Assessment of corporate social responsibility (CSR) awareness and practices in manufacturing sector of Pakistan

Globalization and mass communication have significantly influenced the socio-economic growth of countries and organizations are under immense pressure to develop their businesses in a more socially responsible way. Consequently, Corporate Social Responsibility (CSR) has emerged as a business development concept. CSR acknowledgement is low in south Asian countries both at state and corporate levels. Pakistan, being a developing country, is no exception and the manufacturing sector, which is the third largest contributing sector to the economy, is facing the challenge of corporate social compliance. This study explores the awareness level amongst employees in the manufacturing sector and also evaluates the practices of CSR activities in these organizations. The study is mainly focused on the textile and automobile sectors and shows greater CSR awareness in the automobile sector than the textile sector; however, there are many organizations where the concept of CSR is unknown. The findings of this research will help organizations in enhancing understanding of CSR amongst employees and will also allow manufacturing industries to improve their implementation against identified weak areas. Increased levels of social compliance will ultimately help organizations in promoting their businesses in the global market.