be significant but negatively related to the FP in term of earning per share (EPS). As proposed in the hypothesis, this layer of the CSR pyramid was found to be negatively related to the firm performance in term of EPS. CSRD related to economic and philanthropic is directly related to the FP in term of EPS with the help of both regression analysis which certifies the argument that economic and philanthropy are the most important dimensions of CSR for FP operating in Pakistan. Unexpectedly, as proposed by the current study, the CSRD related to the legal dimension of CSR was also found to be positively related to FP on the basis of fixed-effects model. The last dimension of CSR is ethical, which was found to be negative related to the FP, supports the proposition of the study.
ISSN: 2306-9007 Hayat, Khan & Iqbal (2020) 73 I June2020 InternationalReview of Management and BusinessResearchVol. 9 Issue.2R M B R Table 3: Regression Result Pooled OLS Fixed-effects Variables Coefficient t-ratio P-Value Coefficient t-ratio P-Value Const 23.03 1.67 * 26.54 8.45 *** Economic 0.09 2.64 *** 0.13 3.11 *** Philanthropic 0.36 5.53 *** 0.25 11.35 *** Legal -0.01 -0.30 0.01 3.20 *** Ethical -1.16 -1.60 -1.60 -2.31 ** R-squared 0.12 Adjusted R-squared 0.11 R-squared 0.19 Adjusted R-squared 0.177 F (4, 235) 8.02 P-value(F) 0.000 F (5, 234) 11.30 P-value(F) 0.000 Crane and Matten (2007) noticed that all of the four dimensions of CSR’s pyramid show different role when compared the developed and developing countries. Similarly, Visser (2011) retreated the dimensions of Carroll’s pyramid in developing countries context and observed that the sequence of the CSR layers varying from the original order of the CSR’s pyramid layers. The author further stated that economic layer is prioritized in developing countries, followed by the philanthropy, legal and then ethical dimensions. Despite the fact, that the practices and beliefs of the CSR are subjected to time and place, but the specific indicators and dynamics of the CSR are bound to the decision of an enterprise (Matten and Moon, 2008). Friedman (1970) was of the opinion that the only responsibility of an enterprise is to maximize the utilization of the corporate resources in business operation for the shareholder's profit within the boundaries of the law. The literature's developmental history also integrates various possibilities and development due to difference in standards of ethics, norms, values and even the economy. Similarly, the needs and priorities for living are also depending on the requirements of the local population. Porter and Kramer (2006) claimed that social variations permit the enterprise to modify the CSR activities. Hockerts and Morsing (2008) also put the objection regarding the classification of CSR pyramid in strict hierarchal order. The satisfaction of economic layer is not only important for gaining the competitive edge over the peer groups but also guarantee a firm to be much stable and avoid the potential risk (Prahalad and Hammond, 2002). Campbell (2007) further claims the importance of satisfaction of this layer by emphasizing that basically due to this dimension an enterprise can participate in the socially responsible process. Typically,