The impact of Social Responsibility on the Financial Performance for Jordanian Companies (Case Study – Service Sector)

Abstract

This study aimed to assess the level of social responsibility in the service sector for the Jordanian companies by test several factors like: EPS, ROA, ROE, Div, NI, LEV, and Size (Z) & product age for the company (G) to determine the level of Social Responsibility. To achieve this study the researchers developed a list of indicators of social responsibility consisted of (25) items that applied to a sample of 58 Jordanian public shareholding service companies which a listed on the Amman Stock Exchange in 2012.

The results showed that the service companies shoulder their responsibilities social by level (33.5%), and the index of social responsibility towards to human resources is the most attention by the companies, while their responsibilities towards to the environment are considered weak when compare it with other social indicators.

And the results showed that the rate of return on equity is the most influential on social responsibility in service companies, and that there is a negative effect between the net operating profit and company’s responsibility towards of society and the environment and the direction of the service, and positive effect of earnings per share and leverage on the direction of the social responsibility of human resources, and a negative effect on the size of the company's social responsibility towards of service.

Keywords: Social Responsibility, EPS, ROA, ROE, Leverage, Financial Performance, Service Sector.