Intervening Influence of Non-Economic Factors between Corporate Social Responsibility and Financial Performance: A Banking Perspective

Dr Muzammal Ilyas Sindhu
Dr Syeda Faiza Urooj
Mr Sana Ullah
Keywords:
Abstract:

Corporate social responsibility implies the obligations of the business to protect the interests of the society in which they operate. This study wants to examine the intervening influence of non-economic factor between corporate social responsibility and financial performance. Moreover, this study wants to investigate
the moderating role of stakeholder pressure. This study based on positivism paradigm, deductive approach, and survey strategy. Adapted questionnaires were distributed among a focal person of commercial banks and collected data monitored, screened and analyzed through emerging statistical packages. Confirmatory factor analysis explained the model goodness, fitness, and validity. Structural equation modeling confirmed the significant and positive contribution of corporate social responsibility and non-economic factor toward financial performance. Moreover, the mediating role of noneconomic also intensifies the relationship between the explanatory variable and the dependent variable. Finally, stakeholder pressure did not shown any significant contribution. The findings indicated the relevance and the implications of CSR initiatives on the bank’s performance in a developing country such as Pakistan. Explicitly, the results specify that when banks invest in CSR initiatives, they are likely to achieve a competitive edge and improved financial performance.

Author Biographies:
Dr Muzammal Ilyas Sindhu

Dr Syeda Faiza Urooj

Mr Sana Ullah


Date Published: 2021-08-18

Last Modified: 2021-08-18 04:22:45