Impact of CSR on financial performance
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Date
2017
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UMT,Lahore
Abstract
This study intends to explore the relation between the practices of Corporate Social Responsibility (CSR) and the financial performance of banks using the measure of ROA. This research helps to improve the knowledge and managerial practices. The current study uses Pakistan’s banking industry as the empirical setting. The methodology of the study is based on the creation of a 32-item scale CSR disclosure index to measure CSR and then regression results are applied on the models. The results concluded that all Banks in Pakistan view CSR practices as strategic activity and are included in the annual reports of banks. Moreover, there exist significant relationship between customer related CSR and financial performance (ROA) and insignificant association between employees related CSR, stakeholders related CSR and CSR in totality and financial performance (ROA). Future research can investigate the effect of CSR on other factors like knowledge and talent management, human capital development etc. Furthermore, other developing countries can be taken in the study for the investigation of CSR.