THE NEXUS BETWEEN CORPORATE SOCIAL RESPONSIBILITY AND CORPORATE PERFORMANCE: AN EMPIRICAL EVIDENCE

Background: This study investigates the relationship between CSR (corporate social responsibility) practices and enterprise performance. We have collected the data from 248 different enterprises located in different industrial areas of Karachi, mainly including S.I.T.E industrial area, Federal-B industrial zone, and West Wharf industrial area, Karachi Export processing zone, Bin Qasim industrial zone, and Korangi industrial zone. Methods: The study mainly employed SEM (structural equation modeling) to test hypotheses in AMOS software. The practices of CSR were measured through 'green design of products', 'ethical leadership', 'building school and hospital infrastructure', and 'environmental protection training'. Results: The findings revealed that ethical leadership is strongly and positively correlated with CSR practices, which confirmed that ethical leadership has strong potential to implement CSR practices inside and outside of the firms. The results further indicate that CSR practices enhance enterprise performance. Conclusions: This research provides insight into the relationship between CSR practices and enterprise performance. Further, this study will help senior managers, and practitioners to understand the significance of CSR practices.