Impact of Corporate Social Responsibility on the Financial Performance of Islamic Banks: Evidence from Pakistan

Abstract

This study investigate the corporate social responsibilities and their effect on the financial performance of Pakistani and Malaysian Islamic banks, as well as to compare the CSR practices of both of these countries. The research was conducted using quantitative methods, and the sample consisted of four banks from Pakistan's neighboring countries as well as eight full-fledged Islamic financial institutions. In the Pakistani study, a representative sample was drawn from the entire population of banks, whereas in the Malaysian study, a random sampling approach was used for both the selection of banks and the data collection. The findings indicate that the bank, through its participation in corporate social activities, plays an essential position in the community. Keywords: Corporate Social Responsibility, Return on Asset, Return on Equity, Earning per share, Net Income Financial performance, Islamic banks, Pakistan and Malaysia.