Introduction
Despite wide spread scholarly literature in the field of corporate social responsibilities; focus has remained more on Western firms. As an offer sight, the efforts that emerging nations and economies like the United Arab Emirate World have been making become compliant with the new sustainable model of doing businesses have been ignored.
The United Arab Emirate nation’s companies are standing out in developing creative efforts to do good to the community using different contexts, constraints and possibilities for CRS activity and research.
The nations have seen the need to do their businesses in an ethical manner; efforts towards ethical businesses are slowly growing body of work on CSR in the Middle East by examining the impact of Islam on CSR reporting and legitimatization discourse in the United Arab Emirate world (Manjunatha 178). This paper looks into the efforts the United Arab Emirate nations have taken in enhancing CSR; it will discuss the topic tossing some issues of gender in the discussion.
Discussion
Although there have been numerous definition of what CSR entails, the business practice can be referred to as any corporate activity designed to benefit society as a whole or in part that may or may not directly benefit the corporation itself; the efforts might as well have an indirect effect on the business but the main intention is to benefit the community.
In the United Arab Emirate nations, religion plays crucial role in decisions and opinions in the community. Companies in the nation have engaged in environmental cleaning activities, economic development/financial empowerment activities, and Islamic authorization and moralization activities (Graco 15).
Being Muslim countries, zakat, a tax mandated by Islam for charitable purposes, and philanthropy are inextricably intertwined in the minds of Muslim managers; they are feeling the need to contribute to this account with the need of enhancing the development and sustainability of charitable organizations.
When charity prevails and works well in a community, then the welfare of the entire community is improved. Although this tax is mandatory in the nations, the willingness through which the companies deduct and remit the amount is the main area of concern. Some of the uses that Zakat has been used for are outfitting hospital wards or clinics with the necessary equipment and, in some instances, it has been used to build healthcare.
The fact that Zakat prevails in the community has not limited organizations at individual level to engage in community development/empowerment activities; for instance, Zain, a renowned United Arab Emirate multinational telecommunications company in Bahrain, outfitted the alkhraj kidney dialysis centre and donated money to the king Fahd children’s cancer Hospital; the company also gave funds to build complete hospitals in their operating regions.
Another perspective that CSR is looked in the United Arab Emirate nations is through cross cultural business or international business. The nature of business is growing day by day everywhere as a result of the introduction of globalization, liberalization and privatization principles by many of the countries.
People from all over the world are working in different manufacturing and service industries in the UAE. In fact, more than half of the UAE population is expatriate community who migrated to the UAE to explore good fortune. Even though people from all over the world are working in the UAE, people from India, Pakistan, Sri Lanka, Bangladesh and Philippines constitute a major portion of the current UAE population (Rettab, Anis and KameL 371-380)
One of the most outstanding element or character of the United Arab Emirate companies that have adopted CSR in their budgets is that they have been able to develop winning relationships with their customers. When customers and companies are relating well, the end result is always loyalty of customers. Other than the loyalty the companies get from customers, they are always in good terms with authorities and regulating authorities like local councils, governments, and other activists.
The United Arab Emirate companies have recognized the indirect gains from their customers when they have CSR programs. Management gurus are of the view that one of the best modern methods of ensuring that they get customers attention and loyalty is having programs that improve value in them.
The United Arab Emirate companies have embarked on actions that generate income (profits) but also in projects that benefit the society, the reason why their efforts seems to have gone unnoticed is because of the much advocacy and focus that has been placed on western countries.
Other than in their country of incorporation, some United Arab Emirate companies (especially them that operate across border) have extended their CSR projects to other nations. An example is Kenya, Africa were Zain (referred to as ZAIN-Africa) participated in among other tree planting in Mau forest, students sponsorship, and community lightening programs.
Modern enlightenment of customers have placed the United Arab Emirate companies on the toes to have policies that look at their interests; customers are less interested in companies that are fully interested on their own gains in terms of profits and exploiting the consumers.
They would rather become “business partners” with companies who bend back and give to the society. Depending with the nature of trade, some businesses affect environment negatively. When environment is affected, current generation and future generation’s live hood is threatened.
To reverse the threat from environmental damage, the United Arab Emirate companies are willing to have projects that enhance healthy environmental relationship.
They are willing to use raw materials that produce minimal environmental damage in the production stage and those that are likely to produce environmentally friendly products. For instance, there has been fast adoption of use of clean energy like electricity and solar energy to replace the use of fossil fuels. This was affected to reduce environmental pollution when fossil fuels have been burnt.
There are some challenges that limit the United Arab Emirate companies from engaging in CSR programs. They range from legislative issues where according to the law, some taxes are meant to look at the welfare of societies. Another challenge is with the financial outflow that a company will have to undergo because of the projects. The expectations of communities might not commensurate with what the company is willing and can actually spend (Doby and Catherine 103-109).
Conclusion
The United Arab Emirate companies have continued to embark on corporate social responsibilities commitments; they are willing to spend some of their resources for the benefit of communities. The move has been necessitated by high competition brought about by globalisation and enlightened of customers.
Customers, on the other hand, are more willing to associate with companies that look at their welfare to those that only care for their interests. From research, management gurus have come to a conclusion that companies that engage in CSR programs benefit from customer loyalty and good reputation from communities.
Works Cited
Doby, Valerie, and Catherine Nickerson. “Introducing Ethics And Corporate Social Responsibility At Undergraduate Level In The United Arab Emirates: An Experiential Exercise On Website Communication.” Journal Of Business Ethics 107.2 (2012): 103-109. print.
Graco, Paredes, et al. “Is The Current Economic Environment Affecting The Way Organizations Approach Corporate Social Responsibility?.” Communication World 26.3 (2009): 15. print.
Manjunatha, Ken. “Corporate Social Responsibility.” Vikalpa: The Journal For Decision Makers 33.2 (2008): 175-182. print.
Rettab, Belaid, Anis Brik, and Kamel Mellahi. “A Study Of Management Perceptions Of The Impact Of Corporate Social Responsibility On Organisational Performance In Emerging Economies: The Case Of Dubai.” Journal Of Business Ethics 89.3 (2009): 371-390.print.