Abstract:

In the Middle East, corporate social responsibility is a virtue which is ingrained in their beliefs, yet few empirical studies examine its benefits other than from the economic and financial performance and competitive advantage. The purposes of the present research are to empirically examine the general approach of Saudi companies regarding corporate social responsibility, and to identify the non-economic benefits of social responsibility. A total of 136 questionnaires were distributed to different managers from the manufacturing and service sector in Saudi Arabia. The results show that in most of companies studied, the social responsibility approach is based on ethics and value-based orientation followed by the stakeholder’s demands approach, philanthropy and economic approach. Was found that the main non-economic benefits considered by the companies are employee retention, company brand reputation and foster innovation. Evidence found a positive relationship between social responsibility and employee retention and innovation, and also social responsibility and brand reputation are positively associated.