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Effect of corporate social responsibility on Jordan pharmaceutical industry’s business performance

Abdel-Aziz Ahmad Sharabati (Department of Business, Middle East University, Amman, Jordan)

Social Responsibility Journal

ISSN: 1747-1117

Article publication date: 14 August 2018

Issue publication date: 4 October 2018

Abstract

Purpose

The purpose of this study is to investigate the effect of implementing corporate social responsibility (CSR) initiatives (social responsibility, economic responsibility and environmental responsibility) on Jordanian Pharmaceutical Manufacturing (JPM) industry’s business performance.

Design/methodology/approach

This study follows a quantitative descriptive design. The data were collected from 116 managers working at seven JPM organizations by questionnaire. After confirming validity and reliability of the tool, the statistical analysis means, standard deviations and t-values were used to test implementation and finally multiple regressions were used to test the hypothesis.

Findings

Results show that there are relationships between CSR variables, and all the three variables are strongly related to business performance. The results also indicate that the three sub-variables together affect JPM industry’s business performance. The environmental responsibility has the highest effect on JPM industry’s business performance, followed by the economic responsibility, and then the social responsibility.

Research limitations/implications

This study was directed toward pharmaceutical industry in Jordan. Generalizing the results to other industries and countries is questionable. Therefore, further research on other industries and countries will help mitigate the issue of generalizing conclusions.

Practical implications

CSR should be formulated clearly within JPM corporate strategy. The elements of CSR need to be integrated with the present performance management criteria, leadership development programs and organizational development programs, and a champion for CSR needs to be assigned.

Social implications

The CSR initiatives should be derived from local culture and match with international initiatives because CSR is the responsibility of every person.

Originality/value

Still the topic of CSR is not well implemented and does not have priority by Jordanian companies; therefore, this study may be considered as one of the few studies dedicated to study this topic and create awareness about it in Jordan.

Keywords

Acknowledgements

The author would like to thank the Middle East University.

Citation

Sharabati, A.-A.A. (2018), "Effect of corporate social responsibility on Jordan pharmaceutical industry’s business performance", Social Responsibility Journal, Vol. 14 No. 3, pp. 566-583. https://doi.org/10.1108/SRJ-12-2016-0221

Publisher

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Emerald Publishing Limited

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