Effect of Corporate Social Responsibility on Firms Profitability: A Study on Small and Medium Enterprises in Pokhara City, Nepal

Abstract

This study's main objective is to investigate the relationship between Corporate Social Responsibility and Firm's Profitability of Small and Medium enterprises located in Pokhara city, Nepal. The qualitative research design was used for the study under which the researcher collects the data by in-depth interviews through face to face interaction with the two expert government officials and fifteen owner or manager from the Small and Medium enterprises. Interviews are transcribed, coded, and interpreted to analyze the data. The study found that Ethical responsibilities are the most significant factor influencing a firm's profitability, followed by Economic responsibilities, Legal responsibilities, and Philanthropic responsibilities. Small and medium enterprises have issues in the market level, societal level, and government level that can be solved through ease in registering enterprises and improving government policy. It will bring more enterprises to the mainstream level under government subsidiaries, which will contribute more to society's betterment.