Examining the Corporate Social Responsibility: A Dilemma to Influence Financial Performance, Customer Retention and Banking Financial Stability

Abstract

Corporate Social Responsibility (CSR) is a form of corporate philosophy which implies that firms have a responsibility to contribute to the communities in which they do business. It is the ongoing commitment by a business to behave ethically and contribute to economic development while advancing environmental stewardship and contributing to society. An objective of this study is to present the impact of corporate social responsibility on firm performance, customer retention and financial stability in a single model that represents the association between these variables. Further, the banking sector of Pakistan has been selected as a target population, and t all the employees of different conventional banks are included in the sample frame. However those employees have included in the sample who belongs to Punjab and sindh province. Ultimately convenience sampling was used to collect data due to a larger population size and after deriving the sample size, data has collected  from 236 respondents. A significant impact of CSR has been observed to be associated with the all-study variables, based on the findings of this study. Results  of the study can provide the framework for policy makers to improve CSR practices for the wellbeing of society and business. A larger sample and a different methodology may be used in future studies to obtain the results that can generate new insights.