The Effect of Corporate Social Responsibility on the Profitability of the Industrial Companies in Jordan

Article excerpt


This study aimed to identify the effect of corporate social responsibility (CSR) on the profitability of the industrial companies in Jordan. We used a descriptive approach for the purposes of the study. The sample of the study consists of (50) workers in the industrial companies in Jordan to obtain the answers of the questionnaires. Statistical packages for social sciences (SPSS) program was used for descriptive analysis for the variables of this study (awareness & guidance campaigns, donations & establish non-profit projects and support projects and charities associations).

The most important findings indicate that there is a significant relationship between CSR activities and profitability of the industrial companies in general and there is effect of the variables Provide donations & establish non-profit projects and support projects & charities associations on the profitability of industrial companies in particular. The study recommends that the Industrial companies should increase the efficiency of workers constantly in order to improve efficiency and productivity to maxinamize profits, Industrial companies should pay more attention to public interest for the community.

Key words: CSR; Industrial; Companies; Marketing; Profit; Jordan


A corporate social responsibility (CSR) from marketing perspective is an obvious challenge for marketing management in their interaction with the surrounding environment due to wide range of social and environmental changes.

This will make organizations today pay attention to (CSR) to achieve individuals' life quality parallel with its quest to provide successful product to market.

Modern business managers are focusing on the fact that their organizations should extend its activities to the community and not limited only to goods or service. (Bakri, 2005).

CSR emerged as a new trend in marketing along with other dimensions and formed a turning point for marketing management in the organizations. The product through its production stages should not be a source to harm the environment or the customers, taking into consideration that pricing should be suitable to consumers, producing high quality products could be add to the unit cost, but should be aimed at the consumers disposal , as well as taking in to account promotion, information and policies. (Kotier, 2000). Skilled labor and training are also essential for raising the efficiency of CSR.

"Corporate social responsibility is more than an expedient response to momentary social pressures. It is, instead, a manifestation of deep, far- reaching social changes in our society. If it is indeed akin to the Industrial Revolution, then the implications for business of the new social responsibility may be very different from those usually forecast" (Votaw, 1972, p. 26).

CSR could be resulted from a minor social change , or a substantial lifestyle change as it linked to Europe's industrial revolution more than it linked to movements reforms in the world (Bakri, 2006).

Study Problem

The study problem can be expressed to answer the following main question:

What is the level of CSR activities (awareness and guidance campaigns, Provide donations and establish non-profit projects and support projects & charities associations) on the profitability of the Jordanian industrial companies?

Study Importance

The importance of this paper could be summarized in the following points:

There is an increase attention to CSR world wide and its positive role in increasing corporate profit.

Corporate recognition of positioning in the community will increase profits.

Study Objectives

This study aimed to identify the CSR activities and their role in increasing profit, analysis the effect of all independent variables, awareness & guidance campaigns, donations & establish non-profit projects and support projects and charities associations on the profitability of Jordanian industrial companies. …


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