CSR, Contracting and Socially Responsible Investment: Opportunities for Pakistani Firms

The purpose of our paper is to explore two ways in which Pakistani firms can take advantage of the growing corporate social responsibility movement so as to improve their own economic performance. First, the presence of MNCs in Pakistan, the vast majority of which have made significant CSR undertakings, means that Pakistani firms seeking to do business with them will often have to meet CSR tests themselves. Second, the increasing financial clout of so-called Socially Responsible Investement (SRI) funds means that Pakistani firms have an incentive to comply with CSR standards so as to become eligible investment instruments. We begin by canvassing briefly the history of CSR movement and what are by now relatively well-known CSR principles and standards. We then explore some examples of how Pakistan-based multinationals as well local firms are currently engaging in CSR practices. We argue that Pakistan can and should acquire the reputation for being a leader in this domain.