Abstract:
Purpose, The purpose of this research is to find out the effect of corporate social responsibility on the
financial performance of the cement sector of Pakistan. To see the comparison between the
profitability of the cement companies that are doing CSR and that are not doing CSR.
Methodology, The secondary data has been collected from the financial statements of 6 cement
companies listed in Karachi Stock Exchange from FY 2004 to 2015. Data is analyzed through SPSS
software.
Findings, By analyzing the relationship between the independent and dependent variables the
outcome from SPSS shows that the companies doing CSR has a positive relation with net profit, net
profit margin, return on asset and earnings per share from those companies that are not doing CSR.
Return on equity has no impact with CSR as shown in the result.
Practical Implication, In today’s era companies are more focusing onmaximaization of the
shareholder’s wealth and to attract their investors by actively participating in corporate social
responsibility. This will also increase the scope of CSR in developing countries as CSR is only
limited to developed countries.
Keywords, Coiporate Social Responsibility, Financial Performance, Cement Sector
