Corporate Social Responsibility in UAE - Essay Example

Corporate Social Responsibility in UAE Name Institution Corporate Social Responsibility in UAE Introduction From the traditional perspective, to fulfil organizational goals, companies often maximize the value for the stakeholders. In some cases, maximizing such firm’s value is equivalent in fulfilling the goal of the value maximization for the involved stakeholders. In the modern business environment, there is increased number of firms considering the corporate social responsibility (CSR) within their business environment. The paper commences with the overview and conceptual framework of CSR. Then with reference to various international firms operating in United Arab Emirates (UAE): UAE JIU-JITSU, Etihad, and AMMROC, the report would be seeking to discuss whether these institutions implement CSR initiatives. The aim of CSR is to improve global organizational image and the manner in which the organizational activities reflect the managerial commitment to address the CSR issues. Therefore, to understand properly the CSR, it is critical to consider managerial awareness of the concept, attitude, and perception, major drivers and challenges associated with CSR implementation, and nature and level of the CSR practices in UAE (Flynn, 2012). The general context of the CSR practices includes community, the natural environment, workplace, and marketplace. The Definition and Concept of CSR For several years, several studies have been emerging regarding the relationship between the CSR initiatives and institutional performance. The report defines the CSR as the extent to which the organizations estimate their social responsibilities, identify critical CSR activities within the UAE context, and methods of managing these issues. Although for years the concept of CSR has been advocated for and employed by different corporations globally, the definition and implementation method remain debatable amongst the businesses, societies, and academia. Such gap in definition present problems for various corporations as pressure continues to mount on them to align with the societal norms while generating their financial returns. To remedy these problems, the report focused on various definitions (Emirates Foundation, 2013). CSR is a business system enabling the production and distribution of resources for the betterment of the organizational stakeholders through implementing and integrating the ethical systems and sustainable management practices. In UAE, there is high level of CSR awareness with two-thirds of organizations aware of the CSR practices. In most cases, the UAE consumers often require the organizations to act in the best interest of the local communities and ensure that they make positive contribution to societal development. To some extent, CSR refers to the actions taken by various organizations to ensue effective integration of the social, environmental, and societal concerns. Therefore, the CSR concept tends to create a balance between the social economic and environmental issues. With the current focus on sustainable development, organizations are using the CSR to add value to both the environment and community to guarantee sustainability. Literature Review Corporate Social Responsibility (CSR) With the current impressive gallop pace of the UAE economy, many organizations are focusing their attentions to the CSR activities. The concept of CSR differs from the normal business ideology that the aim of businesses is maximize their profits. Instead, CSR offers various companies the opportunities of socially becoming responsible and ensuring that they positively contribute towards the sustainability of the societies from which they operate. The companies based in the UAE are currently joining the bandwagon of the CSR initiative to building strong community relations and undertaking the projects associate with social marketing. Most managers in the emirates tend to demonstrate the high level of CSR awareness and expecting institution to behave in a responsible manner that focuses on the protection of the communal interests. The involvement of companies in the CSR initiatives might be viewed as a form of investment rather than the cost involved in the preservation of the environment, promotion of the fair treatment of the workers, and showing concerns for various organizational potential customers. Currently, the companies in UAE are using the CSR in making investments decisions. Such initiatives are important in developing and strengthening the existing relationship between the institution and customers, networks, and suppliers, which contributes to customer retention and differentiation from various competitors. The organizations are constantly realizing that the concept of CSR not only assist in winning the loyalty of the customers, but also helps in attracting and retaining important workers. Hence, it is vital to note that the CSR activities might assist in the generation of positive publicity and improving the reputation of the business in the marketplace. Nonetheless, most businesses operating in the UAE tent to demonstrate insignificant CSR practices considering their failures to adopt the policies and practices associate with CSR. Consequently, most institutions have not been able to establish the objectives, targets, and audit associated with the CSR activities. Besides, there are no methods of monitoring and reporting the CSR associated activities (SajadiFar, 2013). Although the CSR is considered integral in business operations, it is not yet at the focus of business strategies indicating the gap in understanding CSR and readiness in putting the associated practices into practice. Relationship with Workplace, environment, marketplace, community and company values CSR plays an important role in ensuring organizational performance. Dubai and Abu Dhabi are the major emirate countries with effective CSR owing to the efforts by the government to ensure effective implementation programmes and policies. Although most companies operating in the UAE are making commitment to ensuring proper working conditions and development of remote areas that institutions operate, the aims of implementations have not been realized fully due to complexities associated with implementation. In the UAE, many organizations are moving towards sustainable development through reducing the cost of energy use by using alternative energy forms such as solar panels. Currently, the major activities associated with CSR applicable in many UAE companies are sport opportunities, healthcare and safety measures, offering support to people with special needs, and support environmental sustainability through striking the natural balance. Integrating the concept of CSR is a tough activity that requires institutional commitment. Therefore, for effective implementation, it is crucial to have people who understand the significance of incorporating CSR programmes. In the UAE context, it is clear that most managers and organizational leadership find it difficult to channel institutional funds and other non-financial resources to develop institutional CSR. In the recent research undertaken by the Dubai Chamber of Commerce, the major factors contributing to poor establishment of CSR in the UAE companies are inadequate level of awareness on the platform in which the CSR operate, inadequate time allocation, and interest in supporting communal programmes. Organizations UAE JIU-JITSU UAE JIU-JITSU plays a significant and a leading role in supporting to build a strong generation of the UAE athletes to guarantee their excellence at both local and international levels. The institution works closely with the Federation, which implements various policies associated with the development of various sporting activities in collaboration with different governmental institution for the advancement of sporting activities. Mission ‘To work towards creating a supportive and motivating sports environment to achieve excellence and global competitiveness in Jiu-Jitsu sports.’  Vision ‘To make the UAEJJF a leading organization and a symbol for Jiu-Jitsu sports globally’ Corporate Social Responsibility Supporting sporting activities; simplistic actions to assist the others, and sponsoring and aiding several rehabilitation programmes Etihad Vision “To be a truly 21st century, global airline, challenging and changing the established conventions of airline hospitality” Mission "To give a refreshing welcoming to their guest, where travel should be safe and secure in an environment that is friendly, and where global standards in both terms is practiced, be it hospitality or in the technical aspects in assuring a safe journey for its guests." Corporate Social Responsibility Growing together to reflect economic contribution and support for Abu Dhabi 2030 vision; working together to reflect the development and employee’s wellbeing; giving together that reflects its commitment to supporting organizational humanitarian aid; and greening together which reflects commitment to minimize environmental impact of its operations AMMROC AMMROC is Advanced Military Maintenance and Overhaul Centre and specializes in the military services, adopts various innovative processes, and technology to deliver against the specific requirements within the UAE military. Vision “To provide industry best maintenance service and support of UAE Armed Forces aircraft while developing a highly skilled and educated workforce” Mission “To be a world class centre of excellence in military aviation services applying best practices through a highly skilled workforce and pioneering new and advanced technologies” Corporate responsibility Provision of graduates with full time employment with adequate structured training, skills, and properly understand English; provision of sponsorship and career opportunities to assist Emirati students; partnering with Adveti assist in driving the development of professional skills to meet the rapidly growing needs (Adveti, 2016) Analysis The report focused on CSR on various companies operating in UAE. Moreover, the report analyzed various CSR aspects to determine the level of organizational sustainability. In the analysis part, the report will be presenting the result acquired during the survey. The report used quantitative survey method through questionnaire in collecting the information. To establish the level of understand, the report used closed questionnaires restricting the answers given based on Yes, No, In part, Don’t know, and Not Applicable. From the questionnaire, question 1-5 addressed workplace policies, 6-10 environmental policies, 11-16 marketplace policies, 17-21 community policies, and 22-26 company value. Key: 1 – Yes 2 – in part 3- Don’t know 4- Not applicable 5 - No Interviewed Companies 1. UAE JIU-JITSU 2. Etihad 3. AMMROC Workplace Policies The questions on workplace policies are covered from 1 to 5. Question 1 represents the need of developing real skills and long-term carriers in different organizations. From the interviewed managers, it seems that the number of those acknowledging the importance of developing real skills and long term careers among the employees. In responses, in UAE Jiu-Jitsu, Etihad, and AMMROC, 4 of the 5 managers agreed YES with only one in each case saying In part. In question 2, on the availability of processes against indiscrimination, 4 of the 5 managers responded YES in UAE, 3 don’t know in Etihad, and only 2 responding YES in AMMROC. Question 3 on consultation with the employees, in UAE and AMMROC 4 managers responded YES while in Etihad all the managers responded YES. In response to question 4 on provision of occupational health and safety standards to employees, 4 of the five managers in UAE responded YES while in Etihad and AMMROC all the managers responded YES. In question 5, the provision of work life balance, all the managers in UAE responded In part, in Etihad 3 of the managers responded In part, 1 Don’t know, and 1 YES; in AMMROC, 2 managers responded In part, 2 responded No, and 1 Don’t know. From the analysis, the organizations were familiar with workplace policies. In most cases, the three organizations had positive approaches to comply with workplace policies. Environmental policies The report covered environmental policy questions from 6 to10. On question 6a, 6b, 6c, and 6d, the areas of focus were efforts of organizations to manage environmental impacts especially on the waste minimization, pollution prevention, and protection of the natural environment respectively. In response 6a, energy conservation, 3 of the managers in UAE responded YES, 1 responded No, and 1 responded Don’t know; 3 managers in Etihad responded In part, 1 YES, and 1 Don’t know; in AMMROC, 2 managers responded YES, 2 In part, and 1 Don’t know. In 6b, on waste minimization, 4 UAE managers responded YES, and 1 No; In Etihad,2 managers responded YES, 2 In part, and 1 Don’t know; and in AMMROC 3 managers responded In part, 1 YES, and 1 Don’t know. In 6c, on pollution prevention, only 2 managers responded YES, 2 Don’t know, and 1 not applicable in UAE; in Etihad, 3 managers responded YES and 1 Don’t know; and in AMMROC, 3 managers responded YES, 1 In part, and 1 No. On question 6d, protection of the natural environment, 3 managers responded YES and 2 not applicable in UAE; in Etihad, 3 managers responded YES and 1 Don’t know. Question 7 is on saving money to reduce environmental impact. 2 managers in UAE responded Don’t know, 2 not applicable, and 1 YES; in Etihad, 4 managers responded YES, and 1 In part; and in AMMROC, 3 managers responded YES, 1 Don’t know, and 1 In part. In question 8, the report focused on consideration of environmental impacts while developing new products. In response to question, 4 managers in UAE responded In part and 1 Don’t know; in Etihad, 2 managers responded In part, 1 YES, 1 Don’t know, and 1 not applicable. On environmental sustainability, it is critical that the organizations undertake processes that hold environmental quality. From the analysis, it is clear that the companies lack adequate measures of ensuring environmental quality. Market policies The questions covered in the marketplace policies ranged from 11 to 16. In question 11, the question aims to exploit organizational policies of ensuring honesty and quality in all the contracts and dealings. In response to question 11, all the 5 managers in UAE and Eithad responded YES while in AMMROC 4 managers responded YES and 1 Don’t know. Question 12 is on accuracy and clarity of information and labelling. In UAE, 2 managers responded YES, 2 In part, and 1 No; 4 managers in Etihad responded not applicable and 1 YES; and in AMMROC, 3 managers responded YES, 2 not applicable. In question 13, the timely payment on the invoices of the suppliers, 4 managers responded YES and 1 Don’t know in UAE; in Etihad, 3 managers responded YES, 1 In part, and 1 Don’t know. In AMMROC, 4 managers responded YES and 1 In part. In question 14, on effective feedback and consultation with stakeholders, 4 managers in UAE responded YES and 1 In part; 4 managers in Etihad responded YES and 1 In part; and all the managers in AMMROC responded YES. In question 15, on registration and resolution of complaints, all the managers in AMMROC responded YES; managers in Etihad responded YES and 1 Don’t know; and 3 managers in UAE responding YES and 2 In part. On question 16, the report focus on whether the organization works with others to address issues raised by entrepreneurs. In such respect, all the managers in UAE responded YES; 2 managers responded YES and 3 Don’t know; and in AMMROC, 3 managers responded YES and 2 Don’t know. Community policies From questions 17 to 21, the report covered questions on community policies. In question 17, whether the company offers training to the local communities, 2 managers in UAE responded YES, 2 No, and 1 In part; in Etihad, all the managers responded Yes; and in AMMROC, 3 managers responded YES, 1 In part, and 1 No. In question 18, the report focused on the existance of dialogues between the companies and local communities on sensitive issues. In such response, 2 managers in AMMROC responded Don’t know, 1 YES, 1 No, and 1 not applicable; in Etihad, 2 managers responded not applicable, 1 YES, and 2 Don’t know; and in UAE 2 managers responded YES, 2 In part, and 1 not applicable. In question 19, whether the companies purchase locally, 3 managers in UAE responded In part and 2 YES; in Etihad, 2 managers responded not applicable and 3 YES; and in AMMROC, 4 managers responded YES and 1 not applicable. In question 20, the reported determined the level of encouragement on the workers to participate in communal developments. In such respect, all managers in AMMROC and Etihad responded YES; 3 managers in UAE responded In part and 2 YES. In question 21, whether the company offers financial support to the local communities, 3 managers responded In part and 2 YES; 4 managers responded YES and 1 Don’t know; and in AMMROC, 3 managers responded YES, 1 In part, and Don’t know. Company Value From question 22 to 26, the report analyzed company values of each institution. In question 22, the report aimed at establishing whether the companies defined their values and rules of conduct. In such respect, all the AMMROC and Etihad managers responded YES while 4 managers in UAE responding YES and 1 In part. Question 23 aimed to establish the level of communication for these values to stakeholders. 2 managers in UAE responded In part and 3 managers YES; all the managers in Etihad responded YES; and in AMMROC, 4 managers responded YES and 1 Don’t know. In question 24, the report established if the customers were aware of organizational values and rule of conduct. In AMMROC, 4 managers responded YES and 1 Don’t know; in Etihard, all managers responded YES; and in UAE, 3 managers responded In part and 2 YES. Question 25 established the level of awareness of the employees. In such case, 4 managers in UAE responded YES and 1 In part; all managers in Etihad and AMMROC responding YES. In question 26, the report aimed to establish whether the companies were training employee on the significance of value and rule of conduct. All the managers in AMMROC and Etihad responded YES while in UAE 4 managers responded YES and 1 In part. Findings and Conclusion From the analysis, it is clear that every company has adequate measures to ensure compliance with CSR. Moreover, from the analyzed companies, the aim of CSR is to ensure sustainability in the products and services that they offer. Nonetheless, to achieve an effective and reliable CSR, the organizations ignored some important concepts. In the first five questions, the report focused on workplace policies. However, some areas require slight improvement especially the health and safety welfare of the employees and proper work life balance. Below is representation of the findings for every question. Workplace policies Yes No In part Don’t know Not applicable S/N UAE ETI AMM UAE ETI AMM UAE ETI AMM UAE ETI AMM UAE ETI AMM Total 1 4 3 4 1 2 1 15 2 4 2 4 1 1 3 15 3 4 5 4 1 1 15 4 4 5 5 1 15 5 1 2 5 3 2 1 1 15 The findings from environmental policies reflect inadequate level of commitment towards environmental sustainability. There is need for the companies to develop measures of addressing some environmental challenges associated with institutional processes such as waste management, rates of pollution, and adequate protection of environmental resources. UAE and Etihad reported inadequate measures. Moreover, the companies should focus on reduction on environmental impacts through recycling, energy consumption reduction, and prevention of pollutions. Environmental policies Yes No In part Don’t know Not applicable S/N UAE ETI AMM UAE ETI AMM UAE ETI AMM UAE ETI AMM UAE ETI AMM Total 6a 3 1 2 1 3 2 1 1 1 15 6b 4 2 1 1 2 3 1 1 15 6c 2 4 3 1 1 2 1 1 15 6d 3 4 1 2 1 1 3 1 15 7 1 4 3 1 1 2 1 2 15 8 1 3 4 2 2 1 1 1 15 9 1 1 2 2 3 1 2 2 1 15 10 3 1 1 1 2 2 1 1 2 1 15 From the analysis, it is clear that the three companies selected responded YES to various marketplace policy factors. With such commitment in place, the companies are sure of enhancing quality and honesty in their dealings and contract. However, Etihad and AMMAROC need to work on various areas, which the managers responded, Don’t know and Not applicable to guarantee the achievement of required competitive advantage. Marketplace policies Yes No In part Don’t know Not applicable S/N UAE ETI AMM UAE ETI AMM UAE ETI AMM UAE ETI AMM UAE ETI AMM Total 11 5 5 4 1 15 12 2 1 3 1 2 4 2 15 13 4 3 4 2 1 1 1 15 14 4 4 5 1 1 15 15 3 4 5 2 1 15 16 5 2 3 3 2 15 The responses from the questions relevant to community policies show positive performance of organizations towards looking into the welfare of the local communities. The companies support organizational activities, offer training opportunities, and communicate sensitive issues with them. However, Etihad and AMMAROC need proper mechanisms of involving the local communities to ensure effectiveness in its activities. Community policies Yes No In part Don’t know Not applicable S/N UAE ETI AMM UAE ETI AMM UAE ETI AMM UAE ETI AMM UAE ETI AMM Total 17 2 5 3 2 1 1 1 15 18 2 1 1 1 2 2 2 1 2 1 15 19 2 3 4 3 2 1 15 20 2 5 5 3 15 21 2 4 3 3 1 1 1 15 From the results, it is clear that the companies have been able to define their values properly. Moreover, the results show that both the employees, suppliers, and partners are aware of organizational values. Company values Yes No In part Don’t know Not applicable S/N UAE ETI AMM UAE ETI AMM UAE ETI AMM UAE ETI AMM UAE ETI AMM Total 22 4 5 5 1 15 23 3 5 4 2 1 15 24 2 5 4 3 1 15 25 4 5 5 1 15 26 4 5 5 1 15 References Adveti. (2016). TS&S & AMMROC Launch ADVETI Training Programmes For UAE National Students | Abu Dhabi Vocational Education and Training Institute | ADVETI. Retrieved from http://adveti.abudhabi.ae/2012/11/26/tss-ammroc-launch-adveti-training-programmes-for-uae-national-students/ Emirates Foundation. (2013). Corporate Social Responsibility and Corporate Governance in the United Arab Emirates. Retrieved June 2, 2016, from https://emiratesfoundation.ae/Content/resources/CSR%20project%20EXSUMMARY.pdf Flynn, S. (2012, January 20). Corporate Social Responsibility in the UAE - CSR Middle East. Retrieved June 2, 2016, from http://csrmiddleeast.org/profiles/blogs/corporate-social-responsibility-in-the-uae SajadiFar, V. (2013, May). Corporate Social Responsibility | du. Retrieved June 2, 2016, from http://bspace.buid.ac.ae/bitstream/1234/359/1/100114.pdf Read More