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The observed behavior of firms operating in markets will vary between economies due to increased risks associated with COVID-19. Firms’ behaviors also vary across sectors (e.g., industrial, commercial, and service) in their response to threats. Authorities might impose rules to monitor such behaviors. For example, the Competition and Market Authority (CMA) in the United States conducted monitoring campaigns on firms that would benefit by raising their prices during the pandemic. During the oversight, firms were observed to force their adherence to ethical work and prices.
Furthermore, during the pandemic, many firms participated in social activities and provided immediate assistance to fight the virus or its effects. Many banks waived overdraft rates during a specific period to strengthen relationships with their customers. Governments around the world provided economic assistance to relieve pressures on organizations affected by COVID-19, including the tourism and aviation industries (He & Harris, 2020).
The crisis was a significant imposition on the management of organizations, especially service-based organizations. Those affected included workers, customers, owners, suppliers, and all categories of internal and external audiences (Suhanti et al., 2020). Social responsibility has become a major challenge for organizations. For example, during the pandemic, medical institutions aimed to continue to provide integrated health services with high levels of satisfaction (Pino et al., 2016). Consequently, hospitals have struggled to satisfy all parties in the application of socially responsible efforts (Khan et al., 2018).
Interest has increased regarding the importance of creating a climate that incorporates social responsibility into the values and culture of an institution. Many methods have been proposed to understand how to apply the concept of social responsibility within organizations. To promote social responsibility, Cochius (2006) and Zhu and Zhang (2015) recommended that organizations focus on the creation and enhancement of stakeholder benefits and values.
Social responsibility, or ethical culture, is the behavior of an entire society, especially evident in times of crises and disaster. The COVID-19 crisis required the unification of state institutions to mitigate and overcome negative effects (LoGiudice et al., 2020). This research evaluates the role of Egyptian private hospitals in facing the pandemic by adhering to the controls and rules set by the Egyptian government during the pandemic.
The Egyptian Ministry of Health emphasized the need to serve COVID-19 patients by unifying the state’s efforts with private sector hospitals. Private hospitals were required to adhere to the following costs when treating these patients: (1) internal isolation room from 1,500 to 3,000 LE per day; (2) intensive care with a respirator from 7,500 to 10,000 LE per day; and (3) intensive care without a respirator from 5,000 to 7,500 LE per day (Saied et al., 2021). However, it was announced that the Providers Chamber of the Federation of Egyptian Industries rejected the prices announced by the Egyptian Ministry of Health, explaining that most of the hospitals felt that providing care for these patients was expensive and, therefore, did not produce a profit. The Egyptian Ministry of Health denounced how some private sector hospitals would exaggerate their provided medical services to COVID-19 patients, calling on all private hospitals to adhere to the roles set by the state.
This example motivated the authors to explore the following question: What is the social role of private hospitals toward patients, employees, and external parties (e.g., government, society, and environment)? This article contributes to the extant literature by verifying the extent to which Egyptian private hospitals’ social responsibility toward internal and external partners (employees and patients) can strengthen their ability to overcome the COVID-19 crisis and support its societal role. In doing so, hospitals can support the Egyptian government in minimizing the negative consequences of the pandemic.
The article is structured as follows. The next section discusses a literature review and hypothesis development. Then, the article introduces the methodology and empirical results. The final section offers a conclusion and implications.