Abstract/Summary

Extant literature has explored Corporate Social Responsibility (CSR) and its impact on business outcomes (Blowfield & Frynas, 2005; Bhattacharya et al., 2008; Visser, 2008; Khurshid et al., 2014; Wu et al., 2016). However, while CSR is well studied in general, the implications of cultural subjectivity on CSR are largely understudied, particularly regarding cultural subjectivity’s impact on reputation and associated outcomes within an Arab context (Mele, 2015; Alfakhri et al., 2018; Koleva, 2021). This is surprising, given that previous research has acknowledged that cultural factors can potentially make a significant impact on the understanding and expression of CSR (Wang & Juslin, 2009; Sukhdeo, 2020; Sanchez et al., 2024). Thus, driven by the increased geopolitical and economic importance of the Arab region and gaps identified in existing research, the present study investigates the implications of subjective constructs unique to the Islamic-dominant region on reputational outcomes. This research addresses these gaps by developing three empirical studies that fulfil the overall aim of this thesis of enhancing our nascent understanding of CSR from an Arabian perspective. The three-paper format is used as the research is split over three unresolved questions that revolve around the common denominator of company reputation. In the first paper (which has already been published in Emerald’s World Journal of Entrepreneurship, Management and Sustainable Development, 2024 – see appendix) the extensive literature highlighting the importance of CSR and its impact on reputational elements, is investigated. The work then focuses on the Religious Responsibility (RR) aspect of CSR. Mainstream literature reveals that RR should take contextual elements into consideration, with limited research signalling that it could result in both positive and negative consequences. The available research is then elevated one step further, and a qualitative assessment is conducted to determine where RR stands within the context within the Arab context. Through conversations with policymakers, industry professionals, and civil society advocates, it was found that RR is often practiced through an Islamic CSR (i-CSR) lens locally and commonly practiced as a passive behaviour and/or part of routine CSR strategies. This is an important element to consider. All stakeholders interviewed agreed that because the Islamic religion is highly subjective and has several layers of compulsory and non-compulsory components, there is no standardized method to either implement or report i-CSR activities. The findings of this qualitative study also reveal that i-CSR is well understood and frequently practiced, although it may not always be reported or identified as an organization’s responsibility. Often, i-CSR is bundled under the general activities agenda under CSR, and it is not uncommon for entities to forego reporting it at all. The findings contribute to the general knowledge of CSR literature and aid in better understanding the motivations, barriers, and definitions of the term as they currently exist. They also offer insights into various stakeholders’ perceptions of sustainability strategies in emerging and developed markets. Furthermore, the study identifies obstacles to the successful implementation of CSR locally, such as the lack of synchronization between non-governmental organizations (NGOs), the government, and other stakeholders, confirming the findings of Al-Abdin et al.’s (2018) work, which identifies gaps in relationships between stakeholders identified in the CSR literature. Moreover, it supports the conclusion that the same stimuli (religious duty) led to varied outcomes from individuals, both within and across demographic profiles, similar to findings observed by Bhattacharya and Sen (2004), Walker (2010) and West et al. (2016). The second paper discusses the implications of i-CSR on reputational elements. To conduct this investigation, a local telecom giant with vast reach within the Islamic-dominant Middle East and North Africa (MENA) region was approached, to gain feedback from a multi-stakeholder perspective; thus, the research embarks on the quantitative portion of this research with the employee stakeholder group. The questionnaire, which focused on the socially responsible activities of the company, consisted of both Western-style CSR elements (borrowed from Fombrun et al., 2016) as well as i-CSR (measured by RR). The aim was to explore the impact of the mentioned two main components, both independently and collectively, on reputational elements (namely Emotional Appeal (EA) and Supportive Behaviour (SB)). The research revealed that while conventional CSR has a direct impact on SB, the impact of i-CSR on SB is partially mediated by EA. The impact of i-CSR may thus be more slow-burning and could represent a long-term investment that impacts EA and SB. The findings identify the importance of investigating the implications of i-CSR in isolation and highlight the mediating effect of EA on SB. In addition, the findings reveal that while CSR has short-term benefits, focusing on i-CSR strategies can offer more long-term benefits. The findings also indicate that CSR significantly influences SB, while i-CSR directly impacts both SB and EA. This underscores the need to consider social and religious responsibilities as distinct elements within organizations’ responsibility strategies, particularly within an Arab context. These insights contribute to stakeholder reputation theory by highlighting the importance of understanding region-specific perceptions in shaping reputational dimensions. Overall, the findings signal to practitioners that while CSR has a direct impact on SB, i-CSR follows a more indirect route at a slower rate as it works its way through EA. Moreover, the findings contribute to CSR research by implying a need for a more localized approach to CSR that aligns with the cultural and religious values of the region (Xu & Ma, 2021; Butt & Uddin, 2019). Furthermore, the study contributes to i-CSR and research, suggesting that companies should focus on creating strategic initiatives that resonate emotionally with their employees (Schmidt, 2017). The third paper investigates the implications of i-CSR and CSR on reputational elements from a customer perspective. A similar framework and questionnaire were applied and, in order to probe i-CSR elements further, the paper examines potential moderators that may build on the employee study in that they link to the cultural context that may help in understanding the findings. Here CSR and i-CSR are seen to be drivers of Emotional Appeal (EA) and Advocacy (AD), while proxies of Religiosity, Humility, and Locus of Control are explored as moderators, which help reveal the more intricate factors potentially at play. The findings show that while CSR is positively associated with AD, it seems to also be negatively associated to EA, meaning that CSR activities may reduce emotional appeal in this context. This can be further explained in the emerging evidence found, which reveals that a moderator is implicating the relationship. The findings suggest that humility, which is a pillar of the Islamic religion, could be the reason why CSR negatively impacts AD. The findings are novel, as they are the first to identify potential moderators between i-CSR and AD, and they signal the importance of taking religion-related proxies into consideration in any religion-dominant region. In addition, as the first study to investigate the implications of both i-CSR and CSR on EA and AD in an Arab context, this research provides a novel perspective on how culturally specific practices impact customer perceptions and behaviours. It lays the groundwork for future research to further explore the dynamics of these unique elements and customer reputational outcomes, emphasizing the importance of context-specific studies in understanding global business phenomena. Taken together, the three papers advance knowledge by answering three research questions: (a) How do policymakers and experts in the Arab context understand and interpret CSR in their region, and to what degree do culture, religion, and social norms impact CSR strategies? (b) How do employees in the Arab context perceive and respond to CSR and i-CSR, and how do these perceptions impact reputational outcomes towards their employer? (c) How do different aspects of organizational responsibilities, particularly CSR and i-CSR, influence supportive behaviour elements of reputation and EA within the Arab context amongst customers, and what role does humility play in moderating these effects? In so doing, this research enhances our understanding of the interplay of complex region-specific efforts within organizations’ responsibilities and decision-making processes, particularly within an Arab context. The thesis also identifies new avenues of research. These are discussed at the conclusion of each paper. The thesis is structured as follows: Chapter 1 provides an overall introduction of the thesis. Chapter 2 presents the first paper, discussing decision-makers and experts’ understanding and implementation of CSR within an Arab society. Chapter 3 presents the second paper, discussing the implications of CSR and i-CSR on reputational elements within an employee stakeholder group, while Chapter 4 presents the third paper, which explores the implications of various drivers of reputation, mediators, and moderators from a customer perspective.