Abstract:
The field of corporate social responsibility (CSR) contains range of issues and standards which are later accountable to the environment. This study will focus on CSR through the stakeholders’ and profitability’s perspective. Companies are now more concerned about their surroundings, brand image, volunteer work, ethics, ROA, ROE, stakeholders satisfaction and ultimately the net income, in other words the profitability. The purpose would be to see whether the financial sector focuses on CSR and if it does then it is for stakeholders’ satisfaction or it is for the overall profitability of the firm. There are many literatures which found a significant link between ROA and ROE with CSR but then again there were studies which had an insignificant link among the two so it’s not consistent. On the other hand the independent variables which included the work ethics, brand image etc. showed a significant link with CSR. So the results revealed that CSR does contribute to the log-term probability of the firm and it is also done for the stakeholders’ satisfaction as they have a major role as well.
