Study Review

Corporate social responsibility also called corporate soul; corporate citizenship or responsible
business is a type of corporate self-control coordinated into a plan of action. A growing body of
literature suggests that an organization’s involvement in corporate social responsibility (CSR)
policies and practices tends to contribute not to only financial outcomes at the organizational
level, but also to nonfinancial outcomes such as the firm’s reputation in the eyes of its consumers
and its attractiveness to investors by satisfying external stakeholders’ expectations

This paper explores how CSR factors influence customer satisfaction and loyalty, and
moderating effects of corporate image in the relationships between CSR and customer
satisfaction and customer loyalty. The findings show that CSR positively affects customer
satisfaction and loyalty, and customer satisfaction positively affects customer loyalty. The
importance order of CSR factors is as follows: consumer protection, philanthropic responsibility,
legal responsibility, ethical responsibility, economic responsibility, and environmental
contribution. The moderating effect of corporate image in the relationship between CSR and
customer satisfaction is identified. Thus, managers should put CSR factors into action in the
perspective of consumers, which will encourage customers to perceive the firm's more favorably.
A survey shows that 76 percent of executives believe that CSR contributes positively to long-
term shareholder value. Satisfaction is not inherent in the product or the service itself but,
instead, satisfaction primarily consists in the consumer’s perceptions of the attributes of the
product or service. It is widely agreed that customer satisfaction leads to customer retention,
purchase intentions and word-of-mouth. Research indicates that having a favorable corporate
image and reputation can provide a company with a distinctive and credible appeal, as well as a
more effective form of differentiation and a source of competitive advantage.

This study posits that benefits of CSR behaviors also exist inside an organization. In spite of the
increasing importance of corporate social responsibility (CSR) and employee job performance,
little is still known about the links between the socially responsible actions of organizations and
the job performance of their members. In order to explain how employees’ perceptions of CSR
influence their job performance, this study first examines the relationships between perceived
CSR, organizational identification, job satisfaction, and job performance, This study thus focuses
on employees’ perceptions of the CSR implemented by the organization to which they belong,
and defines perceived CSR as the degree to which employees perceive whether their
organization takes part in CSR policies and practices [2]. CSR refers to organizational actions
that take into account stakeholders’ expectations in economic, social, and environmental
contexts. This study regards organizational identification as a primary mediator between
perceived CSR and job performance. Organizational identification refers to the psychological
connection between the definition of an organization and the definition of an employee.
Employees perceive their organization’s image to be attractive; they tend to have strong
identification with the organization. It is proposed that employees who believe that their
organization takes socially responsible actions are likely to perform their jobs well, firstly
because they identify strongly with their organization, and secondly due to their satisfaction with
their job. The theoretical arguments of this study so far suggest that employee’ perceptions of
their organization’s socially responsible actions as being good to encourage them to identify with
the organization, which in turn increases their satisfaction with their job, eventually leading to
superior job performance. The findings of this study therefore suggest that the win-win
relationship of companies and their members through individual beliefs of organizational CSR
policies and practices are able to be realized.
This study links aspects of the corporate social responsibility (CSR), ethics, justice, and trust
literatures and helps to explain how employees’ ethical climate perceptions form. It is propose
that employees look (1) outward at how communities are impacted by their organization’s
actions (e.g., CSR), (2) upward to make inferences about the ethicality of leaders in their
organizations (e.g., ethical leadership), and (3) inward at their own propensity to trust others as
they form their perceptions. Research has shown that perceptions of ethical climate are
associated with numerous positive outcomes at the individual (i.e., job satisfaction,
organizational commitment, ethical employee behavior) and organizational level (i.e., efficiency,
social responsibility, organizational learning, and performance. Employee propensity to trust
refers to an employee’s dispositional tendency to trust or their willingness to become vulnerable
to the actions of other people. The actions and characteristics of multiple actors within an
employee’s social context form the building blocks of ethical climate. In other words, we assert
that employees’ ethical climate perceptions, stem at least from a combination of outward
(context), upward (leader), and inward (disposition) factors—all of which contribute to the
formation of employees’ ethical climate perceptions. Thus, the relative strength of outward,
upward, and inward drivers may characterize future research on the development of ethical
climate perceptions. When employees see their organizations as acting in socially responsible
ways, they are likely to view top management as more ethical and to see their organizational
climate as more ethical.

Large organizations or corporate in Pakistan are successfully fulfilling their legal and ethical
obligation. This study encompasses the concept of CSR in the context of Pakistan and discussed
a comprehensive background of the firms. Activists contend that while working with a CSR view
point, firms and corporates lump long term benefits. While there are critics who contend that
CSR diverts organizations from their financial part. In Pakistan, MNC’s are doing CSR activities
at large, this maybe because of tremendous competition. MNC’s such as Coca Cola, Nestle,
Pepsi, Lever Brothers and Unilever’s and Siemens, have driven the scene in Pakistan. Banks
have begun another pattern by beginning sports advertising. The commitment made by English
Biscuits Manufacturers in almost every field of life such as sports, art and fun and grooming, is
something to be highly recognized. Local companies include Engro Crop, PTCL,Adamjee
Insurance Company Limited ,Fauji Cement Company Ltd,Fatima Fertilizer Company
Ltd,Pakistan Tobacco Company Limited, Roots International Schools, ,Hum Network Ltd,K.
Electric, Pakistan State Oil, EFU Life Assurance. For CSR to accomplish its maximum capacity,
it is required that more organizations understanding the business advantages of the approach and
embracing it, since it benefits the organization and the group it works in. As CSR develops in the
nation and organizations start to understand the business instance of good CSR hone, it will
prompt better, more impactful activities