Corporate Social Responsibility

Introduction:
Corporate Social Responsibility is the principle where companies should contribute to the
welfare of society and not be solely devoted to maximizing profits. It is a concept that
organizations have an obligation to consider the interests of customers, employees,
shareholders, communities, and ecological considerations in all aspects of their operations.
Today's CSR is an opportunity for companies to become socially responsible and contribute
positively towards the society in which they operate.

Corporate Social Responsibility in United Arab Emirates:

With the economy of United Arab Emirates galloping at an impressive pace, many corporations
are turning their attention towards Corporate Social Responsibility (CSR) initiatives. Managers
in the Emirates demonstrate a high level of social responsibility awareness and expect the
organizations to behave in a responsible manner to protect the interests of communities. A
company's involvement in such initiatives is viewed as an investment rather than a cost to
preserve the environment, promote fair treatment of employees and show concern for the
customer.
Companies in the Emirates are now using the social responsibility consideration to make
investment decisions and win new business. These initiatives are used as a way to develop and
strengthen relationships with customers, suppliers and networks. This is leading to increased
customer retention and differentiation from competitors. Companies are increasingly realizing
that CSR projects not only help win customer loyalty, but also assist in attracting and retaining
workers. Therefore, these activities may help generate positive publicity and improve a
business's reputation in the marketplace.

Companies whom lack of Corporate Social Responsibility:

However, many organizations in the UAE demonstrate a low level of CSR practice as they fail to
adopt such policies and practices. As a result, they have been unable to establish CSR-related
objectives and targets, and audit, monitor and report CSR activities. Thus, while social
responsibility is considered important for an organization, it is not yet central to its business
strategy. This indicates a gap in the understanding of corporate responsibility and the readiness
to put these initiatives into practice.

Corporate Social Responsibility Contribution:

Some key areas in which organizations make a contribution towards the community include
supporting people with special needs, international aid and development, and environment
conservation programs. Only a limited number of organizations invest in initiatives related to
education, local arts and culture, and donating products and services to local communities.
Further, many UAE-based organizations engage in marketplace focused CSR activities, which
measure customer satisfaction and deal with their health and safety issues.