IDEAS home Printed from https://ideas.repec.org/a/vrs/econom/v11y2023is1p141-163n4.html
   My bibliography  Save this article

Analyzing the Relationship Between Inventory Policies and CSR Practices: Case of Jordanian Companies

Author

Listed:
  • Shakhatreh Hisham Jadallah Mansour

    (Faculty of Law, Jadara university Irbid, Jordan)

  • Salman Asma

    (American University in the Emirates, Dubai, United Arab Emirates)

  • Aldrou Khaled Khalaf Abed Rabbo

    (Faculty of Law, Jadara university Irbid, Jordan)

  • Comite Ubaldo

    (Department of Business Sciences, University Giustino Fortunato Benevento, Italy)

  • Alazzam Farouq Ahmad Faleh

    (Faculty of Law, Jadara university Irbid, Jordan)

Abstract

The present research aims to assess the impact of inventory policies on the Corporate Social Responsibility practices of companies listed on the Amman Stock Exchange. The companies included in the research belonged to manufacturing or related sectors in which holding inventory is inevitable. The sample size chosen for the research was 45 companies, mainly because of the availability of financial data from the period 2012 to 2022. The data for the research was extracted from the Amman Stock Exchange, and we utilized a regression-based ANOVA model for our analysis, containing the dummy variable to enhance the model’s validation and facilitate the statistical analysis, hence enabling a deeper understanding. We utilized. We also used the GMM model to validate our analysis. The financial variables of the research were based on the reported financial statements of the companies. The study explores the impact of the relationship between inventory policy and Corporate Social Responsibility on the different stakeholders, such as customers, employees, and environmental groups. We found that the CSR disclosure requirements also tend to have an impact on the inventory policies of these companies. Our results revealed that inventory levels are positively associated with satisfied customers. We found that the company’s total CSR and sales ratio do not have a straight-line relationship. It led us to conclude that inventory levels are positively associated with satisfied customers.

Suggested Citation

  • Shakhatreh Hisham Jadallah Mansour & Salman Asma & Aldrou Khaled Khalaf Abed Rabbo & Comite Ubaldo & Alazzam Farouq Ahmad Faleh, 2023. "Analyzing the Relationship Between Inventory Policies and CSR Practices: Case of Jordanian Companies," Economics, Sciendo, vol. 11(s1), pages 141-163, December.
    • Handle: RePEc:vrs:econom:v:11:y:2023:i:s1:p:141-163:n:4
    DOI: 10.2478/eoik-2023-0065
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/eoik-2023-0065
    Download Restriction: no
    File URL: https://libkey.io/10.2478/eoik-2023-0065?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Edward Freeman, R. & Phillips, Robert A., 2002. "Stakeholder Theory: A Libertarian Defense," Business Ethics Quarterly, Cambridge University Press, vol. 12(3), pages 331-349, July.
    2. Khaled Elsayed, 2015. "Exploring the relationship between efficiency of inventory management and firm performance: an empirical research," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 21(1), pages 73-86.
    3. Mohammad Bassam Abu Qa’dan & Mishiel Said Suwaidan, 2018. "Board composition, ownership structure and corporate social responsibility disclosure: the case of Jordan," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 15(1), pages 28-46, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pies, Ingo & Hielscher, Stefan & Beckmann, Markus, 2008. "Corporate citizenship as stakeholder management: An ordonomic approach to business ethics," Discussion Papers 2008-4, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    2. Danny Zhao‐Xiang Huang, 2022. "An integrated theory of the firm approach to environmental, social and governance performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(S1), pages 1567-1598, April.
    3. Ameen Qasem & Shaker Dahan AL-Duais & Wan Nordin Wan-Hussin & Hasan Mohamad Bamahros & Abdulsalam Alquhaif & Murad Thomran, 2022. "Institutional Ownership Types and ESG Reporting: The Case of Saudi Listed Firms," Sustainability, MDPI, vol. 14(18), pages 1-23, September.
    4. Vicente Lima Crisóstomo & Priscila Azevedo Prudêncio & Isac Freitas Brandão, 2023. "Corporate Reputation in Brazil: The Effects of the Shareholding Control Configuration, Corporate Governance, and Corporate Social Responsibility," Corporate Reputation Review, Palgrave Macmillan, vol. 26(4), pages 243-263, November.
    5. Judit Creixans-Tenas & Dolores Gallardo-Vázquez & Núria Arimany-Serrat, 2020. "Social Responsibility, Communication and Financial Data of Hospitals: A Structural Modelling Approach in a Sustainability Scope," Sustainability, MDPI, vol. 12(12), pages 1-20, June.
    6. Beck, Donizete & Ferasso, Marcos, 2023. "How can Stakeholder Capitalism contribute to achieving the Sustainable Development Goals? A Cross-network Literature Analysis," Ecological Economics, Elsevier, vol. 204(PA).
    7. Oluyomi A. Osobajo & David Moore, 2017. "Who is Who? Identifying the Different Sub-groups of Secondary Stakeholders within a Community: A Case Study of the Niger Delta Region of Nigeria Communities," International Business Research, Canadian Center of Science and Education, vol. 10(9), pages 188-209, September.
    8. Marc Orlitzky, 2017. "How Cognitive Neuroscience Informs a Subjectivist-Evolutionary Explanation of Business Ethics," Journal of Business Ethics, Springer, vol. 144(4), pages 717-732, September.
    9. Allen Kaufman & Ernie Englander, 2011. "Behavioral Economics, Federalism, and the Triumph of Stakeholder Theory," Journal of Business Ethics, Springer, vol. 102(3), pages 421-438, September.
    10. Vershinina, Natalia & Rodgers, Peter & Tarba, Shlomo & Khan, Zaheer & Stokes, Peter, 2020. "Gaining legitimacy through proactive stakeholder management: The experiences of high-tech women entrepreneurs in Russia," Journal of Business Research, Elsevier, vol. 119(C), pages 111-121.
    11. David Rönnegard & N. Craig Smith, 2024. "A Rawlsian Rule for Corporate Governance," Journal of Business Ethics, Springer, vol. 190(2), pages 295-308, March.
    12. Conaty, Frank & Robbins, Geraldine, 2021. "A stakeholder salience perspective on performance and management control systems in non-profit organisations," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 80(C).
    13. Yafet Yosafet Wilben Rissy, 2021. "The stakeholder model: its relevance, concept, and application in the Indonesian banking sector," Journal of Banking Regulation, Palgrave Macmillan, vol. 22(3), pages 219-231, September.
    14. Wasseem Abaza, 2017. "Comparing internal and external impacts of sustainable innovation: an exploratory study," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-18, December.
    15. Indra Abeysekera & Feng Li & Yingjun Lu, 2021. "Financial disclosure quality and sustainability disclosure quality. A case in China," PLOS ONE, Public Library of Science, vol. 16(5), pages 1-20, May.
    16. Mr Glyn Munthali & Dr Logasakthi Kandasamy, 2024. "Prospects and Challenges of Budgeting in Project Management; An Explorative Review of CCEI Malawi," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(7), pages 1888-1901, July.
    17. Vladislav Valentinov, 2023. "Stakeholder Theory: Toward a Classical Institutional Economics Perspective," Journal of Business Ethics, Springer, vol. 188(1), pages 75-88, November.
    18. Abdalla Shwairef & Azlan Amran & Mohammad Iranmanesh & Noor Hazlina Ahmad, 2021. "The mediating effect of strategic posture on corporate governance and environmental reporting," Review of Managerial Science, Springer, vol. 15(2), pages 349-378, February.
    19. Diego F. Uribe & Isabel Ortiz-Marcos & Ángel Uruburu, 2018. "What Is Going on with Stakeholder Theory in Project Management Literature? A Symbiotic Relationship for Sustainability," Sustainability, MDPI, vol. 10(4), pages 1-23, April.
    20. Valentinov, Vladislav, 2022. "Stakeholder theory and the knowledge problem: A Hayekian perspective," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 31(2), pages 536-545.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:econom:v:11:y:2023:i:s1:p:141-163:n:4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.