Revisiting the CSR–performance nexus: insights from multiple theoretical lenses applied in the UAE

Purpose This study aims to examine the institutionalization of corporate social responsibility (CSR) in the United Arab Emirates (UAE) by adapting Carroll’s (1991) four-part framework to the country’s unique legal, cultural, religious and economic context. Drawing on legal origins theory and institutional theory, the paper reconfigures Carroll’s model by merging the ethical and philanthropic tiers and introducing a distinct cultural dimension grounded in Islamic values such as Zakat, Waqf and Sadaqah. The analysis centers on Federal Law No. 2 of 2015 and Article 242 of the UAE Commercial Law, which mandate CSR disclosure and encourage firms to allocate a portion of net profits to community service. Design/methodology/approach Beyond this conceptual adaptation, the study empirically investigates the relationship between CSR engagement and firm performance using a panel dataset of listed UAE firms from 2020 to 2024. Findings Fixed-effects regression analysis reveals that CSR activities are positively associated with financial performance, measured by return on assets and Tobin’s Q, with results robust to alternative specifications and lagged structures. The findings suggest that the UAE’s hybrid “Hard–Soft” CSR model not only enhances compliance but also promotes value creation. Originality/value This paper contributes to global CSR discourse literature by illustrating how legal–cultural congruence can strengthen the developmental impact of CSR legislation in non-Western settings.