The Impact of CSR on Financial performance of Telecom Sector in Pakistan

Abstract

Pakistan is an ever-growing business hub in Asia. Due to the fact that Pakistan has diverging socio-economic, cultural, ethnic groups, and ethical systems, this study seeks to find out multicultural impacts on corporate social responsibility (CSR) issues and practices in the country. This study encompasses top and executive managers in financial CSR services sector in Pakistan. A total of 200 questionnaires were given out to the respondents in different segments of financial institutions in Pakistan namely commercial banks, investment banks, brokerage firms, fund management companies, insurance companies, unit trust companies, and large public fund organisations. The questionnaire used in this study was modified from Aupperle, Carroll and Hatfield (1995), Maignan and Ferrell (2000), and Maignan (2001). The questionnaire was used to measure perceptions about CSR elements as proposed by Carroll (1991): economic, legal, ethical and philanthropic responsibilities. The results indicated that top and executive managers ranked ethical responsibilities as the most important CSR duties for Corporations in telecom sector of Pakistan. The results from the factor analysis revealed four drivers that were able to motivate corporations to practice CSR namely local and global forces, corporate image, economic performance, and cultural awareness. A depth observation across ethnicity of the respondents revealed that there are no homogenous results, especially with regards to Carroll’s CSR elements. The findings clearly demonstrate a separation of opinions between Pakistani Telecom sector and its basic CSR regarding finances as per view of respondents. This is potentially a significant findings will focus on culture which will give a significant impact on people attitude, behaviour and perception. The findings from this study suggest a unique CSR model for Pakistani telecom sector nd their finances and it is hoped to be the guide for local and international companies that is operating and that will be operating in this country.