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The today‘s dynamic business environment demand organizations to meet expectations about good governance, business ethics and social responsibility. The research study aimed to describe the Islamic and conventional concept of Corporate Social Responsibility (CSR) by establishing their relationship with organization performance and draw comparison between the effectiveness of CSR in their performance. Top 3 Islamic and conventional banks were selected on the basis of superior performance as published in the year 2013. The secondary data were collected from annual reports, web sites and descriptive statistics revealed that conventional banks allocating increase amount on CSR practices, mostly in Education, Sports and Collaboration with Government. On other side, Islamic banks are found more inclined towards Health, Arts and Culture, Water purification, Special person, Relief & Disaster recovery & Social welfare. However both modes of banks are found mostly inclined towards philanthropic perspective. The primary data collected through survey from bank customers and employees and was tested through STATA. The finding of Regression analysis reveals that conventional banks were actively investing in dimensions like Human rights, fair labor practices, ethical conduct and community development initiatives. Almost similar findings were also found in Islamic banks. The results indicated that there is a significant relationship between CSR and organization performance in the context of customer satisfaction and employee performance. However, there is a need to develop a standard and comprehensive CSR framework for both banks regarding CSR practices in Pakistan.
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