The link between corporate social responsibility (CSR) and profitablity will be explored in a lecture tomorrow. The British University in Dubai (BUiD), the Middle East's leading research-based postgraduate university, has teamed with Istidama CSR and Sustainability Consultants, to hold an open lecture at 6pm tomorrow at the BUiD's Academic City campus.
Ivano Iannelli, Managing Director, Istidama CSR and Sustainability Consultants will demonstrate best practices from around the globe and illustrate how 'soft' performance indicators allow senior management to assess non-financial performance and shareholders to accept the fact that profits are leveraged as medium-to-long term prosperity.
To examine how CSR is perceived in the region, we spoke with Dr Abubakr Suliman, Head of MSC HRM Programme at British University in Dubai (BUiD) and Honorary Fellow at the UK's Manchester University.
What percentage of companies in the GCC are actively involved in CSR activities? How different is it from global standards?
As far as I know, there are no statistics on the percentage of companies in the GCC that are actively involved in CSR. Generally speaking, it is likely to be less than global standards. For example, despite the continuous call from the UAE government regarding the proper management of CSR, especially in recent years, the idea is not clearly explored and understood.
Organisations attempt to stay within the law but do not attempt social responsibility beyond what is needed by law. It seems to be the idea of CSR at its infancy stage and not yet mature as a concept and as a practice.
Do companies in the region see CSR as an add-on function or core to the business?
Although organisations continually encounter demand from the different groups/entities of the community to devote some resources for the CSR, most companies are very much reluctant in taking serious steps towards managing CSR.
Are CSR activities of companies in the region aligned with their business objectives?
Yes, I think it aligns well. The alignment will be perceived better if managers/organisations are convinced that CSR is not only a cost issue, but it can pay back well if it is properly managed, e.g. the organisation's corporate image will be enhanced and it will be perceived as a good citizen, further stakeholders' loyalty towards the products/services will increase, which in turn will result in higher profits and so on.
Do you prefer a professional system in place when it comes to CSR, when there is a greater likelihood of accountability, standards and measures of achievement in contrast to when a family member is in-charge and where the person may just be following his interests?
In contexts where organisations are not mature enough to self-manage CSR and to be active community members we need such legislations and system in place whereby we put clear standards and regulations to manage it.
How can CSR be mainstreamed into business?
Managers need to understand the concept better and look for the positive sides of CSR plus some encouragement from the government regarding the reward of those who CSR-active in forms of some facilities and advantages that will encourage them and others to continue acting as a 'good citizens'.
By Shuchita Kapur
© Emirates Business 24/7 2010
