Non-Financial Benefits of Corporate Social Responsibility to Saudi Companies

Abstract

In Saudi Arabia, as in the international arena, corporate social responsibility (CSR) is a trending phenomenon that has been transforming and influencing government policies, business strategic management, and societal relationships. This study aims to identify the non-financial benefits of CSR and the general CSR approach in Saudi Arabia. A survey was conducted among randomly selected Saudi companies from the manufacturing and service sectors. Descriptive statistics on company profiles, CSR approaches, and CSR benefits were analyzed. The findings demonstrated that the most prevalent CSR approach is to minimize the negative impacts and maximize the positive impacts of the business, considering the social, environmental, and economic aspects. The non-financial benefits from CSR activities include attracting and retaining employees, improving brand reputation, and enhancing innovation. The main limitations of this study involve the relatively small sample size and the lack of longitudinal data to analyze the effects of the variables over time. The study findings not only provide deeper insights into CSR approaches and non-financial benefits but could also encourage firms’ managers and stakeholders to improve CSR activities to better achieve non-financial benefits and improve competitive advantage.

Environmental and Financial Management in Sustainable Business: A Case Study in the Energy Industry

“…Moreover, responsible environmental management can enhance a company's brand reputation, which can attract and retain employees, customers, and investors [17]. Industry 4.0 technologies, such as blockchain and circular economy practices, can also significantly improve business operations, financial performance, and environmental performance [2].…”

Bisnis Berkelanjutan dan Tanggung Jawab Sosial Perusahaan: Studi tentang Dampak dan Strategi Implementasi

“…Inisiatif CSR bertujuan untuk meminimalkan dampak negatif dan memaksimalkan dampak positif bisnis terhadap masyarakat, lingkungan, dan ekonomi (Allui & Pinto, 2022;Rukmana, Meltareza, et al, 2023). Inisiatif ini dapat menghasilkan manfaat non-finansial seperti menarik dan mempertahankan karyawan, meningkatkan reputasi merek, dan meningkatkan inovasi (Allui & Pinto, 2022;Rukmana, 2017).…”

“…Inisiatif CSR bertujuan untuk meminimalkan dampak negatif dan memaksimalkan dampak positif bisnis terhadap masyarakat, lingkungan, dan ekonomi (Allui & Pinto, 2022;Rukmana, Meltareza, et al, 2023). Inisiatif ini dapat menghasilkan manfaat non-finansial seperti menarik dan mempertahankan karyawan, meningkatkan reputasi merek, dan meningkatkan inovasi (Allui & Pinto, 2022;Rukmana, 2017). Selain itu, perusahaan yang telah menerapkan prinsip-prinsip keberlanjutan lingkungan, sosial, dan manajerial terbukti lebih tangguh dalam menghadapi krisis, seperti pandemi COVID-19 (Rukmana, Bakti, et al, 2023).…”

Implementing the Principles of Social Responsibility in Higher Education Institutions

“…Socially responsible companies and organisations are becoming increasingly more appealing to consumers, employees or investors compared to other companies offering the same services (Allui & Pinto, 2022;Nave & Ferreira, 2019). Research by Šimanskienė and Paužuolienė (2010) shows that integrating social responsibility principles into organisation's activities and creating an organisational culture can help strengthen the organisation's relationship with its employees, increase employee loyalty and foster a desire to perform well.…”