Abstract

The research aims to explore and examines the relationship between corporate social responsibility (CRS) and company profitability in the context of Zimbabwe. CSR is conceived as a vital component in strategic planning, and the concept of sustainable development stress out that organization should put emphasis on economic, business outcomes and pay attention also towards the environment, society, and community were they transact business. It could lead to enhanced company profitability. The study used Vector Auto Regression (VAR) model of regression analysis and Stata as the statistical tool, in order assess the impact of CSR on profitability. Secondary data was collected from annual reports of EconetWireless Zimbabwe Limited, correlation and regression analysis was used and the formulated hypothesis was tested. The company is the only listed mobile telecommunication company in Zimbabwe out of three companies which fall under the Ministry of Information Communication Technology, Postal and Courier Services (MICTPCS)for period 2010 to 2015. MICTPCS as the regulatory body encourages mobile telecommunication companies to be involved in CSR as the customer-oriented factors in their business operation. The findings of the study indicated that there is no causal relationship between Corporate Social Responsibility and profitability and CSR has no significant impact on profitability. Zimbabwe has no Corporate Social Responsibility policy; entities are involved on a voluntary basis as a marketing strategy and there is a need for a policy to be formulated and enforced to ensure that entities operate ethically.