Types Of Corporate Social Responsibility Practices

Across The Industry In Pakistan And Their Effectiveness

METHODS IN BUSINESS RESEARCH

TYPES OF CORPORATE SOCIAL

RESPONSIBILITY PRACTICES ACROSS THE
INDUSTRY IN PAKISTAN AND THEIR
EFFECTIVENESS
RESEARCH

Submitted to:

Ms. Nazia Saeed

By:

Syed Hassan Ahmed Naqvi

Sara Imran Khan
Zoya Mujahid
Wareesha Asif
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

ABSTRACT

The purpose of this research is to study the various type of Corporate Social Responsibility
activities practiced across different industries of Pakistan’s Public and Private Corporate Sectors.
The data was collected from a sample size of 135 from different corporate industries such as
Construction, Pharmaceutical, Food and Beverages, petroleum, education Etc. The data was
collected through an online questionnaire which was effectively and strictly distributed to the
members of Pakistani corporate sector. The statistical technique that has been used to analyze this
data is PLS-SEM (Partial Leased Square) technique. The independent variable of this research was
various type of CSR activities across Pakistani Industry and their effect on society, customer’s
preference and company’s responsibility were considered to be some of items of the dependent
variable. The research has got certain limitations and has got the potential to explore new and much
wider horizons regarding the CSR practices in Pakistan.

Keywords: Corporate Social Responsibility, CSR Practices, CSR Effectiveness and Pakistani
Industries
Contents
ABSTRACT ................................................................................................................................................. 2
List of Tables ............................................................................................................................................... 2
List of Figures.............................................................................................................................................. 2
1. INTRODUCTION............................................................................................................................... 3
1.1. Background of the study............................................................................................................. 4
1.2. Scope of the Study ....................................................................................................................... 4
1.3. Objectives of the study................................................................................................................ 4
1.4. Research Questionnaire: ............................................................................................................ 4
1.5. Statement of Problem: ................................................................................................................ 5
1.6. Hypothesis.................................................................................................................................... 5
2. LITERATURE REVIEW................................................................................................................... 6
3. METHODOLOGY ............................................................................................................................... 12
3.1 Data: ................................................................................................................................................. 12
3.2. Variables ......................................................................................................................................... 12
3.5. Sample and Sampling Technique ................................................................................................. 13
3.6. Statistical Technique ...................................................................................................................... 13
4. RESULTS AND DISCUSSIONS ............................................................................................................... 14
4.1. Graphical Analysis .................................................................................................................... 14
Fig. 4.1. Percentage of Responses from Public and Private Sectors across Pakistan ..................... 14
Fig. 4.2. Percentage of Responses from Various Industries of Pakistan .......................................... 15
4.2. Data Analysis via PLS-SEM..................................................................................................... 15
Fig 4.3. Conceptual Model with R values............................................................................................ 15
4.2.1 Measurement Model ................................................................................................................ 16
Table 4.1: Reliability and Validity Test .............................................................................................. 16
Table 4.2: Fornell Lacker Criteria ...................................................................................................... 16
Table 4.3: Cross Loadings .................................................................................................................... 17
Table 4.4: Heterotrait-Monotrait Ratio .............................................................................................. 17
4.2.2. Structural Model Evaluation ................................................................................................. 17
5. CONCLUSION ...................................................................................................................................... 18
5.1. Conclusion .................................................................................................................................. 18
5.2. Limitation.................................................................................................................................... 18
5.3. Recommendation ....................................................................................................................... 18
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

REFERENCES ................................................................................................................................................ 19
APPENDIX ................................................................................................................................................ 21

List of Tables
Table 4.1: Reliability and Validity Test .............................................................................................. 16
Table 4.2: Fornell Lacker Criteria ...................................................................................................... 16
Table 4.3: Cross Loadings .................................................................................................................... 17
Table 4.4: Heterotrait-Monotrait Ratio .............................................................................................. 17

List of Figures
Fig. 4.1. Percentage of Responses from Public and Private Sectors across Pakistan ..................... 14
Fig. 4.2. Percentage of Responses from Various Industries of Pakistan .......................................... 15
Fig 4.3. Conceptual Model with R values............................................................................................ 15
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

1. INTRODUCTION
CSR in general defines about the responsibilities and duties of a company for
the society in which they carry out their operations. According to an online research, CSR is most
commonly defined by the Commission of the European Communities in 2001 as an idea where
firms participate in social and environmental concerns through their industrial operations and
interacting with their stakeholders on voluntary basis. Furthermore, the World Business Council
for sustainable development in 1999 defines CSR as an assurance from the firm to participate to
a maintainable economic growth, working with their employees and their families and mainly the
community and society to improve the living standards as found in (Dahlsrud,2008).

We can now state that the central idea of CSR is basically an association of a firms business with
other things such as culture, economy, environment and social systems because their business
through such activities effects and are effected by such interests in the surrounding of their firms
operations. These relationships may have a strong interest to boost the economy of a country or
business but they may also have their initial focus on society and environment. A survey was
conducted in Hong Kong where it was analyzed that environment, health, safety, governance,
corruption and human resource management were highly rated when it came to conduct CSR
activities. (Welford et al., 2007). Corporate Social Responsibility can vary from society to society.
During a research conducted in 2009, it was implied that societies are different from each other
and CSR activities can change as per the requirement of a certain society (Halme et al., 2009).

Before getting into further details, let us define the need for this paper. Looking at the previous
researches about CSR or sustainable development in developing countries or small economies,
very little is done (Luken,2006). This furthermore tells us that the researches done on western
and much more developed countries and stable economies cannot be simply applied in the
scenario of developing countries. (Fox, 2004; Prieto-Carrón et al., 2006).
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

1.1. Background of the study

The researches done on Corporate Social Responsibility in developed countries are far
more in quantity than the researches done on CSR in developing countries. One could easily say
that there are less agencies and institutions in the developing countries working on social
responsibility in general. Therefore, it needs to be studied for the situation in developing
countries (i.e. Pakistan) where it is practiced.

1.2. Scope of the Study

There should be a resolution of concerned efforts by the private and public sector and
non-governmental organizations to initiate such activities and create structures, institutions and
agencies that participate to social justice, environmental protection and removal of poverty.
(Wiley,2009)

1.3. Objectives of the study

The objectives of this study are as follows:

 To analyze and hold forth issues regarding CSR in the cultural context of Pakistani
organizations.
 Comparison of CSR structures in Pakistan and developing countries across the globe.
 Emphasize on the efforts made by the public and private sectors for the eradication of ‘legal
misuse’.

1.4. Research Questionnaire:

 How do various CSR activities positively affect the society?
 What is the Comparison of CSR structures in Pakistan and developing countries across the
globe.?
 What are the important CSR practices in Pakistan?
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

1.5. Statement of Problem:

Looking at the preceding researches about CSR or sustainable development in growing nations or
small economies, little or nothing is done (Luken,2006). This moreover tells us that the
researches finished onwestern andlots moreadvanced countries and solid economies cannot be wi
thout a doubt applied inside the state of affairs of growing nations. (Fox, 2004; Prieto-Carrón et
al., 2006)

1.6. Hypothesis
 H1: Private sector positively contribute towards the betterment of society with the help
of CSR.
 Private sector is not positively contributing towards the betterment of society with the
help of CSR
 H2: Public sectors working for the CSR effects the people who live in society.
 Public sectors working for the CSR do not effect the people who live in society.
 H3: CSR activities positively effects the image of the Company
 CSR activities does not positively effects the image of the company.
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

2. LITERATURE REVIEW
The ideology of Corporate Social Responsibility has always been practiced in
businesses in a progressive way. The perception of CSR has been relaunched over the past few
years but the corporate industry has got some different views about CSR over its advantages.
People who don’t agree with the idea of CSR argue that the entire purpose of practicing CSR in
business is to generate profit. However, people who support such practices emphasis that CSR is
a necessity for successful business operations and it provides a platform for industries to have a
wide horizon about the social and economic activities. Although people having different views
about CSR, it is also highlighted that the activities of CSR are effected by when companies have
different opinions about their corporate dealings due to different cultures in different countries,
(Jamali,2006).

A paper done by Abreu et al. (2005) on the CSR-related experience has clearly highlighted the
differences in culture and recommending the need for research socio-cultural determinants.
Another research done by Doukadis et al. (2005) on the CSR approach states about the importance
of managerial initiative and the profit of an organization (tax free) as a main boost for the practice
of CSR activities. A similar result was derived by another paper done by Juholin (2004) which
suggested the same that the initiatives taken by manager and long term profit for the company are
the main factors for the CSR activities in Finalnd.

There is difference between the CSR activities of smaller and larger firms as the attention is
stressed towards the profitability between the manager of smaller firms. It is also noticed that there
is lack of support from the public regarding the CSR in Italy. A Study in Spanish suggests that
there are certain differences among the corporate sectors, in which one of them realizes and
recognizes the need of social responsibility while another has view of complete maximization of
profits, (Jamali, 2006). Thus this explains that due to the cultural differences CSR activities may
vary and can find obstacles.

Beside culturally diverse contrasts, it is between testing to take note of the assortment of
philosophies embraced when looking at CSR experimentally. A few examinations considered CSR
to involve moral duty, taking a gander at charitable duty as a discretionary add-on Different
investigations have made a differentiation between CSR as basic legitimate consistence Versus
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

CSR as leading business with a high respect for ethical quality.A few studies have alluded to
different sorts of CSR – financial, lawful, moral, altruistic others have used a partner approach,
looking at the CSR commitments and commitments of firms versus a variety of key partners while
others have made differentiations between traditional, financial, humanitarian, and present day
perspectives on CSR. (Jamali, 2007).

This variety stems to some degree from the waiting perplexity with respect to what CSR decisively
involves. Two significant camps in the CSR discussion can be portrayed. The main camp accepts
rather solidly that a corpo- proportion is a legitimate build and has just the two obligations offered
by the law making it, in particular profiting for proprietors and complying pertinent standards
Another gathering accepts that partnerships demonstration purposefully by means of the
purposeful activities of their individuals and thus bear the obligations and commitments of any
great individual or native, however on a corporate scale The first view converts into a thin
origination of corporate obligation as basically involving financial what's more, lawful obligations,
while the second interprets into a more extensive origination of CSR involving a more extensive
scope of monetary, legitimate, moral, moral, and phil- human-centered duties. (Jamali, 2007).

According to Cabrera Suarez (2005) and O’Brien (2000), the first responsibility camp’s vision is
narrow and connected to the classical perspective which elaborates how the main aim of businesses
is merely to produce and sell goods and services that accelerate profits legally. Meanwhile, the
broader vision is linked to the second responsibility camp which elaborates how businesses should
acknowledge and work towards their social responsibilities and principles of morality and
accountability.

Pettit (2005) argues on the incorporation of responsibility by the corporations and how necessary
it is to avoid deficits. All in all, the broader concept of responsibility encompasses around the
connection of the modern corporation as the center of authority and decision making. Earlier
concepts elaborated by scholars such as McGuire (1963) and Davis (1973), suggested how the
responsibility of the firm is not restricted to economic and legal frameworks. Furthermore, in the
modern day, it is evident how the corporations not only have legal responsibilities but social as
well.
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

The European Agriculture Economics journal article on Corporate Social Responsibility in the
Food Sector, analyzed the importance of CSR in food sector, especially for those high-brand CSR
businesses, but small and medium-sized enterprises are less capable of fulfilling their social
obligation, Hartman (2011), Further, research has shown that the food sector is always trying to
improve the control and discharging of its services to consumers. Consumers often favor labels
that support CSR initiatives and offer good products and services. (Srivastava et. al 2017)

The Economic Times published an article titled "CSR: a crook’s mask," on 21 October 2012, that
so many companies have participated in corporate social responsibility but still have financial
crises, corruption and other unsocial triggers. An explanation of the business Satyam Computer
Services was given in this report. The enterprise has received several CSR awards, which include
commitment and services from rural communities such as healthcare, education and water.
(Srivastava et. al 2017)

CSR is the face of the industry when it comes to trading. The Bibhu article continued, that
companies are currently investing in different areas such as child labor, ground water, food,
education, job creation etc, while none of them is aware of the vital need of those poor in the world.
Bibhu said, corporate companies are now using CSR as a medium for profit greed. The article
states that making income is a natural fact of the companies but CSR goes beyond the company's
financial and legal duty. (Srivastava et. al 2017)

Mallen, (2012) described the changes in CSR trends since so many years last. This change has
affected society as well as business and has explained three basic facts concerning the change in
trend:

• Business and society have changed due to the social and environmental problems worldwide.
• CSR leadership has played a large role in business development approaches for businesses,
which are expressed in their products and services and new ideas for company innovations.
• The activity of the business often includes certain entities such as government organizations
and the company's own priorities. (Srivastava et. al 2017)

In his address, Mr. Fredrick Ma, Secretary for Financial Services 2004, discussed the idea of CSR
through a study carried out by 1500 business leaders involved at the World Economic Forum at
Bevos. In which 5 percent of leaders said that CSR is important for business success and 24
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

percent said that the CSR is not significant, but for the companies the priority of the investor is
most important. (Srivastava et. al 2017)

Moon (2004), a paper on government's role in driving corporate social responsibility. The study
found that the CSR drivers are market and company-related, and that government is the engine of
CSR by creating real and consistent partnerships and formulating policy and regulations correctly.
The report also discussed the scenario in the other nation and how its government has taken over
businesses to push CSR. (Srivastava et. al 2017).

Corporations and Businesses have realized how significant it is for them to be involved in CSR
practices. This is not merely because they are obliged by government regulations, but also because
they are aware of how these practices help them gain or raise their market shares. According to
Kanji and Chopra, 2010, companies today consider CSR activities an effective tool to promote
their brand name and image in the market to their potential customers. It is more like brands at
war. Bendall described how NGOs have also played an immense role in pressurizing corporations
to work in a socially responsible manner. Being socially responsible helps firms gain advantages
like higher employee morale and productivity, greater stock investors, a positive public image,
ease in attaining financial assistance (if needed) and government support.

The corporations are realizing that in order to succeed and gain public support, they must focus
not only on performing financially well but also socially well. A study suggests that socially
responsible actions benefit the firm in term of high employee morale and productivity (Moskowitz,
1972). On the other hand, they have often joined hands with big corporations to develop policies
and regulations which are for the welfare of the general public and the society (Bendell, 2005).
The firm probably gets loans and financial assistance easily; as such firms are thought to have
healthy credit worthiness. In addition, two sets of CSR information have been studied
simultaneously, which is current performance and new services based information, and in the end
the loyalty aspect of the customer outcome has been channeled into three variables: purchase
willingness, brand commitment, and positive word of mouth (Chomvilailuk, 2014). Thus, it shows
that CSR and corporate abilities have a strong relationship for which one component must be kept
constant in order to understand the impact of the other on the positive customer outcome
(Chomvilailuk, 2014). Entrepreneurs give importance to social responsibility in corporate decision
making processes, creating a strong link between a firm’s social and ethical policies and its
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

profitability (Arlow 1982). In the past studies many researchers have tried to cover different aspects
of CSR in terms of its relationship with company’s stakeholders, profitability, performance, and
market share. Studies show that measuring the effectiveness of CSR practices is a very complex
task and so far researchers have linked it to the elements of financial statements in order to measure
its effectiveness. Corporations’ major and foremost aim is to satisfy their customers in order to
gain market share and investors in order to gain future cash inflows. This implies that the stream
of future cash inflows in the financial statement is not the single indicator of company’s
performance. Studies show that measuring the effectiveness of CSR practices is a very complex
task and so far researchers have linked it to the elements of financial statements in order to measure
its effectiveness. In the last decade, the trend of CSR practices by large and small firms together,
has shown a tremendous growth including the 90% of the fortune 500 companies (Kotler & Lee,
2005).

A strong linkage can be created between a firm’s profitability and involvement towards social
responsibility. Some firms may argue that being socially responsible incurs a loss. Meanwhile, less
socially responsible firms earn great profits with low operating costs but high social costs. The
categorization of companies into different sectors also determines the level of CSR activities and
their effectiveness within the corporate structure, for instance, NGOs stand out when compared to
a tobacco company because of their nature of business/work which makes them more aware of the
social issues and inclined towards resolving them (Sania Batool et al; ,2016)

In view of the above, and with the intention of adopting a clear and justified methodology that is
constant with the broader greater progressive idea of responsibility, this lookup has opted to
capitalize on two sturdy CSR conceptualizations that are properly grounded in the literature.
According to a study done by Carroll (1979), stated that a four-part definition of CSR that was
once embedded into a conceptual model of corporate social performance (CSP). A paper done by
Wood (2009) positioned CSR into a complete framework, emphasizing concepts guiding duty
behavior, methods of responsiveness and results of performance.
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

Types of CSR practices across Industries in Pakistan:

The Pakistani industry comprises of the public and private sector. These sectors provide both
manufactured and processed goods. Service providers such as; Warid, Mobilink, Ufone are also
included in these sectors as well as FMCGs like P&G and Colgate Palmolive. Each company
strives to be socially and morally responsible in every corporate activity that they perform. This in
turn helps them increase their market share and market potential and would also give greater profit
margins. CSR activities have widely been performed previously and are being incorporated in
every corporate firm. Pakistan State Oil (PSO) recently launched a tree plantation activity in order
to compensate the damage fuel discharge causes to the environment. A campaign of helping
retarded children learn a skill was launched by Ariel which is a P&G brand. Companies like
Unilever have brought forward cartoon characters to develop the habit of cleaning and importance
of hygiene in children. This also helps them to market their products more effectively. The timing
of each CSR activity also plays a great role in it to achieve a gain for the company and this may
vary from industry to industry (Sania Batool et al,2016).
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

3. METHODOLOGY
3.1 Data:

The data types used for this research are both primary and secondary data. The primary research
method adopted is a questionnaire which will be used to generate responses from our selective
sample of the corporate and industrial sector.

The secondary sources of data include our base paper, that is, ‘Corporate Social Responsibility
and Developing countries’ by Peter Dobers and Minna Halme. Another research paper used for
abstract extraction in our literature review is ‘Corporate Social Responsibility (CSR): Theory and
Practice in a Developing Country Context’ by Dima Jamali and Ramez Mirshak. Various articles
such as, ‘Types of Corporate Social Responsibility Practices across the Industry in Pakistan and
their effectiveness’ by Sania Batool, Aroosha Butt and Beenish Niazi and ‘Corporate social
responsibility influences, employee commitment and organizational performance’ by Imran Ali,
Kashif Ur Rehman, Syed Irshad Ali, Jamil Yousaf and Maria Zia, have also been used in order to
define the variables of our research.

3.2. Variables

Types of CSR Practices

Across Pakistani CSR EFFECTIVENESS
Industries
DEPENDENT VARIABLE
INDEPENDENT VARIABLE

3.3 Inclusion Criteria:

Approximately 150 respondents will be sampled and their responses will be recorded in order to
observe CSR practices and their effectiveness in various industries. The main purpose of this
sampling technique will help us broaden our research scale to compare how these industries
contribute to the environment and other sectors of social responsibility.
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

3.4 Data Collection Instrument:

Primary data is collected through survey questionnaires and hypotheses are tested on the bases of
collected data. Our data is taken from secondary as well as primary sources because we used the
information from different websites and conducted a survey through a questionnaire. The major
source of our data collection was the companies’ official websites and our questionnaire. We also
compared companies’ past data with the recent ones to check the trends.

3.5. Sample and Sampling Technique

The Sampling Technique will be a Selective Sample as CSR activities are carried out within public
and private Companies. Our Sample group will include 150 representatives from the following
industries of Pakistan:

 Petroleum
 Pharmaceuticals
 Food & Beverages
 Construction
 Management
 Education
 Private Business

A questionnaire will be distributed among these representatives to know about the frequency of
CSR activities and their effect on society and organizations.

3.6. Statistical Technique

Partial Leased Square technique was used to analyze the data and test hypotheses. The structural
equation model technique is an important tool which involves identification of variable and
development of theoretical model. Hypotheses are then framed based on theoretical model.
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

4. RESULTS AND DISCUSSIONS

The research is quantitative hence follows the philosophy of positivism and questionnaire is used
to collect data which displays statistical analysis of data (Slevitch, 2011). The topic of the research
is types of corporate social responsibility practices across the industry in Pakistan and their
effectiveness.

4.1. Graphical Analysis

Fig. 4.1. Percentage of Responses from Public and Private Sectors across Pakistan
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

Fig. 4.2. Percentage of Responses from Various Industries of Pakistan

4.2. Data Analysis via PLS-SEM

Data analysis has been done with the help of partial least squares (Smart-PLS)

which is a variance-based structural equation modelling (SEM) technique and it helps

in carrying out the functions with multiple regression modelling (Henseler, Hubona &

Ray, 2016). It is said to be the most develop variance based SEM method as it models

both factors and composites (Risdon, 2012). It is defined by two models i.e.

measurement model which describes the relations between a construct and its observed

indicators and structural model which describes the relationships between the

constructs (Henseler, Hubona, & Ray, 2016). Moreover, SMART PLS can easily carry

out the required tests on small samples. (Hoyle, 1995).

Fig 4.3. Conceptual Model with R values.

 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

4.2.1 Measurement Model

The following table measures the reliability and validity. Reliability is measured through
of Cronbach alpha and composite reliability whereas validity is measured through Average
Variance Extracted.

The minimum value for Cronbach alpha is 0.7 (Taber, 2016) and the minimum value for composite
reliability is 0.700 (Hair et al., 2011). Since all values of Cronbach’s alpha and composite
reliability are above the minimum threshold, hence reliability of construct is established.

Table 4.1: Reliability and Validity Test

Average
Composite Variance
Cronbach's Alpha rho_A
Reliability Extracted
(AVE)
CSR EFFECTIVENESS 0.817 0.869 0.875 0.638
Types of CSR
Practices Across 0.934 0.945 0.944 0.655
Pakistani Industries

Discriminant validity is measured through Cross Loadings, Forner Lecker Criteria and
HTMT ratio. The minimum value for HTMT is 0.85 (Henseler, Ringle, and Sarstedt,
2015).
Table 4.2: Fornell Lacker Criteria
Types of CSR Practices
CSR
Across Pakistani
EFFECTIVENESS
Industries
CSR
0.799
EFFECTIVENESS
Types of CSR
Practices Across
0.635 0.809
Pakistani
Industries
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

Table 4.3: Cross Loadings

Types of CSR
Practices
CSR
Item Across
EFFECTIVENESS
Pakistani
Industries
EC1 0.733 0.423
EC2 0.71 0.293
EC7 0.849 0.552
EC8 0.888 0.652
TA1 0.433 0.76
TA10 0.672 0.815
TA2 0.489 0.771
TA3 0.465 0.822
TA4 0.553 0.88
TA5 0.383 0.79
TA7 0.593 0.906
TA8 0.51 0.802

Table 4.4: Heterotrait-Monotrait Ratio

Types of
CSR
CSR Practices
EFFECTIVENESS Across
Pakistani
Industries
CSR EFFECTIVENESS
Types of CSR Practices Across Pakistani
Industries 0.669

4.2.2. Structural Model Evaluation

Since p-values are less than 0.05, our hypothesis is supported.
Table 4.5 R Square Table

Original Sample Mean Standard T Statistics P Values

Sample (O) (M) Deviation
(STDEV)
CSR 0.404 0.428 0.080 5.079 0.000
Effectiveness
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

5. CONCLUSION

5.1. Conclusion
This study successfully manages to elucidate the current CSR state and its organizational,
environmental, and customer-based impact in a developing country such as Pakistan. As per the
test carried out our hypothesis has been accepted. The result of the surveys tells us that public and
private sector in Pakistan’s corporate industry is eager to work towards the betterment of the
society. It is clear from this research that various CSR activities carried out by various industries
of Pakistan such as stopping the youth from smoking, environmental protection, eradicating child
labor does bring a positive impact on the society as well as the image of the company.

5.2. Limitation
This study has a few drawbacks. Firstly, the sample size of the study was small. Secondly,
it only focused on the CSR state in a few cities and therefore, cannot possibly account for the CSR
state across Pakistan. Moreover, we did not stratify the sample according to the different corporate
sectors and industries and did not sub-stratify it according to different designations in each
corporate sector in various provinces of Pakistan, all of which, would have led to better organized
data eventually increasing the overall power of the study.

5.3. Recommendation
Although, it is clear that the companies operating in Pakistan have properly aligned
processes but they lack practicality. Similarly, there is negligible dissemination of awareness to
the people and corporations. Therefore, there is a dire need of adopting CSR thoughts and practices
along with proper dispersion of what CSR is to the concerned, as it will not only ameliorate a
company’s profitability but will also influence customer interaction.
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

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 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

APPENDIX

Least important (LI) | Less Important (L) | Neutral (N) | More Important (I) | Most Important (MI)

INDEPENDENT VARIABLE: Types of CSR Practices Across Pakistani

Industries LI L N I MI
Most Important to Least Important CSR Practices. With 1 Being the Least
Important and 5 Being the Most Important

Adapted from Sania Batool et. al., 2016

1 Health Initiatives

2 Social Welfare Program

3 Environment Initiatives

4 Youth Smoking Prevention and Afforestation

5 Charity Campaigns and Donations

6 Sports

7 Eradication of Poverty

8 Promoting Resource Conservation

9 Training and Development

10 No to Child Labor
 Types Of Corporate Social Responsibility Practices
Across The Industry In Pakistan And Their Effectiveness

Strongly Disagree (SD) | Disagree (D) | Neutral (N) | Agree (A) | Strongly Agree (SA)

DEPENDENT VARIABLE: CSR EFFECTIVENESS SD D N A SA

The effect of CSR activities on an organization. With 1 Being

Strongly Disagree and 5 Being Strongly Agree
Adapted from Sania Batool et. al., 2016

1 CSR activities Inclines a Customer to Stick to the Brand of his/her

Choice

2 CSR helps in Increasing Customer Awareness

3 Company has an Edge over Its Competitor

4 CSR Effectiveness Is Determined by the Type of Company Practicing

CSR

5 CSR Wars are like Brand Wars

6 CSR Affects the Buying Pattern of Customer

7 CSR Affects the Ways People Live in a Society

8 CSR Make the Firms More Responsible