ABSTRACT The research was conducted about corporate social responsibility and profitability on Airtel Uganda; the purpose of the study was to examine how CSR impacts on profitability of the telecom companies. Literature was reviewed on the concept of corporate social responsibility linking it to profitability. The researcher reviewed different literatures in order to conceptualize and operationalize the study variables. A sample size of 20 respondents was selected using stratified sampling. Data was collected from both primary and secondary sources. Questionnaires were used to collect primary data while secondary data was collected from journals, newspapers, textbooks and annual financial reports. The study established the type of activities companies undertake in an attempt to be seen as socially responsible such as stakeholder engagement and some drivers pushing Airtel towards CSR. Such as competitive labour markets, demands for greater disclosure among others. The study also established managerial and policy recommendations such as; Airtel Uganda should emphasize the concept of "stakeholder". It is claimed by Branco and Rodrigues (2007) that in managerial decision making which is related to socially responsible activities, stakeholder is the key to profit maximization. Airtel Uganda should also look for a strategy which seeks to maximize both financial return and social good such as the "Triple Bottom Line (TBL)" and "Creating Shared Value" approaches. This would enable the organization eliminate the Enron scandal. From the study it can be concluded that CSR has a great impact on profitability levels of the organization in that, CSR is now seen as an important way to increase competitive advantage, protect and raise brand awareness and trust with customers and employees hence resulting to profitability of the organization.
