Corporate social responsibility extent and quality: evidence from Jordan
Authors: Omar Belal Fayez , Alkayed Hani 
Published: October 2020

Purpose
This study aims to examine the extent and quality of corporate social responsibility (CSR) disclosure in Jordan for the time periods of 2005–2006 and 2014–2015, ultimately establishing whether there was a change in the extent and quality of disclosure practices before and after the new regulations for CSR. Furthermore, this study additionally seeks to determine if the regulations are a major factor in changing CSR disclosure practices, or whether there are other factors for such a change.

Design/methodology/approach
The annual reports of 55 manufacturing companies (11 sub-sectors) on the Amman Stock Exchange for the years 2005–2006 and 2014–2015 were selected, and a CSR checklist was measured via the construction an index covering 36 items in 4 themes: environmental; human resources; community; and products and others. The study measures the quantity of CSR via the number of sentences and the quality of CSR by the weighting approach (on a scale of 0–3); furthermore, the paired sample t-test and Wilcoxon signed rank tests were used to establish whether there was a change in the extent and quality of CSR disclosure practices.

Findings
The results of the study revealed that there being a significant increase in the extent and quality of CSR for the period 2014–2015 compared to that of 2005–2006, the most optimal performance being in 2015, bragging an average of 61,41 total sentences per annual report and an average quality score of 1.423. Moreover, detailed analysis of CSR extent and quality by theme reveals that the highest percentage of CSR extent and quality was within the environmental theme, with an average score 28.6% of total sentences in 2014 (extent) and 1.743 in 2015 of total sentences (quality).

Research limitations/implications
The current study has some limitations, which have implications for future studies. First, this study examined the extent and quality of CSR for only two time frames: before and after regulation. However, a longitudinal study would have provided a wider scope of study. Second, the study focussed only on the industrial sector, thus limiting the results to only this area. Indeed, the exploration of the CSR extent and quality for other sectors (e.g. financial and services) would generalise the results further, allowing for the making of comparisons compare among different sectors. Moreover, the study at hand has focussed solely on annual reports, which could lead to subjectivity, thus reducing the reliability of results. Future studies should thus focus on other means of disclosure (e.g. websites; environmental reports).

Practical implications
The current mandatory requirements would suggest Jordanian regulators have begun specifying CSR disclosure requirements in an easier, more user-friendly and traceable format. Indeed, the increase in CSR extent and quality for the post-regulations period would increase the need to organise mandatory requirements in CSR. For managers, on the other hand, the study provides the CSR as a strategic tool for reflecting the actual environmental activities, comparing it with the society’s expectations. Moreover, when budgets are limited, managers prioritise CSR activities that yield a positive impact on financial performance by allocating the limited resources in a broad manner.

Social implications
The results additionally highlights the ways in which the Jordanian industrial companies increase their levels within the environmental theme in CSR for the post-regulations. It could be argued that a great number of companies in the past decade have started adopting environmentally friendly practices and strategies to protect the natural environment, such as greenhouses, extracting non-renewable resources and reducing amount of industrial waste.

Originality/value
To the best of the authors’ knowledge, there is currently no existing study within Jordan exploring the change of CSR over time – specifically in terms of before and after the regulations. In addition, exploring the quality of CSR using a weighted approach (scale out of 3) is not conducted in Jordanian studies before.