TABLE OF CONTENTS

Executive Summary.........................................................................................................................3
Introduction.....................................................................................................................................4
Problem Statement:.....................................................................................................................4
Research Objective:.....................................................................................................................4
Background Of Research..............................................................................................................5
1.4) Research Goal.......................................................................................................................6
Literature Review.............................................................................................................................7
Definitions Of Concept And Variables:.........................................................................................7
2.1) WHAT IS CSR?....................................................................................................................7
2.2) FINANCIAL PERFORMANCE...............................................................................................8
2.3) RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITIES (CSR) AND FIRM’S
FINANCIAL PERFORMANCE (FFP):............................................................................................8
2.4) THEORETICAL BACKGROUND OF RESEARCH:....................................................................9
2.5 THREE APPROACHES TO CORPORATE RESPONSIBILITY...................................................10
2.5.1) CORPORATE SOCIAL RESPONSIBILTY...........................................................................10
2.5.2) CONCLUSION ON THE THREE FORMS OF CORPORATE SOCIAL RESPONSIBILITY.........12
3.9) THEORETICAL FRAMEWORK...........................................................................................14
3.3) HYPOTHESIS:...................................................................................................................14
CHAPTER 3: RESEARCH DESIGN.....................................................................................................15
3.1) Research Approach.............................................................................................................15
3.2) Research Method................................................................................................................15
3.4) Population And Sample:.....................................................................................................15
3.5) SAMPLING TECHNIQUES:...........................................................................................................15
3.6) Sample Size:........................................................................................................................16
3.7) Data Collection Tool:...........................................................................................................16
3.8) Instrument And Technique Of Data Collection:..................................................................16
Regression..................................................................................................................................17
Correlations................................................................................................................................18
Significance Of The Result..........................................................................................................19
Interpretation Of The Findings...................................................................................................19
Source: Author’s Estimation......................................................................................................19
Methods Of Business Research Report Effect of CSR on Firm’s Financial growth in Pakistan

Findings Through Survey:...........................................................................................................20

Conclusion And Recommendations...............................................................................................22
Future Recommendations:........................................................................................................22
1.5) LIMITATIONS (Scope Of The Research):.............................................................................22
References.....................................................................................................................................23

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Methods Of Business Research Report Effect of CSR on Firm’s Financial growth in Pakistan

EXECUTIVE SUMMARY
PROBLEM STATED This research was done to analyze the effect of Corporate Social
Responsibility on the Firm’s fianancial growth in Pakistanbecause there is very little previous
information given about the practices of CSR by the organization. In other words,
information is not very popular enough for the studies at academic level. Researcher tried to
explore the answer between the relation of CSR and FFP.

METHODOLOGY Literature review and other secondary information were helpful for the
research to proceed. However, secondary information is in more generalize form and
ambigous. Researcher tried to develop a questionaire base on the above assumptions. A
theoretical model was framed to look closely for all of the aspects of the research. Sample
includes 15 employees from 5 service base organizations.

FINDINGS Amongst all the questionaire received, researcher found a strong awareness and
understanding about CSR in organizations of Pakistan. Strong relation was found between
CSR and annual profit, CSR and sales growth, CSR and organizations Image. However, the
effect of CSR on FFP is stated positive by applying the regression and correlation calculation
and hypotheisis is positive in nature.

CONCLUSION This suggest that the companies of Pakistan sees CSR as a revenue generating
source not as a expense. Organizations are cashing in this opportuinty by raising legal and
ethical issues of the society. In long run genuine fulfillment of the social responsibilty would
not only help organizations to cash in the profits but also help pakistan to avoid social and
ethical issues. As a whole, it would be a win-win situation for the both parties.

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Methods Of Business Research Report Effect of CSR on Firm’s Financial growth in Pakistan

INTRODUCTION
PROBLEM STATEMENT:
CSR in Pakistan is always been an under influential perspective of companies. Businesses in Pakistan
do not give a sustainable attention to the social responsibilities because they do not see as a
competitive advantage opportunity to succeed in corporate world.
Yet there are some companies which play an important role in fulfillment of the responsibilities for
the society for example: Unilever, PSO and Siemens are the top leading businesses of Pakistan which
serve CSR as an opportunity to gain competitive advantage.

“The aim of the study is to identify the relationship between Corporate Social Responsibilities and
firm’s financial growth in Pakistan.”

RESEARCH OBJECTIVE:
The following research will show the relationship between CSR and firms financial growth in
Pakistan. The effect may be an indirect but brand image and organizations equity helps the
employees of the company to feel worth and feel dignified on the job and out of the job. CSR can
also affect the consumerism of the organization. Another aspect of this research will also show the
government regulations affecting CSR and firms financial growth.

Study aims to:

 Explore the understanding and perceptions of CSR in Pakistan Industry regarding its benefits
and limitations.
 Analyze the CSR practices of Pakistan firms
 Suggest/recommend the possible measures to improve/increase the CSR practices in
Pakistan Industry.

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BACKGROUND OF RESEARCH
Corporations around the world are struggling with a new role, which is to meet the needs of the
present generation without compromising the ability of the next generations to meet their own
needs. Organizations are being called upon to take responsibility for the ways their operations
impact societies and the natural environment. They are also being asked to apply sustainability
principles to the ways in which they conduct their business. Sustainability refers to an organization’s
activities, typically considered voluntary, that demonstrate the inclusion of social and environmental
concerns in business operations and in interactions with stakeholders (van Marrewijk&Verre, 2003).
It is no longer acceptable for a corporation to experience economic prosperity in isolation from
those agents impacted by its actions. A firm must now focus its attention on both increasing its
bottom line and being a good corporate citizen. Keeping abreast of global trends and remaining
committed to financial obligations to deliver both private and public benefits have forced
organizations to reshape their frameworks, rules, and business models. To understand and enhance
current efforts, the most socially responsible organizations continue to revise their short- and long-
term agendas, to stay ahead of rapidly changing challenges.

Every organization has some responsibilities towards the society in which it carries its business. This
research topic is a philanthropic type of research. For around twenty-five years of history there has
been a great debate over the relationship between CSR and firm’s financial progress. Many
companies do get confused about how much to invest and how much return they are getting from it
because at the end of the day the thing which matters is the bottom line of every business (profits).

Corporate responsibility or sustainability is therefore a prominent feature of the business and

society literature, addressing topics of business ethics, corporate social performance, global
corporate citizenship, and stakeholder management. Management education can be an
important source of new ideas about shifting toward an integrated rather than fractured
knowledge economy, but this means also that the role and meaning of socially responsible
leadership needs to be updated. Much further research is needed to create a clearer
understanding of what is required, both in leadership itself and in the field of leadership
development.

An emerging view that CSR can contribute to the financial performance of a company has been
described as the ‘enlightened shareholder approach’ which suggests that corporate decision-
makers must take care of a range of social and environmental affairs in order to maximize long-

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term financial returns (Brine et al., 2007). However, there is insufficient data for the empirical
manner in which it is actually practiced (Smith, 1996), and some of the literature suggests that
this practice is rather weak (Foohey, 2004; Porter and Kramer, 2002, 2006; Brammer et al.,
2006; Campbell and Slack, 2008).
Analysis of Bakker et al., (2005) reveals that specialized research areas such as issue
management, corporate citizenship and corporate philanthropy have evolved over time from
obscure expressions towards more clarification and theory-testing. Yet, the research of CSR has
been decried for carrying fast and loose concepts (Ullmann, 1985; Griffin and Mahon, 1997).

References:

 The Link Between financial growth and corporate social responsibility by Alex Admans”
 “Firms value and equity with implications of Corporate Social Responsibility”
 “Corporate social Responsibilities and sustainable business” by Alessia D’Amato Sybil
Henderson Sue Florence.
 Impact of corporate social responsibility on financial performance and competitiveness of
business: a study of Indian firms Ph.d. thesis byRupalTyagi.

RESEARCH GOAL
 To contribute in Pakistan industry by improving CSR activities to some extent.
 Try to inculcate the importance of CSR in Pakistan’s industry sector.
 To study scope of CSR in Industries of Pakistan.

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LITERATURE REVIEW

DEFINITIONS OF CONCEPT AND VARIABLES:

WHAT IS CSR?

Corporate Social Responsibility is the continuing commitment by business to behave

ethically and contribute to economic development while improving the quality of life of
workforce as well as goodness for local community and society at large. CSR help
organization to create a good image in the eye of society by contributing in different
economics activities (“Triple-Bottom-Line- Approach”), while at the same time addressing
the expectations of shareholders and stakeholders. In this sense it is important to draw a
distinction between CSR, which can be a strategic business management concept, and
charity, sponsorships or philanthrop.CSR play a major role to reduce the poverty, and help
to create a strong brand image that is essentially good for an organizations.

SMEs business uses the CSR activities to improve our capabilities, and this is also not against
the economic stability. UNIDO based its CSR program on the Triple Bottom Line (TBL)
Approach;. The TBL is an accounting framework with three dimensions social, environmental
and financial. It is an attempt to align private enterprises to the goal of sustainable global
development by providing them with a more comprehensive set of working objectives than
just profit alone.

A properly implemented CSR concept can bring along a variety of competitive advantages,
such as enhanced access to capital and markets, increased sales and profits, operational
cost savings, improved productivity and quality, efficient human resource base, improved
brand image and reputation, enhanced customer loyalty, better decision making and risk
management processes.

[ CITATION Uni14 \l 1033 ]

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FINANCIAL PERFORMANCE

A subjective measure of how well a firm can use assets from its primary mode of business
and generate revenues. This term is also used as a general measure of a firm's overall
financial health over a given period of time, and can be used to compare similar firms across
the same industry or to compare industries or sectors in aggregation. [ CITATION Inv14 \l 1033
]

Financial performance analysis is the process of identifying the financial strengths and
weaknesses of the firm by properly establishing the relationship between the items of
balance sheet and profit and loss account. It also helps in short-term and long-term
forecasting and growth can be identified with the help of financial performance analysis.

RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITIES (CSR) AND

FIRM’S FINANCIAL PERFORMANCE (FFP):

The concept of corporate social responsibility is viewed by researchers with different

variables including organizational performance, consumer behavior, investor behavior and
employee behavior. Moreover, researchers also focused on effects of the disclosure CSR on
various stakeholders. This study introduces a model which combines corporate social
responsibility, employee organizational commitment and organizational performance.
Researches proved that CSR supports employee organizational
commitment, but not as much as employee job satisfaction, the good deeds of corporations
motivates employees to discuss with others outside organizations and feel a strong sense of
belongingness with the organization (Stawiski et al. 2010) proposed that organizations can
attain the maximum benefits from CSR only when their employees are involved in decision
making regarding environment, community and employee themselves. The CSR actions
should be so strong and influencing that employee take interest in it and their commitment
towards organization will enhance the productivity of the firm. The more the employees will
be commitment they tend to produce more positive result for the firm.

The companies who are involved in CSR activities are enable to build positive reputation of
their corporation in the minds of their stakeholders. CSR strengthen the organization’s
performance and it gives the competitive advantage to the organization. The researchers
had investigated that there is a connection between CSR and employee commitment, CSR

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and organizational performance and organizational commitment and organizational

performance (Imran Ali and KashifurRehman, 2010).

THEORETICAL BACKGROUND OF RESEARCH:

The inception point of corporate social responsibility can be traced in 1953 when New
Jersey Supreme Court allowed Standard Oil Company to donate money to Princeton
University as a philanthropic action. This decision was given against the suit filed by one of
the shareholders of Standard Oil, believing that it would reduce shareholder’s wealth.
Literature provides diverse definitions of CSR; this study follows the definition of Mohr et al.
(2001) which describes CSR as a company’s commitment to minimizing or eliminating any
harmful influence and maximizing its long-run beneficial impact
on society. The notion of CSR was initially advocated by Beyer (1972) and Drucker (1974)
while stating that corporations should do social activities for the welfare of the community
and feel sense of self-ombudsman ship. It was argued that corporations are earning huge
amount of profits from community and deteriorating the natural resources, therefore they
should contribute for the sustainability of the environment and other natural resources and
work for the uplifting of the society. Freeman (1970) opposed the idea of CSR by stating that
corporations are neither meant for social activities nor they have expertise in this regime,
therefore it is better that they produce quality products for consumer obey legal rules and
regulations and contribute in the economic development of country. Many researchers
including Sturdivant and Ginter (1977); Stanwick and Stanwick\ (1998); Fombrun, Gardberg,
and Sever (2000); Maignan and Ferrel (2001); Bromley, (2002); and Kashyap, Mir, and Iyer
(2006) supported the concept of CSR by corporation and endorsed that such actions of
corporations should also be reported for the information of consumer, community,
competitors and the government. Plenty of researches and advancements were brought to
the corporate world, including its diverse effects on corporations, methods of reporting CSR.
Researches on CSR including Sturdivant and Ginter (1977); Churchill and Surprenant (1982);
McWilliams and Siegel (1995); Porter and Van der Linde (1995); Hart (1995); Judge and
Douglas (1998); Klassen and McLaughlin (1996); Stanwick and Stanwick (1998); Fombrun et
al. (2000); Maignan and Ferrel (2001); Bromley, (2002); Hart et al. (2003); Paine (2003);
Kashyap et al. (2006) Guo, Sun, and Li (2009); and Ali et al. (2010) emphasized on the

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significance of CSR for the satisfaction and retention of different stakeholders and
sustainable corporate performance. These studies were conducted in different contexts
including CSR and financial performance, consumer behavior and employee behavior.

THREE APPROACHES TO CORPORATE RESPONSIBILITY

According to the traditional view of the corporation, it exists primarily to make profits. From
this money-centered perspective, insofar as business ethics are important, they apply to
moral dilemmas arising as the struggle for profit proceeds. These dilemmas include: “What
obligations do organizations have to ensure that individuals seeking employment or
promotion are treated fairly?” “How should conflicts of interest be handled?” and “What
kind of advertising strategy should be pursued?” Most of this textbook has been dedicated
to these and similar questions.

Broadly, there are three theoretical approaches to these new responsibilities:

Corporate social responsibility (CSR)

 The triple bottom line

 Stakeholder theory
 Corporate Social Responsibility (CSR)

CORPORATE SOCIAL RESPONSIBILTY

The title corporate social responsibility has two meanings. First, it’s a general name for any
theory of the corporation that emphasizes both the responsibility to make money and the
responsibility to interact ethically with the surrounding community. Second, corporate social
responsibility is also a specific conception of that responsibility to profit while playing a role
in broader questions of community welfare.

As a specific theory of the way corporations interact with the surrounding community and
larger world, corporate social responsibility (CSR) is composed of four obligations:

 The economic responsibility to make money. Required by simple economics, this

obligation is the business version of the human survival instinct. Companies that
don’t make profits are—in a modern market economy—doomed to perish. Of

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course there are special cases. Nonprofit organizations make money (from their
own activities as well as through donations and grants), but pour it back into their
work. Also, public/private hybrids can operate without turning a profit. In some
cities, trash collection is handled by this kind of organization, one that keeps the
streets clean without (at least theoretically) making anyone rich. For the vast
majority of operations, however, there have to be profits. Without them, there’s no
business and no business ethics.
 The legal responsibility to adhere to rules and regulations. Like the previous, this
responsibility is not controversial. What proponents of CSR argue, however, is that
this obligation must be understood as a proactive duty, responsible organizations
accept the rules as a social good and make good faith efforts to obey not just the
letter but also the spirit of the limits. In concrete terms, this is the difference
between the driver who stays under the speed limit because he can’t afford a traffic
ticket, and one who obeys because society as a whole is served when we all agree to
respect the signs and stoplights and limits. Going back to John Travolta racing his
Porsche up and down the rural highway, he sensed none of this respect. The same
goes for the toxic company W. R. Grace Incorporated as it’s portrayed in the movie:
neither one obeys regulations and laws until the fines get so high they’ve got no
choice. As against that model of behavior, a CSR vision of business affirms that
society’s limits will be scrupulously obeyed, even if the fine is only one dollar.
 The ethical responsibility to do what’s right even when not required by the letter or
spirit of the law. This is the theory’s keystone obligation, and it depends on a
coherent corporate culture that views the business itself as a citizen in society, with
the kind of obligations that citizenship normally entails. When someone is racing
their Porsche along a country road on a freezing winter’s night and encounters
another driver stopped on the roadside with a flat, there’s a social obligation to do
something, though not a legal one. The same logic can work in the corporate world.
Many industrial plants produce, as an unavoidable part of their fabricating process,
poisonous waste. The law governing toxic waste disposal was ambiguous, but even
if the companies weren’t legally required to enclose their poisons in double-
encased, leak-proof barrels, isn’t that the right thing to do so as to ensure that the
contamination will be safely contained?

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 The philanthropic responsibility to contribute to society’s projects even when

they’re independent of the particular business. An industrial chemical company may
take the lead in rehabilitating an empty lot into a park. None of these acts arise as
obligations extending from the day-to-day operations of the business involved.
They’re not like the responsibility a chemical firm has for safe disposal of its waste.
Instead, these public acts of generosity represent a view that businesses, like
everyone in the world, have some obligation to support the general welfare in ways
determined by the needs of the surrounding community.

Taken in order from top to bottom, these four obligations are decreasingly pressing within
the theory of corporate social responsibility. After satisfying the top responsibility, attention
turns to the second and so on.

More difficult questions arise when the economic responsibility conflicts with the legal one.
For example, to remain profitable, an industrial plant may need to dispose of waste and
toxins in barrels that barely meet legally required strengths. Assuming those legal limits are
insufficiently strict to guarantee the barrels’ seal, the spirit of the law may seem violated.
The positive economic aspect of the decision to cut corners is the ability to stay in business.
That means local workers won’t lose their jobs, the familial stresses of unemployment will
be avoided, suppliers will maintain their contracts, and consumers will still be served.

CONCLUSION ON THE THREE FORMS OF CORPORATE SOCIAL RESPONSIBILITY

Traditionally, the directors of companies have had an extremely difficult but very narrowly
defined responsibility: guide the enterprise toward money. The best companies have been
those generating the highest sales, gaining the most customers, and clearing the largest
profits.

In Woburn, Massachusetts, in the early 1980s, this conflict between two ways of running a
business played out in the Hollywood depiction of the lawyer played by John Travolta. At the
movie’s beginning, right and wrong for a business got decided in dollars and without
broader sensibility. Travolta’s law firm existed to make money and operated by accepting
only cases that promised big payouts. That’s what brought Travolta to Woburn, the chance
to sue deep-pocketed W. R. Grace for poisoning the land with toxic runoff and for

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destroying the lives of families living near the pools of contamination. Over the course of
the movie, however, Travolta becomes attached to Woburn’s cause and the social good of
fighting for a clean environment. By the end, he’s risking his firm’s high profits—and,
according to his law-firm partners, all common sense—to make sure that harmed people
living in town get their good lives back, and to ensure that a Woburn-like toxic disaster
won’t happen again.

In terms of corporate social responsibility, Travolta came to believe that his job as the law
firm’s leader obligated him to satisfy his economic responsibility to make money for the firm
by suing for financial damages while also acting legally. Further, his firm needed to satisfy
the ethical responsibility to help others in Woburn gets their good lives back. Here, there is
a basic duty to help others in need when you have the capability. Finally, there was an
element of philanthropy in Travolta’s endeavor because his law firm pursued a case that
served the greater good even though more profitable work opportunities were available.

In terms of the triple bottom line of economics, society, and the environment, Travolta
came to believe that his job as the law firm’s leader obligated him to take account of and do
well in all three areas. It was no longer enough to win money; his business had a moral
responsibility to win for society and to win for the environment also. The long-term goal was
to ensure the economic sustainability of his firm, the sustainability of healthy family life in
Woburn, and the sustainability of clean earth and air in that part of Massachusetts.

In terms of stakeholder ethics, Travolta came to believe that his job as the law firm’s leader
obligated him not only to work for the firm’s owners (including himself) but also to take
direction from those who would be affected by the firm’s actions. That meant considering—
trying to balance and to add up—the interests of his partners and all those who lived in
Woburn.

Finally, because Travolta’s story was also a Hollywood story, his transformation on the big
screen was presented as the change from an aloof bad guy to a caring good guy. It’s not
clear, however, in the real world whether a corporate ethics based on social responsibility,
the triple bottom line, or all stakeholders is actually recommendable. The debate between
the two ways of thinking about business—the traditional, profit-centered view and the

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broader, socially responsible view—is hard-fought and intensified by good arguments on

both sides.
[ CITATION Jam12 \l 1033 ]

THEORETICAL FRAMEWORK

ACTIVE
PARTICIPATION IN CSR

SALES GROWTH
CORPORATE SOCIAL
RESPONSIBILTY ORGANIZATIONAL
IMAGE
(CSR)
ANNUAL PROFIT

FIRM’S FINANCIAL
EMPLOYEES INTEREST
PERFORMANCE
AND ORGANIZATIONAL
COMMITTMENT (FFP)

HYPOTHESIS:
 There is a positive relationship between corporate social responsibility and firm’s
financial growth in Pakistan. Where CSR(corporate social responsibility) is
independent variable and FFP (firms financial growth) is dependent variable.
 H1= There is positive relations between CSR and Firm’s Annual profit.
 H2= There is Positive relation between CSR and Sales Growth.
 H3= There is Positive relation between CSR and Organization’s Image.

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CHAPTER 3: RESEARCH DESIGN

RESEARCH APPROACH

The data was collected on the basis of Quantitative research. Quantitative research is
concerned with testing hypotheses derived from theory and/or being able to estimate the size of a
phenomenon of interest. Depending on the research question, participants may be randomly
assigned to different treatments. If this is not feasible, the researcher may collect data on participant
and situational characteristics in order to statistically control for their influence on the dependent, or
outcome, variable. If the intent is to generalize from the research participants to a larger population,
the researcher will employ probability sampling to select participants.

RESEARCH METHOD

Survey Strategy was used to collect the data. The primary data was collected through a
survey in which self-administrated questionnaires were used in order to reach the
population of research topic. CHARACTERISTICS OF PARTICIPANTS: “Employees of financed
department of various companies were the respondents. These companies are located in
Karachi.” These employees were asked questions related to research problem in order to
reach the nearest possible answers regarding CSR and firms financial growth. Respondents
were asked to fill the questionnaire in the presence of researcher.

POPULATION AND SAMPLE:

Population for this research includes all the companies related to service and manufacturing
sector of Pakistan. The total count of the companies exceeds thousands therefore; the
sample consists of 15 employees from 5 organizations.

SAMPLING TECHNIQUES:

it was not possible to reach every organization of Karachi. Convenient sampling technique
was used for this research because the sample size was off 15 employees from various
organizations. It was divided in such a manner to make sure that data is collected from

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targeted audience. Lot of attention is paid on sampling technique and selection of

respondents and make sure that highly approximate responses are received.

SAMPLE SIZE:

Researcher collected 15 responses and the respondents were employees of various service
and production based companies of Karachi who were eligible to give the answers of the
question in the questionnaire.

DATA COLLECTION TOOL:

We used questionnaires as our data collection tool. 15 questions were made included open
ended and close ended questions.

INSTRUMENT AND TECHNIQUE OF DATA COLLECTION:

The responses were collected to self-administrated questionnaires from the respondents

who were the part of the population of the research topic, which is eligible to persuade the
ideas about CSR and the relation with FFP. A nominal scale was used in the questionnaires
based on the hypothesis on the variables of the research topic.

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REGRESSION

Model Variables Variables

Entered Removed Method
d1 CSRa . Enter
i
m
e
n
s
i
o
n
0
a. All requested variables entered.
b. Dependent Variable: the sales growth
ratio for that year?

Model Summary
Model Std. Error
R Adjusted R of the
R Square Square Estimate
1 .956a .914 .907 .26901

a. Predictors: (Constant), CSR

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Coefficientsa
Model Standardize
Unstandardized d
Coefficients Coefficients
B Std. Error Beta t Sig.
1 (Constant) -1.604 .403 -3.975 .002
CSR .815 .069 .956 11.751 .000
a. Dependent Variable: the sales growth ratio for that year?

CORRELATIONS

Correlations
the sales growth
CSR ratio for that year?
CSR Pearson 1 .956**
Correlation
Sig. (1-tailed) .000
N 15 15
the sales growth ratio Pearson .956** 1
for that year? Correlation
Sig. (1-tailed) .000
N 15 15
**. Correlation is significant at the 0.01 level (1-tailed).

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SIGNIFICANCE OF THE RESULT

In this study section we analyze to collect data through SPSS software for getting the most
desirable results. Under this, we analyzed our research question; that whether high CSR
activities of organization in Pakistan’s context causes its financial trends to incline towards
growth rate or does not show any significant effect, for this we collected structured data.
After this, statistical technique is to be applied on collected data. Then, we get to know the
nature of relationship that exists between our dependent and independent variable.

INTERPRETATION OF THE FINDINGS

The accompanying exploration indicates the significant relationship between CSR and firms
budgetary development in Pakistan. The impact is circuitous however brand picture and
associations value do have considerable effect that helps the representatives of the
organization to feel worth and feel stately at work and out of the occupation. CSR as
independent variable likewise influence the consumerism of the association. An alternate
part of this examination and ANOVA representation additionally indicate the legislature
regulations influencing CSR over firm’s budgetary development.

There is a positive relationship visible in the output between corporate social obligation and
association's fiscal development in Pakistan. Where CSR (corporate social obligation) is free
variable and FFP (firm’s monetary development) is depending over it.

These findings represent a model in which our independent variable, worker hierarchical
duty and authoritative execution. Are explored and demonstrated in a way that CSR is
additionally considered to be a factor that influences other indirect elements that influence
positively to prove hypotheses of this study.

SOURCE: AUTHOR’S ESTIMATION

• In above table we have variable coefficient, t. value and sig. value.

• In above table the value of coefficient is -.127 and sig is .008 proves H1 is significant.
Adj. R² is .070. And our table is .070% accurate.

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• Durbin Watson value shows the multicollinearity among the independent variables.
Our result shows D.W value 1.382 which is near to 2 which means there is no
mutlicollinearity is present.

FINDINGS THROUGH SURVEY:

Corporate Social Responsibility (CSR) is actively used by the companies, which are surveyed
in this research. The questionnaire asked about the basic understanding and awareness of
the participants about CSR. The findings show that the 80% of the participants are aware of
CSR in Pakistan. All the organization that was interviewed is actively participating in CSR. It
has been observed that companies know the importance of social responsibility and using it
as a revenue generating source for their business. New philanthropic projects succeeded
according to the participants when it is in nature to give out a real benefit to the society.
After extracting theessential information from the questionnaire, researcher finds the
following data:

0
More than 20 % 10% to 20% 5% to 10% 0 to 5% None

Figure 1

In the graph mentioned in the previous page, sales ratio with effect from CSR are taken on
x-axis and number of employees (participants) are taken on y-axis.

Figure 1 tells the relation between the growth of sales which is affected by actively
participating in CSR. Out of 15 employees surveyed, 6 of the employees think that after
participating in CSR the sales grow to more than 20%, 7 participants think that sales grow in

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between 10% to 20%, 3 participants think that sales grow below 10%. It is surprising to see
that not even one participant say that corporate social responsibility has no affect on the
sales growth of the company. The relation between corporate social responsibility and
firm’s financial performance is strong according to the questionnaire answered by the
participants. Therefore, the research hypothesis is tested positive.

Participants also suggested that if the organization starts to focus on genuine fulfillment of
the social responsibility than the image of the company can be enhanced and in the further
reaction social problems of the state can be solved. Furthermore, the findings reveal that
the loyalty and the attraction of the customer to certain product of the company increased
when the product is for the betterment of society.

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Methods Of Business Research Report Effect of CSR on Firm’s Financial growth in Pakistan

CONCLUSION AND RECOMMENDATIONS

As a whole, Corporate Social Responsibility is related positive with organization’s annual

profit, annual sales and organization’s image. It is clear that corporate social responsibility is
not a burden for the companies of Pakistan. Organizations are more proactive and looking
CSR as an opportunity to strengthen their FFP (Firm’s Financial Performance). However, it
may not affect direct to the dependent variable because there is no standardized scales for
the calculations. This research provides the best closest result to relate CSR with FFP. Annual
sales and profit are accompanying each other with including organizational image to
construct a best possible result.

FUTURE RECOMMENDATIONS:

Research is very limited in nature of sample and participants. For future researcher there is
a suggestion to vast the scale of sample size. This would help to provide more accurate
result between the relationship of CSR and FFP. Experimental research with a focus group
can provide best results and findings if done in a close environment. Participants can be
observed more closely to check whether the opinions of the participants are subjective or
objective. Analyzing the financial expenses occurring on CSR of the company will provide
facts and figures to fill the gaps held in previous researches.

1.5) LIMITATIONS (SCOPE OF THE RESEARCH):

 This research is constraint to only 5 companies of Pakistan due to shortage of time and
unavailability of resources.
 This research aims only on the financial factors which can be affected from CSR. Research
does not represent any social factors involving in CSR.
 Company’s confidentiality can be questioned.
 Research is based on random sampling of the 5 companies of Karachi due to law and order
situation.

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REFERENCES

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