The relationship between corporate social responsibility and firm performance: evidence from Jordan

This study aims to investigate the relationship between corporate social responsibility (CSR) and Jordanian firm performance. CSR is measured using three dimensions: philanthropy, community, and environment. Meanwhile, firm performance is measured by two accounting-based measurements; Return on Assets (ROA) and Return on Equity (ROE). We employ the legitimacy theory as a theoretical perspective for the current study. The data included 200 observations of 100 service and industrial Jordanian companies listed on the Amman Stock Exchange. SPSS is used for data analysis. The results indicate a significant positive association between community and environment with both ROA and ROE. However, Philanthropy does not significantly affect ROA and ROE. Additionally, Jordanian companies seem to apply "form" when it comes to philanthropy.