Giving back in the Gulf

One of Saudi Arabia's most eminent businesswomen, Dr. Asya Al-Ashaikh is the chairman and CEO OF Tamkeen Development and Management Consulting, the first Corporate Social Responsibility (CSR) specialized company in Saudi Arabia. Writing exclusively for ArabianBusiness.com, Dr. Al-Ashaikh gives her views on the importance of fully-fledged CSR policies in the Middle East, and their particular relevance in Ramadan.

The entire history of humanity has never witnessed a better, more disciplined, organised and cooperative society than the one established by Prophet Muhammad (PBUH) because it was based on the Holy Qur'an. If we are aspiring for a virtuous society that collaborates in promoting philanthropy and piety; where equality and civic engagement prevail while poverty and unemployment diminish, we have to be intellectually and religiously committed to the teachings of Islam.

Some private-sector corporations in Gulf countries are devoted to their roles in giving back --roles that emanate from a firm belief in Muslim culture and values that endorse philanthropy. Accordingly, they demonstrate their commitment to the value of giving by supporting charity organizations or by making gifts to deserving and underprivileged individuals.

Family corporations also make gifts to charity organizations, an act that has developed into a family tradition that is passed on from one generation to another in an attempt to improve the living standards of others through financial and in-kind contributions. This giving spirit manifests itself at its best during the month of Ramadan, on other religious occasions and in response to local or regional emergencies when Muslim values of humanitarian and emotional compassion upsurge.

Other modern values, based on broader patterns, enable corporations to effectively and significantly contribute to resolving essential problems and to endorse sustainable development in their societies by providing support to Corporate Social Responsibility (CSR) programmes.

Generally speaking, community service is not a new concept for Gulf corporations as the values of generosity and giving are characteristic of the Gulf business sector. Today, we are in dire need of having a more prominent and influential role in several social development issues because social responsibility transcends corporate ethical civic engagement and extends to more strategic and economic levels. There are many indications to the private sector's success being strongly associated with the society's welfare.

CSR studies in Saudi sector

While I was working on the preliminary study on CSR in Saudi corporations, a misunderstanding was revealed about the concept of social responsibility as it is juxtaposed with charity, community service, volunteer work, or public relations. I would like to point out that social responsibility involves a number of terms such as: sustainable development, corporate responsibility, social participation and positive responsibility. It is a philosophy that is voluntary in nature and that is not only advantageous, but also aims at participating in the sustainable development and catering for the needs of the society that embraces corporations.

Accordingly, CSR becomes a well-calculated and effective giving through corporate activities and programmes in its society and environment. This is the framework that defines the concept of CSR and emphasises it as an organized, initiatory and active role in societal and environmental issues that concern both society and business sector. This is the common, wide-ranging role that involves donations, volunteer work and community service.

CSR & Volunteer work

I would like to clarify the difference between volunteer work and CSR. Volunteer work is included in some CSR programmes. Some corporations encourage employees who have expertise in different areas that the society needs to provide assistance through corporate volunteer training programmes while others combine CSR programmes with philanthropy and volunteer work. This reveals a misunderstanding of the concept of CSR because such practices lack the strategic sustainable dimension. It is noteworthy, however, to point out that corporations in the Gulf are positively responsive toward societal issues in a way that differs from the general impression taken about them.

Apparently, these corporations are motivated by a sense of responsibility toward their leaderships who provide considerable support to societal causes usually in secrecy due to ethical or religious reasons. Thus, volunteer work is basically an individual proactive initiative toward societal issues, but does not have sustainability because it ends with the absence of the motive or the individual. The private sector -in view of the importance of its interaction with its society- is urgently required to revise its policies and programmes and regulate its relations with the society through seeking middle grounds for corporate activity and the economic and environmental needs of the society.

Such grounds can offer highly favourable opportunities and create balance between corporate and societal interests. This can be done through CSR programmes that adopt new activities based on organized work that supports basic corporate activities which in turn will have a positive impact on the society, corporations and the public sector. The private sector should participate in the implementation of future plans for major developmental projects that are included in the government's strategies and directives.

This will bring about beneficial and successful results, especially when new products are developed and included in CSR programmes whose impact will touch upon consumers, investors and stakeholders. Therefore, it is crucial to differentiate between social responsibility, philanthropy and volunteer work. Although these terms share the element of voluntary initiative, social responsibility is based on the relationship between societal and public-sector development in order to achieve sustainable development.

The private sector's role has attained considerable maturity that has enabled it to exercise a pioneering role in the process of development since it is capable of leading economic change and progress. The private sector can activate social responsibility and acquire a pioneering position in the region that can positively contribute in dealing with developmental challenges.

Generosity in the Gulf

This can be achieved by stressing the values of giving and generosity in Arab and Gulf communities and benefiting from CSR experiences of other developed countries. Unlike corporations in developed countries, Arab and Gulf corporations are not exposed to market pressures. Nevertheless, they have attained positions that can enable them to have a positive impact on the social framework, and contribute in achieving sustainable development more than having social activities that only respond to market pressures. The prevalence of values of giving and generosity as social commitments will path the way for securing new opportunities for CSR to provide solutions for developmental projects.

It has been observed also that environmental issues are usually placed at the bottom of priority lists of corporate developmental issues despite the growing concerns about water safety, air pollution and environmental changes. In view of the absence of market pressure and other driving forces that turn corporations away from their social responsibilities, it is generally believed that the degree of pressure concurs with the awareness of values and standards that should be adopted by corporations.

There is a remarkable lack of pressure from the media, consumers and investors on corporations --a fact that acts as an agent that helps to add social responsibility to corporate agendas. Also, social contributions are not taken into consideration in governmental purchases, which is another example that demonstrates the lack of encouragement to local corporations contrary to other markets where public and private consumers represent the main driving forces for social responsibility programme development.

Development challenges

Nevertheless, the economic environment is quite favourable now in Arab and Gulf countries, especially for private-sector corporations that are still capable of activating social responsibilities, attaining a unique pioneering position in the region and positively contributing to attempts of facing developmental challenges based on numerous factors, the most important of which are:* The economic boom that petroleum exporting Gulf countries are witnessing;

* Promotion of major developmental projects in order to streamline infrastructures, construct economic cities, and government's endorsement of free economic policies for the establishment of sustainable development plans;
* Assistance provided by advanced countries for administrative and economic reform and administrative facilitation and flexibility in governmental interaction;
* Providing incentives for corporations to adopt social responsibility programmes; proposing a mechanism for such incentives; and approving bids governmental purchases in order to promote CSR;
* Lack of pressure from the media, consumer and investor on corporations makes the private sector's adoption of social responsibility a very unique model that is different from advanced country models which only respond to market and media pressures;
* Adjusting media discourse and raising awareness among the public and different governmental and private sectors through media and workshops to highlight issues related to social responsibility and emphasise the difference between philanthropy, voluntary work and social responsibility that is capable of setting well-planned programmes that aim at promoting sustainable economic and social development.

This is what the Qur'ān and the Prophet's (PBUH) tradition (sunna) urges us to do. Let us benefit from the spirit of social harmony of the holy month of Ramadan and turn it into a driving force toward being more commitment to social responsibility. Our reward from Allah will be doubled because ongoing alms (al-sadaqa al-jariya) is the best form of Muslim charity and it is part of Islamic jurisprudence (fiqh) since social responsibility involves sustainable practices and activities.

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