PROJECT REPORT ON
THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON FIRM PERFORMANCE THROUGH BOARD CHARACTERISTICS
Submitted to
Dr. Mohammad Tariq Hasan Associate Professor (Accounting) School of Business and Economics
United International University
Submitted by Ehsanul Haque ID: 114 161 019
BBA in AIS
United International University
Date of submission: 27th August 2022
LETTER OF TRANSMITTAL
August 27, 2022
Dr. Mohammad Tariq Hasan Associate Professor
School of Business and Economics United International University
Subject: Submission of the project paper title, “The Effect of Corporate Social Responsibility on Firm Performance through Board Characteristics"
Dear Sir,
With respect, I am submitting my project on “The Effect of Corporate Social Responsibility on Firm Performance through Board Characteristics" that you have assigned me to study and find information about it. I gave my best shot to bring the correct information on the impact of corporate social responsibility on firm performance through board characteristics.
I have really learned apart and gotten important thoughts and information and gathered experience while doing my report. It was a great opportunity for me to work on this research. I hope this paper may fulfil your desires. In case you meet any questions, it’ll be my pleasure to explain your all queries.
Sincerely,
Ehsanul Haque ID: 114 161 019 BBA in AIS
ACKNOWLEDGEMENT
Individuals who encourage me to do comprehensive work such as project papers must deserve a few acknowledgments. I should acknowledge too those who gather the significant data that contributes to creating my project paper stunning to readers. Moreover, much obliged to the career experts and other creators who made a difference in collecting the tremendous ideas and data. I am grateful to my institution United International University for giving me the opportunity. Now I would like to special thanks to my project supervisor Dr. Mohammad Tariq Hasan for giving me the topic of Corporate Social responsibilities (CSR) which helped me do a lot of research and also know about the impact of corporate social responsibilities on firm performance through board characteristics.1
ABSTRACT
The purpose of this study was to examine the impact of corporate social responsibility (CSR) on the performance of pharmaceutical companies in Bangladesh. The elements are named board characteristics, audit committee measured in terms of ROA and leverage. This study indicates data of all listed firms of the Dhaka Stock Exchange (DSE) in Bangladesh under the category of the pharmaceutical industry (total of 27 firms) for 3 years from 2017/18 to 2019/20. The theoretical foundation of the study is based on agency and stakeholder theory. This study model also contains four variables, board size, board expertise, board independence, and CEO duality.
The outcomes of the study show that most pharmaceutical firms have been practicing corporate social responsibility (CSR) since 2016. Disclosure of corporate social responsibility is important for fulfilling corporate social responsibility, promoting the company's image, and creating good images of the company among shareholders. The study gives us that the corporate social responsibility (CSR) statement has a valuable impact on return on assets (ROA). This research has major implications for businesses based on investment activity and reporting of corporate social responsibility (CSR).
Keywords: Corporate social responsibilities, pharmaceutical industry, Bangladesh, Stakeholder, Economic development.
TABLE OF CONTENT
LETTER OF TRANSMITTAL...II ACKNOWLEDGEMENT...III ABSTRACT...IV TABLE OF CONTENT...V
CHAPTER ONE: INTRODUCTION...1
1.1 Background of study...1
1.2 Problem Statement...1
1.3 Research Objective...2
CHAPTER TWO: LITERATURE REVIEW...3
2.1 Theory...3
2.2 Corporate social responsibility (CSR) and financial performance (FP)...3
2.3 Board characteristics (BC) and financial performance (FP)...4
2.3.1 Board size and financial performance...5
2.3.2 Board expertise and financial performance...5
2.3.3 Board independence and financial performance...5
2.3.4 CEO Duality and financial performance...6
2.4 Corporate social responsibility (CSR), Board characteristics (BC) and financial performance (FP)...6
CHAPTER THREE: METHODOLOGY...8
3.1 Sample and Population...8
3.2 Data collection and processing...8
3.3 Measurement of the Variables...8
3.4 Regression model...9
CHAPTER FOUR: ANALYSIS AND FINDINGS...11
4.1 Descriptive Analysis...11
4.2 Correlation matrix...12
4.3 Regression analysis...14
CHAPTER FIVE: RECOMMENDATION AND CONCLUSION...17
5.1 Recommendation...17
5.2 Conclusion...17
Reference...18
CHAPTER ONE: INTRODUCTION
1.1 Background of study
The purpose of this study was to examine the impact of corporate social responsibility (CSR) on the performance of pharmaceutical companies in Bangladesh. In today's corporate environment, the term "Corporate Social Responsibility" (CSR) is more than just a word for stakeholders. CSR is a concept that has been growing in the business world for a long time; however, its full impact has yet to be realized. In this uncertain world, the introduction of corporate social responsibility in business indicates a unique time of industry. Corporate social responsibility is the role of businesses to provide sustainable growth by maintaining a proper balance among financial, social, and environmental aspects. CSR (Corporate Social Responsibility) is not still mandatory yet for business purpose in Bangladesh but in Bangladesh companies get different benefit from government by doing different CSR (Corporate Social Responsibility) activities. CSR (Corporate Social Responsibility) is responsible for business to contribute to economic development that create profitable relation with employees, the nearby community and the society at huge to move forward the quality of their life, in a way, they are great for trade additionally great for a change.
1.2 Problem Statement
A CSR report is a concept of a business that has a responsibility for the society and its environment. It is an inside and outside script that a company uses to connect CSR (Corporate Social Responsibility) determinations and their outcome on environment and their community.
CSR effort of organizations has four (4) categories: Environmental, Ethical, Philanthropic and Economic(Yakovleva, 2012). CSR (Corporate Social Responsibility) report is selected because a CSR report is a way for an organization where it becomes a path for communicating their mission, vision, efforts and endings to outside and inside stakeholders which mean the data of organizations related with CSR (Corporate Social Responsibility) is available on their websites and other financial portals(de Jong, 2017). When the data are easy to get form various websites, it’s easy to make the report properly with full of valid information. While making the report there are some information is missing which is very rare but every company should check their websites and update their information in every financial year thorough financial statements
which is mandatory for every company. That’s the formal way of solve this problem of missing data.
1.3 Research Objective
The resolution of the research is to reach the appreciative of how Corporate Social Responsibilities (CSR) are executed by the pharmaceutical’s companies of Bangladesh and to what amount they are upholding their pledges and duties. Whether the results are out from corporate social responsibility follows are furthered for the society, civic and overall community.
Primary objective: The primary objective of this study is to complete the limited prerequisite of BBA in AIS program form SOBE, United International University.
Secondary objective: The secondary objectives of my report are given below:
Overview of CSR (corporate social responsibility)
CSR practice in Bangladesh
Effect of CSR in pharmaceuticals firms
Comparison of various data of different timeline.
CSR expenditure of pharmaceuticals firms in Bangladesh.
Programs of CSR practicing Bangladesh.
Finally, several other reference on behalf of more.
CHAPTER TWO: LITERATURE REVIEW 2.1 Theory
Research indicates there is a principle that used to resolve issues between business principles and their agents which means between agents who represent others, research called this agent theory who takes care of interest and wellbeing of shareholder. Other research shows the principle which is the view of capitalism that strains the relationship of business and its customers, employers, investors and suppliers which indicates to stakeholder theory and it means they make sure of interest and wellbeing not only the stakeholder but also the whole organization.
2.2 Corporate social responsibility (CSR) and financial performance (FP)
In present I have found that in the majority of research papers which I gathered some information basis on my hypothesis which is, this is a helpful outcome of corporate social responsibility on organization's financial performance (which is 66% out of 100%) while only 5% out of 100%
appearances there is no definite bond between CSR (Corporate Social Responsibility) and FP (Financial Performance). Where I see that, only 10% of study papers appearances diversified outcomes about the effect of CSR (Corporate Social Responsibility) on FP (Financial Performance) and residual 18% research papers appearances that there is adverse relationship.
The study that shows no important relationship, in point of fact it is a positive connection but very few and from the arithmetical point of view which is not much certain. Financial performance is measured through profitability ratios that come from a company's financial report which shows that are standard and also available. Between CSR and FP some representative gives some different kind of references(Kirkos, 2007; Naz, 2016). That gives us positive relation about CSR and FP relationship told negative about CSR and FP relationship. Some other research’s told there is no connection between the CSR and FP(Alareeni, 2020; del Mar Miras‐
Rodríguez, 2015). Several studies find a positive relationship between CSR and FP which recommends that presence of social is responsible that increases their probability. And I also find that If CSR has a positive consequence on FP, it is also likely that responsible over informally on investments have a positive view rather than an adverse view on their value of their shareholders (Moser & Martin, 2012) which makes a importance that CSR is also favorable for the stakeholders. Thus, CSR and FP both can have positive and negative impact. My research shows
that only I found only 5% papers which shows me there is not at all relation between CSR and FP and only 10% of 100% papers appearances there is a diversified outcome and only 18% of 100% shows there is negative outcome. The learning that shows no significant relationship, actually it is a constructive relationship but very few and from the statistical fact of view which remains not much certain(Bradshaw, 1992; Zakzanis, 2001).
Hypothesis 1: Corporate Social Responsibility has significant positive relationship with financial performance.
2.3 Board characteristics (BC) and financial performance (FP)
This research paper contains the perspective of BC (Board Characteristics) and FP (Financial Performance) which informed us the relationship between the various board characteristic measures like CSR value, net income, board size, board expertise, board independent, CEO duality, ROA (Return on Assets), growth and audit quality of performance in a sample of 33 which is listed in Dhaka Stock Exchange (DSE) pharmaceutical industries of Bangladesh. Board members with highly qualified is better at monitoring management and constitute a more valuable resource for their company which leads to make more profit (Ujunwa, 2012). We find that the share of managerial ownership which is the board that can positively affects the financial performance and the board makes that to a positive relationship. It shows that board characteristics like board size, board independence, and female director are positively associated with financial performance, where the CEO (Chief Executive Officer) duality impacts positively on financial performance (Hasan, 2020; Hasan, Molla, & Khan, 2019; Syriopoulos, 2012; Uyar, 2021). The results are consistent with the view that benefits of firms from board in terms of directors of outsider has their ability to check their managers and give advice and provide grooming sessions to managers for a better performance. The results of this research will be of interesting and so much helpful to shareholders and boards because by highlighting the board characteristics that they should target if they want to increase their financial performance.
2.3.1 Board size and financial performance
The size of the board always believed that they play an important role in firm performance.
Some research paper suggests board size has a negative impact on firm value. The paper also suggests that firms have to go for a small board size because large number may create communication and coordination problems that affect board effectiveness. But some other paper shows that board size have a positive impact on firm’s value (Hasan, 2020; Hasan & Rahman, 2020; Kumar, 2013; Nguyen, 2016). They support that, large board size is more effective. Large board can provide several benefits like better monitoring, massive knowledge and information, flexibility and better network. So, findings supports to the argument that, big companies with a larger board is more beneficial for the company.
Hypothesis 2a: the board size has significant positive relationship with firm financial performance.
2.3.2 Board expertise and financial performance
The resolution of this paper is to examine the effect of corporate board characteristics on the financial performance Bangladeshi pharmaceutical firms (Hasan & Rahman, 2020; Rahman, 2019). Board characteristics (BC) planned consists of CEO duality, board size, board nationality, board skill and board gender.
Hypothesis 2b: the board expertise has significant positive relationship with firm financial performance.
2.3.3 Board independence and financial performance
The research is based on board independence and firm performance which gave us mixed outcomes also positive, negative or no liaison with firm performance. Few researches have established the connection between board independence and financial performance. Accounting- based or market-based measurements are also used to investigate firm performance (Hamdan,
2018). Accounting based measures is through Return on Assets (ROA), Earnings per share (EPS), Return on Investment (ROI) and Profit Measures (PM). Meanwhile, multiple studies have used net income for market value, which is a market-based analysis. Board independence makes sure good corporate governance preparation by the concerns (Lipton, 1992). There was a significant relationship between the board independence and the financial performance. It means when the board was liberated, it would be more obvious and would spread information which advanced outcomes in refining the firm’s liquidness.
Hypothesis 2c: The board independence has significant positive relationship with firm financial performance.
2.3.4 CEO Duality and financial performance
CEO duality can have a negative impact on firm’s financial performance. This study also shows us different control variables, like CSR (Corporate Social Responsibility) value, net income, ROA (Return on Assets), growth, total net income, and leverage of the firm. This study found while researching this topic which is the leverage of firms as total liabilities to total assets ratio.
This research shows that, better performing firms published their CSR information more frequently and they do not need to hide the information partly (Plambeck, 2012). Financial performance related with publish of CSR is valuable in public enterprises.
Hypothesis 2d: the CEO duality has significant negative relationship with firm financial performance.
2.4 Corporate social responsibility (CSR), Board characteristics (BC) and financial performance (FP)
This research has a resolution which is to find out the moderating role of board characteristics
collected from different websites like lanka bangla financial portal, google scholars, individual company’s websites and Dhaka stock exchange (DSE) for the pharmaceutical firms which is collected data for the period of 2018-2020. That indicates that having an effective CSR (corporate social responsibility) committee and also woman directors on the board, they are become solid issues which efforts the firms to show CSR (corporate social responsibility) performance in all (Amran, 2014). The maintenance of their self-governing directors and directors selectively growth the CSR (Corporate Social Responsibility) score. Exploring the connection between CSR (Corporate Social Responsibility) performance and firms financial performance did not create a significant result (Uyar, 2020). For a better understanding of the relationship between BC (Board Characteristics) and CSR (Corporate Social Responsibility), we considered four BC (Board Characteristics) which is board, board’s effort, gender diversity, nonexecutive board members, and CSR (Corporate Social Responsibility) committee and also its three sub dimensions which is social, environmental, and governance indicators. This study helps us to understand the board characteristics (BC) which helps us to understand the corporate social responsibility (CSR) and that’s helps financial performance to increase from lower to higher. So, it’s a positive sign for a company that combination of these three will increase company’s financial performance.
Hypothesis 3: Board characteristics significantly moderate the relationship between CSR and firm performance.
CHAPTER THREE: METHODOLOGY
3.1 Sample and Population
In this study data of total 27 pharmaceutical firms are used. The time frame for the study is 2017/18 to 2019/20 financial year i.e., 3 years. The area of the report is manufacturing and supplying products.
3.2 Data collection and processing
These 27 pharmaceutical data were collected from different sources (example: Lanka Bangla financial portal, their websites, financial statements, Dhaka stock exchange and Google scholar).
In this study following data are collected from published annual report of the study firm listed in Dhaka Stock Exchange (DSE), CSR (Corporate Social Responsibility), net income (NI), board size (BS), board expertise (BE), board independency (BI), CEO duality, ROA (return on assets), leverage, growth and audit quality (AQ). All the analysis is done by STATA.
3.3 Measurement of the Variables
To test the hypothesis, this study employs panel data in the course of multiple regression models which are related to CSR (Corporate Social Responsibility), board characteristics (BC) and firm performance (FP). The following variables are considered for those multiple regressions to test the relationship among the variables: The amount of expenditure for CSR (corporate social responsibility) as dependent variables, firm performance (FP) as the independent variable and board characteristics as moderating variable. The study also includes a number of indicators and control variables in the study model by following previous researches (Al-Rassas & Kamardin, 2015; Dechow & Dichev, 2002; Hasan, 2020; Hasan, Fakir, & Chakraborty, 2011; Hasan &
Rahman, 2017; Masum, Hasan, & Miraz, 2020; Molla, Hasan, Miraz, Azim, & Hossain, 2021),
growth in terms of sales (GRT), the return of assets (ROA). Table 1 stand for the explanation of the functional variables in the regression model:
Table 1
Study Variables Clarification
Variables Measurement
Corporate social responsibility (CSRit)
Total expenditure for CSR by a firm in the given year
Firm performance (NOIit) Net operating income by a firm in the given year Board size (BDSZit) Number of director in the board for the firm in year t
Board Independence (BDINit) Number of independent director in the board for the firm in year t CEO Duality (CEODit) Dummy variable, equal to 1, if CEO duality exist otherwise '0' Board Expertise (BDEXit) Number of professional accountant in the board for the firm in
year t
Audit Quality (AQit) Dummy variable, equal to 1 if the company is audited by Big-4 auditors, 0 otherwise
Leverage (LEVit) The ratio of total liabilities to total assets for the firm in year t Growth (GRTit) Annual percentage of changes in sales for the firm in year t Return on Assets (ROAit) Ratio of total income to average total assets for the firm in year t
3.4 Regression model
To scrutinize the hypothesis of the study, following multiple regression models are developed:
Model 1
NOIit = β0 + β1CSRit + β2AQit + β3LEVit + β4GRTit + β5ROAit + εit (1) Model 2
NOIit = β0 + β1BDSZit + β2BDINit + β3CEODit + β4BDEXit + β5LEVit + β6GRTit + β7ROAit +
β8AQit + εit (2)
Model 3
NOIit = β0 + β1CSRit + + β2BDSZit + β3BDINit + β4CEODit + β5BDEXit + β6LEVit + β7GRTit +
β8ROAit + β9AQit + εit (3)
Model 4
NOIit = β0 + β1CSRit + + β2BDSZit + β3BDINit + β4CEODit + β5BDEXit + β6CSR*BDSZit + β7CSR*BDINit + β8CSR*CEODit + β9CSR*BDEXit + β10LEVit + β11GRTit + β12ROAit + β13AQit +
εit (4)
CHAPTER FOUR: ANALYSIS AND FINDINGS
4.1 Descriptive Analysis
All data of this study are taken from the annual report of pharmaceutical company form 2017- 2018, 2018-2019, 2019-2020. This study considers mean, standard deviation, minimum and maximum of various variables such as, company, year, CSR, NI, board size, board expertise, independent board, CEO duality, ROA, leverage, growth, and audit quality. This study shows us the mean, standard deviation, minimum and maximum of every variable. This study shows that the pharmaceutical industry of Bangladesh has mean of ROA which is .8805432 and the standard deviation of ROA is 4.90. The minimum of leverage is .004 and 8.731 is the standard deviation which has also a maximum that is 568.978 (Chowdhury, 2019; Hasan et al., 2019; Hasan &
Rahman, 2020; Hasan et al., 2020).
Table: Descriptive statistics
Variable Obs Mean Std. Dev. Min Max
SILNO 81 14 7.83741 1 27
Company 0 - - - -
Year 81 2019 .8215838 2018 2020
Log CSR 80 5.878659 .8226667 3.25042 7.91033
Log NI 73 7.9395 1.41491 3.154293 9.777572
Board Size 81 7.654321 2.475684 4 13
Board Exp 81 .7283951 1.274876 0 4
Board Ind 81 1.925926 .8628119 0 3
CEO Duality 81 .1481481 .3574602 0 1
ROA 81 .8805432 4.894388 -.817 40.93
Leverage 81 8.730136 63.22791 .004 568.978
Growth 81 1.451622 3.36394 -.83 13.69
Audit Qualiy 81 .1111111 .3162278 0 1
4.2 Correlation matrix
The correlation matrix indicates the relationship between two variables, which can be categorized into three parts they are low 0.10 to 0.29, medium 0.30 to 0.49 and high 0.50 to 0.99.
This table consists the highest and also the lowest number which is -0.1673 and 1 is the highest.
The star marks represent the significant at between 1 to 10% confidence level. The board size related with CSR is 0.3076 which is significant at 1-10% confidence level. Another is CEO duality related with net income which is 0.0030 and that is not in significant level. The ROA (return on assets) related with the audit quality (AQ) is -0.0578 which is not also significant at their confidence level of 1-10% (Chowdhury, 2019). Here the study indicates that leverage between the leverage, growth between the growth and the audit quality between the audit qualities is always 1.000. But the growth related with leverage is -0.0592. The audit quality related to growth is 0.2320 which is significant at 1-10% confidence level (Chowdhury, 2019;
Hasan, 2020; Hasan, Hossain, Rekabder, Molla, & Ashif, 2022; Hasan & Rahman, 2020)
Table: correlation matrix
Log CSR Log NI Board Size
Board Expertise
Board Independency
CEO Duality
ROA
Log CSR 1.0000 Log NI 0.1555 0.1890
1.0000 Board Size 0.3076*
0.0055
-0.1673 0.1571
1.0000 Board Expertise -0.1330
0.2395
0.0476 0.6893
0.2550*
0.0216
1.0000
Board Independency
-0.2415*
0.0309
0.0687 0.5637
0.4268*
0.0001
0.0838 0.4572
1.0000
CEO Duality 0.1440 0.2025
-0.3425*
0.0030
0.3411*
0.0018
0.4734*
0.0000
0.0360 0.7495
1.0000
ROA 0.0712
0.5301
0.0891 0.4534
-0.1957*
0.0800
-0.0975 0.3863
-0.1321 0.2396
-0.0718 0.5241
1.0000 Leverage 0.1142
0.3131
0.0839 0.4804
-0.1245 0.2682
-0.0637 0.5721
-0.1293 0.2499
-0.0403 0.7212
0.9263*
0.0000 Growth -0.0274
0.8092
-0.4337*
0.0001
0.1406 0.2107
0.1679 0.1340
0.0400 0.7227
0.6673*
0.0000
-0.0786 0.4855 Audit Quality 0.1529
0.1757
-0.0649 0.5855
0.2413*
0.0300
0.1998*
0.0737
0.0305 0.7866
0.5160*
0.0000
-0.0578 0.6081
Leverage Growth Audit Quality
Leverage 1.0000
Growth -0.0592
0.5996
1.0000 Audit Quality -0.0252
0.8233
0.2320*
0.0371
1.0000
4.3 Regression analysis
So we have different nine types of variables and want to find-out the influence on a single variable, a multiple regression analysis is conducted below to evaluate the impacts of
independent variables on the dependent variable (Chowdhury, 2019; Hasan, 2020; Hasan et al., 2019; Hasan & Rahman, 2020).
Table: Regression output (model-3)
Output of summary:
Source SS df MS
Model 56.279716 9 6.25330178 Residual 87.8604432 63 1.39461021
Total 144.140159 72 2.00194666
NI Coef. Std. Err. t P > ItI 95% Conf. Interval
CSR .7563827 .2110783 3.58 0.001 .3345763 1.178189
Board Size -.2408832 .078987 -3.05 0.003 -.3987262 -.0830403
Board Expertise .4110239 .132284 3.11 0.003 .1466754 .6753724
Board Independency
.6713476 .255604 2.63 0.011 .1605638 1.182131
CEO Duality -1.390889 .6896671 -2.02 0.048 -2.769079 -.0126993
ROA .0340481 .0755212 0.45 0.654 -.1168689 .1849651
Leverage .0000277 .029068 0.00 0.999 -.0580601 .0581155
Growth -.081548 .0576967 -1.41 0.162 -.1968457 .0337496
Audit Quality .5652604 .5075317 1.11 0.270 -.4489608 1.579482
cons 3.952329 1.308751 3.02 0.004 1.336999 6.567659
The data collections show that CSR (corporate social responsibility) of firms is really related to its firm’s performance. That the outcome of CSR (corporate social responsibility) on performance is durable for companies. Suggest that firms great in both social and economic tasks
Number of obs =73
F (9, 63) =4.48 Prob > F =0.0001 R-squared =0.3905 Adj R-squared =0.3034 Root MSE =1.1809
1% level which is board expertise (BE), board size (BS) and board independency (BI). However, board expertise has a significant negative association with ROA (return on assets) at 1% level which is not supported by the hypothesis.
In this table of data indicates net income (NI), CSR (corporate social responsibility), board size (BS), board expertise (BE), board independency (BI), CEO duality (CEOD), leverage, ROA (return on assets), leverage, growth. This table of data contains the value of coefficient, where NI shows positive relation with CSR and board size -.2408832 which is not significant, the significant level is 1%. The standard error and board expertise has .132284 which is significant at 1%. ROA (return on assets) and standard error and t has positive value which is .0755212 it’s not significant and t contains 0.45 which significant at significant level 1% (Chowdhury, 2019).
Table: Regression output (model-4)
Regression model:
Source SS df MS
Model 96.9402 12 8.07835
Residu al
724 48.5294
64 603
.
906 7582732 91 Total 145.469
763
76 1.91407 583
Number of obs: 77 F(12, 64): 10.65 Prob > F: 0.0000 R-squared: 0.6664 Adj R-squared: 0.6038
Root MSE: .87079
NI Coef. Std. Err. t P > |t| [95% Conf. Interval
CSR .6375769 .5972815 1.07 0.290 -.5556302 1.830784
Board Expertise -6.71193 1.156009 -5.81 0.000 -9.021322 -4.402537 Board
Independency
.1931387 1.40225 0.14 0.891 -2.608177 2.994455
CEO duality 26.8882 4.142103 6.49 0.000 18.61339 35.163
BDSZCSR -.0297845 .0099265 -3.00 0.004 -.049615 -.0099539
BDEXPCSR 1.21549 .1982259 6.13 0.000 .8194884 1.611492
BDINCSR .0421928 .2178329 0.19 0.847 -.3929784 .477364
CEODCSR -4.8520504 .6986907 -6.95 0.000 -6.248299 -3.456709
ROA .029397 .055434 0.53 0.598 -.0813451 .1401391
Leverage -.0009137 .004259 -0.21 0.831 -0.009422 .0075947
Growth .1007337 .0510134 1.97 0.053 -.0011773 .2026447
AQ .791565 .408163 1.94 0.057 -.0238344 1.606964
_cons 4.74171 3.743511 1.27 0.210 -2.736813 12.22023
CHAPTER FIVE: RECOMMENDATION AND CONCLUSION
They should maintain a standard organizational and data structure that can engage new workers and employees to cope with the current system.
It controls all the business processes of an organization, it should be easy to use and understandable for all the employees and workers.
The main software is different customized operating software which is not effective enough for creating reports or data, so they should develop new software for better performance.
They should give more engagement in their process of manual data transferring system.
They should change their AIS from manual to a computerized system. That will be more effective and more efficient.
They should increase their online security system for protecting their data from hacking, error, and misuse of data and information.
Understand the organizational needs and Management requirements from the system to develop their desired software and enhance their quality.
They must maintain their system by doing maintenance strictly.
5.2 Conclusion
According to the discussion above, corporate social responsibilities (CSR) are practiced not only in developed nations but also in developing countries such as Bangladesh. By reviewing the previous three (three) years of data from pharmaceutical firms, this study discovered that they are attempting to retain their corporate social responsibility (CSR) policies while also striving to be more accountable to society and socioeconomic activities. However, many firms are unable to provide appropriate resources and information’s about their CSR data for potential CSR (corporate social responsibility) programs. If corporations keep their promises to society, Bangladesh would be a developed country and poverty will be eradicated within a few years.
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