To Be Responsible Socially Is Viable Financially (original) (raw)

CORPORATE SOCIAL RESPONSIBILITY PRACTICES AND FINANCIAL PERFORMANCE: EMPIRICAL EVIDENCE FROM PAKISTAN

IJBMS, 2023

This study aims to investigate the relationship between CSR practices and financial performance. The study formulates one hypothesis about the effect of CSR practices on firms' financial performance. This study is based on data of 20 companies from the construction and chemical sectors from 2015 to 2019. The hypothesis was tested by using panel regression through using R software version 3.2. The results suggest that CSR practices has positive and significant effect on the financial performance of the firms in the study sample. The relationship between CSR practices and financial performance is inconclusive. There is a need to establish a general link between CSR practices and financial performance. The varying outcomes are primarily due to sample size, operationalization, and context, among other factors. Given the resource constraints, researchers suggest to conduct research on the association between CSR practices and financial performance in the context of developing countries. This study contributes to the literature on the effect of CSR practices on financial performance in the context of a developing country (Pakistan) and provides practical insights to corporate managers. Based on the results attained, it would be recommended that Pakistani corporate firms secure better financial performance by committing themselves in CSR activities.

Impact of Corporate Social Responsibility on Firm Financial Performance: A Case Study of Pakistan AQSA IJAZ

The reason for this study is to assess the relationship between the corporate social responsibility and the corporate financial performance. CSR is the ethical necessity of business to take after the hierarchical arrangements and to take choice good for public opinion. It considers the vital factor for the accomplishment of business. The CSR is taken as independent variable and is measured by the utilization of firms for the prosperity of public opinion. The benefit of organizations is reliant variable which is controlled by the profit for stakes, return on value and income for every offer. Food sector from the sustenance segment of Pakistan is chosen as specimen for exploration. Qualitative as well as quantative methods are used in this study to evaluate the impact of corporate social responsibility and corporate financial performance. Nvivo test is applied in qualitative analysis. The conclusion shows the positive relationship of CSR and CFP. It shows that if the firm expand its using on the social exercises it can enhance picture in the clients' brain and hence firm can attain high benefits.

Corporate Social Responsibility and Firm’s Performance: Empirical Evidence from Pakistan

Journal of Management Info

The objective of the study is to examine the impact of CSR activities by the organization on their financial performance. This study employs a quantitative and deductive approach. This research has been carried out with the secondary data which has been taken from the CSR reports of the Overseas Investors Chamber of Commerce and Industry (OICCI) and the annual reports of the listed companies of Pakistan Stock Exchange. In addition to that, the annual reports or sustainability reports of some companies have also been used to collect information about their CSR performance. The sample panel of this study consists of 55 companies having available data for at least a period of 3 years (2014-2016), hence consisting the data of 165 firm years. Random effect linear regression has been run for the two dependent variables for the measure of financial performance. The results indicated that CSR activities in education, community development, health, and infrastructure have a significant impac...

The Relationship between Corporate Social Responsibility and Firm Financial Performance: A Case of Pakistan

World's underdeveloped and conservative nations are surrounded by multiple problems ranging from political turmoil to bad economics. Political instability coupled with economic meltdown is posing serious threat to the very survival of Third World Nations on global landscape as these politically volatile, poorly managed and financially fragile nations are struggling to survive and sustain both politically and economically. Recently, development initiatives in these countries are seriously hampered by the non-availability of material resources which has resulted in form of social and economic downfall of these nations. This drastic situation requires corporate sector to play its role in the social and economic uplift of the nation. Corporate sector having enough resources can make real difference. Different Corporate Social Responsibility initiatives would be a win-win situation as Corporate Social Performance will add to Firm Financial Performance. This paper aimed at investigating the nature and strength of relationship between Corporate Social Responsibility and Firm Financial Performance using Carroll's CSR Pyramid Model. The study analyzed the data of KSE-30 index organizations using Generalized Least Square Regression. In findings, Economic and Legal Responsibility positively impacted Firm Financial Performance while Ethical and Discretionary Responsibility negatively affected Firm Financial Performance. This study would reinvigorate individual and national economy through firm superior performance. It would promote culture of compliance and care by motivating organizations to respect relevant laws.

The Corporate Social Responsibility and Firms’ Financial Performance: Evidence from Financial Sector of Pakistan

2017

Competitiveness of financial sector has increased manifold and the issue of corporate social responsibility (CSR) has become an indispensable concern parallel to concentrating on profitability enhancement. Businesses are consider as social units, they have to serve stakeholders, and tend to execute CSR on priority basis and subsequent disclosure as well. Unhealthy CSR policies may cause externalities and eventual relinquished customers. The main purpose of study is to shed light on the impact of corporate social responsibility on financial performance of banking sector of Pakistan, using a sample of 30 commercial banks listed with Pakistan stock exchange (PSX) for the period of 10 years from 2006 to 2015, selected based upon market capitalization. We applied pooled regression models to investigate the impact of CSR on financial performance. Empirical findings signify the robustness of pooled model that documented a positive and significant impact of CSR on ROA, ROE and EPS. This pre...

The Role of Corporate Social Responsibility on Firms Financial Performance in Pakistan.pdf

The paper investigates the impact of corporate social responsibility on firms‟ financial performances in Pakistan. The data of 50 companies listed in Karachi stock exchange are used over the time 2005-2013. Return on equity, and return on asset is used as a proxy of company‟s financial performance. Whereas, community performance, environment management system and employee relations are taken as a proxy of corporate social responsibility. The data is collected from the annual financial statements published by the companies. The community performance, environment management system and employee relations confirm significant positive relationship with return on equity. The community performance confirms a significant positive relationship with return on asset; environment management system proves significant positive; on contrary, employee relation is insignificant and has no role in firms‟ financial performances. The results conclude the significant role of corporate social responsibility on the firms‟ financial performance in developing countries.

ROLE OF CORPORATE SOCIAL RESPONSIBILITY ON COMPANY'S FINANCIAL PERFORMANCE IN PAKISTAN

The reason for this study corporate social responsibility and corporate financial performance is to assess the relationship between. CSR ethical business needs and to take the hierarchical arrangements for public opinion is to take good choice. It considers important factor for business success. Corporate social responsibility (CSR) is taken as the independent variable and prosperity for public use by firms is measured. Profit organizations for the benefit of the monster, which is controlled by the dependent variable, value and revenue for each offer is back on. Provision segment of Pakistan's search for food sector is chosen as the sample Qualitative as well as corporate social responsibility and corporate financial performance quantitative methods to evaluate the effects used in this study. End of CSR and corporate financial performance (CFP) shows a positive relationship. Using the firm to expand its social practices so that customers can enhance the image of the brain and therefore the firm shows that you can get higher benefits.