The private sector and social responsibility: A new era

Jordan Times

25-03-2025

Prime Minister Jaafar Hassan is seeking to establish new traditions and concepts in social responsibility and the national role of the private sector, companies, and capital in Jordanian policies. His approach involves having this sector contribute a portion of its profits to support major economic and service-related projects. According to sources close to the Prime Minister, the amount raised so far is nearly JD130 million over three years, and this figure is expected to increase. The funds will be allocated to major economic and service-oriented projects.
The largest contributor to date has been the Association of Banks, which took the initiative to donate JD90 million over three years for projects related to health and education. Other major national institutions and large companies have also donated millions of dinars to support the Jordanian treasury. This effort is also an attempt to bridge the gap caused by the decline in US aid and funding from the U.S. Agency for International Development (USAID). While some financial assistance has returned for infrastructure projects such as the national carrier project, there are still other areas where the future remains unclear.
Regardless of US aid, this kind of cooperation and involvement from the private sector is expected to become a foundational pillar in building the political and social fabric of the country. It is not just about the financial support offered for essential sectors like education, health, and services. While the private sector and major companies have contributed to developmental and humanitarian efforts in the past, those contributions were often ad hoc, impulsive, and individual in nature. However, when such efforts are organized into a large collective framework with clear priorities and project outlines, their impact can be significantly greater.
It is not an exaggeration to say that instilling such traditions is extremely important—not only economically, but also in defining a healthy relationship rooted in national solidarity and mutual support. This forms an integral part of what is called 'social capital,' whose value is no less than that of financial capital. First, it strengthens the sense of national, social, and moral duty among private sector actors, investors, and companies, reinforcing their feeling that they are an inseparable part of the national fabric. On the other side, it enhances public appreciation of the private sector's role in national development, helping reduce the sense of class disparity among poorer or lower-middle-class groups, and contributes to building a stronger internal national front.
One of the most prominent political theorists today, Francis Fukuyama, argues that economic aspects cannot be separated from cultural, social, and political dimensions. In his acclaimed book Trust: The Social Virtues and the Creation of Prosperity, Fukuyama discusses how local cultures influence the development and reinforcement of economic growth, and how social values play a crucial role during national and economic crises. He provides important examples from countries like the United States, Japan, and Germany to illustrate how wealthy companies and the industrial sector stood by the state and supported the poor and the national economy during critical turning points.
One of the key themes Fukuyama explores, echoing the famous work of Max Weber The Protestant Ethic and the Spirit of Capitalism, as well as many of Weber's writings linking cultural and ethical dimensions to economic revival, is the major influence of cultural values and ethics on economic performance and national solidarity. This influence extends even to economic competitiveness and the promotion of domestic industries without the need for laws or regulations, as seen in Japan.
Such fundamental and significant dimensions may not have received sufficient attention in Jordan in past stages, but now is the time to reconsider and focus on them, especially in the current era, with the early signs of global economic and trade wars. While these may not directly affect Jordan at the moment, their future impact is inevitable. This calls for a new perspective on the economy, development, and the role of the private sector. Hopefully, Prime Minister Hassan's ideas about institutionalizing new traditions will serve as a prelude to this important transformation.
Mohammad Abu Rumman is an Academic Advisor of Politics and Society Institute, Political Scientist in University of Jordan