IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) ON FIRM’S PERFORMANCE CEMENT SECTOR OF PAKISTAN

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