Abstract
Proponents of Corporate Social Responsibility (CSR) argue that it
helps in achieving long term financial viability and profitability while
the critics are of the opinion that it distracts the business from its core
objective of earning profits and increasing wealth of the shareholders.
This argument has led to research regarding the relationship between
CSR and Corporate Financial Performance (CFP), the results of whom
has been contradictory. Being a developing country this concept is at
its infancy in Pakistan and little research has been done in this regard.
Keeping this in mind the present study is conducted to analyze the
relationship between CSR and financial performance of Pakistani
banks. Corporate Social Performance (CSP) is measured via primary
data collected through a structured questionnaire while CFP was
measured using financial ratios from the annual financial statements
for the period 2010 to 2015.From the results of the correlation analysis
and multiple regressions analysis, an overall positive significant
relationship was noted between CSP and CFP. The alternative
hypothesis was thus accepted concluding on positive relationship of
CSP and CFP in Pakistani banks
Syed Faisal Shah, Shahid Jan Kakakhel. (2017) The Relationship between Corporate Social Performance and Corporate Financial Performance in Banking Industry of Pakistan, Journal of Managerial Sciences, Volume 11, Issue 3.
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