Advertisement

CSR and Corporate Performance with Special Reference to the Middle East

  • Belaid RettabEmail author
  • Kamel Mellahi
Chapter

Abstract

This chapter addresses the presumed link between corporate social responsibility (CSR) and corporate performance in emerging economies with a specific focus on the Middle East. The chapter draws on a multiyear survey of the Dubai business community to highlight the adoption of CSR in the Middle East and examine the association between CSR practices and various organizational performances. The results support the business case for CSR in the Middle East.

Keywords

CSR Middle East Organizational performance CSR practices Survey 

References

  1. Abott, W., & Monsen, R. (1979). On the measurement of corporate social responsibility: Self-reported disclosures and a method of measuring corporate social involvement. Academy of Management Journal, 22, 501–515.  https://doi.org/10.2307/255740.CrossRefGoogle Scholar
  2. Aguilera, R., Ruth, V., Rupp, D., Williams, C., & Ganapathi, J. (2007). Putting the S Back in corporate social responsibility: A multilevel theory of social change in organizations. Academy of Management Review, 32, 836–863.CrossRefGoogle Scholar
  3. Albinger, H., & Freeman, S. (2000). Corporate social performance and attractiveness as an employer to different job seeking populations. Journal of Business Ethic, 28, 243–253.CrossRefGoogle Scholar
  4. Allouche, J., & Laroche, P. (2006). The relationship between corporate social responsibility and corporate financial performance: A survey. In J. Allouche (Ed.), Corporate social responsibility: Performance and stakeholders (pp. 3–40). Basingstoke: Palgrave Macmillan.Google Scholar
  5. Backhaus, K., Stone, B., & Heiner, K. (2002). Exploring the relationship between corporate social performance and employer attractiveness. Business & Society, 41, 292–319.CrossRefGoogle Scholar
  6. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99–120.CrossRefGoogle Scholar
  7. Bhattacharya, C. B., & Sen, S. (2003). Consumer-company identification: A framework for understanding consumers’ relationships with companies. Journal of Marketing, 67(2), 76–88.CrossRefGoogle Scholar
  8. Bihari, S. C., & Pradhan, S. (2011). CSR and performance: The story of banks in India. Journal of Transnational Management, 16(1), 20–35.CrossRefGoogle Scholar
  9. Bragdon, J. H., & Marlin, J. T. (1979). Is pollution profitable? Risk Management, 19, 9–18.Google Scholar
  10. Brammer, S., & Millington, A. (2008). Does it pay to be different? An analysis of the relationship between corporate social and financial performance. Strategic Management Journal, 29, 1325–1343.CrossRefGoogle Scholar
  11. Branco, C. M., & Rodrigues, L. L. (2006). Corporate responsibility and resource-based perspectives. Journal of Business Ethics, 69, 111–132.  https://doi.org/10.1007/s10551-006-9071-z.CrossRefGoogle Scholar
  12. Brik, A. B., Rettab, B., & Mellahi, K. (2011). Market orientation, corporate social responsibility, and business performance. Journal of Business Ethics, 99(3), 307–324.CrossRefGoogle Scholar
  13. Budhwar, P., & Mellahi, K. (2007). Introduction: Human resource management in the Middle East. International Journal of Human Resource Management, 18, 1–10.CrossRefGoogle Scholar
  14. Busch, T., & Friede, G. (2018). The robustness of the corporate social and financial performance relation: A second-order meta-analysis. Corporate Social Responsibility and Environmental Management.  https://doi.org/10.1002/csr.1480CrossRefGoogle Scholar
  15. Campbell, J. L. (2006). Institutional analysis and the paradox of corporate social responsibility. The American Behavioral Scientist, 49, 925–938.CrossRefGoogle Scholar
  16. Cheung, Y. L., Tan, W., Ahn, H. J., & Zhang, Z. (2010). Does corporate social responsibility matter in Asian emerging markets? Journal of Business Ethics, 92(3), 401–413.CrossRefGoogle Scholar
  17. Deephouse, D. (2000). Media reputation as a strategic resource: An integration of mass communication and resource-based theories. Journal of Management, 26, 1091–1112.CrossRefGoogle Scholar
  18. Dögl, C., & Holtbrügge, D. (2014). Corporate environmental responsibility, employer reputation and employee commitment: An empirical study in developed and emerging economies. The International Journal of Human Resource Management, 25(12), 1739–1762.CrossRefGoogle Scholar
  19. Egri, C., Maignan, I., Ralston, D., Bowen, F., Gond, J., Lo C., & Griffith, D. (2004). Cross-cultural study of corporate social and environmental responsibility practices and benefits. Paper Presented at the Academy of Management (AOM) Conference, Social Issue Management (SIM), New Orleans.Google Scholar
  20. Fombrun, C., & Shanley, M. (1990). What’s in a name? Reputation building and corporate strategy. Academy of Management Journal, 33, 233–258.Google Scholar
  21. Foo, L. M. (2007). Stakeholder engagement in emerging economies: Considering the strategic benefits of stakeholder management in a cross-cultural and geopolitical context. Corporate Governance, 7, 379–387.CrossRefGoogle Scholar
  22. Galaskiewicz, J. (1991). Making corporate actors accountable: Institution-building in Minneapolis-St. Paul. In W. Powell & P. DiMaggio (Eds.), The new institutionalism in organizational analysis. Chicago: University of Chicago Press.Google Scholar
  23. Gao, Y. (2009). Corporate social performance in China: Evidence from large companies. Journal of Business Ethics, 89(1), 23–35.CrossRefGoogle Scholar
  24. Graves, S., & Waddock, S. (1994). Institutional owners and corporate social performance. Academy of Management Journal, 37, 1034–1046.Google Scholar
  25. Greening, D., & Turban, D. (2000). Corporate social performance as a competitive advantage in attracting a quality workforce. Business & Society, 39, 254–280.CrossRefGoogle Scholar
  26. Griffin, J., & Mahon, J. (1997). The corporate social performance and corporate financial performance debate: Twenty-five years of incomparable research. Business & Society, 36, 5–31.CrossRefGoogle Scholar
  27. Hartman, L. P., Rubin, R. S., & Dhanda, K. K. (2007). The communication of corporate social responsibility: United States and European Union Multi- National Corporations. Journal of Business Ethics, 74, 373–389.CrossRefGoogle Scholar
  28. Hur, W. M., Moon, T. W., & Ko, S. H. (2016). How employees’ perceptions of CSR increase employee creativity: Mediating mechanisms of compassion at work and intrinsic motivation. Journal of Business Ethics, 1–16.Google Scholar
  29. Husted, B., & Allen, A. D. (2007). Strategic corporate social responsibility and value creation among large firms: Lessons from the Spanish experience. Long Range Planning, 40, 594–610.CrossRefGoogle Scholar
  30. Jaworski, B., & Kohli, A. (1993). Market orientation: Antecedents and consequences. Journal of Marketing, 57, 53–70.Google Scholar
  31. Lankoski, L. (2009). Differential economic impact of corporate responsibility issues. Business & Society, 48, 206–224.CrossRefGoogle Scholar
  32. Lee, S., & Yoon, J. (2018). Does the authenticity of corporate social responsibility affect employee commitment? Social Behavior and Personality: An International Journal, 46(4), 617–632.CrossRefGoogle Scholar
  33. Lev, B., Petrovits, C., & Radhakrishnan, S. (2010). Is doing good good for you? How corporate charitable contributions enhance revenue growth. Strategic Management Journal, 31, 182–200.Google Scholar
  34. Maignan, I., Ferrell, O., & Hult, G. (1999). Corporate citizenship: Cultural antecedents and business benefits. Journal of the Academy of Marketing Science, 27, 455–469.CrossRefGoogle Scholar
  35. Margolis, J., & Walsh, J. (2001). People and profits? The search for a link between company’s social and financial performance. Mahwah: Lawrence Erlbaum Associates.CrossRefGoogle Scholar
  36. Margolis, J., & Walsh, J. (2003). Misery loves Companies: Rethinking social initiatives by business. Administrative Science Quarterly, 48, 268–305.CrossRefGoogle Scholar
  37. McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: Correlation or misspecification? Strategic Management Journal, 21(5), 603–609.CrossRefGoogle Scholar
  38. McWilliams, A., & Siegel, D. (2001). Corporate social responsibility: A theory of the firm perspective. Academy of Management Review, 26, 117–127.CrossRefGoogle Scholar
  39. Mellahi, K. (2007). The effect of regulations on HRM: Private sector firms in Saudi Arabia. International Journal of Human Resource Management, 18, 85–99.CrossRefGoogle Scholar
  40. Mellahi, K., Frynas, J. G., Sun, P., & Siegel, D. (2016). A review of the nonmarket strategy literature: Toward a multi-theoretical integration. Journal of Management, 42(1), 143–173.CrossRefGoogle Scholar
  41. Moneva, J., Riviera-Lirio, J., & Munoz-Torres, M. (2007). The corporate stakeholder commitment and social and financial performance. Industrial Management & Data Systems, 107, 84–102.CrossRefGoogle Scholar
  42. Moskowitz, M. (1972). Choosing socially responsible stocks. Business and Society Review, 1, 72–75.Google Scholar
  43. Muller, A., & Kolk, A. (2009). CSR performance in emerging markets evidence from Mexico. Journal of Business Ethics, 85(2), 325–337.CrossRefGoogle Scholar
  44. North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  45. Opoku-Dakwa, A., Chen, C. C., & Rupp, D. E. (2018). CSR initiative characteristics and employee engagement: An impact-based perspective. Journal of Organizational Behavior, 39, 580.CrossRefGoogle Scholar
  46. Orlitzky, M., Schmidt, F., & Rynes, S. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies, 24, 403–441.CrossRefGoogle Scholar
  47. Pava, M. L., & Krausz, J. (1995). Corporate responsibility and financial performance: The paradox of social cost. Westport: Quorum Books.Google Scholar
  48. Peterson, D. (2004). The relationship between perceptions of corporate citizenship and organizational commitment. Business & Society, 43, 296–319.CrossRefGoogle Scholar
  49. Rettab, B. (2014). CSR measurement and impacts: A baseline for UAE businesses. Dubai: Dubai Chamber Centre for Responsible Business.Google Scholar
  50. Rettab, B., Brik, B. A., & Mellahi, K. (2009). Corporate social responsibility and corporate governance in the United Arab Emirates. Dubai: Dubai Chamber Centre for Responsible Business.Google Scholar
  51. Revelli, C., & Viviani, J. L. (2015). Financial performance of socially responsible investing (SRI): What have we learned? A meta-analysis. Business Ethics: A European Review, 24(2), 158–185.CrossRefGoogle Scholar
  52. Roberts, P., & Dowling, G. (2002). Corporate reputation and sustained superior financial performance. Strategic Management Journal, 23, 1077–1093.CrossRefGoogle Scholar
  53. Rupp, D., Ganapathi, J., Aguilera, R., & Williams, C. (2006). Employee reactions to corporate social responsibility: An organizational justice framework. Journal of Organizational Behavior, 27, 537–543.CrossRefGoogle Scholar
  54. Schuler, D. H., & Cording, M. (2006). A corporate social performance – Corporate financial performance behavioral model for consumers. Academy of Management Review, 31, 540–559.CrossRefGoogle Scholar
  55. Shamsie, J. (2003). The context of dominance: An industry-driven framework for exploiting reputation. Strategic Management Journal, 24, 199–216.CrossRefGoogle Scholar
  56. Shen, J., & Benson, J. (2016). When CSR is a social norm: How socially responsible human resource management affects employee work behavior. Journal of Management, 42(6), 1723–1746.CrossRefGoogle Scholar
  57. Spencer, B. A., & Taylor, G. S. (1987). A within and between analysis of the relationship between corporate social responsibility and financial performance. Akron Business and Economic Review, 18, 7–18.Google Scholar
  58. Story, J., & Neves, P. (2015). When corporate social responsibility (CSR) increases performance: Exploring the role of intrinsic and extrinsic CSR attribution. Business Ethics: A European Review, 24(2), 111–124.CrossRefGoogle Scholar
  59. Suh, Y. J. (2016). The role of relational social capital and communication in the relationship between CSR and employee attitudes: A multilevel analysis. Journal of Leadership & Organizational Studies, 23(4), 410–423.CrossRefGoogle Scholar
  60. Swanson, D. (1999). Toward an integrative theory of business and society: A research strategy for corporate social performance. Academy of Management Review, 24, 506–521.CrossRefGoogle Scholar
  61. Tang, Z., Hull, C. E., & Rothenberg, S. (2012). How corporate social responsibility engagement strategy moderates the CSR–financial performance relationship. Journal of Management Studies, 49(7), 1274–1303.CrossRefGoogle Scholar
  62. Turban, D., & Greening, D. (1997). Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal, 40, 658–672.Google Scholar
  63. Vance, S. C. (1975). Are socially responsible corporations good investment risks? Management Review, 64, 19–24.Google Scholar
  64. Waddock, S. A., & Graves, S. B. (1997). The corporate social performance–financial performance link. Strategic Management Journal, 18(4), 303–319.CrossRefGoogle Scholar
  65. Whitley, R. (1992). Business systems in East Asia: Firms, markets, and societies. London: Sage.Google Scholar
  66. Wright, M., Filatotchev, I., Buck, T., & Bishop, K. (2003). Is stakeholder corporate governance appropriate in Russia? Journal of Management and Governance, 7, 263–290.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Economic Research and Sustainable Business DevelopmentDubai Chamber of Commerce and IndustryDubaiUnited Arab Emirates
  2. 2.Centre for Responsible BusinessDubai Chamber of Commerce and IndustryDubaiUnited Arab Emirates

Personalised recommendations