DOHA: Due to lack of adequate and clear cut laws related to Corporate Social Responsibility (CSR), companies operating in the Middle East region are not complying with their obligations towards the society up to the mark, said an expert yesterday.
"In general I am very critical of the level of commitment of the companies to CSR, especially in our part of the world. One of the reasons for this may be because of the fact that we don't have effective laws such as in the Western countries. They have developed laws which help promote CSR, because once you make a donation that is recognised as social benefits to the society and deducted from tax liability. So you are not paying anything from your own pocket. Introduction of such laws would encourage companies to fulfil their obligations towards the society, said Dr Talal Abu Ghazaleh, Chairman and Founder of Talal Abu Ghazaleh Organization (TAGCO), on the sidelines of the '3rd Annual CSR Conference' organized by the Ministry of Business and Trade, Qatar.
Dr Talal said, "I recommend laws that would encourage investment and contributions through donations which are subject to tax deduction. It should be done in a more transparent and systematic way than what we have today, so that those who comply with it are recognized and those who fail also get exposed."
Asked, what should be the ideal percentage of income that companies donate to CSR, he said that we cannot exactly say what amount is ideal. It is more like responsibility of power. It should be relative to their capacities. Companies that can afford more should do more because at the end any contribution to the society is paid back to the company through the recognition about its commitment towards the society.
He said that no government can completely take care of its society and people, especially at a time when the world was at the verge of experiencing a global economic crisis, governments were failing to deliver their duties because of huge deficits. Governments, due to lack of adequate resources, fail to deliver their duties towards society. "We are approaching a situation where the private sector is richer than governments. Therefore, the responsibility on the corporate world becomes more prominent. So, the solution of the problem lies in considering the private sector, government as multi-stakeholders working together for the wellbeing of the society we live in"
Sheikh Khalifa bin Jassim Al Thani, President, QCCI, highlighted the importance and role of the corporate sector towards the nation building in his keynote address. The two-day conference opened at the Sheraton Doha with his speech yesterday and will conclude today.
Othwer speakers included Sheikh Khalifa bin Faisal Al Thani, Chairman, Al Khaliji Bank; Dr Sheikh Abdullah Al Misnad, President, Qatar University; Amal Al Mannai, Executive Director, Social Development Centre of Qatar Foundation, and many other dignitaries.
His keynote speech was followed by the welcome speeches of main sponsors of the conference which include Hamad Mubarak Al Muhannadi, Acting MD of RasGas; Bart Cahir, Acting President and GM, ExxonMobil Qatar Inc.,
While presenting his company's commitment towards social responsibility and sustainable business practice, RasGas' Acting MD, Hamad Mubarak said, "As an active corporate citizen, RasGas regards its social responsibility as a long-term investment integral to its business and implements a strong proactive CSR programme aligned to the Qatar National Vision 2030."
© The Peninsula 2011
