Evaluating the Challenges and Opportunities of CSR Accounting Practices in Jordanian SMEs

This study evaluates the challenges and opportunities associated with Corporate Social Responsibility (CSR) accounting practices in Jordanian small and medium-sized firms (SMEs). CSR accounting has become a crucial tool for aligning economic goals with social and environmental responsibilities, particularly in relation to global sustainability targets. In Jordan, small and medium-sized firms are vital to the national economy; yet, they face significant challenges in executing corporate social responsibility programs due to limited resources, insufficient awareness, and legislative shortcomings. This paper investigates the concept of CSR accounting, emphasizing its benefits for enhancing financial performance, competitive advantage, and stakeholder trust. It emphasizes the importance of transparent CSR disclosures, which can improve corporate reputation and draw investments, particularly in developing countries. The analysis identifies three primary methods of CSR disclosure: narrative reports, cost-based reporting, and independent CSR reports, each with unique applications and constraints. Large enterprises often implement sophisticated approaches; however SMEs in Jordan generally adopt simpler strategies due to resource constraints. The report examines the legislative framework in Jordan, including initiatives aimed toward improving CSR transparency, and discusses the gaps between policy and execution. Research demonstrates that, notwithstanding progress, CSR disclosure levels remain relatively low, necessitating more regulatory enforcement and capacity-building initiatives. By addressing these issues and leveraging opportunities, Jordanian SMEs may significantly improve sustainable development and strengthen their market competitiveness. This research concludes by emphasizing the imperative for a deliberate commitment from both businesses and policymakers to foster a culture of CSR accountability that aligns with global best practices.