Corporate Social Responsibility Case Study

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The Impact of Corporate Social Responsibility on Firm’s Financial Performance An Introduction & Background -By Wajahat Ali Anwar PAF KIET 1.1 Introduction & Background of the Study Just a few years ago, the term ‘Corporate Social Responsibility ’had much lesser significance to many organizations. The Corporate Social Responsibility was viewed as an unnecessary expense and lacked its values within the corporate world. The term Corporate Social Responsibility or CSR, gained an important position when the timeline of unethical practices within the corporate sector started flourishing. The major crises occurring within different time frame in the past had resulted in the mainstream mass to raise questions about externalities that impact the…show more content…
For instance International Standardization Committee (ISO) declared that there is no standard definition of Corporate Social Responsibility, However ISO committee have declared seven principles of socially responsibility in its document of ISO 26000.They includes accountability ,transparency, ethical behavior, respect for stakeholder s interests ,respect for the rules of law ,respect for international norms and behavior & respect for human rights. For Corporate, the Reputation and Goodwill plays a vital role for its successful lifeline. The Corporate Social Responsibility had therefore been viewed as major contributor for enhancing the firm’s goodwill and reputation. A highly known asset known for the company –Goodwill often plays the role of rise in firm’s value and is known as an intangible asset. The mechanism of corporate social responsibility therefore holds potential to provide return at every business level. The Corporate mostly have hierarchal structure of authority in which order are passed on from variety of level. The vice-president tells several middle managers to reach at certain production level and middle –managers try to attain certain goal. Furthermore, the subordinates absorb all dowers being passed…show more content…
One being contributed by Garriga and Melé (2004) whose study distinguishes Corporate Social Responsibility into four groups namely economics, politics, social integration and ethics. His contribution resulted in more detailed in dept research by different researchers. In Pakistan less work has been done therefore contribution in this field academically is of utmost importance. 1.1 Importance of the Study The Study holds an importance for the corporation and investors alike. In Pakistan a gap in literature for the field of Corporate Social Responsibility had created a vacuum. The Corporate sector too needs CSR Professional who can provide the mainstream consultancy and mechanism to apply Corporate Social Responsibility Framework in all its business units. Also many study reveals that corporate are more likely to holds healthy relations with general public through acting more responsibly which raises its reputation for stock holder. This study is aimed at understanding the 1.2 Problem Statement The major problem is to find that weather corporate social responsibility had any relations with profitability and to what extents should the needs to be socially

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