Introduction
Production and other corporate activities contribute significantly to carbon and other greenhouse gas (GHG) emissions, increasing significantly to global warming. CSR is the voluntary integration of business interactions and stakeholder engagements with environmental and social concerns (Ghazaly, Jamali & Adra, 2016). It is part of ethical behavior in which corporations seek to compensate society for the detrimental effects of production and operational activities (Kucharska & Kowalczyk, 2019). According to Afsar, Cheema and Javed (2018), responsible organizations support community social programs and launch programs for conserving the environment. The purpose of this paper is to conduct a literature review evaluating the impact of CSR initiatives in reducing pollution and carbon emissions in GCC and the Middle East.
Literature Review
CSR emerged from the developed countries because of the policies they have adopted to lower the global temperature rise, such as the Paris Agreement of 2015 (Galán-Valdivieso, Saraite-Sariene, Alonso-Cañadas & Caba-Pérez, 2019). Companies in GCC and the Middle East have made CSR a mainstream principle because they realize they need to contribute to communities’ development projects (Ghazaly et al., 2016). As a relatively new concept in the region, CSR is yet to realize its full potential to transform society. Future research should evaluate how organizations can adopt CSR practices to minimize emissions and promote sustainable development. They will not only solve a problem but also expand the CSR and emissions literature.
According to Akinsemolu (2020), sustainable economic development in GCC and the Middle East will depend on education, job creation, poverty alleviation, and careful environmental management. Various stakeholders, such as the government, academic institutions, and civil society organizations, should participate in the effort (Almatrooshi, Hussain, Ajmal & Tehsin, 2018). Corporations will play an active role through CSR initiatives aligning with the national development goals in diverse areas, such as women’s education, affordable housing, and water conservation (Ghazaly et al., 2016). Although CSR programs can reduce greenhouse gas (GHG) emissions and pollution in the region, it is a complex process requiring practical cooperation between various stakeholders. Future studies should evaluate how different public and private sectors can collaborate to streamline activities intended to conserve the environment and promote sustainable development in GCC and the Middle East. The topic is essential because it will address the concerns of multiple parties interested in sustainable organizational behavior.
The GCC and the Middle East have experienced significant economic and population growth having a substantial environmental impact on a fragile ecosystem (Zmami & Ben-Salha, 2020). The Arab states hold more than 60 percent of the world’s oil reserves but only 0.5 percent of the renewable freshwater resources (Ghazaly et al., 2016). Therefore, most countries in the region experience water shortages and the problem could escalate in the future as global warming increases. Low air quality and waste management in the urban areas remain a critical environmental concern (Alharthey, 2016). Since the estimated environmental degradation index is 5 percent of the GDP per annum (Ghazaly et al., 2016), the question for future research is whether the benefits for CSR initiatives will match or exceed the costs. Creating a measurement model comparing the positive impacts of CSR programs and detrimental effects of production on society and the environment will ensure understanding of the problem.
Although CSR in the GCC and Middle East is yet to get to the developed countries’ level, it has gained momentum over the past decade. Professional networks, such as CSR Middle East, have created awareness about organizations’ need to reduce carbon and other GHG emissions and promote sustainable development (Ghazaly et al., 2016). Members include civil society groups, government agencies, and corporations willing to share their CSR initiatives and learn from others. The various stakeholders constituting CSR networks indicate that several stakeholder interests are captured in the programs corporations implement to compensate society for the detrimental effects of production. Education and employability are the major CSR themes in Saudi Arabia (Alharthey, 2016). The question is how the networks can develop common themes on environmental issues encouraging organizations to engage in CSR initiatives aimed at reducing carbon and GHG emissions. Sustainability, lower emissions, and conversation are some of the preferred themes.
Different corporations in GCC and the Middle East have diverse CSR approaches depending on size and their businesses’ nature. State-owned enterprises (SOEs) in construction, networking, hydrocarbons, and banking are responsible for approximately 50 percent of economic output (Ghazaly et al., 2016). Working closely with the government makes them some of the best-managed corporations in the region. Most of their CSR initiatives are in promoting education and transparency in governance (Alharthey, 2016). The limited research evidence on environmental CSR research initiatives is a critical gap in the literature. Future studies should investigate why SOEs in the region fail to prioritize environmental issues in their CSR programs and evaluate potential ways of addressing the problem. Governments and other stakeholders interested in protecting the welfare of future generations can support such studies.
Multinational corporations (MNCs) in GCC and the Middle East have adopted a proactive approach to CSR. For example, WesternZagros Limited, a Canadian oil and natural gas company, included CSR in its exploration activities in Kurdistan, Iraq (Ghazaly et al., 2016). The objective was to capture the concerns of local communities before commencing operations. According to Ismaeel (2019), most MNCs are transparent about their community and environmental programs. They have started to give their subsidiaries autonomy in the region to determine the most useful CSR initiatives. International companies can guide GHG emission reductions because they take a more positive stance towards the environment than local companies (Kucharska & Kowalczyk, 2019). For example, HP Middle East incorporates resource conservation and pollution prevention to manage its operational environmental impact (Ghazaly et al., 2016). Unfortunately, a significant proportion of the public doubt foreign companies’ sincerity in their community and environmental programs (Almatrooshi, Hussain, Ajmal, & Tehsin, 2018). Future studies may question how MNCs can use PR (public relations) to earn public trust and promote their conservation programs across the region.
CSR discussions in the media, academia, and civil society focus mainly on SOEs and MNCs. The debates overlook Small and medium enterprises (SMEs) because of their lower profiles and small sizes (Almatrooshi et al., 2018). Accounting for approximately 75 percent of the GCC and the Middle East’s private sector, SMEs substantially impact the economy and the environment because they consume significant energy and resources (Ghazaly et al., 2016). SMEs are closer to the local communities and therefore understand the most pressing needs. They engage in informal CSR initiatives, which are rarely publicized or responsive to global concerns, such as environmental conservation (Akinsemolu, 2020). Future studies should measure the impact of informal CSR initiatives on society and sensitize small businesses to implement community programs conserving the environment.
According to Kucharska & Kowalczyk (2019), leadership is critical to corporate programs’ success, including CSR initiatives. Some GCC and Middle East organizations have developed CSR strategies defining the internal and external commitments required to ensure success. For example, The Savola Group in Saudi Arabia allocates approximately 1 percent of annual revenues to CSR activities (Ghazaly et al., 2016). The leaders also encourage their subordinates to focus on CSR goals when designing compensation schemes and tracking results, indicating a commitment to sustainability. However, Akinsemolu (2020) argues that a significant proportion of organizations in the region do not have similar programs. Acceptable corporate governance practices, such as transparency in business decision-making, can enhance CSR initiatives’ success (Galán-Valdivieso et al., 2019). Unfortunately, some organizations, especially SMEs, lack elaborate corporate governance structures (Ghazaly et al., 2016). Future studies aim to sensitize small organizations to be transparent in their business practices, including those with adverse effects on the environment.
Governments will play a vital role in ensuring the success of CSR initiatives in promoting sustainable development. Regulatory agencies should clearly define national development goals, including those concerning carbon and other GHG emissions (Galán-Valdivieso et al., 2019). Governments should encourage corporations to align their CSR programs with national development goals to create an enabling environment for successful implementation (Almatrooshi, Hussain, Ajmal & Tehsin, 2018). The national environment and conservation departments should become active CSR promoters, especially for minimizing toxic emissions. Furthermore, federal, regional, and local government agencies should collaborate in promoting CSR initiatives to create sufficient national momentum towards the minimization of toxic emissions. Future studies should evaluate whether incentives, such as lower tax rates, can encourage companies to engage in CSR initiatives promoting lower GHG emissions.
Organizations in the developed world have adopted corporate carbon policies (CCP), defining the practices and strategies for minimizing GHG emissions (Almatrooshi, Hussain, Ajmal & Tehsin, 2018). Companies should engage various stakeholder groups to capture their interests in the policies to minimize implementation barriers (Galán-Valdivieso et al., 2019). According to Yu and Lee (2017), educating communities about the implications of human activities on the environment can be part of the CSR initiatives. Corporations can also lead communities to reduce carbon emissions by minimizing the use of gasoline-driven machines and automobiles and adopting renewable energy (Alharthey, 2016). Surrounding communities can emulate the practices and reduce toxic emissions to the environment. Although many organizations realize CSR’s value to the communities and the environment, profit-maximization remains their primary objective (Ismaeel, 2019). The study by Yu and Lee (2017) revealed a significant direct relationship between GHG emissions and CSR index, which strengthens the firm’s size. The findings imply that reducing GHG emissions in large corporations may not be an effective way to improve the CSR index.
The Middle East has experienced the launch of several renewable energy projects in the electricity sector over the past decade (Ghazaly et al., 2016). A myriad of factors, such as growing population and urbanization, low oil prices, and declining solar panels cost, have contributed to the trend because the region has a vast potential for green energy (Ismaeel, 2019). However, the researcher notes that the transformation towards clean energy is gaining momentum in the GCC region. Still, it requires careful planning and coordination of activities and policies at different levels. Organizations outside the energy sector can contribute to the transformation through CSR initiatives reducing GHG emissions. Partnering with environmental activists to run sensitization campaigns, educating communities, and donating energy-saving equipment to households can minimize GHG emissions (Alharthey, 2016). Unfortunately, some organizations may be willing to support programs minimizing emissions and environmental degradation but lack enough resources.
Conclusion
The literature review has identified various studies evaluating how CSR initiatives can reduce carbon emissions (Afsar et al., 2018; Yu & Lee, 2017; Akinsemolu, 2020; Kucharska & Kowalczyk, 2019). Various themes have emerged from the analysis, identifying research gaps that future studies need to address. Borrowed from the western nations, CSR is a relatively new concept in the GCC and Middle East (Ghazaly et al., 2016). However, limited studies evaluate best practices to promote CSR initiatives for reducing carbon emissions, which is an opportunity for future research. Another theme is education and employability as the primary CSR focus for companies in the region (Alharthey, 2016; Ghazaly, Jamali, & Adra, 2016). Therefore, future studies need to evaluate ways of sensitizing firms in the region to undertake CSR initiatives focusing on the environment. Furthermore, they should also evaluate how organizations in public and private sectors can collaborate and align their CSR initiatives with national goals of environmental conservation. New researchers should compare CSR benefits to the environment with the costs of corporate activities in the surroundings. The proposed research questions indicate the studies required to fill the existing research gaps. The critical literature review has highlighted CSR trends in GCC and the Middle East. It appears that numerous organizations are willing to give back to society, but there are multiple constraints. Government facilitation and collaborating with organizations from other sectors will support CSR initiatives reducing emissions and ensure sustainable growth and development.
References
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Akinsemolu, A. A. (2020). Contribution of the extractive industry to sustainability in the Middle East and North African (MENA) Region. Journal of Sustainable Development Law and Policy(11), 210-238.
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