Exploring the Impact of Environmental Sustainability on Firm Performance in the Manufacturing Industry in Jordan

Ahmad Fathi Alheet
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Ahmad Fathi Alheet: Al-Ahliyya Amman University, Jordan

Business, Management and Economics Research, 2019, vol. 5, issue 8, 110-117

Abstract: Environmental sustainability is an important component of a firm’s Corporate Social Responsibility. It relates to firm practices that ensure the conservation of the environment and natural resources, such as water, land and air. This research study aims to study the concept in relation to firm performance in Jordan. It proposes that environmental sustainability practices of a company in Jordan’s manufacturing industry positively influence its financial performance. For this purpose, the study assesses the relationship between environmental sustainability score and the profitability ratios. Results reveal a significant positive impact of sustainability score on the ROA of the companies. It is therefore recommended to manufacturing firms in Jordan to focus more on environmental CSR and sustainability practices, which would result in improved efficiency and profitability.

Keywords: Environmental sustainability; CSR; Firm performance; Net margin; ROA; ROE; Manufacturing industry; Jordan. (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:arp:bmerar:2019:p:110-117

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