EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON FIRM FINANCIAL PERFORMANCE THROUGH ORGANIZATION IDENTIFICATION: THE CONTEXTUAL EFFECT OF AUTHENTIC LEADERSHIP

Abstract

Many studies have been conducted to check the direct impact of Corporate Social Responsibility (CSR) on Firm Financial Performance (FP), but this relationship still lacks exactness. This study reviewed the mediating and moderating role of Organizational Identification (ORG) and Authentic Leadership (AL) to check the actual effect of Corporate social responsibility and Firm Financial Performance. Data was collected from manufacturing companies working in Pakistan in a cross-sectional survey. The 244 questionnaires were distributed among respondents, and they were asked to fill them correctly and carefully. Valid questionnaires which had been collected from respondents were 211. The results show that CSR positively impacts Firm Financial Performance. The organization identification plays a mediating role in CSR-FP as far as the discussion about moderating role of AL does not contribute to CSR-FP. This study determines the relation between CSR and financial performance, specifically in a developing economy like Pakistan. Second, this study also checks the moderator influence of AL among the FP and CSR. Whether the relationship between CSR and FP is stronger or weaker in the existence of Authentic leadership.