Association between Corporate social responsibility and performance: Evidence from Pakistan banking industry

Abstract

This study is about to study the association between corporate social responsibility and performance in the Pakistan banking industry. Mainly focuses on Pakistan banking following three dimensions of CSR (social event, employee facilities, and environment). The present study focused on the sample size of the top 20 banks of Pakistan listed on the Pakistan stock exchange (PSX). The data obtained by annual reports issued by banks in 2015-2017. The content analysis shows that the large numbers of banks in Pakistan have their corporate social responsibilities (CSR) strategies and involves in social practices. However, the large number of banks reporting lies in the least frequency range, and few banks lies in high-frequency ranges. The year-wise trend is positive because most of the bank’s reports are shifting to the highest frequency range from 2015-2017. Otherwise, after regression analysis by running SPSS the analysis indicates that CSR activities have a negative impact on the profitability of the bank. This study is limited to focus on the service sector (such as the banking sector) of Pakistan the other sectors are ignored like automobiles, cement, etc.