Abstract
The relationship between companies and society has been questioned for a long time. However, the effect of the motives behind CSR regarding the companies’ actual engagement with CSR has received little attention, especially in emerging markets. This paper tackles this issue for the first time using a sample of Jordanian companies. We explore the effect of two types of motives on the level of engagement in CSR: extrinsic motive (financial) and intrinsic motives (ethical and altruistic). The relationship between the company’s actual financial performance and CSR is also investigated. Primary data were collected using a questionnaire, distributed to Jordanian company’s managers in five sectors: pharmaceutical, technology and telecommunication, construction, farming, and financial services. Multiple regression analysis was conducted to depict the relationships. Results show that the intrinsic motives have a significant effect on CSR, while the extrinsic motive has none. When intrinsic motives were tested separately, results showed that the ethical motive had a significant effect, while the altruistic had no effect. In both cases, CSR was shown to be more significantly driven by the company’s financial performance. Different stakeholders such as policymakers, entrepreneurs, researchers, and investors may use the results of this study to increase companies’ involvement in CSR.
Highlights
Corporate social responsibility (CSR) is a topic that has recently attracted attention
The findings revealed that the ethical motive had a significant positive effect on the level of CSR, providing evidence for Hypothesis Hypothesis 2a (H2a), while the variable of altruistic motive was insignificant
The debate on the corporation–society relationship has been ongoing since the evolution of the corporate form of business
Summary
Corporate social responsibility (CSR) is a topic that has recently attracted attention. Researchers have been investigating the definition of CSR (Freeman and Hasnaoui 2010), the relationship between CSR and the financial performance of companies (Barnett and Salomon 2012), and how CSR is operationalized and measured (Graafland et al 2004). CSR could be viewed by an individualistic society differently than a collectivist one (Hofstede Insights 2020), but the variation may be attributable to the different corporate motives underlying CSR engagement. The relationship between companies and their societies has been questioned since the creation of the corporate form of business. In order to determine whether businesses fulfill its social responsibilities or not, Bowen defined the social responsibilities of businessmen as “the obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society” In order to determine whether businesses fulfill its social responsibilities or not, Bowen defined the social responsibilities of businessmen as “the obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society” (Bowen 1953, p. 6)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
