Abstract:
Purpose: The primary and basic aim of this study is to measure the impact of CSR on the
financial performance ofmanufacturing concerns in Pakistan. This helped in finding the fact that
whether CSR activities are presenting negative or positive impact on the manufacturing
businesses ofPakistan.
Mcthodology/sample: In order to conduct this research, quantitative and secondary research
method has been selected with the help of annual statements of eight manufacturing companies
that are listed in Karachi stock exchange. The time span of 2014 to 2019 is considered to carry
out the work on this research. Convenience sampling is used as a sampling technique to conduct
this research.Hausman test is used as cross sectional approach in order to get results. Cross
section effect has also been measured in this study.
Findings: The results ofthe study conclude that income tax and accounts payable turnover has
negative impact on ROA. Whereas, the impact ofsalaries, dividend per share, interest coverage
and Debt to asset is positive on ROA. Hence, it can be said that income tax and APT is reflecting
bad influence on the financial performance ofmanufacturing concerns ofPakistan.
Practical implications: It is suggested for both the government and organizations to focus on
the implementation ofCSR activities in order to ensure wellbeing and betterment ofthe society.
Effective policies from government related to CSR activities can be helpful for the society. It is
certain that appropriate policies related to CSR will be mutually helpful for the performance of
organizations and wellbeing ofthe society.
