CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES AND CORPORATE PERFORMANCE IN MANUFACTURING SECTOR: EVIDENCE FROM SAUDI ARABIA
Résumé
This study examines the associations of corporate social and environmentalresponsibilities with corporate performance in Saudi Arabia for the period of 2007-
2011. A pooled OLS regression analysis is used to estimate the associations
proposed in the hypothesis. The final sample consists of 164 listed companies in
Tadawul. The study finds that corporate social and environmental responsibilities
are negatively associated with corporate performance in a form of return on equity.
Additionally, this study reports insignificant associations between corporate social
and environmental responsibilities and corporate performance in forms of Tobin's
Q and ROA. Importantly, the study suggests that regulators, especially Saudi stock
exchange, should mandate companies to disclose all relevant information related to
corporate social responsibility in a transparent and timely manner, and increase law
enforcement to enhance good corporate governance practices. For companies, this
study proposes that they should emphasize more on enhancing the role and the
quality of their social and environmental responsibilities, board of directors and the
audit committee members, as this enhancement may positively influence their
performance.
KEYWORDS: CSR, CS, Saudi Arabia
Références
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Investigating the relationship between corporate social responsibility and
financial performance in emerging markets. International Journal of
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Arslan, O., Karan, M. B., & Eksi, C. (2010). Board structure and corporate performance. Managing
Global Transitions, 8(1), 3-22.
Baird, P. L., Geylani, P. C., & Roberts, J. A. (2012). Corporate social and financial performance reexamined:
Industry effects in a linear mixed model analysis. Journal of Business Ethics, 109, 367-388.
Baron, D. P., Harjoto, M. A., & Jo, H. (2011). The economics and politics of corporate social
responsibility. Business and Politics, 13(2), 1-46.
Birnbaum, P. H. (1984). The choice of strategic alternatives under increasing regulation in high
technology companies. Academy of Management Journal, 27(3), 489-510.
Callado-Munos, F. J., & Utrero-Gonzalez, N. (2011). Does it pay to be socially
responsible? Evidence from Spain’s retail banking sector. European Financial
Management, 17, 755-787.
Performance: a Survey. 2005), Corporate Social Responsibility. Performances and
Stakeholders.
Alzharani, A. M., Che Ahmad, A. B., & Aljaaidi, K., S. (2011). An empirical investigation of
factors associated with firm performance: evidence from kingdom of Saudi Arabia. International
Conference on E-business, Management and Economics,25, 30-36.
Anderson, B. S., & Eshima, Y. (2013). The influence of firm age and intangible resources on the
relationship between entrepreneurial orientation and firm growth among Japanese SMEs. Journal of
Business Venturing. 28, 413–429.
Anderson, R. C., & Reeb, D. M. (2003). Founding‐family ownership and firm performance:
evidence from the S&P 500. The journal of finance, 58(3), 1301-1327.
Anderson, R. C., Mansi, S. A., & Reeb, D. M. (2004). Board characteristics, accounting report
integrity, and the cost of debt. Journal of Accounting and Economics, 37(3), 315-342.
Anderson, R. C., Mansi, S. A., & Reeb, D. M. (2004). Board characteristics, accounting report
integrity, and the cost of debt. Journal of Accounting and Economics, 37(3), 315-342.
Aras, G., Aybars, A., & Kutlu, O. (2010). Managing corporate performance:
Investigating the relationship between corporate social responsibility and
financial performance in emerging markets. International Journal of
Productivity and Performance Management, 59, 229-254.
Arslan, O., Karan, M. B., & Eksi, C. (2010). Board structure and corporate performance. Managing
Global Transitions, 8(1), 3-22.
Baird, P. L., Geylani, P. C., & Roberts, J. A. (2012). Corporate social and financial performance reexamined:
Industry effects in a linear mixed model analysis. Journal of Business Ethics, 109, 367-388.
Baron, D. P., Harjoto, M. A., & Jo, H. (2011). The economics and politics of corporate social
responsibility. Business and Politics, 13(2), 1-46.
Birnbaum, P. H. (1984). The choice of strategic alternatives under increasing regulation in high
technology companies. Academy of Management Journal, 27(3), 489-510.
Callado-Munos, F. J., & Utrero-Gonzalez, N. (2011). Does it pay to be socially
responsible? Evidence from Spain’s retail banking sector. European Financial
Management, 17, 755-787.
