This study is an empirical substantiation of earnings management as a moderating variable on relationship involving corporate social responsibility and financial performance. The study is conducted by taking sample of 80 firms listed on PSX selected through stratified random sampling for period of 2013 to 2017. Data is analyzed by multiple linear regression, descriptive statistics and moderated regression analysis through SPSS. Study provides evidence that CSR exerts positive impact on ROA and price to earnings ratio. Earnings management intervenes in the relationship between the CSR and ROA, then significant impact of CSR on ROA decreases. Whereas earnings management does not moderate the relationship relating CSR and PE ratio, which is the market measure of financial performance. Market measures are not directly influenced by CSR and earnings management activities. The results suggested that when higher earnings management initiates CSR practices, these further worsen the FP, so stakeholders should be cautious about these activities