Abu Dhabi, 21st Feb. 2010 (WAM) - A new UAE research study on Corporate Social Responsibility (CSR) shows a high level of awareness of CSR amongst business firms - but a low level of CSR practice in the nation.
More than 90% of responding organizations do not follow any CSR policies or practices. The study has been carried out by a research team from the Dubai Chamber of Commerce and Industry and was funded by the Emirates Foundation for Philanthropy, one of the UAE's leading philanthropic institutions. It is the first comprehensive, national survey of CSR, and covers all seven emirates. The main aim of the study was to assess CSR in the United Arab Emirates through distribution of a comprehensive survey to business leaders in several hundred companies. The survey looked in detail at managers' awareness, attitudes and perceptions towards CSR, the drivers and challenges for CSR implementation, and the level and nature of existing CSR practices. The study covers four areas of CSR practice - the community, natural environment, marketplace, and workplace. The research team comprised Doctors Anis Ben Brik, Belaid Rettab and Kamal Mellahi, all from the Dubai Chamber. They presented the results of their study during a press conference held on Sunday, February 21 at the Emirates Foundation Headquarters in Abu Dhabi. Among the guests were representatives of Abu Dhabi Chamber of Commerce and Industry. The findings showed that there is a high level of awareness of CSR. Almost two thirds of responding businesses reported that they were aware of CSR; over a third reported that they saw their involvement in community issues as an investment rather than a cost. This appears to reflect the recent trend in the UAE where CSR has become part of the business lexicon of the corporate community. On the other hand, the results indicate a low level of CSR practice. An overwhelming majority of responding businesses (more than 90%) does not at present adopt CSR policies and practices associated with auditing, monitoring and reporting CSR activities, and setting CSR related objectives. These results indicate a significant gap between organizations' awareness of CSR and their readiness to get fully involved with actually developing and implementing CSR initiatives. According to the study, the most common areas where companies contribute to the community are: supporting people with special needs (27%), supporting international assistance and development (19%) and supporting environmental conservation programmes (18%). The results also reveal that 42% of responding organizations make their contributions to local communities through cash donations, whereas a very small number of business entities (less than 10%) make long term investments via grants, by creating a foundation, or providing loans for sustainable social or environmental activities. The findings also reveal that companies do not allocate an annual budget to community related CSR activities. They further indicate that the three foremost barriers which limit organizations' efforts in implementing CSR are: lack of knowledge of CSR, lack of awareness of CSR and inability to accommodate the CSR function to their enterprise. The study indicates that the most important factors driving many organizations to adopt CSR policies is the desire to preserve the environment. This is followed by desires for a better image and reputation, for developing and sustaining better relationships with the government, as well as the belief that CSR increases productivity and contributes to employee loyalty. In general, the survey shows that Dubai and Abu Dhabi are the driving force behind CSR practices, which could provide the momentum for implementation throughout the UAE. Emirates Foundation CEO Peter Cleaves, commented on the findings:"This study aims to achieve a better understanding and assessment of CSR in the UAE. With these facts, results and recommendations, the study will contribute significantly to improving CSR practices and developing more effective strategies nationwide."Copyright Emirates News Agency (WAM) 2010.
