CSR actions practiced by all the long-lived companies had a positive influence on forming social capital with primary stakeholders and securing legitimacy from secondary stakeholders, which in turn had a significant influence on maintaining survival. This paper explored how CSR affects organizational performance and competitive advantage. For this, we proposed a theoretical framework, inferring that CSR principles, that included 1. Promise Fulfillment, 2. Self-Sacrifice, 3. Openness, 4. Humanitarianism, 5. Pro-Social Behavior, 6. Long Term Employment, and 7. Corporate Giving, increase social capital, and well as establish Moral Legitimacy. Social capital included 1. Relational, 2. Cognitive, and 3. Structural Dimensions. Whereas Moral Legitimacy was measured by 1. Cognitive, 2. Moral, and 3. Pragmatic factors. Empirical validity was established by conducting a survey using a close-ended questionnaire. Data was collected from 309 Respondents, and the responses are analyzed using confirmatory factor analysis and structured equation modeling. The results suggested that Openness, Promise Fulfillment, and Self Sacrifice principles of CSR seem to have a significant and positive effect on all three dimensions of social capital. Moreover, Corporate Giving, Humanitarianism, and Long-Term Employment seem to have a positive effect on Cognitive, Structural, Relational dimensions of social capital respectively. Pro-Social Behavior also seems to have a positive effect on both Cognitive and Relational Dimensions. On the other hand, Corporate Giving seems to positively affect all three factors of Moral Legitimacy. Long Term Employment and openness also seem to affect both cognitive and moral factors positively. Similarly, Humanitarianism and Promise Fulfillment also affecting Cognitive, and pragmatic factors. All positive except the negative effect of Humanitarianism on Pragmatic. The moral factor was additionally influenced positively by Self Sacrifice, Pro-Social Behavior. Pragmatic factors were also positively affected by Long Term Employment and Self Sacrifice. The cognitive dimension of social capital, as well as cognitive and moral factors, seems to affect both Competitive Advantage and Organizational Performance, all positive except the negative effect of cognitive on competitive advantage. Whereas relational and structural dimension seems to individually affect organizational performance and competitive advantage respectively. Lastly, the pragmatic factor seems to have a significant negative impact which results in the adherence to CSR principles and directly impacts the performance of the organization
