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Businesses accord high value to CSR today

Dubai - Making Corporate Social Responsibility an integral part of corporate strategy and management practices

Today, Corporate Social Responsibility (CSR) has come a long way from its initial stage of staff volunteering or giving to charity as part of the companies' social or community activities.
This was stated by Dubai Chamber of Commerce and Industry president and chief executive officer Hamad Buamim. Speaking to Khaleej Times, the president talked about the importance of CSR and sustainability in today's work culture.
"Increasingly businesses are beginning to see CSR and sustainable business practices as direct means to connect to employees and consumers who expect companies to be socially responsible towards environmental and social causes," Buamim explains.
Mentioning about the Dubai Chamber's launch of its Centre for Responsible Business (CRB) in 2004, he says it has led to major awakening in the private sector leading to its quick coming out of the old practice of giving for charity and making CSR an integral part of corporate strategy, management practices, business operations and product development while reaping the overall benefits of saving money, increased staff morale and customer loyalty in the long run.
The centre has contributed a lot in helping companies improve their competitiveness by enhancing their reputation among consumers, investors and employees while enriching their brand image and reputation as a sustainable business organisation.
Stressing on the contribution of the centre in supporting the emirate's business community in initially finding a balance in operating within the bounds of the company law while acting ethically to satisfying the customers, the general public and the shareholders, Buamim says that these can be achieved through being a good corporate citizen by incorporating sustainability, green initiatives, as well as working in education and special needs projects in the local communities.
Buamim goes on to stress that being a pioneering centre for CSR in the UAE for the last 12 years, and its oldest, the Centre for Responsible Business has been a key driver in the changing attitudes and practices of CSR and sustainability in the business community.
Citing a recent CRB survey report, he informs that the most striking feature of the centre's CSR efforts is the high rate of awareness noticed among business executives as 52 per cent acknowledge the importance of CSR with 25 per cent having a CSR policy and 30 per cent having a CSR strategy while 27 per cent have external communications system of CSR-related activities.
The report also highlights that the most common compliance of CSR with relevant legislation in the workplace is the implementation of policies for health and safety (82 per cent) as 30 per cent apply monitoring systems for community impact assessment while 55 per cent measure environmental impact of the materials used, 54 per cent for water consumption and 52 per cent for energy usage and transport and business travel.
It shows that 96 per cent of the companies in Dubai marketplace demonstrate a strong commitment to protecting their customers' privacy and private data, while 90 per cent of the companies measure the satisfaction of their customers, and 96 per cent show commitment to suppliers in honouring the terms of contracts.
According to the report, 66 per cent of the companies surveyed said that reputation continued to be the common driver for CSR implementation, as 51 per cent reported that the lack of awareness is the main impediment for CSR implementation while 50 per cent said lack of incentives restricts the application of corporate social responsibility in their companies.
Also the report points out that companies in the construction sector appeared to be more aware of CSR programme implementation and those in manufacturing/EGW appeared least aware while companies hotels and restaurants, social services, real estate and business services are emphatic in identifying drivers but do not focus much on the barriers.
Once again highlighting the benefits of CSR implementation, Buamim stresses that Dubai's policy of implementing CSR practices has helped enhance the emirate's reputation as a leading CSR practitioner and leader in the region.
In 2010, the CRB identified the need to recognise best practice in CSR in Dubai and launched the Dubai Chamber CSR Label. Since its launch, the CSR Label has advised 1,201 companies on the framework and delivered 8,038 hours of advisory services and awarded 201 CSR Labels to 90 companies until the first half of this year.
- abdulbasit@khaleejtimes.com