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Effect of corporate social responsibility on nonfinancial organizational performance: evidence from Yemeni for-profit public and private enterprises

Author

Listed:
  • Eyad Al-Samman
  • Murad Mohammed Al-Nashmi

Abstract

Purpose - This paper aims to explore the relationship between corporate social responsibility (CSR) and nonfinancial organizational performance (NFOP) of for-profit public and private enterprises in Yemen. It also aims to find whether there is a significant difference of the level of adopting CSR as a periodic activity between business-related public enterprises known as state-owned enterprises (SOEs) and private enterprises. Design/methodology/approach - Empirical analyses were conducted on a sample comprising 103 for-profit public and private enterprises. Relationship between CSR and NFOP was examined using multiple regression analyses whereast-test analysis was used to find any significant difference in adopting CSR activities between SOEs and private enterprises operating in Yemen. Findings - The four components of CSR (i.e. economic, legal, ethical and philanthropic) have positive significant relationships with NFOP when measured separately in private enterprises and in both SOEs and private enterprises as a whole entity. Conversely, there was insignificant influence of CSR on NFOP when examined separately in only SOEs. Furthermore, there was no statistically significant difference between SOEs and private enterprises concerning the level of adopting periodically CSR activities. Research limitations/implications - Having potential personal preferences among respondents was among the major limitations of this study. Moreover, using nonfinancial measures for assessing NFOP forms another key limitation. Practical implications - Having potential personal preferences among respondents was among the major limitations of this study. Moreover, using nonfinancial measures for assessing NFOP forms another key limitation. Originality/value - This is one of the first papers discussing the influence of CSR on NFOP which has been given less remarkable attention in the literature compared to financial organizational performance. Moreover, the paper investigates CSR effects on NFOP in Yemen which belongs to the Third World countries.

Suggested Citation

  • Eyad Al-Samman & Murad Mohammed Al-Nashmi, 2016. "Effect of corporate social responsibility on nonfinancial organizational performance: evidence from Yemeni for-profit public and private enterprises," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 12(2), pages 247-262, June.
    • Handle: RePEc:eme:srjpps:v:12:y:2016:i:2:p:247-262
    DOI: 10.1108/SRJ-04-2015-0049
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    Citations

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    Cited by:

    1. Muhammad Sanaullah Shah & Cisheng Wu & Zia Ullah, 2021. "The Inter-Relationship between CSR, Inclusive Leadership and Employee Creativity: A Case of the Banking Sector," Sustainability, MDPI, vol. 13(16), pages 1-17, August.
    2. Huy Quang Pham & Phuc Kien Vu, 2022. "Unravelling the Potential of Digital Servitization in Sustainability-Oriented Organizational Performance—Does Digital Leadership Make It Different?," Economies, MDPI, vol. 10(8), pages 1-20, July.
    3. Zainab Al Mubarak & Anji Ben Hamed & Muneer Al Mubarak, 2018. "Impact of corporate social responsibility on bank’s corporate image," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 15(5), pages 710-722, November.
    4. Raquel Garde-Sanchez & María Victoria López-Pérez & Antonio M. López-Hernández, 2018. "Current Trends in Research on Social Responsibility in State-Owned Enterprises: A Review of the Literature from 2000 to 2017," Sustainability, MDPI, vol. 10(7), pages 1-21, July.
    5. Maisuradze Davit & Narmania Giorgi & Lazishvili Magda & Tkeshelashvili Mariam & Shakiashvili Irakli, 2020. "Is Corporate Social Responsibility (CSR) a New Alternative to Governance Challenges of State-Owned Enterprises (SOEs)?," Central European Journal of Public Policy, Sciendo, vol. 14(2), pages 28-46, December.
    6. Boban Melovic & Nikola Milovic & Tamara Backovic-Vulic & Branislav Dudic & Peter Bajzik, 2019. "Attitudes and Perceptions of Employees toward Corporate Social Responsibility in Western Balkan Countries: Importance and Relevance for Sustainable Development," Sustainability, MDPI, vol. 11(23), pages 1-37, November.
    7. Anna Dunay & Abebe Ayalew & Gemechu Abdissa, 2021. "Why Socially Responsible? Determinant Factors of Organizational Performance: Case of Dangote Cement Factory in Ethiopia," Sustainability, MDPI, vol. 13(9), pages 1-23, April.

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