This document provides an outline for a presentation on the impact of corporate social responsibility (CSR) on financial performance, with intellectual capital as a mediating factor. The presentation covers background on CSR and the debate around its impact on firm performance. It reviews literature showing both positive and contradictory relationships between CSR and performance. The presentation aims to establish a multidimensional relationship between CSR, intellectual capital, and financial performance in Pakistani firms. It outlines variables, hypotheses, and methodology involving a quantitative study of listed manufacturing firms.

1. 1

2. Synopsis Presentation
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3. THE IMPACT OF CORPORATE SOCIAL
RESPONSIBILITY ON FINANCIAL PERFORMANCE:
THE MEDIATING ROLE OF INTELLECTUAL CAPITAL
Presenter:
Ghulam Yaseen
Supervised By:
Dr. Syed Zain ul Abdin
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4. Outline
• Introduction/Background
• Literature Review
• Problem Statement
• Questions/Objectives
• Research Gap
• Research Contributions
• Variables of the study
• Theoretical & Conceptual Model
• Hypothesis of the study
• Methodology
• References
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5. Introduction/Background
• Corporate social responsibility has played a vital role and has gained a significant
position in the business environment nowadays.
• Tremendous pressure from the stakeholders of the firms pushed the organizations
to adopt the CSR practices on a priority basis (Carrasco and Martnez 2016).
• It was previously thought that firms are sacrificing shareholder value by adopting
CSR practices but now this misconception is no more there. Nowadays CSR is
being considered as an opportunity to boost the firm performance by gaining
public trust.
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6. Introduction/Background
• Being responsible citizens, firms are obliged to take certain initiatives for societal
uplift. Now there is a need to find the opportunities that are equally beneficial for
both the stakeholders and the businesses. This research will help bridge this gap.
• No doubt the concept of CSR in Pakistan is at the stage of its infancy, but its
acceptance is growing steadily (Sajjad & Eweje, 2014).
• The CSR being practiced in the country is purely voluntary and the businesses are
practicing it on their own. Securities and Exchange Commission of Pakistan has
issued some voluntary guidelines on CSR practices in 2013.
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7. Literature Review
• CSR and firm performance relationship is based on the Stakeholder theory which proposes that the expectations of
all its stakeholders must be met by the businesses and the corporations should work in the best interests of the its
stakeholders (Coombes & Watson, 2000).
• Contradictory finding are also there in the literature of CSR in the context of firm performance. The follower of this
assumption are on the opinion that the basic purpose of the corporations is to maximize the shareholders wealth but
the CSR activities are diverting the management from the main objective (Iqbal et al., 2012).
• On the other hand, the followers of CSR practices and stakeholder theory are on the opinion that the long term
performance of the corporations is linked with CSR and the management should work in the best interest of all the
stakeholders (Agyemang and Ansong 2017; Hajawiyah et al. 2020; Lins, Servaes, and Tamayo 2017).
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8. Literature Review
• Firm performance can be improved by enhancing the IC of the business which
will in turn lead to competitive advantage (Khalique, Bontis, Shaari, Yaacob, &
Ngah, 2018)
• Stakeholders are also concerned about the environmental and social issues of the
society. So, investing in CSR can also enhance the IC (Cillo et al., 2019).
• The management of social and environmental resources can assist businesses in
meeting stakeholder expectations, developing internal and external stakeholder
relationships, and improving firm performance (Torres et al., 2018).
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9. Problem Statement
• A series of research attempted to investigate the CSR and firm
performance relationship and the findings of the studies are varied and
contradictory, ranging from positive (Barauskaite & Streimikiene, 2021),
to negative (Elouidani & Zoubir, 2015).
• Studies that use a single dimension of CSR lack necessary level of
validity because the single dimension does not adequately capture firm’s
CSR performance and is unable to reflect the breadth of the construct.
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10. Problem Statement
• Using different mediating and moderating variables in the CSR studies can
boost the performance of the businesses (Javed et al., 2016). The numerous
studies on CSR show that CSR and firm performance relations is still not very
well established and it needs more exploration in terms of moderators and
mediators.
• So from the literature it is clear that none has established the composite and
multidimensional relationship of CSR and firm performance and with
mediating role of intellectual capital. So there is a need to study this
relationship.
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11. Questions/Objectives
• This study will examine the influence of aggregate CSR and its dimensions from different
stakeholders’ perspective on Firm Performance. Most of studies on CSR-FP link have
tested the aggregate effect of different CSR dimensions on Firm Performance (Chang et
al., 2014; Singal, 2014; H. Wang & Choi, 2013) but certain studies (Cavaco & Crifo,
2014) have suggested to test the effect of individual CSR dimensions on FP. So, the study
will focus on:
 What is the overall impact of CSR on financial performance?
 Does different dimensions of CSR influence a financial performance?
 Does the CSR and firm performance mediated by intellectual capital?
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12. Research Gap
• Using different mediating and moderating variables in the CSR studies can boost the
performance of the businesses (Javed et al., 2016). The numerous studies on CSR show
that CSR and firm performance relations is still not very well established, and it needs
more exploration in terms of moderators and mediators.
• There is a lack of CSR research in the context of the Pakistani corporate sector (Ehsan &
Kaleem, 2012). From the theoretical and practical point of view, there is a need to explore
the effects of an investment in CSR initiatives on firm performance in a particular society.
• So, the current study is an attempt to fill this research gap by establishing a composite and
multidimensional relationship of CSR with firm performance using IC as a mediator in
the Pakistani context.
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13. Research Contributions
• This research will contribute to CSR-FP literature because it will help substantiate the instrumental
perspective of stakeholder theory.
• It will facilitate identifying which stakeholder should be paid greater attention to for yielding
financial dividends.
• This research will assist company leaders in determining how CSR can contribute to greater
financial performance.
• This research will aid in the improvement of CSR governance standards and mechanisms in
Pakistan’s context.
• Furthermore, this study will also provide insights for leaders to help them in listening to all key
stakeholders, rather than just shareholders.
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14. Variables of the study
Independent
Variables
Mediating
Variables
Dependent
Variables
Corporate Social
Responsibility
• Towards Customers
• Towards Employees
• Towards Community
Intellectual Capital
• Human
• Structural
• Relational
Financial Performance
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15. Theoretical & Conceptual Model
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16. Hypothesis of the study
• There is a positive impact of CSR on financial performance.
• There is a positive impact of dimensions of CSR on financial performance.
• Intellectual capital moderates the CSR-financial performance relationship.
• Intellectual capital moderates the dimensional CSR-financial performance
relationship.
• Different dimensions of intellectual capital moderate the CSR-financial
performance relationship.
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17. Methodology
Research Design
oResearch approach Quantitative
o Study Descriptive
o Data Collection Adapted Questionnaire
oUnit of Analysis Manufacturing Firms on PSX
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18. Methodology
Population & Sample
• The population is all the public listed manufacturing firms on PSX
• The sample will be taken from the manufacturing firms listed on
Pakistan Stock Exchange. The sample size will be selected based
on purposive sampling.
• Purposive sampling based on the following criteria
• Listed on PSX for 5 years.
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19. Methodology
Data Collection
• This study will use primary data which refers to first-hand information on the
variable of interest obtained by the researcher for specific use in the study.
• Questionnaires are considered more appropriate and are widely used for
collecting data in a quantitative study where hypotheses are to be tested (Hair
et al., 2019)
• The researcher will fill out the questionnaire online through various electronic
media.
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20. References
Agyemang, O. S., & Ansong, A. (2017). Corporate social responsibility and firm performance of
Ghanaian SMEs: Mediating role of access to capital and firm reputation. In Journal of
Global Responsibility: Emerald Publishing Limited.
Barauskaite, G., & Streimikiene, D. (2021). Corporate social responsibility and financial performance
of companies: The puzzle of concepts, definitions and assessment methods. Corporate
Social Responsibility and Environmental Management, 28(1), 278-287.
Carrasco, C. G., & Martnez, P. M. (2016). Historical skills in compulsory education: Assessment,
inquiry based strategies and students' argumentation. In Journal of New Approaches in
Educational Research (NAER Journal) (Vol. 5, pp. 130-136): University of Alicante.
Cavaco, S., & Crifo, P. (2014). CSR and financial performance: Complementarity between
environmental, social and business behaviours. In Applied Economics (Vol. 46, pp. 3323-
3338): Taylor & Francis.
Chang, K., Kim, I., & Li, Y. (2014). The heterogeneous impact of corporate social responsibility
activities that target different stakeholders. In Journal of Business Ethics (Vol. 125, pp. 211-
234): Springer.
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21. References
Cillo, V., Petruzzelli, A. M., Ardito, L., & Del Giudice, M. (2019). Understanding
sustainable innovation: A systematic literature review. In Corporate Social
Responsibility and Environmental Management (Vol. 26, pp. 1012-1025):
Wiley Online Library.
Coombes, P., & Watson, M. (2000). Three surveys on corporate governance. In The
McKinsey Quarterly (pp. 74): McKinsey & Company, Inc.
Ehsan, S., & Kaleem, A. (2012). An empirical investigation of the relationship
between corporate social responsibility and financial performance
(Evidence from manufacturing sector of Pakistan). In Journal of Basic and
Applied Scientific Research (Vol. 2, pp. 2909-2922).
Elouidani, A., & Zoubir, F. a. (2015). Corporate social responsibility and financial
performance. African Journal of Accounting, Auditing and Finance, 4(1), 74-
85. doi:10.1504/AJAAF.2015.071749
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to
report the results of PLS-SEM. In European business review: Emerald
Publishing Limited.
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22. References
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report
the results of PLS-SEM. In European business review: Emerald Publishing Limited.
Hajawiyah, A., Wahyudin, A., Kiswanto, Sakinah, & Pahala, I. (2020). The effect of good
corporate governance mechanisms on accounting conservatism with leverage as a
moderating variable. In Cogent Business & Management (Vol. 7, pp. 1779479):
Taylor & Francis.
Iqbal, N., Ahmad, N., Basheer, N. A., & Nadeem, M. (2012). Impact of corporate social
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Javed, M., Rashid, M. A., & Hussain, G. (2016). When does it pay to be good–A contingency
perspective on corporate social and financial performance: would it work? In
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Khalique, M., Bontis, N., Shaari, J. A. N. B., Yaacob, M. R., & Ngah, R. (2018). Intellectual
capital and organisational performance in Malaysian knowledge-intensive SMEs.
International Journal of Learning and Intellectual Capital, 15(1), 20-36.
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23. References
Lins, K. V., Servaes, H., & Tamayo, A. (2017). Social capital, trust, and firm performance: The
value of corporate social responsibility during the financial crisis. In the Journal of
Finance (Vol. 72, pp. 1785-1824): Wiley Online Library.
Sajjad, A., & Eweje, G. (2014). Corporate social responsibility in Pakistan: current trends
and future directions. In Corporate social responsibility and sustainability:
Emerging trends in developing economies: Emerald Group Publishing Limited.
Singal, M. (2014). Corporate social responsibility in the hospitality and tourism industry: do
family control and financial condition matter? In International Journal of
Hospitality Management (Vol. 36, pp. 81-89): Elsevier.
Torres, A. I., Ferraz, S. S., & Santos-Rodrigues, H. (2018). The impact of knowledge
management factors in organizational sustainable competitive advantage. In
Journal of Intellectual Capital: Emerald Publishing Limited.
Wang, H., & Choi, J. (2013). A new look at the corporate social–financial performance
relationship: The moderating roles of temporal and interdomain consistency in
corporate social performance. In Journal of Management (Vol. 39, pp. 416-441):
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