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

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  • Bijay Sigdel
  • Fuangfa Amponstira

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.

Suggested Citation

  • Bijay Sigdel & Fuangfa Amponstira, 2020. "Effect of Corporate Social Responsibility on Firms Profitability: A Study on Small and Medium Enterprises in Pokhara City, Nepal," International Business Research, Canadian Center of Science and Education, vol. 13(10), pages 1-76, October.
    • Handle: RePEc:ibn:ibrjnl:v:13:y:2020:i:10:p:76
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    References listed on IDEAS

    as
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    2. Shrijan Gyanwali & John C. Walsh, 2020. "Influencing Factors of Organizational Performance in Nepal Airlines Corporation," International Business Research, Canadian Center of Science and Education, vol. 13(1), pages 268-283, January.
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    5. Rojan Baniya & Brijesh Thapa & Min-Seong Kim, 2019. "Corporate Social Responsibility Among Travel and Tour Operators in Nepal," Sustainability, MDPI, vol. 11(10), pages 1-13, May.
    6. Gonzalo Maldonado-Guzman & Sandra Yesenia Pinzon-Castro & Gabriela Citlalli Lopez-Torres, 2016. "Corporate Social Responsibility and Business Performance: The Role of Mexican SMEs," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 6(10), pages 568-579, October.
    7. Biggs, Stephen & Messerschmidt, Don, 2005. "Social responsibility in the growing handmade paper industry of Nepal," World Development, Elsevier, vol. 33(11), pages 1821-1843, November.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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