Corporate social responsibility (CSR)

Introduction

Corporate social responsibility (CSR) is most advocated business term. In general, it has several definitions and in practice, the concept varies from company to company or region to region. Therefore, no standard definition can be true. However, we see CSR as a responsibility of corporates on three major dimensions i.e. social, environmental and economic. The measure of CSR concept in broader terms is the contribution of corporates in these three dimensions concerning the sustainable development (Liang and Renneboog, 2017).

CSR Background and Problem identification

Major concern with respect to the effect of business activities on the earth has expanded essentially in the previous decade. Practical advancement needs sustainable development component for society and empowering greener development of economy. Organizations in the UAE comprehend what to state with respect to mindfulness, duty and acknowledgment of the advantages of being a dependable enterprise, yet they are not putting their cash, or their activities, where their words are in a manageable way that connections corporate obligation to center business procedure and long haul development. The discoveries from past research show that local organizations perceive the need to explore yet are obviously making minimal powerful move in sustainable development of the business (Noeiaghaei, 2009).

Objectives of the study

This study aims to analyze the corporate practices in UAE by sampling 5 organizations in different industries. The specific objectives of the study are:

  • To identify the CSR initiatives by UAE companies
  • To measure and compare the CSR activities by these companies
  • To discuss the contribution of these companies in sustainable development

Description of Companies

Five companies are selected for data collection of this essay. These include; ADNOC, ADDC, ADAC, ADCB and SEHA.

Abu Dhabi National Oil Company (ADNOC) is a group of companies that operates in petrochemicals and energy. The major operations of ADNOC include finding, production and marketing of natural resources. Being involved in major resource utilization, the company is committed to sustainable development of all processes since 1997 (ADNOC official report, 2015).

Abu Dhabi Distribution Company (ADDC) is among SAP quality award winning company that engages in distribution and supply of water and electricity across Abu Dhabi that exclude region of AL Ain. ADDC is committed to secure, reliable and quality services (ADDC CSR report, 2016).

Abu Dhabi Airport Company (ADAC) started its operation in 2006, and is committed to contribute to society by employment creation, environmental sustainability and optimal utilization of resources. The company is enabling Smart Travel using advanced technology. In addition, it is also among award winning companies for CSR and quality in UAE (ADAC official website, 2018). 

Abu Dhabi Commercial Bank (ADCB) is a public shareholding and limited liability financial institution in UAE offering commercial banking services since 1985. As a bank, the major CSR responsibility to the organization include transparency and ethics in operations, economic and social contribution. Therefore, the bank is committed to CSR principles support as well as delivery of ethical and responsible services (ADCB CSR Report, 2014).

SEHA is an Abu Dhabi Healthcare Services corporation that operates public clinics and hospitals across UAE. Since its incorporation in 2007, the organization is committed to CSR principles and major contributions involve environmental care and blood donations (SEHA, 2018).   

Summary of Results

The study has a comparative analysis for five organizations

 EconomicEnvironmentalSocial
   Human RightsWorkplace EthicSocietyProduct Responsibility
ADNOCJob creations, contractsWaste management, Biodiversity and ecosystem services, Managing climate change policy and planslabor welfare inspections, Health surveillanceTraining and development opportunities to employees, Secure and safe operations, Employee competency and engagement programsKnowledge based economy creationSustainable product lifecycle across all finding, production and distribution stages till waste management  
ADDCOpening new projects to contribute to economy, Job creationsNational Energy and Water Research Centre (NEWRC) is finding sustainable approach for future needs of energy and water, Reducing harmful substances, energy consumption and carbon footprint impactsProhibiting any act of discrimination w.r.t race, gender, disability etc. Providing secure and safe waterHealth and Safety Programs  Education development programs and support for infrastructure such as 600 students funded and equipped with modern education facilitiesLegal and ethical services conforming law
ADACSupporting Emiratization, Direct impact in GDP of 8.1 million, Job creation,    Recycling 45% of all waste, Airport Carbon Accredited status achieved, Defined approach to climate change and energy consumptionSpecial needs employment facilities  Employee development programs, Health and Safety Programs, Non-discriminatory practicesCommunity engagement programsAbu Dhabi Sustainability Group (ADSG) membership,
 
ADCBContribution to economic growth; Sharia compliant financial solutions, Job Creation, Financing SMEsManaging environmental impact; Reducing energy consumption, Recycling and waste management, Paper usage reductionEnforcing human rights such as; precluding forced labor, child labor and discriminationHealth and Safety measures, Emirati WorkstyleBreast Cancer awareness- Pink Month, Promoting UAE culture through donations, recruitment and sponsorships (EWS-WWF Heroes awards and other workshops)Sharia Compliance financial solutions, Legal and ethical services conforming law
SEHAContributing to create disease free economy, Creating and participating in prevention programs, Reducing need and risk for disease treatmentFollows environmental standards, Reducing carbon footprint by reducing paper consumption, Implementing environmental friendly disposal methods and medical waste Follows Islamic rule of human equality, Prohibiting any act of discrimination w.r.t race, gender, disability etc.Implementation of health and safety program in compliance with National Health and Safety standards, Open communication and feedback mechanismBest practices, Social justice, Community awareness programs

Ethical practices in compliance with ISO 26000 standards, Legal practices, Raising awareness against child labor

Table 1: Summary of results

Source: ADCB CSR Report (2014), ADAC official website (2018), ADDC CSR report (2016), ADNOC official report (2015) and SEHA (2018)

Discussion of results and Conclusion

The analysis of five different companies from different industries show that CSR is a well implemented concept in UAE organizations. The major organizations of UAE operating in natural resources (oil& gas, energy and water), distribution and logistics, healthcare and financial institution have sound knowledge and implementation of CSR principles. The practices show that the organizations are not only generating revenues, but also contributing in economy for sustainable economic development. In addition, their role in societal contribution and managing environmental hazards is obvious. This confirms that UAE is developing as a sustainable nation with vision to secure future and balance needs of present.

Bibliography

ADAC official website. (2018). Corporate Responsibility. Retrieved from http://www.adac.ae/english/who-we-are/who-we-are/corporate-responsibility

ADCB CSR Report. (2014). Retrieved from ADCB 2014 Annual Report: https://www.adcb.com/about/investorrelations/financialinformation/ARsite/2014/sustainability.html

ADDC CSR report. (2016). Retrieved from Corporate Social Reponsibility: https://www.addc.ae/en-US/home/Pages/CorporateSocialResponsibility.aspx

ADNOC official report. (2015). ADNOC GROUP SUSTAINABILITY REPORT 2015. Retrieved from https://www.adnoc.ae/-/media/adnoc/files/publications/adnoc_sr_main-eng.ashx

Liang, H. and Renneboog, L. (2017). On the foundations of corporate social responsibility. The Journal of Finance, 72(2), .853-910.

Noeiaghaei, N. (2009). Corporate Social Responsibility in UAE: A Case Study of Jumeirah Group’s CSR Practices. Doctoral dissertation, The British University in Dubai (BUiD_).

SEHA. (2018, Jan 17). Social Responsibility Charter. Retrieved from SEHA-CORPORATE SOCIAL RESPONSIBILITY: https://www.seha.ae/English/Pages/Corporate-Social-Responsibility-.aspx