IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i12p9284-d1166698.html
   My bibliography  Save this article

A Qualitative Analysis of Corporate Social Responsibility in Saudi Arabia’s Service Sector-Practices and Company Performance

Author

Listed:
  • Luísa Pinto

    (Management Department, College of Business Administration, Prince Sultan University, Riyadh 11586, Saudi Arabia)

Abstract

Corporate social practices have become increasingly important in the service sector, as companies recognize the need to not only provide quality services to their customers but also to operate in a socially responsible manner. The goal of this research is to identify the practices of Corporate Social Responsibility (CSR) in Saudi Arabia’s service sector, as well as the relationship between these practices and performance. The study was based on the data collected from six semi-structured interviews with managers responsible for CSR implementation in the banking, insurance, and telecommunication sectors. The findings support the two research propositions, and reveal, based on managers’ perceptions, that companies have adopted several practices in their efforts to become socially responsible. Evidence also revealed that CSR practices have a positive impact on companies’ performance, corporate reputation, customer satisfaction, customer loyalty, and employee engagement. This study adds to the current body of research on the impact of applying CSR practices by providing evidence that doing so positively improves corporate performance, and identifying the most common CSR practices that can help firms improve their performance.

Suggested Citation

  • Luísa Pinto, 2023. "A Qualitative Analysis of Corporate Social Responsibility in Saudi Arabia’s Service Sector-Practices and Company Performance," Sustainability, MDPI, vol. 15(12), pages 1-14, June.
  • Handle: RePEc:gam:jsusta:v:15:y:2023:i:12:p:9284-:d:1166698
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/12/9284/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/15/12/9284/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hoje Jo & Maretno Harjoto, 2011. "Corporate Governance and Firm Value: The Impact of Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 103(3), pages 351-383, October.
    2. Pillai, Rekha & Al-Malkawi, Husam-Aldin Nizar, 2018. "On the relationship between corporate governance and firm performance: Evidence from GCC countries," Research in International Business and Finance, Elsevier, vol. 44(C), pages 394-410.
    3. Dawit Bahta & Jiang Yun & Md Rashidul Islam & Kuyon Joseph Bikanyi, 2021. "How does CSR enhance the financial performance of SMEs? The mediating role of firm reputation," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 34(1), pages 1428-1451, January.
    4. Mobin Fatma & Imran Khan, 2023. "An Integrative Framework to Explore Corporate Ability and Corporate Social Responsibility Association’s Influence on Consumer Responses in the Banking Sector," Sustainability, MDPI, vol. 15(10), pages 1-11, May.
    5. Muhammad Ali Jibran Qamar & Sameen Masood & Tehreem Junaid, 2016. "Impact of Corporate Social Responsibility on Customer Satisfaction and Retention: Evidence from the Banking Sector of Pakistan," International Journal of Financial Economics, Research Academy of Social Sciences, vol. 5(1), pages 33-45.
    6. Shumookh Abdul Aziz Al-Ghamdi & Nada Saleh Badawi, 2019. "Do corporate social responsibility activities enhance customer satisfaction and customer loyalty? Evidence from the Saudi banking sector," Cogent Business & Management, Taylor & Francis Journals, vol. 6(1), pages 1662932-166, January.
    7. Sang Jun Cho & Chune Young Chung & Jason Young, 2019. "Study on the Relationship between CSR and Financial Performance," Sustainability, MDPI, vol. 11(2), pages 1-26, January.
    8. Jaffar Abbas & Shahid Mahmood & Hashim Ali & Muhammad Ali Raza & Ghaffar Ali & Jaffar Aman & Shaher Bano & Mohammad Nurunnabi, 2019. "The Effects of Corporate Social Responsibility Practices and Environmental Factors through a Moderating Role of Social Media Marketing on Sustainable Performance of Business Firms," Sustainability, MDPI, vol. 11(12), pages 1-33, June.
    9. Mobin Fatma & Imran Khan, 2023. "Corporate Social Responsibility and Brand Advocacy among Consumers: The Mediating Role of Brand Trust," Sustainability, MDPI, vol. 15(3), pages 1-10, February.
    10. Ali Alotaibi & Francis Edum-Fotwe & Andrew D.F. Price, 2019. "Critical Barriers to Social Responsibility Implementation within Mega-Construction Projects: The Case of the Kingdom of Saudi Arabia," Sustainability, MDPI, vol. 11(6), pages 1-27, March.
    11. Zakaria Ali Aribi & Simon S. Gao, 2011. "Narrative disclosure of corporate social responsibility in Islamic financial institutions," Managerial Auditing Journal, Emerald Group Publishing, vol. 27(2), pages 199-222, December.
    12. Abagail McWilliams & Donald Siegel, 2000. "Corporate social responsibility and financial performance: correlation or misspecification?," Strategic Management Journal, Wiley Blackwell, vol. 21(5), pages 603-609, May.
    13. Dima Jamali, 2008. "A Stakeholder Approach to Corporate Social Responsibility: A Fresh Perspective into Theory and Practice," Journal of Business Ethics, Springer, vol. 82(1), pages 213-231, September.
    14. Samar El Sayad & Ahmed Diab, 2022. "Bank Employee Perceptions of Corporate Social Responsibility Practices: Evidence from Egypt," Sustainability, MDPI, vol. 14(3), pages 1-32, February.
    15. Jamali, Dima & Jain, Tanusree & Samara, Georges & Zoghbi, Edwina, 2020. "How institutions affect CSR practices in the Middle East and North Africa: A critical review," Journal of World Business, Elsevier, vol. 55(5).
    16. Rachel Bocquet & Christian Le Bas & Caroline Mothe & Nicolas Poussing, 2017. "CSR, Innovation, and Firm Performance in Sluggish Growth Contexts: A Firm-Level Empirical Analysis," Journal of Business Ethics, Springer, vol. 146(1), pages 241-254, November.
    17. Jennifer Martínez‐Ferrero & José Valeriano Frías‐Aceituno, 2015. "Relationship Between Sustainable Development and Financial Performance: International Empirical Research," Business Strategy and the Environment, Wiley Blackwell, vol. 24(1), pages 20-39, January.
    18. Basheer M. Al-Ghazali & M. Sadiq Sohail, 2021. "The Impact of Employees’ Perceptions of CSR on Career Satisfaction: Evidence from Saudi Arabia," Sustainability, MDPI, vol. 13(9), pages 1-26, May.
    19. Sudin Bag & Amina Omrane, 2022. "Corporate Social Responsibility and Its Overall Effects on Financial Performance: Empirical Evidence from Indian Companies," Journal of African Business, Taylor & Francis Journals, vol. 23(1), pages 264-280, January.
    20. Shihping Kevin Huang, 2013. "The Impact of CEO Characteristics on Corporate Sustainable Development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(4), pages 234-244, July.
    21. Peng, Xinyuan & Tang, Pengcheng & Yang, Shuwang & Fu, Shuke, 2020. "How should mining firms invest in the multidimensions of corporate social responsibility? Evidence from China," Resources Policy, Elsevier, vol. 65(C).
    22. Amy J. Hillman & Gerald D. Keim, 2001. "Shareholder value, stakeholder management, and social issues: what's the bottom line?," Strategic Management Journal, Wiley Blackwell, vol. 22(2), pages 125-139, February.
    23. Baruch Lev & Christine Petrovits & Suresh Radhakrishnan, 2010. "Is doing good good for you? how corporate charitable contributions enhance revenue growth," Strategic Management Journal, Wiley Blackwell, vol. 31(2), pages 182-200, February.
    24. Luísa Pinto, 2020. "Green supply chain practices and company performance in Portuguese manufacturing sector," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1832-1849, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paraskevi (Evi) Dekoulou & Anna Anastasopoulou & Panagiotis Trivellas, 2023. "Employee Performance Implications of CSR for Organizational Resilience in the Banking Industry: The Mediation Role of Psychological Empowerment," Sustainability, MDPI, vol. 15(15), pages 1-20, August.
    2. Mohammad Alnehabi & Al-Baraa Abdulrahman Al-Mekhlafi, 2023. "The Association between Corporate Social Responsibility, Employee Performance, and Turnover Intention Moderated by Organizational Identification and Commitment," Sustainability, MDPI, vol. 15(19), pages 1-25, September.

    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. Luis Otero-González & Pablo Durán-Santomil & Luis-Ignacio Rodríguez-Gil & Rubén Lado-Sestayo, 2021. "Does a Company’s Profitability Influence the Level of CSR Development?," Sustainability, MDPI, vol. 13(6), pages 1-15, March.
    2. Cheng Guping & Muhammad Safdar Sial & Peng Wan & Alina Badulescu & Daniel Badulescu & Talles Vianna Brugni, 2020. "Do Board Gender Diversity and Non-Executive Directors Affect CSR Reporting? Insight from Agency Theory Perspective," Sustainability, MDPI, vol. 12(20), pages 1-25, October.
    3. Kiyoung Chang & Hoje Jo & Ying Li, 2018. "Is there Informational Value in Corporate Giving?," Journal of Business Ethics, Springer, vol. 151(2), pages 473-496, August.
    4. Lin, Woon Leong & Law, Siong Hook & Ho, Jo Ann & Sambasivan, Murali, 2019. "The causality direction of the corporate social responsibility – Corporate financial performance Nexus: Application of Panel Vector Autoregression approach," The North American Journal of Economics and Finance, Elsevier, vol. 48(C), pages 401-418.
    5. Christopher Groening & Vamsi K. Kanuri, 2018. "Investor Reactions to Concurrent Positive and Negative Stakeholder News," Journal of Business Ethics, Springer, vol. 149(4), pages 833-856, June.
    6. Aneta Oniszczuk-Jastrząbek & Ernest Czermański & Giuseppe T. Cirella, 2020. "Sustainable Supply Chain of Enterprises: Value Analysis," Sustainability, MDPI, vol. 12(1), pages 1-15, January.
    7. Shahid Ali & Junrui Zhang & Muhammad Usman & Muhammad Kaleem Khan & Farman Ullah Khan & Muhammad Abubakkar Siddique, 2020. "Do tournament incentives motivate chief executive officers to be socially responsible?," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 35(5), pages 597-619, February.
    8. Francesco Perrini & Angeloantonio Russo & Antonio Tencati & Clodia Vurro, 2011. "Deconstructing the Relationship Between Corporate Social and Financial Performance," Journal of Business Ethics, Springer, vol. 102(1), pages 59-76, March.
    9. Deepa Sharma & Suman Chakraborty & Ashwath Ananda Rao & Lumen Shawn Lobo, 2023. "The Relationship of Corporate Social Responsibility and Firm Performance: A Bibliometric Overview," SAGE Open, , vol. 13(1), pages 21582440231, March.
    10. Suyun Chen & Yu Ji, 2022. "Do Corporate Social Responsibility Categories Distinctly Influence Innovation? A Resource-Based Theory Perspective," Sustainability, MDPI, vol. 14(6), pages 1-25, March.
    11. Shin, Jiyoung & Moon, Jon Jungbien & Kang, Jingoo, 2023. "Where does ESG pay? The role of national culture in moderating the relationship between ESG performance and financial performance," International Business Review, Elsevier, vol. 32(3).
    12. Kiyoung Chang & Jean Kabongo & Ying Li, 2021. "Geographic proximity, long-term institutional ownership, and corporate social responsibility," Review of Quantitative Finance and Accounting, Springer, vol. 56(1), pages 297-328, January.
    13. Ghanbarpour, Tohid & Gustafsson, Anders, 2022. "How do corporate social responsibility (CSR) and innovativeness increase financial gains? A customer perspective analysis," Journal of Business Research, Elsevier, vol. 140(C), pages 471-481.
    14. Weichieh Su & Mike W. Peng & Weiqiang Tan & Yan-Leung Cheung, 2016. "The Signaling Effect of Corporate Social Responsibility in Emerging Economies," Journal of Business Ethics, Springer, vol. 134(3), pages 479-491, March.
    15. Waseem Akhter & Arshad Hassan, 2024. "Does corporate social responsibility mediate the relationship between corporate governance and firm performance? Empirical evidence from BRICS countries," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 566-578, January.
    16. Jacob Brower & Vijay Mahajan, 2013. "Driven to Be Good: A Stakeholder Theory Perspective on the Drivers of Corporate Social Performance," Journal of Business Ethics, Springer, vol. 117(2), pages 313-331, October.
    17. Ilya R. P. Cuypers & Ping-Sheng Koh & Heli Wang, 2016. "Sincerity in Corporate Philanthropy, Stakeholder Perceptions and Firm Value," Organization Science, INFORMS, vol. 27(1), pages 173-188, February.
    18. Thomas Fischer & Angelika Sawczyn, 2013. "The relationship between corporate social performance and corporate financial performance and the role of innovation: evidence from German listed firms," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(1), pages 27-52, May.
    19. Ali M. Shahzad & Matthew A. Rutherford & Mark P. Sharfman, 2016. "Stakeholder‐Centric Governance and Corporate Social Performance: A Cross‐National Study," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(2), pages 100-112, March.
    20. Tony Chieh‐Tse Hou, 2019. "The relationship between corporate social responsibility and sustainable financial performance: firm‐level evidence from Taiwan," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 19-28, January.

    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:gam:jsusta:v:15:y:2023:i:12:p:9284-:d:1166698. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.