Abstract:
The research report is aimed at providing information about CSR and its possible impact
on financial performance of the selected corporation. An attempt is made to provide key
elements and aspects of CSR initiatives that might be responsible to affect financial
performance of Engro Corporation. A theoretical framework has been drawn to describe
the possible impact of selected factors on measures of financial performance including
Return on Assets (ROA), Return on Equity (ROE), current ratio and P/E ratio as
dependent variables of research study.
Qualitative research approach was undertaken to investigate an authentic answer to the
research question. Primary as well as secondary sources were used to compile data on the
subject matter. Questionnaire survey was conducted through general public to create an
understanding of the sort after relationship between CSR and financial performance.
Secondary sources such as virtual connectivity and cyber knowledge were also brought
into use.
Findings of survey responses reflected that general perception about CSR and financial
performance is affirmative i.e. financial performance of an organization could be affected
from CSR initiatives taken by that organization. The notion was supported by data
gathered through respondents’ survey. Hence, it could be said that CSR and financial
performance of Engro Corporation have positive relation; therefore, such decisions will
be critical to financial health of the corporation.
Key factors that could be linked to identified relationship were public image, customer
perspective, employee satisfaction, transparent program, corporate philanthropy,
employee participation and stakeholders.
Moreover, conclusions were drawn based on the information gathered through both
sources and to provide reasonable findings to the project. Finally, few recommendations
were listed down for involved parties including employees, management, policy makers
and investors, which could be helpful in effective CSR initiatives that can be beneficial
for all stakeholders of the society.
