Societal Marketing - A Tool for Financial Performance or Simply a Donation: An Empirical Investigation of Pakistani Firms

Muhammad Shahbaz Shabbir1, Mian Rehman Uddin2, Muhammad Shahbaz3 and                                                        Fauzia Sayyed4

1&3Head Center for Research, COMSATS Institute of Information Technology, Lahore, Pakistan
2&4International Islamic University, Islamabad Pakistan


A socially beneficial project, entity or an organization only exists when its social benefits are more than its social costs. Previously, businesses were virtually of no benefit to the society, except for providing employment and utilities to the society.  In this study, we explored the impact of societal marketing on the financial performance of the organization. This research will hopefully encourage the organizations to engage themselves further in societal marketing activities; as it is not merely a donation and it will yield future returns. Financial statistics of ten organizations involved in societal marketing activities in Pakistan, were taken from Karachi Stock Exchange. From the financial data collected, we analyzed the impact of societal marketing on their overall financial performance by using Paired Sample t-test. There is a significant impact of societal marketing on organization’s financial performance. The results verify that societal marketing is an investment for the organization that yield high returns. Our findings are specific only to those organizations which are listed on the KSE. In Pakistan, there are number of organizations which actively engage in societal marketing activities but these organizations were not willing to share their financial data. For this reason, these organizations were not incorporated in this study.

The positive impact of societal marketing on financial performance has made a strategic discovery for organizations operating in Pakistan. These firms can not only earn handsome profits but also will have improved image in the society. Through this study, we have negated the perception of some of the Pakistani firms who perceive societal marketing as wastage of financial resources and consider it as a donation.

Keywords: Societal Marketing, Financial Performance, Investment, Donation