Corporate Social Responsibility and Firm Financial Performance by the Jordanian Telecommunication Firms

Abstract

Using Fortune magazine's ratings of corporate reputations, we analyzed the relationships between perceptions of firms' corporate social responsi-bility and measures of their financial performance. Results show that a firm's prior performance, assessed by both stock-market returns and accounting-based measures, is more closely related to corporate social responsibility than is subsequent performance. Results also show that measures of risk are more closely associated with social responsibility than previous studies have suggested.