The impact of social responsibility’s spending on
the financial performance of companies listed on
the Amman Stock Exchange
Mahmoud k. Alsaad
Accounting and Finance Student, the Hashemite
University
Introduction
Corporate social responsibility is the way firms integrate social, environmental and
economic concerns into their values, culture, decision making ,strategy and operations in a
transparent and accountable manner and thereby establish better practices within the firm,
create wealth and improve society .The World Business Council for Sustainable
Development describes CSR as the business contribution to sustainable economic
development. (Wayne ,V.2000)
However, there are several endeavors to define it, as some researchers have defined it as “all
decisions, philosophies, actions and management methods for which the development and
well-being of society is a target. The organization's activities in terms of quality are classified
into environmental protection activities, interaction with the community, consumer
protection and employee-related activities
Some companies focus on a single area, which is regarded as the most important for them or
where they have the highest impact or vulnerability—human rights, for example, or the
environment—while others aim to .
(Olayinka. U, Temitope.f,2012) The results show that CSR has a positive and
significant relationship with the financial performance measures
There is strong evidence that many (but cer-tainly not all) consumers value CSR
attributes. Therefore, an increasing number of companies incorporate CSR into
their marketing strategies, to exploit the appeal of CSR to key segments of the
market,r. (Abagai,M. Donald,S.2000)
(Sayedeh ,Si. Saudah, S.Parvaneh, S. Sayyedeh, si, Seyyed, A.2015)firms reveal that
the link between CSR and firm performance is a fully mediated relationship. The positive
effect of CSR on firm performance is due to the positive effect CSR has on competitive
advantage, reputation, and customer satisfaction.
