| Abstrakt: |
This study endeavors to explore the impact of Corporate Social Responsibility (CSR) on the financial performance of firms within the Pakistani cement industry. The research utilized quarterly data extracted from the annual and other financial reports of eight selected cement companies, representing half of the total 16 cement companies in Pakistan's cement sector, spanning the period from 2009 to 2016. The predictor variable, CSR, was gauged by factors such as donations, insurance, and worker welfare fund. In parallel, the performance of the firms, considered as the outcome variable, was assessed through metrics including Earnings Per Share (EPS) and Net Profit Margin (NPM). Employing Ordinary Least Squares with Panel Corrected Standard Errors (OLS-PCSEs), the study uncovered a positive correlation between CSR initiatives and the financial performance of these cement companies. In addition to substantiating the Stakeholder Theory, these findings shed light on the social inclinations of Pakistani cement firms. They suggest that firms integrating CSR activities into their operations possess a competitive advantage over those abstaining from such endeavors. The study elucidates that engaging in CSR activities not only aligns with social responsibility but also imparts strategic advantages to businesses. Companies actively participating in CSR activities may find themselves at a competitive advantage compared to counterparts that do not partake in such practices. This competitive edge is distinctly reflected in the affirmative impact of CSR on the financial performance of these firms. [ABSTRACT FROM AUTHOR] |
