Sustainable practices, particularly in environmental conservation, pose significant challenges worldwide, particularly for manufacturing companies implicated in climate change and resource depletion. Such concerns elevate stakeholder expectations concerning eco-friendly manufacturing practices. Thus, it is strongly advised for these companies to transparently report their energy and resource consumption, as well as the environmental impact of their operations. Additionally, adherence to health and safety regulations should encompass a broad spectrum of environmental and social responsibilities within these firms [4].
As per the United Nations Report, sustainability entails the responsible management and consumption of resources to ensure the needs of present society without compromising those of future generations [5]; [1]. Currently, global efforts across governments, businesses, Non-governmental Organizations, and individuals are aligned towards achieving sustainable development objectives, encapsulated in the United Nation Sustainable Development Goals. Adopted in early 2016, by leaders from 193 nations at the United Nations, these SDGs succeeded the Millennium Development Goals (MDGs) spanning from 2000 to 2015 [4]; [6].
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The Sustainable Development Goals (SDGs) mark a significant evolution from antecedent frameworks, distinguished by their heightened aspirations, particularly in the realms of human rights, inequality alleviation, and the cultivation of sustainable urban landscapes. Emphasizing the intrinsic interdependence among these objectives underscores their mutual influence and underscores the imperative for collaborative efforts. In light of contemporary global exigencies, there exists a compelling urgency for proactive interventions. Hence, the SDGs embody a collective endeavour among nations to forge a path toward a more auspicious future [7]; [1]. In recent years, significant progress has been made towards achieving several Sustainable Development Goals (SDGs) since 2016, facilitated by the measurement and monitoring of SDGs through Key Performance Indicators (KPIs) [7] [8].
Sustainable Development Solutions Network (SDSN) has emerged as a novel approach to catering to the needs of low-income consumers in developing nations [1] [9]; [10]. Within the realm of business discourse, sustainable business models (SBMs) have gained prominence, with FI being recognized as an effective means of sustainably serving low-income clientele [1] [9]; [10].
Traditionally, innovations have been developed in developed countries before being transferred to developing nations [1]. However, recent decades have witnessed a remarkable surge in innovation within resource-constrained settings, particularly in developing countries [7]. Consumers in developing nations exhibit substantially lower purchasing power and distinct consumption preferences, thereby establishing a new frontier for international businesses [7].
According to [1] in [1] the concept of sustainability originated from environmentalists, focusing on the long-term consequences of pressures on natural support systems and resources. Sustainable development aims to enhance economic activities to ensure the long-term viability of natural resources and the environment, thereby improving the quality of life in communities and mitigating the adverse effects of resource depletion. This entails safeguarding natural resources, preserving environmental quality, fostering built environment development, promoting social justice within communities, and fostering increased participation and partnership. The growing awareness of environmental concerns such as global warming, climate change, and glacier melting poses significant threats to global inhabitants [12]; [13]. Consequently, organizations must systematically, holistically, and fundamentally address these new challenges rooted in economics and the environment [3], necessitating the reconfiguration of business models toward sustainable innovation approaches [14].
Following a thorough comprehension of the concept and significance of sustainability within enterprises, the present study endeavours to examine the prevailing practices within these organizations and their contemporary management. Corporate Social Responsibility (CSR) encapsulates the array of actions and initiatives undertaken by organizations to advance sustainable development imperatives. Initially introduced in Europe circa 1950, the concept gradually disseminated globally alongside parallel notions such as corporate citizenship, sustainable responsible business, and social performance. However, it wasn't until around 1960 that CSR attained widespread recognition, achieving broader global influence following the publication of R. Edward Freeman's seminal work, "Strategic Management: A Stakeholder Approach" [15].
Private sector organizations utilize corporate social responsibility (CSR) initiatives to demonstrate their commitment to community and environmental concerns, as well as individual interests, thereby emphasizing their accountability and prioritization of stakeholder relationships [15]. Through a comprehensive examination of business impact and determinants of efficacy, research has underscored consumers as the primary influencers on CSR performance within these enterprises. [16] Investigated the correlation between CSR implementation and customer satisfaction within Farmers' Association Credit Divisions (FACDs) in Taiwan, revealing a robust association between CSR adoption and enhanced customer satisfaction. Despite its ubiquity, CSR remains a multifaceted concept, posing challenges in achieving desired outcomes. While profitability typically ranks as the primary objective for private sector entities, the incorporation of CSR entails additional costs, particularly during periods of crisis or economic downturns, when companies may prioritize survival over extensive CSR endeavours [16].
In order to foster and sustain robust relationships between companies and their stakeholders, it is imperative for organizations to employ effective communication mechanisms for disseminating their Corporate Social Responsibility (CSR) endeavours. Such efforts serve as the primary means by which society becomes cognizant of the company's engagements in this realm [15]. The perception of organizations by customers and the broader community is largely shaped by the information they receive, absorb, and internalize concerning these entities. This underscores the critical importance for organizations to be cognizant of their actions and communications [16]; [18]. [19] introduced the concept of stakeholders, elucidating that companies must comprehend and address the needs and expectations of various stakeholders, including employees, customers, suppliers, and communities, surpassing the sole interests of shareholders. Firms are thus tasked with being accountable to all stakeholders, demonstrating a comprehensive understanding of and responsiveness to sectorial needs while striving to maintain equilibrium among them [19]; [20].
External stakeholders exert a substantial influence on the social performance of organizations, precipitating a global shift within the private sector towards assuming heightened responsibility for societal and environmental impacts. This evolution reflects the escalating pressure from external stakeholders, compelling organizations to embrace more stringent social and environmental standards [20]; [21]. Notably, consumers emerge as pivotal agents driving companies to augment their Corporate Social Responsibility (CSR) endeavours and embrace environmentally sustainable practices. In response to heightened external pressures, companies are increasingly cognizant of the imperative to align with societal expectations [21]; [22]. However, [21] advocate for a strategic approach among marketers in formulating CSR decisions, emphasizing the integration of CSR initiatives not only within the overarching strategic framework of the company but also to bolster its competitive standing. This strategic orientation is aligned with the community's desire for comprehensive transparency regarding corporate roles and responsibilities.
Consumer purchasing behaviour exhibits a discernible inclination towards companies demonstrating social responsibility [23], suggesting that corporate commitment to social responsibility is instrumental in fostering customer loyalty. Scholars have observed a close and favourable correlation between responsible corporate practices and consumer attitudes towards such entities [24]. However, this trend may not invariably hold true. For instance, research conducted in Australia revealed that while consumers expressed interest in and awareness of environmental issues, these concerns did not invariably dictate their purchasing decisions or orientations [23].
While the prevailing consensus among scholars aligns with this notion, dissenting voices exist, exemplified by [25], who challenges the notion of universal corporate omnipotence. Despite companies' occasional shortcomings vis-à-vis stakeholders and society, the civil society and government bear the responsibility of establishing minimum behavioural standards for members of any given society [25].
Drawing from numerous reports assessing the level of corporate commitment in the business landscape of the Jordan, data from the Jordanian Chamber (2015) indicate that merely 19% of businesses have embraced Corporate Social Responsibility (CSR). This presents a tangible impediment to achieving sustainable development in Jordan, given the substantial influence wielded by the private sector in this endeavour.
Subsequent to the publication of the aforementioned report in 2020, the Corporate Responsibility Board (CRB) conducted a Survey Report titled "Corporate Social Responsibility in Jordan: Current Practice, Challenges, and Future Opportunities." This survey engaged 210 business firms operating in Jordan. Regarding stakeholder pressure to embrace Corporate Social Responsibility (CSR) practices, the report indicates that customer influence ranks relatively low, scoring 2.8 out of 5. In contrast, community partners and charitable organizations exert a more substantial influence, with a rating of 3 out of 5. Notably, internal pressures emerge as the most significant drivers, particularly from top management/board and employees, garnering ratings between 3.6 and 4 out of 5. In order to assess the influence of societal sustainability awareness on the adoption of CSR among business firms in Dubai, the following hypothesis has been formulated.
\(H1:\) Enhanced community awareness regarding sustainability positively influences the adoption of Corporate Social Responsibility (CSR) by business enterprises in Jordan
\(H2:\) . Enhanced community awareness regarding sustainability did not influence the adoption of Corporate Social Responsibility (CSR) by business enterprises in Jordan.
2.1 Aims
The research endeavours to explore the relationship between community awareness and corporate social responsibility (CSR) adoption within the business landscape of Jordan. It seeks to address the decline in CSR despite significant advancements in commercial and industrial spheres, attributed to factors such as scepticism among stakeholders and perceived high costs associated with sustainable technologies.