| dc.description.abstract | Investigations were done over a long period to
see whether or not there is a correlation between
Corporate Social Responsibility (CSR) and organization
profitability. The major reason for disparity is due to the
complexity in measuring CSR. Scholars later found out that
Correlation co-efficient can be used to measure this. Main
objective is to find out whether there is a correlation
between the two variables or not within the hospitality
industry. The data is taken from the financial statements
of John Keells PLC (JKH), the selected firm for this study
that comprises of two city hotels and nine holiday resorts.
Due to the qualitative nature of CSR, it is taken as a
percentage on other operating expenses, as CSR is a part
of it under JKH. Measuring profitability is done by four
ratios; Net profit margin, Operating profit margin, Return
on Assets (ROA) and Return on Capital Employed (ROCE).
The calculation showed a negative correlation between
three of the indicators and CSR and a positive correlation
between ROA and CSR, marking an overall negative
correlation between CSR and profitability. Note that the
even though most of the researches done relevant to this
topic have given out a positive result, it could have a
negative result too as CSR is a concept that generates
results in the long run thereby reaching sustainability. | en_US |
