Examining the impact of corporate social responsibility (CSR) on corporate profitability: Mediating role of customer loyalty and customer satisfaction

Abstract CSR efforts can increase profitability and market value through improved company reputation, competitive position, customer behavior, and CS. CSR initiatives can increase profitability and market value by enhancing corporate reputation, competitive positioning, customer behavior, and customer service. This study looks into the impact of CSR on corporate profitability (CP). It also looks at the interaction between CSR and CP via the prism of customer loyalty (CL). It explores the link between CSR and CP, with customer satisfaction (CS) acting as a mediator. Primary data were gathered from 457 selected professionals from Indian SMEs, including executives, managers, and specialists. They gathered the data using a non‐probability snowball sampling method. The framework was tested using a PLS‐SEM technique. As a consequence, the study discovered that corporate social responsibility (CSR) and its linked areas, such as economics, law, and charity, improved business profitability. It also found an association.