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How do financial institutions in pakistan operate on corporate social responsibility standards?

Author: 
Saleem Mukhtar
Subject Area: 
Social Sciences and Humanities
Abstract: 

This article has been based on the analysis of CSR practices of financial institutions in Pakistan and their evaluation on the performance of organizations. The objectives of this article are: a) analyzing the literature regarding CSR practices in the financial industry, b) evaluating the CSR practices followed by organizations in financial industry in Pakistan, c) identifying the perceptions of customers and general public towards CSR practices of organizations in Pakistan and d) proposing suggestions to organizations in Pakistan for improving their CSR practices. For evaluating the objectives of study, primary data has been used in this study. For this purpose, the researcher targeted a sample of 170 employees of financial institutions from Rawalpindi. This sample was selected through random sampling technique. 152 appropriately filled questionnaires were obtained and it resulted in 89.41% response rate. Through statistical analysis of study, it was found that environmentally sustainable practices, philanthropic practices and stakeholder relations are positively related with the organizational performance. On the other hand, this study also concluded that legal compliance has not been related with the organizational performance. This article concluded that CSR practices do influence organizational performance in Pakistan’s financial industry. This study provided a foundation to future researchers to take a large sample of organizations and expand scope of the current study.

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