Abstract:

This paper analyses corporate social responsibility (CSR) for chemical sector in Pakistan and its impact on financial performance of this corporate sector. All the firms consistently have higher CSR strengths and CSR concerns during the sample period. However, this sector shows a steep increase in CSR strengths and a steep drop in CSR concerns in Pakistan. Corporate firms  which are  engaged in chemical sector  that are profitable, have higher Capital Ratios, ROA, ROI, Net Profit Margin, Higher Employees Benefit, Creditor Turnover Ratio and better Payment of Taxes to Government .and they pay more attention to all the stakeholders concerns and significantly higher CSR strengths scores in this regard. For other corporate sector, low involvement in low income communities, it is not possible to show many significant relations between corporate social responsibility and firm financial performance. So, for chemical sector with high responsibility on its shoulders, it is the required to invest more in CSR. Finally, we find that ROA and Net Profit positively and significantly related to CSR.