SUSTAINABLE BUSINESS PRACTICES AND THEIR EFFECT ON CORPORATE PROFITABILITY

This study examines the impact of sustainable business practices on corporate profitability by analyzing firm-specific variables such as firm size, growth, R&D intensity, productivity, liquidity, and leverage.Using secondary data, the study applies descriptive statistics, correlation analysis, and multicollinearity diagnostics to explore the relationships among these variables.The findings reveal strong positive associations between firm growth, R&D intensity, and productivity with corporate profitability, indicating that firms investing in sustainability and innovation are more likely to experience improved financial performance.Furthermore, the absence of significant multicollinearity among variables enhances the reliability of the regression analysis.The study concludes that sustainable practices not only contribute to environmental and social goals but also offer measurable financial benefits.These results have important implications for corporate strategy, investment decision-making, and policy formulation.