Abstract:
Purpose
The research purposes to study the impact ofCorporate Social Responsibility ofthe Corporate
Financial Performance in context of Pakistan.
Methodology & Design
The research has been conducted by utilization of data based on secondary sources and the
quantitative data is used to conduct the research. A sample of20 Pakistani companies has been
selected to conduct the research based on convenience sampling. Moreover, the deductive
research approach has been utilized as the hypothesis for the research has been formed to
conduct the statistical testing.
Findings
The value ofR-squared in the OLS regression model is 0.815, which suggests a higher fitness
ofregression model. It has been concluded that the sig. or p-value for the model as a whole is
0.00, which suggests that the independent variables as a cumulative have statistically
significant impact on the dependent variable i.e. ROA. Moreover, it can be drawn from the
variable level analysis that the tax, salaries, EPS, cost rate and debt to equity ratio have a sig.
value oflower than 0.05 suggesting that these variables affect corporate financial performance
significantly at 95% confidence interval.
Limitations
this research include small sample size, utilization of selected Numerous limitations faced in
financial data from financial statements, application of limited statistical tests, utilization of
is faced with availability of limited resources convenience sampling and the fact that research
in terms of physical resources and time.
Recommendations
To end research, recommendations have been provided to Pakistani businesses. Firstly, the
businesses are recommended to consider stakeholders’ theory while trying to maximize the
CSR. Secondly, it is recommended to the businesses that they must try to maximize the amount
invested in CSR as it will eventually be reflected in the bottom-line ofthe company. Thirdly,
it has also been recommended to the Pakistani businesses that a keen focus towards these
stakeholders is critically important in boosting the CFP.
