The research studies on the impact of CSR on business performance have found mixed results. Examples of these studies are the study of Wu (2006) and Nelling and Webb (2006). Wu (2006) study concentrated on the perception of respondents and that was similar to this study, where the perception of companies’ decision makers was taken into consideration. While Wu (2006) study revealed a positive relationship between CSP and financial performance measures that were stronger predictors than marketing-based measures, Nelling and Webb (2006) study suggested no longer relationship between CSR and business performance. Chahal and Charma (2006) and Brammer and S. Pavelin (2006) have measured marketing performance using dimensions including reputation, sales and market share, same measures used in this study. Chahal and Sharma (2006) study found that the adoption of CSR could help the managers understand the impact of CSR in reputation and ultimately financial performance. The opposite was correct as well. Brammer and Pavelin (2006) analyzed the relationship between CSR and one perspective of marketing performance, reputation. A positive effect was found between CSR and reputation in some sector and a negative one with other sectors. In Jordan, however, few studies have addressed the CSR. These studies could be classified in two groups; one assessing the nature of CSR in Jordan examining to what extent CSR is practiced in the country, and a second group that contained few studies assessing the relationship between CSR and business performance. Elian (2005) study investigated well-known companies from 7
various economic sectors aiming at exploring the extent of CSR activities and practices in Jordan. It came up with the conclusion that there was no clear definition of CSR by Jordanian companies. Corporations in different sectors in Jordan adopted a variety of voluntary initiatives to promote socially responsible practices in Jordan. Elaian (1994) study aimed at examining to what extent social responsibility was adopted by Jordanian companies, and how that might affect the performance of these companies. The study found that the Public Shareholding Companies took part in social responsibility through community engagement practices and incentives offered to their employees, without having clear philosophy towards social responsibility issues. The study revealed a relationship between CSR and performance. Study Methodology Measuring Instrument: A three-part questionnaire was formed and delivered to participants in different ways; per e-mail, per fax or by hand. The first part of the questionnaire focused on the characteristics of companies with respect to capital, number of years in business, economic sector and number of employees. A question about nationality was also included for comparative analysis objectives.
- Winter '16
- Professor Obura Oluoch
- Regression Analysis, Statistical hypothesis testing, Corporate social responsibility