From Responsibility to Profitability: The Indirect Link of Perceived CSR And Financial Performance

Abstract

Present research aims to examine indispensable research questions of what the indirect effect of perceived CSR on banks’ financial performance with the mediation of customer satisfaction and firm reputation by underpinning stakeholder theory is. Philosophically, the present research come under the post-positivist paradigm, with a deductive approach as the casual relationship among study variables are examined by collecting primary data through survey strategy by employing time-lagged design in the banking sector of Pakistan. The sample of this research is collected form purposefully selected 50 branches of different banks operating in three larger metropolitan cities of Punjab, Pakistan. This study employed contemporary data collection and analysis techniques. Data analysis is conducted by using Smart PLS. This study concluded that corporate social responsibility enhanced the company's financial performance with the mediation of customer satisfaction and firm reputation. The relationship between corporate social responsibility and company financial performance is also investigated. When contemplating the practical implications, managers and policymakers need to take into account the foundational structure to enhance their financial results.