The Impact of Corporate Social Responsibility on Firm’s Productivity: A Comparative Study of Two Competing Firms having UN Global Compact Status

Abstract

This study explores that how CSR is related to productivity and what differences are
there in the CSR practice of pharmaceutical firms Gsk& Abbott in Pakistan. The
purpose of this study is to fill the present research gap by conducting a research on
Pharmaceutical sector of Pakistan & to know what impact CSR has on productivity
and whether both firm exhibit similar CSR practices. This study is a quantitative type
of study. Data is collected through the questionnaire, distributed among the
employees of two pharmaceutical companies i.e. Abbott and GlaxoSmithKline (Gsk).
A stratified random sample of 150 employees of Gskand 174 employees of Abbott was
selected. The dependent variable of the study is productivity and corporate social
responsibility is independent variable. The statistical tools i.e reliability, factor
analysis, descriptive statistics, correlation, regression and independent T-tests were
applied to obtain the results. The Analysis reveals a positive correlation between
corporate social responsibility and productivity. The Regression Analysis predicts
that corporate social responsibility effects productivity positively. The findings of the
study show that CSR leads to higher productivity in these pharmaceutical firms
located in Pakistan. In addition, the results also demonstrate that there is
insignificance difference in the CSR practices of Gsk& Abbott.