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Wed 14 Jun 2017 08:40 AM

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CSR for private firms is voluntary, UAE ministry clarifies

Gov’t aims to raise $136m in financial aid through the initiative: Al Mansouri

CSR for private firms is voluntary, UAE ministry clarifies
Gov’t aims to raise $136m in financial aid through the initiative: Al Mansouri

The UAE
Ministry of Economy has clarified that its corporate social responsibility
(CSR) initiative is on a voluntary basis and not obligatory for private
companies.

Any
voluntary contributions made by a company will have to be included in the CSR
mandatory disclosure, but will be mandatory to large corporations, which will
be identified in a clear legislative regulation list, the ministry said.

Under the
CSR initiative, one of the key pillars of the “Year of Giving”, the ministry
aims to generate $136.24 million (AED500m) for CSR initiatives from the private
sector.

“The
government seeks to ensure AED500m in financial aid and in-kind support by
UAE-based companies in furtherance of their commitment to CSR this year,” UAE
Minister of Economy Sultan Bin Saeed Al Mansouri said on Monday, after
announcing the launch of “Annual Corporate Social Responsibility National
Index” that will track companies based on the percentage of their contributions
to CSR initiatives.

“The
government is keen on building a more systematic CSR methodology by offering
incentives and monitoring, and putting key indicators into place that measure
the initiatives’ progress and their benefit to society.”

Registration
for companies will open in July with the assessment process taking place in
April next year. The CSR annual report and national CSR index results will be
announced on “Zayed Humanitarian Day” in June 2018.

A “social
responsibility passport” and “social responsibility label” will be given to the
top five companies which will offer them certain benefits when dealing with
local and federal government agencies, Mohammad Ahmad Bin Abdul Aziz Al Shehi,
undersecretary in the Ministry of Economy, said.