts that apart from shareholders different other stakeholders of the company like its creditors, customers and the external environment of the firm as a whole are having a significant impact caused by the various activities carried on by the business firms. CSR has become a means of sustainability for most of the organizations which can lead to its growth and development in future. Hence this research study would try to find out the relationship between CSR and profitability of a company and how CSR activities can lead to the increase in its profitability. 2. Literature Review The literature review section of this research study would try to find out the existing literature in the field of corporate social responsibility. Moreover it would also try to find out what the researchers have to say regarding the relationship of CSR and profitability of a company. 2.1 CSR, its Purpose, Dimensions and Advantages Through the CSR practices followed by an organization it recognizes the interests of the society and takes the responsibility of the impacts of its business activities on the shareholders, employees, community people and the environment on which it operates. CSR serves several purposes. It helps to ensure that the business processes are conducted by the organizations in an ethical way in accordance with the interests of the community. It helps in responding in a positive way towards the emerging priorities in the society. It serves for the purpose of developing willingness amongst the organizations to act beyond the regulatory confrontation. It also helps in maintaining a balance between interests of the shareholders of the company and the wider community. Social responsibility of the corporate organizations can be considered to have four dimensions. One is the economic perspective which is the responsibility of the organizations to earn profits and generate wealth for the owners of the company. Legal is another aspect of CSR which implies that all the business organizations have the responsibility to act in accordance with the existing laws and are to comply with those laws. The ethical aspect of CSR means every organization are required to act not only just for the purpose of generating profits but also doing something which is right and fair. The philanthropic and voluntary aspect of CSR is concerned with the promotion of goodwill and human welfare. Lastly CSR requires the organizations to remain as a good corporate citizen and requires them to contribute to the community development (Natarajan). CSR activities can be advantageous to the business firms in a number of ways. It helps in the retention of employees in the organization and attracts more people to the company. The public image of the business firm is enhanced because of the CSR activities carried on by it. The customers who are ethically conscious are attracted towards the organization following CSR activities. Recycling helps in the reduction of costs of the company. CSR can prove to be a means of gaining competitive advantage by the business firm following CSR activities because it enables the firm from being able to get differentiated from its competitors. This could help the business organization to have sustainable profit in the long run. 2.2 Value of Corporate Social Responsibility According to Hopkins, Businesses not only have commercial responsibilities but are also equally responsible for other non-commercial responsibilities and thus needs to consider this aspect seriously for the wellbeing of the society at large. It means that the stakeholders' importance and various business ethics concepts should also be considered apart from the investors, owners or the shareholders of a company. This type of approach is very much linked to the concept of "Triple Bottom Line" as suggested by Jorna. It explains the importance of considering the bottom lines of society or people and environment along with profits earned by the companies. With the increasing importance of CSR for the organizations to justify their business practices to the stakeholders and the society, they are beginning to act like responsible citizens and are becoming increasingly engaged with the social economic sector (Sasse, and Trahan). It has been observed that almost 90% of the Fortune 500 organizations follow explicit CSR activities. According to Smith, the organizations are increasingly investing on CSR activities not only because of the fact that it is the right thing to do but it is one of the smartest things to do as well. According to the stakeholder theory framework, the various impacts of external environment on the stakeholders are crucial to the success of any business organization (Falck, and Hebich). 2.3 Evidences of Relation between CSR and Organizational Profitability or Performance Attar conducted a research study to find the relationship between consumption rationalization and CSR. He used 165 consumers, managers and employees as a sample in the study. The primary objective of the research study was to indicate that consumption rationalization includes social responsibility. The findings of the study suggested that there was a positive relationship between consumption rationalization and CSR. Another research study was conducted by Twaijri which dealt with investigating the role of CSR in the Saudi Arabian societies and evidence of CSR in the administrative structure of the country. The findings of the study suggested that no interactions existed between the community and the companies. The contributions of the companies towards the society were still limited as compared to their managerial expertise and financial capability. Turkestani conducted a research study in 1995 where he argued that disagreement existed regarding the concept of CSR and who were responsible to carry on such activities in the Saudi organizations. Three concepts related to social responsibility have been identified in the research study. They are: a) the religious concept, b) the social concept, and c) the economic concept. The findings of the study also suggested that there is a positive relation between the sizes of the companies and its CSR activities. Impact of CSR activities on the performance levels of two groups of organizations was studied by Al-Dmour and Askar. The findings of the study suggested that CSR was implemented in the organizations having differences with respect to the environmental aspect of CSR. Foreign companies were observed to have implemented CSR positively while the local companies at Jordan implemented CSR activities in a negative manner. Positive effect of CSR activities was observable on the marketing performances of the organizations only. According to Spitzeck, Hansen, and Grayson there has been an emerging practice of joint management-stakeholder committees (JMSCs) where the decisions are taken up by the company executives in collaboration with the stakeholders of the company. Fifty one companies in UK that were surveyed in the research study were found to have an active participation in the Corporate Responsibility Index of the country. The findings of the research study suggest that JMSCs have a strong influence on the corporate governance mechanisms followed by the firms in UK like measuring, monitoring and developing the organizational policies. According to a research study by Bessong, and Tapang, the effect of social responsibility cost on the profitability position of the Nigerian banks was studied. Such business firms in Nigeria resort to practices related to CSR in order to have control over the environmental cost and the negative effect of their business operations in the banking industry. An exploratory research designed was used in the research study and the data were collected through secondary research of the Nigerian Banks. The data were then analyzed using Ordinary Least Square (OLS) method. The findings of the study revealed that there is a negative impact between pollution cost and social cost on the performance and profitability of the organizations. Hence it was concluded that costs related to social responsibility are equally important like any other liabilities of an organization and thus requires effective management. A favorable environment leading to the increased profitability of the companies is created as a result of the fulfillment of the rights or needs of relevant stakeholders. When any of the commercial banks in Nigeria were observed to neglect its responsibility towards other stakeholders, it resulted in the establishment of a constrained relationship between them. It implies that the banking operations are adversely affected. The commercial banks in Nigeria do not show any of its financial commitments towards the environment in any of their published annual account details because of the absence of any types of standard social responsibility guidelines in the country. This type of practice can be considered as disservice towards the users of published annual reports of the banks because it lacks critical information related to the environmental expenditures incurred by the firms. The literature review presented in this section suggests that CSR activities followed by different business firms can have significant impact on its profitability position. Hence the findings from the existing literature can be used to attain the objectives of this research study. 3. Research Methodology The methodological considerations and the different choices made to obtain primary and secondary data to attain the objectives of this study would be discussed in this section. The research design along with the different data collection procedures followed which are in accordance with the research objectives are all discussed here. Justifications regarding the qualitative research methodology used in this study would also be discussed here. In addition to this the procedures that have been used for data collection with prime focus on the issues related to reliability and validity of such collected data have also been discussed in this section. 3.1 Types of Research A research methodology can be of two types. They are qualitative research and quantitative research. Both these types of research have their own merits and demerits. A qualitative research strategy has been employed in this research study so to obtain evidences related to the relationship between CSR and profitability of business organizations. 3.1.1 Qualitative Methodology Qualitative methodology has been utilized, firstly because the research design should be selected in such a way that it corresponds to the research questions set for this study and thus paves way to all the procedures of data collection. Quantitative studies are mainly utilized for employing rigorous testing procedures on the existing theories. It helps in the measurement and analysis the various relationships that exist between the variables. Hence the findings from such type of research study would be more reliable because of the large samples used. However most of the empirical studies are criticized of not corresponding to the exact attitudes and feelings of people. Hence quantitative method is not appropriate for studies which relates to finding out thinking process of humans. As mentioned earlier the objective of this study is to find out the relationship between CSR and profitability of organizations and since CSR is concerned with all the stakeholders of a company, it is important to know what the people in the form of stakeholders of a company think about the CSR activities followed by the organizations. 3.1.2 Questionnaire Survey Questionnaire survey was utilized to obtain relevant data that could be analyzed to fulfill the objectives of this research study. The survey was conducted online mostly through the social networking websites and by sending the questionnaire to the relatives, friends and other known persons through e-mail. The questionnaire prepared for this research study as shown in Appendix – 2 mainly consisted of open ended questions and a five-point likert scale was used to get the feedback from the respondents. 3.1.3 Semi-structured Interviews The major research method in this research study was interviews. This type of approach is considered to be the most important and powerful tool to facilitate data collection in complex situations. This type of approach helps to gain in-depth knowledge as compared to other procedures of collecting data. Semi-structured interviews were conducted in this research study taking the help of questionnaires which included mostly open ended questions. Open ended questions have the advantage of allowing the respondents to present their views about an issue in their own ways. Hence it would help in the collection of information which is meaningful for the study and unique in nature. The replies of the respondents could be such which are unanticipated by the researcher. Moreover semi-structured interviews are characterized by providing a high level of flexibility for the respondents. The participants could even ask questions in cases when any kind of uncertainty arises. 3.2 Sources of Data Sampling is an important issue related to both quantitative and qualitative research. However the sampling methods for qualitative research mainly focus on the identification of cases, choosing the boundaries and the construction of framework for sampling. A sampling method called purposive sampling method has been used in this study. It has been utilized to select the corresponding interviewees in accordance with the objectives of the research study, the research methodology used, various existing constraints and the availability of resources. Apart from this secondary data sources like peer reviewed journals, articles, newspapers, books, etc. have also been used to conduct secondary research in this research study. Moreover an online questionnaire survey was also conducted to know the viewpoints of different people related to the impact of CSR activities followed by organizations on their profitability position. 3.3 Research Design and Tools It is very critical to have data of high quality available for undergoing a qualitative research study like this. It would ensure better understanding of the situation. Research quality of any form could be assessed by taking into consideration four relevant aspects. They have been discussed below: 3.3.1 Construct Validity Construct validity means the limit up to which the measurement is done by the study in actual terms. It also helps to know about whether the construction of operational measures in the research procedure is done in such a way that avoidance of any possibility of subjective judgment is ensured. Improvements in the construct validity of this research study were made possible in three ways. Firstly, multiple evidence sources were used that are relevant during the process of collecting data. Secondly, an evidence chain was established and finally an important informal review of the draft of the case study was performed. 3.3.2 Internal Validity Internal validity refers to the accuracy level of the findings and results of the research study performed and how much it corresponds to the real condition or situation. It is all about the establishment of a casual relationship that exists between the results and the findings of the study. Various research processes have been applied in this research study in order to enhance its internal validity. The interview protocols that have been developed for this study, has been prepared in accordance with the purpose and objective of the present research study. In addition to this, all the interviews that were conducted for the purpose of research in this study were transcribed on the day when they were conducted. This helped in increasing the accuracy levels of the recorded data related to the conversation in the interviews. 3.3.3 External Validity External validity refers to the possibility that the results derived from a particular case study could be generalized with other similar situations. Analytical generalizations are taken into consideration in the situations involving case studies. It implies that some results that have been derived from a case study are generalized to formulate a broad theory. Four different firms belonging to different industrial sectors have been chosen systematically. The number of cases so chosen can be deemed sufficient to facilitate all the information that is required for accurate and detailed findings and analysis of this study. 3.3.4 Reliability Reliability implies that the research study should be devoid of any kind of bias or error. Reliability can be defined as the measure of the extent up to which a particular study or test is capable of producing similar results in all different situations given that the conditions stated in the study are constant. Hence, if a different researcher wishes to carry on a similar type of research which takes help of the similar types of methods as used in the original research, it should produce similar results. Interview schedule has been used as a means of increasing the reliability of this research study. Moreover as indicated earlier authentic sources have only been used to obtain secondary data for this study. 4. Findings and Analysis 4.1 Results and Analysis of the Interviews As mentioned earlier, semi-structured interviews were conducted mostly with the high raked officials and managers at the strategic level of the organizations. The interview schedule was sent to each of the interviewees selected for this research study through e-mail prior to conducting the interviews. A total of five officials were interviewed each from different organizations in United States. All the five organizations belonged to different industrial sectors and the shares of all the companies are publicly traded. Mixed arguments were obtained from the comments of the interviewees related to favoring and not favoring social responsibility in the business practices followed by their organizations. Arguments in favor of social responsibility were as follows: a. Image of the company is enhanced: There has been an increasing pressure on the business organizations to be responsible and accountable towards the society. This fact has influenced them to operate their business activities in a socially and environmentally responsible manner. CSR can be used as a strategic tool to increase the public image and reputation of a company and at the same time become profitable too. Increased public image helps companies to acquire more customers, build a strong relationship with them and increase their revenue generation. b. A stable and mature outlook: Disclosures related to social responsibility of organizations help can result in the generation of different viewpoints related to environmental issues concerning the company. This would result in the development of a stable and mature outlook of the company. The social responsibility accounting has emerged significantly mainly because of the increase in concern and interest amongst the stakeholders of a company related to issues like environment, safety, health, and employee welfare. c. Company’s ability to develop alternative solutions for economic and social problems: An important element in the way of sustainable development of a business is evaluating the changes in the impact of environmental factors at the individual product level of an organization. Increasing shareholders value and CSR are both equally important for business organizations. d. Positive financial impact: As a result of devoting company's resources towards social concern, it would lead to the financial improvements of the organizations also. e. Changed customer expectations related to an organization: There has been a change in the needs and requirements of the customers and this has created new expectations amongst them as well. The success of organizations depends on its ability to fulfill the expectations of the customers and the society as a whole. f. Improved business environment: Business and society both are benefited as a result of creation of a better social environment. Society is benefited in the form of greater employment opportunities and better neighborhood. On the other hand it helps to create a more stable community for the organizations to operate their business activities. Arguments against CSR were as follows: a. Profit maximization: The primary goal of any business organization is to increase the value of the shareholders by maximizing the profit through various economic activities. Social concerns may lead to the reduction in economic efficiency of the firm. b. Costs for CSR: The costs related to social responsibility are eventually paid by the society as a consequence of increased product prices, thereby reducing the satisfaction of customers. The additional costs incurred by the organizations are ultimately borne by the society. c. Difficulty in measuring CSR: Measuring the social actions is a difficult task for an organization. Often problems are faced while comparing the potential benefits derived from social actions performed by the organizations. 4.2 Results from the Questionnaire Survey A random sample of 100 respondents was selected for the questionnaire survey. Out of this 80 questionnaires were returned and 20 were excluded. The questionnaire survey was conducted to obtain the opinions of the respondents related to the finding out the level of impact of CSR activities in various forms like awareness campaigns, providing donations, and establishing charities associations by the business organizations on their profitability position. The findings of the questionnaire survey have been summarized in the table given below: Table – 1 Level of CSR activities Variable Standard deviation Mean Rank Level Awareness campaigns 0.539 4.1 3 High Charities associations 0.525 4.13 2 High Donations 0.513 4.22 1 Very High Overall 0.526 4.15 - Very High The findings of the questionnaire survey as shown in the above table indicate that level of awareness campaigns is high and its mean score is 4.1. Charities associations have been placed in the second position with a mean of 4.13. Donations on the other hand have the highest ranking with a mean of 4.22. 70% of the respondents suggested that the profitability of organizations is increased as a result of the CSR activities followed by the organizations. 5. Conclusion The findings of this research study suggest that a significant relationship exists between profitability and CSR activities followed by organizations. The reputation of the company is increased as a consequence of adopting CSR activities by the business organizations. The positioning of the company in the society is also enhanced and leads to increased satisfaction of the customers. Ultimate result is increase in market share of the companies and profitability position of the companies is enhanced. The awareness campaigns conducted by the organizations do not have significant impact on the profitability position of the organizations. However CSR activities in the form of providing donations are positively correlated with the profitability of the organizations. Apart from these, the charities associations formed by organizations as a part of their CSR activities also has a significant relationship with the profitability of the companies. Hence it can be concluded that although CSR activities are associated with additional costs incurred by the companies but the benefits and profit generated through such activities surpasses those costs and ultimately increases the revenue generation and profitability of the business organizations. Works Cited Al-Dmour, Hani H., and Hayat A. Askar, “The Impact of Corporate Social Responsibility on Companies Perceived Performance: A Comparative Study between Local and Foreign Companies in Jordan.” Jordan Journal of Business Administration 7.1 (2011): 95-115. Print. Bessong, Peter K., and Arzizeh T. Tapang. “Social Responsibility Cost and Its Influence on the Profitability of Nigerian Banks.” International Journal of Financial Research 3.4 (2012): 33-45. Print. Crowther, David, and Lez Rayman-Bacchus. Perspectives on Corporate Social Responsibility. Guildford: Ashgate Publishing, Ltd., 2004. Print. Falck, Oliver, and Stephan Hebich. “Corporate Social Responsibility: Doing Well by Doing Good.” Business Horizons 50.3 (2007): 247–254. Print. Hopkins, Michael. The Planetary Bargain: Corporate Social Responsibility Comes of Age. London: McMillan Press, 1999. Print. Jorna, Rene. Sustainable Innovation: The Organisational, Human and Knowledge Dimension. Sheffield: Greenleaf Publishing, 2006. Print. Kotler, Philip, and Nancy Lee. Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause. New Jersey: John Wiley & Sons, 2008. Print. Natarajan, Bala. “Corporate Social Responsibility and Business Ethics.” Nfcindia. n.p. n.d. Web. 02 Nov. 2012. . Sasse, Craig, and Ryan T. Trahan. “Rethinking the New Corporate Philanthropy.” Business Horizons 50.1 (2007): 29–38. Print. Smith, Craig. “Corporate Social Responsibility: Not Whether, But How?” Centre for Marketing 3.701 (2003): 1–35. Web. 02 Nov. 2012. . Turkestani, H. “The Application of Management in the Private Sector of Social Responsibility Activity.” Arab Journal of Management 17.1 (1995): 1-30. Print. Twaijri, Mohamed. “Social Responsibility in the Private Sector in the Kingdom of Saudi Arabia.” Arab Journal of Management 2.4 (1988): 37-48. Print. Appendices Appendix – 1: Interview Schedule I. Opening Introduction First of all thank you for taking out your valuable time to participate in this interview. The research study is aimed at understanding the relationship between corporate social responsibility practices followed by your company and its impact on the profitability of the company. Hence, your valuable feedback would have a significant importance in this study. Purpose During the course of this interview, it would be my pleasure to have some information regarding the background of your company, the motivating factors that prompted your organisation to go for CSR activities, the approaches that have been taken up by your company to have understanding about the business scenario and the approaches followed by your company to measure the opportunities available for your company in the market to use CSR as a means of profitability. Benefits of participating Your involvement in this research study will be of significant importance to our research study and will help us to understand the relationship between CSR and profitability of a company. If you wish, I can provide you with the findings of this research study when it gets over. Time Line This interview would take around two hours of your valuable time. Confidentiality I would like to remind you about the fact your involvement in this research study is purely voluntary and in case if you find some of the information are sensitive and critical to you or your company, you can always deny to disclose all those sensitive information. You have the right to stop me any time and ask me any question you like. Additionally, you have the right to move out of the interview at any point of time during the interview. Neither you nor your company's identity would be revealed in any form. If you permit I would like to have this interview being recorded. Do you have any more questions pertaining to this interview? Can we start now? II. Interview Process Each of the interviews that will be conducted will consist of three parts. First of all, it will be concerned about the company's background information in general. Next part will be related to the CSR activities followed by your company. Lastly, it will deal with the impact of CSR activities on the profitability of your company. Information regarding company background 1. Your business was established in which year? 2. When did you start incorporating CSR activities in your business process? 3. Did CSR activities affect the sales revenues generated by your company? If so how? 4. What was the nature of competition in the market at the time when your company started performing CSR activities? Reasons for performing CSR activities 1. State the critical factors that were considered by your company during the process of incorporating CSR as a business strategy by your company? 2. Initially what were the objectives of your company behind the decision of resorting to CSR practices? 3. What approaches were followed by your company to undergo CSR as a business strategy? 4. Which of the following factors had a significant impact regarding you decision to go for CSR activities? Personal factors Industry factors Factors internal to your organisation Threats prevalent in the domestic market Comments 1. What is your thinking regarding the CSR activities carried on by your company? 2. Which of the decisions taken by you regarding CSR proved to be a great fortune for the company? 3. Do you have any advice for the company regarding its business operations linked to CSR activities? III. Closing Summarising Do you have any questions or do have anything more to say regarding this issue? Thanks giving I am very much grateful to you for taking out your valuable time to participate in this interview process and thank you for sharing your knowledge and understanding regarding the issue. This interview will have all the information available to me required for this research study. You can contact me anytime if you have any further clarifications regarding this interview or study. Thank you again. Appendix – 2: Questionnaire Sex Male Female Qualification Experience < 5 years 5 – 10 years > 10 years 1. Awareness Campaigns S. No. Comment Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 1. Product seminars enhance profits 2. There is an impact of awareness campaigns on the profit and reputation of a company 3. Corporate image is enhanced and profit increases as a result of participation in sports activities 4. There is an increase in profits as a result of awareness seminars conducted in educational institutions 2. Establishing non-profit projects and donation 5. Donations meant for local community services result in consumer satisfaction, enhancing the product demand and thereby increasing the profits 6. Providing assistance to people having special needs enhances satisfaction of customers and profit of companies increase. 7. Donations made to charity organizations lead to increase in product demand and thereby enhancing profits 8. Profit of companies are maximized and the reputation of companies increase as a result of participation in charity campaigns and helping the poor 3. Charities associations and support projects 9. Provision of job opportunities, trainings and scholarships help increasing productivity and profitability of organizations 10. Waste recycling lead to reduction in production cost and enhancement of profit 11. Customer satisfaction increases and profit is increased due to charity festivals 12. Profits increase as a result of distribution of profits as gifts Read More