CSR - Corporate Social Responsibility

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• Corporate Social Responsibility in the Middle East: The Case of Dubai

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  Dr. Anis Ben Brik

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  Corporate Social Responsibility in the Middle East: The Case of Dubai

  Corporate social responsibility (CSR) presents new challenges that require commitments and innovative and concrete actions from business in the Middle East that can benefit the entire society.
  
  Dubai has lofty plans for growth in the coming years. The regulatory and business environment is designed to encourage economic growth. Achieving sustainable growth that is economically efficient and socially responsible requires Dubai businesses to adopt CSR policies and actions. Business in Dubai is facing demands for new actions, different policies, and changed attitudes in areas beyond those traditionally considered business responsibilities.
  
  My recent survey to investigate the current state and future trends for CSR among 2200 small, medium and large companies operating in Dubai revealed that:
  
  •Many companies lack a clear picture of their roles in society. Company leaders surveyed are still figuring out what their responsibility is toward the society. The majority of ose surveyed adopted a ‘minimalist’ view of their role in society. Maintaining a competitive position (72.83%), ensuring workplace health and safety (68.2%), complying with regulations (66.77%), and improving the brand (66.77%) were their most prominent concerns.
  
  •Many companies were confused by the new and poorly defined CSR concept. The data shows that management lacks a consensus on the definition of CSR. The majority of business executives (70.8%) are more likely to see CSR from a narrow, traditional viewpoint, using the following definition: ‘The social responsibility of business is to increase its profits’ (43.2%) and obey the law (70.8%). However, 56% of respondents recognize that CSR includes moral and ethical standards, norms, or expectations that reflect a concern for what stakeholders regard as fair and just.
  
  •Company leaders surveyed said it was hard to justify CSR on the grounds of business performance. The majority of executives ranked economic performance or profitability (85.2%) and compliance with regulations (86.9%) as the key drivers and measurements by which they judge their company’s performance, far head of other measurements such as ethical behaviours (32.5%) and philanthropic activities (17.5%). This suggests that companies in Dubai have not explored the business opportunities inherent in CSR.
  
  •Company executives surveyed place high value on product and service quality (96.4%) and customer satisfaction (95.7%), which they consider to be the most important aspects of the marketplace. Executives also recognize that providing a highly competitive return on investment (88.6%) and involving shareholders in strategic decision-making (88.2%) are their most critical responsibilities toward their investors. Company leaders surveyed agreed on the value of maintaining future business relationships with suppliers (92.1%) and ensuring transparent communication with them regarding any organizational and market changes affecting their business transactions (77.2%). This could indicate that the most important stakeholders for Dubai executives are shareholders, consumers, and suppliers, suggesting that their companies are actively involved in in-house improvement (e.g., shareholders’ wealth) and building value-chain efficiency (e.g., marketplace and supply chain).
  
  •The majority of executives surveyed recognize the critical value of their support for and involvement in the workplace issues, which may well reflect their cognizance of the current increasingly intense debate on labour relations and employees’ rights in Dubai. Business executives surveyed listed the following concerns: ensuring respectful treatment of employees (94.6%), providing benefits for employees (93.5%), incorporating employees’ interests in their decision-making processes (72.5%), and supporting work-life balance practices for their employees (73.5%).
  
  •Environmental sustainability is being considered in Dubai. It is important to note that executives surveyed perceived environmental sustainability as a strategic business issue. For example, 66% of them incorporate environmental performance in their business plans, while 62.2% have a policy statement related to environmental awareness. Executives were also committed to measuring their companies’ environmental performance (63.2%), promotion of environmental awareness (74.6%), and support for environmental initiatives (52.5%).
  
  •The community aspect of CSR is the weakest link. Extending social responsibility practices to the community is the area where company executives surveyed put little emphasis, with 62.9% highlighting engaging in philanthropy as the main activity that links them to the community. Only 19.5% support community organizations; 8.3% maintain a policy related to community development; and the majority of executives surveyed were sceptical about employee volunteerism (6.4%).
  
  •Executives in the manufacturing (69%) and trading (68 %) sectors were more likely than those in education (67%), real estate (64%), finance and banking (64%), and hotels and restaurants (66%) to report positive views about CSR.
  
  
  For further information about the study, please feel free to contact me:
  
  Dr. Anis Ben Brik, Head of Corporate Social Responsibility Research, Dubai Chamber - Centre for Responsible Business. (+ 971 4 202 8498 or anis.benbrik@dubaichamber.ae)
  
  • 01 Oct 2008, 2:53 pm
  Dr. Anis Ben Brik wrote: > Corporate social responsibility (CSR) presents new challenges that > require commitments and innovative and concrete actions from business > in the Middle East that can benefit the entire society. > > Dubai has lofty plans for growth in the coming years. The regulatory > and business environment is designed to encourage economic growth. > Achieving sustainable growth that is economically efficient and > socially responsible requires Dubai businesses to adopt CSR policies > and actions. Business in Dubai is facing demands for new actions, > different policies, and changed attitudes in areas beyond those > traditionally considered business responsibilities. > > My recent survey to investigate the current state and future trends > for CSR among 2200 small, medium and large companies operating in > Dubai revealed that: > > •Many companies lack a clear picture of their roles in society. > Company leaders surveyed are still figuring out what their > responsibility is toward the society. The majority of ose surveyed > adopted a ‘minimalist’ view of their role in society. Maintaining a > competitive position (72.83%), ensuring workplace health and safety > (68.2%), complying with regulations (66.77%), and improving the brand > (66.77%) were their most prominent concerns. > > •Many companies were confused by the new and poorly defined CSR > concept. The data shows that management lacks a consensus on the > definition of CSR. The majority of business executives (70.8%) are > more likely to see CSR from a narrow, traditional viewpoint, using > the following definition: ‘The social responsibility of business is > to increase its profits’ (43.2%) and obey the law (70.8%). However, > 56% of respondents recognize that CSR includes moral and ethical > standards, norms, or expectations that reflect a concern for what > stakeholders regard as fair and just. > > •Company leaders surveyed said it was hard to justify CSR on the > grounds of business performance. The majority of executives ranked > economic performance or profitability (85.2%) and compliance with > regulations (86.9%) as the key drivers and measurements by which they > judge their company’s performance, far head of other measurements > such as ethical behaviours (32.5%) and philanthropic activities > (17.5%). This suggests that companies in Dubai have not explored the > business opportunities inherent in CSR. > > •Company executives surveyed place high value on product and service > quality (96.4%) and customer satisfaction (95.7%), which they > consider to be the most important aspects of the marketplace. > Executives also recognize that providing a highly competitive return > on investment (88.6%) and involving shareholders in strategic > decision-making (88.2%) are their most critical responsibilities > toward their investors. Company leaders surveyed agreed on the value > of maintaining future business relationships with suppliers (92.1%) > and ensuring transparent communication with them regarding any > organizational and market changes affecting their business > transactions (77.2%). This could indicate that the most important > stakeholders for Dubai executives are shareholders, consumers, and > suppliers, suggesting that their companies are actively involved in > in-house improvement (e.g., shareholders’ wealth) and building > value-chain efficiency (e.g., marketplace and supply chain). > > •The majority of executives surveyed recognize the critical value of > their support for and involvement in the workplace issues, which may > well reflect their cognizance of the current increasingly intense > debate on labour relations and employees’ rights in Dubai. Business > executives surveyed listed the following concerns: ensuring > respectful treatment of employees (94.6%), providing benefits for > employees (93.5%), incorporating employees’ interests in their > decision-making processes (72.5%), and supporting work-life balance > practices for their employees (73.5%). > > •Environmental sustainability is being considered in Dubai. It is > important to note that executives surveyed perceived environmental > sustainability as a strategic business issue. For example, 66% of > them incorporate environmental performance in their business plans, > while 62.2% have a policy statement related to environmental > awareness. Executives were also committed to measuring their > companies’ environmental performance (63.2%), promotion of > environmental awareness (74.6%), and support for environmental > initiatives (52.5%). > > •The community aspect of CSR is the weakest link. Extending social > responsibility practices to the community is the area where company > executives surveyed put little emphasis, with 62.9% highlighting > engaging in philanthropy as the main activity that links them to the > community. Only 19.5% support community organizations; 8.3% maintain > a policy related to community development; and the majority of > executives surveyed were sceptical about employee volunteerism (6.4%). > > •Executives in the manufacturing (69%) and trading (68 %) sectors > were more likely than those in education (67%), real estate (64%), > finance and banking (64%), and hotels and restaurants (66%) to report > positive views about CSR. > > > For further information about the study, please feel free to contact > me: > > Dr. Anis Ben Brik, Head of Corporate Social Responsibility Research, > Dubai Chamber - Centre for Responsible Business. (+ 971 4 202 8498 or > anis.benbrik@dubaichamber.ae)