The paper is about the corporate social responsibility (CSR) in Pakistan as a prospect and strategy for domestic companies as well as multinational companies (MNC’s). The study gives a view how domestic companies are indulge in CSR as well as how MNC’s are indulged in CSR, also how and what level they differ from each other.
The paper also describes well the effect of CSR on domestic companies and MNC’s in the context of assets, net profit and financial performance to see whether they have a positive correlation or negative correlation in both the cases, which are also main points of the paper’s hypothesis.
By collecting financial data for 109 domestic companies and 9 MNC’s companies (Only 22 MNC’s working in Pakistan at the moment) it is found both domestic companies and MNC’s financial data hold a positive correlation with CSR. It means if spending on CSR increases the financial performance including assets and net profit of domestic companies and MNC’s also increase which supports the hypothesis which satisfies the main aim of the paper.