Skip to main content
SpringerLink
Log in

CSR and Corporate Performance with Special Reference to the Middle East

  • Chapter
  • First Online:
Practising CSR in the Middle East

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.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • 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.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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 

  • Backhaus, K., Stone, B., & Heiner, K. (2002). Exploring the relationship between corporate social performance and employer attractiveness. Business & Society, 41, 292–319.

    Article  Google Scholar 

  • Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99–120.

    Article  Google Scholar 

  • Bhattacharya, C. B., & Sen, S. (2003). Consumer-company identification: A framework for understanding consumers’ relationships with companies. Journal of Marketing, 67(2), 76–88.

    Article  Google Scholar 

  • Bihari, S. C., & Pradhan, S. (2011). CSR and performance: The story of banks in India. Journal of Transnational Management, 16(1), 20–35.

    Article  Google Scholar 

  • Bragdon, J. H., & Marlin, J. T. (1979). Is pollution profitable? Risk Management, 19, 9–18.

    Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • Brik, A. B., Rettab, B., & Mellahi, K. (2011). Market orientation, corporate social responsibility, and business performance. Journal of Business Ethics, 99(3), 307–324.

    Article  Google Scholar 

  • Budhwar, P., & Mellahi, K. (2007). Introduction: Human resource management in the Middle East. International Journal of Human Resource Management, 18, 1–10.

    Article  Google Scholar 

  • 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.1480

    Article  Google Scholar 

  • Campbell, J. L. (2006). Institutional analysis and the paradox of corporate social responsibility. The American Behavioral Scientist, 49, 925–938.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • Deephouse, D. (2000). Media reputation as a strategic resource: An integration of mass communication and resource-based theories. Journal of Management, 26, 1091–1112.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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 

  • Fombrun, C., & Shanley, M. (1990). What’s in a name? Reputation building and corporate strategy. Academy of Management Journal, 33, 233–258.

    Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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 

  • Gao, Y. (2009). Corporate social performance in China: Evidence from large companies. Journal of Business Ethics, 89(1), 23–35.

    Article  Google Scholar 

  • Graves, S., & Waddock, S. (1994). Institutional owners and corporate social performance. Academy of Management Journal, 37, 1034–1046.

    Google Scholar 

  • Greening, D., & Turban, D. (2000). Corporate social performance as a competitive advantage in attracting a quality workforce. Business & Society, 39, 254–280.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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 

  • 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.

    Article  Google Scholar 

  • Jaworski, B., & Kohli, A. (1993). Market orientation: Antecedents and consequences. Journal of Marketing, 57, 53–70.

    Google Scholar 

  • Lankoski, L. (2009). Differential economic impact of corporate responsibility issues. Business & Society, 48, 206–224.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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 

  • Maignan, I., Ferrell, O., & Hult, G. (1999). Corporate citizenship: Cultural antecedents and business benefits. Journal of the Academy of Marketing Science, 27, 455–469.

    Article  Google Scholar 

  • Margolis, J., & Walsh, J. (2001). People and profits? The search for a link between company’s social and financial performance. Mahwah: Lawrence Erlbaum Associates.

    Book  Google Scholar 

  • Margolis, J., & Walsh, J. (2003). Misery loves Companies: Rethinking social initiatives by business. Administrative Science Quarterly, 48, 268–305.

    Article  Google Scholar 

  • McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: Correlation or misspecification? Strategic Management Journal, 21(5), 603–609.

    Article  Google Scholar 

  • McWilliams, A., & Siegel, D. (2001). Corporate social responsibility: A theory of the firm perspective. Academy of Management Review, 26, 117–127.

    Article  Google Scholar 

  • Mellahi, K. (2007). The effect of regulations on HRM: Private sector firms in Saudi Arabia. International Journal of Human Resource Management, 18, 85–99.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • Moskowitz, M. (1972). Choosing socially responsible stocks. Business and Society Review, 1, 72–75.

    Google Scholar 

  • Muller, A., & Kolk, A. (2009). CSR performance in emerging markets evidence from Mexico. Journal of Business Ethics, 85(2), 325–337.

    Article  Google Scholar 

  • North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • 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.

    Article  Google Scholar 

  • Orlitzky, M., Schmidt, F., & Rynes, S. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies, 24, 403–441.

    Article  Google Scholar 

  • Pava, M. L., & Krausz, J. (1995). Corporate responsibility and financial performance: The paradox of social cost. Westport: Quorum Books.

    Google Scholar 

  • Peterson, D. (2004). The relationship between perceptions of corporate citizenship and organizational commitment. Business & Society, 43, 296–319.

    Article  Google Scholar 

  • Rettab, B. (2014). CSR measurement and impacts: A baseline for UAE businesses. Dubai: Dubai Chamber Centre for Responsible Business.

    Google Scholar 

  • 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 

  • 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.

    Article  Google Scholar 

  • Roberts, P., & Dowling, G. (2002). Corporate reputation and sustained superior financial performance. Strategic Management Journal, 23, 1077–1093.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • Schuler, D. H., & Cording, M. (2006). A corporate social performance – Corporate financial performance behavioral model for consumers. Academy of Management Review, 31, 540–559.

    Article  Google Scholar 

  • Shamsie, J. (2003). The context of dominance: An industry-driven framework for exploiting reputation. Strategic Management Journal, 24, 199–216.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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 

  • 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.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • Turban, D., & Greening, D. (1997). Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal, 40, 658–672.

    Google Scholar 

  • Vance, S. C. (1975). Are socially responsible corporations good investment risks? Management Review, 64, 19–24.

    Google Scholar 

  • Waddock, S. A., & Graves, S. B. (1997). The corporate social performance–financial performance link. Strategic Management Journal, 18(4), 303–319.

    Article  Google Scholar 

  • Whitley, R. (1992). Business systems in East Asia: Firms, markets, and societies. London: Sage.

    Google Scholar 

  • Wright, M., Filatotchev, I., Buck, T., & Bishop, K. (2003). Is stakeholder corporate governance appropriate in Russia? Journal of Management and Governance, 7, 263–290.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Economic Research and Sustainable Business Development, Dubai Chamber of Commerce and Industry, Dubai, United Arab Emirates

    Belaid Rettab

  2. Centre for Responsible Business, Dubai Chamber of Commerce and Industry, Dubai, United Arab Emirates

    Kamel Mellahi

Authors
  1. Belaid Rettab
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Kamel Mellahi
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Belaid Rettab .

Editor information

Editors and Affiliations

  1. Economic Research and Sustainable Business Development, Dubai Chamber of Commerce and Industry, Dubai, United Arab Emirates

    Belaid Rettab

  2. Centre for Responsible Business, Dubai Chamber of Commerce and Industry, Dubai, United Arab Emirates

    Kamel Mellahi

Rights and permissions

Reprints and permissions

Copyright information

© 2019 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Rettab, B., Mellahi, K. (2019). CSR and Corporate Performance with Special Reference to the Middle East. In: Rettab, B., Mellahi, K. (eds) Practising CSR in the Middle East. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-02044-6_6

Download citation

Publish with us

Policies and ethics

Search

Navigation