The Impact of Corporate Social Responsibility on Financial Inclusion in the Commercial Banking Sector of Pakistan

This paper explores the relationship between Corporate Social Responsibility (CSR) and the Financial Inclusion (FI) of commercial banks in Pakistan and fills a very important gap in the current literature. This study employs a quantitative research strategy that used panel data from 2008 to 2022 to evaluate the effects of CSR on these essential financial measures in a detailed manner. The data was collected from the annual statements of performance and/or financial accounts of commercial banks sourced from the State Bank of Pakistan and the Pakistan Stock Exchange and is subjected to thorough diagnostic and descriptive tests to ensure the validity and reliability of such data. The analysis shows that financial inclusion and CSR initiatives improve financial inclusion. It also shows that CSR activities create profit and enhance market presence, improve access to financial services for the needy, and encourage practices that lower financial risk, hence improving the overall stability of the financial system. These results indicate the critical importance of CSR in helping the banks achieve their broader objectives of profitability and stability.