Sir Syed Journal of Education & Social Research Vol. 4, Issue 1, 2021 (January – March) ISSN 2706-6525 (online), ISSN 2706-8285 (Print) ISSN 2706-9362 (CD-ROM), ISSN 2706-6525 (ISSN-L) DOI: https://doi.org/10.36902/sjesr-vol4-iss1-2021(184-192) __________________________________________________________________________________ __________________________________________________________________________________________ * Department of Business Administration, University of Punjab, Gujranwala Campus, Near Alipur Chowk G.T Road Gujranwala, Pakistan, Email: sidraabbo9010@gmail.com ** Department of Commerce, University of Sindh, Laar Campus, Badin, Email: khalid.abbasi@usindh.edu.pk *** Department of Business Administration, University of Punjab, Gujranwala Campus, Near Alipur Chowk G.T Road Gujranwala, Pakistan. Email: naveed.iqbal@pugc.edu.pk 184 SJESR Sir Syed Journal of Education & Social Research Institutional Corporate Social Responsibility and Organizational Performance: The Moderating effect of Transformational and Transactional Leadership * Sidra Munawar ** Khalid Hussain Abbasi, Assistant Professor (Corresponding Author) *** Dr. Naveed Iqbal Chaudhry, Assistant Professor __________________________________________________________________________________ Abstract This study aims to explore the relationship between transformational leadership (TFL), transactional leadership (TSL) styles, and corporate social responsibility (CSR) practices. The study explains the role of leadership styles between CSR and organizational performance (OP) to investigate the influence of leadership styles over CSR practices this study is the first of its kind in the Asian perspective and Pakistan in particular. Self-administered questionnaires are used to conduct this large-scale field study, data is collected from major cities of Pakistan. Questionnaires are filled by executive managers and administrative staff. Purposive sampling technique is adopted to approach the respondents. Obtained results prove that TFL is more closely interlinked to CSR practices and this relationship becomes robust with the involvement of stakeholder-oriented marketing. Moreover, findings suggest that TSL increases while the TFL decreases the relationship between CSR practices and OP. Keywords: Transformational Leadership, Corporate Social Responsibility, Organizational Performance, Transactional Leadership Introduction For decades researchers investigated the social apprehensions of firms like ecological studies, Human Resource Management (HRM) Marketing and Organizational Behaviour (OB), and so on…However, the idea of Corporate Social Responsibility (CSR) progressed recently and has become more admired (Aguinis & Glavas, 2012). Due to this notion of CSR, many organizations are buoyant to deal in a socially responsible manner. Different scholars defined CSR in different modes and these definitions share some likenesses as well as have some differences. To avoid these mystifications this paper defines CSR in words of "Commission of the European Communities, 2001” (Dahlsrud, 2008) "it is an important concept by which business firms voluntarily decide to donate for a cleaner environment and improved society". According to Maine & Sprinkle (2010) the CSR includes various aspects of social and environmental edges. Walmart and Starbuck are two examples in this regard, as both exhibit the aforementioned CSR activities towards their suppliers (Denend & Plambeck, 2007). Walmart and Starbuck made collaborations with NGOs to reduce the risk associated with CSR activities leading to CSR benefits and made an example of an effective business-NGO conglomerate (Weber, 2008). To comply with the CSR approach, many firms regularly measure the influence of their business activities on local communities. Most of the CSR activities are self-imposed. Nowadays some Governments are considering it to formulate legislation for business organizations to adopt and encourage CSR activities for the betterment and prosperity of the whole society. CSR has a signaling effect to the stockholders and bondholders about the organizational reputation, market noise, and market volatility. Furthermore, stakeholders consider CSR activities as management skills. Previous studies concluded that economic outcomes of CSR are highly variable and mixed. Some researchers concluded that CSR has positive while some indicate CSR holds a negative association with organizational economic outputs. While others reported a non-significant relationship among the two (McGuire, Sundgren, & Schneeweis, 1988; Orlitzky, 2013). CSR has a direct relation with additional