Exploring the Multiple Benefits of CSR on Organizational Performance: Case of Lebanon

Abstract

Companies around the globe are recognizing the importance of engaging in Corporate SocialResponsibility (CSR) that is crucial to their survival and growth. It is evident that when anorganization integrates appropriate CSR practices in its strategy that embed the societal andenvironmental concerns, these practices undoubtedly bring tangible benefits to the business alongwith a sustainable competitive advantage.
 In Lebanon, there is a consistent need for the Lebanese community to live in a safe, clean andhealthy environment. Companies can no longer act as isolated entities that can run separately fromthe society and the environment in which they operate and with which they interact, disregardingthe impact of their activities on the economy, the society, and the environment; these companies areassuming and acknowledging their responsibility not only towards shareholders through profitmaximization but also towards all stakeholders through enhancing the welfare of the society andadopting environmentally-based behavior.However, there exists a substantial lack of awareness of CSR among Lebanese companies. Thecurrent practices in Lebanon have suffered from the lack of responsible behavior towards theemployees, the economy, the society, and the environment. Consequently, the current researchaddresses the urgent managers’ need to understand what CSR is and assess the multiple benefits ofits programs, and how they may help and end up in a win-win situation if CSR is implementedadequately.
 This research is exploratory in nature and uses a survey questionnaire distributed to a convenientsample of Lebanese managers and employees working in Lebanon. The purpose is to assess theknowledge and the implementation of CSR programs at selected number of Lebanese firms. Thisresearch attempts to define the gap between the existing socio-economic and environmentalproblems and the responsiveness levels of Lebanese firms to such problems.

Corporate Social Responsibility Impact on Consumer Decision

“…Surprisingly, in Lebanon, one notes the emphasis on economic and environmental initiatives and projects carried out by Lebanese corporations which insinuate classical CSR orientation. According to Hejase et al (2012), "findings show that when respondents were asked about "which external factors do their organization's efforts relate to?" 56% of the respondents related their organizational efforts to economic forces, 22% of them related their organization's efforts to the environment, 17% of them related the efforts to social factors" (p. 14).…”

“…"Nearly nine-in-10 (88%) global consumers want companies to tell them what they are doing to operate responsibly and support important issues" (Cone Communications, 2015, p. 29). Any CSR activity, no matter how small, must be communicated to stakeholders immediately because this will automatically reflect positive impact on reputation and value, which will, in turn, pave the way for having more business partners, loyal consumers, growth potentials, revenues, and sustainable market stand (Waddell, 2007;D'Amato et al, 2009;Hejase et al, 2012;Hecht, Nielsen, and Sadlovska, 2015).…”

Manifestation of emotional intelligence and Transformational leadership in virtual teams: Case study of Nairobi technology hub

“…Based on research conducted in Sweden, Ask et al (2012) observe that enterprise information systems like ERPs are the backbone of organizational value creation process but alone they are not enough to guarantee efficiency. As such, Hejase et al (2014) offers that knowledge sharing is equally an important factor for consideration. Siebers et al (2008) support this notion by observing that operational management focuses on systems like ICT, total quality management and lean production practices among other factors to increase efficiency.…”

Business Ethics and Corporate Social Responsibility: Bridging the Concepts

“…Corporate social responsibilities (CSR) is divided into economic, legal, and ethical responsibilities. Also, CSR is seen "as integrated corporate activities abiding by the legal regulations and going beyond compliance, and investing more in human capital, the environment and the relations with stakeholders; as the business pursuit of sustainable development and focus on economic, social and environmental aspects; and, as primarily concerned about the environmental protection and the wellbeing of employees, the community and civil society in general" [7]. CSR's ideas emerged after the awareness that there is a need for an economics of responsibility embedded in the business ethics of a corporation.…”