Corporate Social Responsibility - ADNOC in the UAE - Assignment Example

Corporate Social Responsibility: ADNOC in UAE Introduction Focus on corporate social responsibility (CSR) in the Middle East shows that, the United Arab Emirates is a country that stands out. This is because; at UAE, CSR has been given attention and the companies in the region have continued to familiarize themselves with CSR and have engaged in activities associated with CSR. One of the indicators of CSR in UAE is that, like Qatar, it is one of the most transparent countries in the Middle East (Tordo, Tracy & Arfaa, 2011). At the same time, there is need to understand CSR as it is practiced by different companies such as ADNOC. ADNOC is one of the companies in UAE that practices CSR by undertaking different activities that benefit the community as guided by its CSR policies. Definition of Corporate Social Responsibility Corporate social responsibility defines the voluntary activities that are undertaken by a company with the objective of sustaining the economy, environment and social environment. CSR involve voluntary initiatives by companies to achieve community development, environmental protection and address of the human rights. The policies of CSR are designed with the intension of benefiting the society while at the same time contributing to the improvement of the company’s image and profitability. Therefore, as generally defined by Zu (2009: 21), corporate social responsibility is a model that outlines the policies by companies to achieve maximum profits while still ensuring the societal interests are met. The CSR policies dictate the system of a company to monitor is performance in a way that it significantly benefits the society while at the same time it provides the economic benefits to the company. Different models are used to define CSR such as; the social- economic model whereby; the dimension of economy and social interests are considered. In relation to a company, CSR involves the activities that supply goods and services to the people. the impact of an organization towards the society through the evaluation of the responsibilities of the company towards the society. To achieve CSR, a company has to assess its business in relation to the customers, the environment, workers, communities, and suppliers (Zu, 2009). In that effect, CSR is a social and economic responsibility that a company has towards the improvement of its relation with the environment and the people affected by business activities of the company. In general, the CSR is a long term measure that businesses use in addressing the needs of the community, the employees and the people. The CSR policies provide a company with a framework from which it can to become a successful enterprise that exhibits harmonious coexistence with the surrounding. It is through the CSR policy that a company has the opportunity to honestly and honestly generate coexistence to benefit the community and the business. It is important that CSR is sustainable so that it remains to be fundamental even though fortunes change. Moreover, the success of CSR initiatives is determined by the company’s ability to comply with legislation and to honor ethical values and to show respect to communities, natural environment and communities (Zu, 2009). That is, CSR is sustainably engaging in activities to benefit the society without adversely influencing the company’s business objectives. CSR is not only about environmental responsibility or developing a policy that encourages recycling but it involves putting into consideration the larger picture on how the internal processes of the company affects the society- including clients, and implementing policies that will help to guide the daily operations of the company (Zu, 2009). In other words, CSR is the initiative by a corporation to asses and to be held responsible for the effects its activities will have on the social welfare and environment. The company engages in activities that extend beyond legislations to protect the society and the environment by incurring short- term costs that do not offer immediate economic benefits to the company but rather, promote positive environmental and social change. CSR for ADNOC Company As a contributor of economic growth in UAE, ADNOC is committed to community growth in all economic, social and environmental sectors. Every year, the company sponsors different events to benefit different companies in UAE. ADNOC has greatly contributed to the development of UAE community by promoting different educational programs and institutions to provide qualified people for example through; Achiever Oasis Program and Petroleum Institute (Tordo, Tracy & Arfaa, 2011). In addition, ADNOC has set up programs to be undertaken on an annual basis to contribute and sponsor different events such as: Camel Race, Athletic and Cultural Clubs, Ministry of Labor and Social Affairs Children with Special Needs Center, and Technology, and Abu Dhabi Educational Zone among others (Adnoc.ae, 2013). CSR for Shell Company Shell Company has engaged in different CSR initiatives in different parts of the world. The company spends about $15 billion annually for charity work. The company has different programs that contribute to global development and address environmental problems. programs such as Aspire –benefits small companies especially in Africa because the company provides capital and assistance; Breathing Space is a program that addresses air pollution and the Shell Company works with Envirofit International, Excelerate program focuses on provision of modern energy services to those that are poor especially in Bangladesh and India etc (Tordo, Tracy & Arfaa, 2011). Comparison of ADNOC and Shell Company CSR Policies There are various similarities of CSR for ADNOC and Shell Companies especially because the two companies are oil companies. ADNOC is the leading oil company in the Middle East while Shell Company is one of the leading companies on global scale. As part of the company’s sustainability strategy, ADNOC has set corporate strategic objectives. The implementation of CSR is intended to offer great benefits to the society and the company (adnoc.ae, 2013). In the same way, the objectives of Shell Company –Global- is to benefit the local communities and to ensure that it achieves the profits it desires. Shell Company has focused on the needs of the local communities in different parts of the world while ADNOC has had its corporate social responsibilities concentrated on UAE. ADNOC has realized the significant role that the people play in the development of the company hence it has made significant, continuous commitment towards the society and the company’s workface. The company has invested on comprehensive program to train and manage its staff and to motivate the workers through reward and recognition. In addition, the company has followed the directives given by the president of UAE ADNOC to optimize on the number of EAE nationals joining the company’s workforce. The human resource department of the company has ensured that it recruits fresh graduates in the country in different engineering, administrative, vocational, and technical fields (Adnoc.ae, 2013). In other words, the company has implemented CSR by ensuring that it promotes the skills and knowledge of the locals or nationals rather than importing experts. Similarly, in Shell Company has implemented strategies to achieve economic growth while contributing to the social development of the local communities where they operate. Shell is largely a big employer of local communities for both skilled and unskilled workers to perform activities for the company (Tuodolo, 2009). The CSR initiatives have also included community development programs for these companies. Shell Company contributes to community development through programs such as education programs for example; scholarships for students in primary, high school and university levels. These scholarships are mainly given to the local people. In particular, Shell Company has engaged in the provision of equipment, constructed classroom, and paid allowances for some of the teachers (Tuodolo, 2009). On the other hand, CSR initiatives at ADNOC have also involved education initiatives for example; the company has initiated educational organizations for example; Zayed University, Abu Dhabi Educational Zone, and Higher colleges of Technology. These CSR programs have focused on improving education for the locals at Abu Dhabi and the general region of UAE. Shell Company has also offered training initiatives for the locals to help them gain basic skills in different fields such as; mechanics, craftsmanship, tailoring, carpentry, and other fields that the Shell Company sponsors. Shell Company is also actively involved in other social activities in the local communities. There are different sectors of development that the company has developed the transportation sectors in different countries such as Nigeria. This has been achieved by the company constructing roads, constructing jetties, donating farm equipments, speed boats, vehicles, power plants and other donations. The company has developed microcredit schemes that have developed locals, it has provided electricity, it has helped local communities in developing countries to access water for example; by constructing boreholes and the general development of a variance of infrastructural facilities (Tuodolo, 2009). Similarly, ADNOC has engaged in development programs in different parts of UAE. For example; the company has developed Athletic clubs, cultural clubs, special needs center and several other developmental initiatives (adnoc.ae, 2013). Role of Human Resource Department The human resource department contributes significantly to CSR. This is because; it is the human resource department that ensures that the respective company adopts CSR programs. In addition, it is the human resource department manages CSR plan to implement and monitor the adoption of the program. The HR department is usually proactive as it documents the success of CSR in all departments in the company. The company uses its resources to benefit the company by ensuring that the resources are well utilized to realize corporate social responsibility to benefit the local community on the one hand, and the company on the other (Paetzold, 2010). In essence, Paetzold (2010) notes that, the CSR is performed largely by the human resource department in the sense that, the department implements and encourages green practices. The department implements green practices so that they can help in reducing waste that could damage the environment while at the same time; it has to promote and encourage stewardship for growth and to improve corporate ethics to benefit the company and the society especially in the long term. The department seeks to ensure that the company is accountable and that the people in the society also learn to take responsibility of protecting and conserving the environment. HR department reduces the carbon footprint of each employee for example; through the process of recycling and conservation. Some of the initiatives that the HR department implements are: Recycling of papers, bottles, cans etc Collection of donations for victims of disasters in different parts of the region Encourage low consumption of energy for example; shutting off printers, lights, computers and other appliances when they are not being used HR department also plays a role in CSR by fostering the culture of CSR in the corporation. The HR department takes the initiative of CSR for example; by recruiting employees who are environmental conscious and make sure that the employees are infused with the kind of enthusiasm needed to implement CSR within the corporation and in the community. It is the responsibility of the HR department to make sure that it rehabilitates the brand of the company so that the clients are able to appreciate the role played by the company in the society. The HR department has to engage in CSR so that it can encourage the society to take initiatives that would benefit the larger society and benefit them as individuals. The HR department helps to erode the perception that the company is entirely interested in reaping profits at the expense of the environment and the society (Pless & Maak, 2012: 129). In that effect, the HR department has the duty of not only rehabilitating the brand image of the company, but to be the initiator of activities that would contribute to environmental and societal sustainability. The HR department also organizes for the celebration of the successes of CSR program in the company. The HR department works with the leaders of the company to praise the success of CSR initiatives so as to give a real meaning to the CSR program. This helps to trigger sound HR practices to continue engaging in CSR initiatives. Furthermore, by the HR department publicizing the success of the CSR programs by the company, it shows the level of understanding that the company has towards the local community (Paetzold, 2010). In one way or the other, the HR department is the major player in the development and implementation of CSR program so that, the locals understand that, apart from the company providing employment to the local community, it is also actively involved in creating a favorable living environment for the people (Press & Maak, 2012). Conclusion CSR program focuses on different areas of development to protect the company and the local community where the company has been set up. The HR team of any company encourages CSR by developing and implementing programs that would offer maximum benefits to the company and safe environment for the locals. Some of the common CSR initiatives performed by corporate companies such as ADNOC and Shell are: reward programs for the students in different levels of education, charity organizations, community participation practices, infrastructural development, sponsorships, and several other initiatives that benefit the locals and the company. Through CSR, the HR department gains the opportunity to market its brand known to the public and for the public to embrace the fact that the company is not interested in self gains of making profits, but it is also interested in making sure that its activities do not cause harm to the locals. Works Cited Adnoc.ae (2013). Corporate Social Responsibility. Accessed on March 30, 2013 from, http://www.adnoc.ae/content.aspx?mid=114&tree= Paetzold, K. (2010). Corporate Social Responsibility (CSR): an international marketing. London: Routledge publishers Pless, N. M. & Maak, T. (2012). Responsible Leadership. Cambridge: Cambridge university pres Tordo, S., Tracy, B. S. & Arfaa, N. (2011). National Oil Companies and Value Creation. New Jersey: John Wiley & Sons publishers Tuodolo, F. (2009). Corporate Social Responsibility: between Civil Society and the Oil Industry in the Developing World. An International E-Journal for Critical Geographies. Vol. 8 (3), p.530-541 Zu, L. (2009). Corporate Social Responsibility, corporate restructuring and Firm’s Performance. New York: Springer publishers Read More