CORPORATE SOCIAL RESPONSIBILITY AND FINANCAIL PERFORMANCE: A STUDY OF ISO 26000 IMPLEMENTED COMPANIES

Abstract

Corporate Social Responsibility (CSR) as a common business practices has only recently established a foothold in developing countries. This paper examines the relationship between CSR and Corporate Financial Performance (CFP) for Pakistani firms. Pakistan was chosen due to it’s one of worlds developing countries and has undergone radical economic and social change. The objective of this research to determine whether CSR based on environment, community, and employs and customer and philanthropic items have positive, negative or neutral relationship with CFP. CSR dimension of customer, community, environment and employees and philanthropic is used as independent variable while financial performance is used as dependent variable. Regression analysis used to test the relationship by using SPSS. Prior studies had produce mixed result but most research found there is positive relationship between CSR and CFP. The result of this study concludes that there is positive relationship between CFP and CSR.