Year-end Sale % OFF 
Abstract
The objective of the study is to examine the impact of CSR activities by the organization on their financial performance. This study employs a quantitative and deductive approach. This research has been carried out with the secondary data which has been taken from the CSR reports of the Overseas Investors Chamber of Commerce and Industry (OICCI) and the annual reports of the listed companies of Pakistan Stock Exchange. In addition to that, the annual reports or sustainability reports of some companies have also been used to collect information about their CSR performance. The sample panel of this study consists of 55 companies having available data for at least a period of 3 years (2014-2016), hence consisting the data of 165 firm years. Random effect linear regression has been run for the two dependent variables for the measure of financial performance. The results indicated that CSR activities in education, community development, health, and infrastructure have a significant impact on organizational performance. The implications and recommendations were also made from the results.
Highlights
Analyzing the aspects of investments to boost the finance for the business and to improve the returns is one of the most important elements of the corporations
Even though many researchers who worked for Corporate Social responsibilities (CSR) performance have adopted the method of index but there are still some critics who are not satisfied with this source of data being weak to some extent or does not cover a comprehensive number of samples (Simpson and Kohers, 2002). (Peng & Young, 2014) objected over KLD index as being limited to only those companies which are listed in US Stock Exchange and provides opinion about only one type of system related to CSR
The random effect model of linear regression in table 1 shows the relationship between Return on Assets (ROA) and CSR and between Tobin’s Q and CSR
Summary
Analyzing the aspects of investments to boost the finance for the business and to improve the returns is one of the most important elements of the corporations. Since the corporations have direct association with the society where they operate some social rules need to be applied for strengthening this association (Bowen, 2013) Such associations are visible in the form of environmental securities, employee related policies, satisfaction of minority shareholders and philanthropist activities. The policies regarding such activities are named as Corporate Social responsibilities (CSR) (Schwartz, 2017) and in the ongoing matters of corporations, being considerate about CSR activities seems to be a frequently adopting practice but the type of relationship of such practices with the financial progress of the corporation has to be found out (Ioannou & Serafeim, 2015). The concept of CSR in developed countries is being understood with the aim to create a strong bonding between economic and social aspects of the nations
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