Corporate Socıal Responsıbılıty And its Effect on Fınancıal Performance: Applıed on Arab Potash Company

Abstract

This study aims to identify the impact of corporate social responsibility on financial performance by applying it on the Arab Potash Company where its independent variables (education, social development, official parties, water and environment, health, sport, places of worship, cultural activities and professional syndicates) and  the dimensions of the dependent variable (financial performance ) were measured based on the actual figures obtained from the published annual reports issued by the APC during the period 2010-2019. By testing the hypotheses using the SPSS software, results indicated a statistically significant effect at α≤0.05 for the dimensions of the corporate social responsibility on the financial performance in the APC and despite the low explanatory power for the independent variables during the period covered by the study, the researcher recommended with the necessity of establishing an independent administrative unit for the board of directors concerned with the task of managing and regulating the corporate social responsibility allocations in coordination with the civil community institutions and working on increasing expenses on the current activities of social responsibility which contribute in fighting poverty and unemployment and incurable diseases resulted from water, air and soil pollution.