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

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.

Influence of ESGC Indicators on Financial Performance of Listed Pharmaceutical Companies

“…Other authors, such as Churet and Eccles [72], found report a strong relationship between integrated reporting and the quality of the management of ESG quality of management in certain sectors, notably healthcare. Similarly, Sharabati's work [73], another study of CEO's perceptions of pharmaceutical companies in Jordan, shows the existing correlation between the CSR pillars and business performance. It adds that CSR's effectiveness is justified by investing in the management of stakeholders' management, such as customers, corporate governance, investors, and activists, creating positive relationships that enhance a company's reputation and profitability.…”

Employee’s Attitude and Organizational Sustainability Performance: An Evidence From Jordan’s Banking Sector

“…From a corporate point of view, this definition asserts not only a focus on economic aspects of companies, but also a need to focus on the sustainment of nature"s resources and the societies they serve. That is why there are more than one nomenclature and synonym to the term sustainability, including triple bottom line (TBL or 3BL), profit-people-planet (3Ps), economics-environment-equity (3E"s), corporate social responsibility (CSR), and corporate citizenship (Winter and Knemeyer, 2013;Sharabati, 2018). Although different authors defined these phrases in different ways, it seems that there is a consensus among them about economic dimension, social dimension, and environmental dimension, that are common elements of theses phrases.…”

“…Validity of the research instrument can be confirmed by ensuring content, face, and construct validity (Sharabati, 2018). To ensure content validity of the research instrument, questionnaire items were drafted based on multiple sources of data (i.e., different scholarly works presented in the aforementioned literature review).…”

“…Today, it is largely acknowledged that sustainability has to be considered in organization"s corporate strategy development (Chang et al, 2018;Brö mer et al, 2019). It is well known that sustainability promotes economic prosperity, increased social welfare, and environmental protection (Schaltegger, 2011;Schaltegger et al, 2012;Sharabati, 2018;Brö mer et al, 2019). Adopting sustainability by an organization can influence not only its financial performance (Agyemang and Ansong, 2017), but also its reputation (Fatma et al, 2015;Agyemang and Ansong, 2017), and innovation (Shin et al, 2018).…”

“…Due to its high economic relevance and its exposure to increasing sustainability requirements, the banking sector in Jordan was chosen as an empirical research field. There are many previous studies that have addressed the extent to which sustainability dimensions are applied in various Jordanian sectors, such as hotel industry (Al Qeed, 2015), mobile telecommunications (Obeidat, 2016), and pharmaceutical industry (Sharabati, 2018). However, Jordanian academics and practitioners still have no enough insight if the banking sector is moving toward sustainability or not, and how to improve sustainability in such vital sector (Masa"deh et al, 2018).…”