CSR 'is not charity'

The executive chairman of the 1,400 store Alshaya retail group was speaking at the 'Does Arab Business Care' session, one of the most eagerly attended by regional representatives.

The problem, Alshaya highlighted, was not that local companies are unwilling to participate in CSR projects, but rather that those projects are viewed as one-off charity efforts.

Contributions mostly revolve around the publicised giving of donations, or much-touted charity-drive days.

'In the Middle East, CSR is still in its infancy, it is very much associated with 'giving' through charitable donations,' Alshaya said. 'There is much more we can do in partnership with governments and NGOs to tackle deeper issues like unemployment, lack of quality education and carbon footprint reduction.'

Workplace training programmes

This echoes statements made by leaders across the Middle East, from King Abdullah of Jordan's inaugural speech at the WEF urging CEOs and CFOs to encourage young people into the workplace with active training programmes, to his praise for the Egyptian Education Initiative, a public-private programme headed by Suzanne Mubarak.

Similarly, Sheikh Mohammed bin Rashid Al Maktoum's announcement at the WEF in Jordan last December of a $10bn donation to help bridge the education and knowledge gap between the Middle East and the western world shows the importance that Dubai's ruler places on initiatives for the good of the greater community.

The Dubai Cares project organised last Ramadan was yet another example of how Dubai's ruler is encouraging local businesses to become involved in community-centred acts of charity. Companies based in the emirate were encouraged to organise corporate drives to donate to the foundation, which was to help educate one million children in poor countries.

'Regional corporations should place more emphasis on their social responsibilities as consumers and governments are becoming increasingly conscious of ethical and environmental issues,' Alshaya continued. 'Businesses not committing to CSR will not only risk their reputations but also give up the opportunity to contribute to the growth of this region, or successfully expand outside it.'

International competitiveness

The expectations from elsewhere in the world are perhaps key to helping regional businesses understand the necessity of taking CSR seriously. With the economic downturn making the global marketplace so competitive, local brands cannot afford to be seen to falter in any way.

Neville Isdell, Chairman and CEO of the Coca Cola company echoed these sentiments, reminding those present of the changing needs of international brands: 'There has been a societal change,' he noted, 'businesses and governments have to be partners in not just in business development but in societal development. Unless we do that the legitimacy of our economic model will be jeopardised.'

The list of backers of the need for more CSR development included all panellists. Aramex CEO Fadi Ghandour stressed the need to think of social responsibility not as a charity but almost as a financial tool: 'Businesses have to invest in society. Invest being the keyword here; it's not CSR; it's not charity. It's an investment in society.'

So are businesses in the region jumping on the bandwagon? This is not the first time that Arab business leaders have spoken about the issue. Indeed, Alshaya referred to it at a conference in Beijing last September, urging Arab businesses to take the issue of community involvement more seriously.

As yet there seems little sign that things are moving forward at the speed that CSR's supporters would like to see. Though Alshaya has been practising what he preaches, with the group opening up a workplace training programme for 1,000 students in Kuwait, most of the other main initiatives that have been witnessed recently have been reactive, with governments or leaders proposing projects that are then supported by the private sector.

Whether the switch can be made to encourage regional businesses into embracing proactive CSR policies is something that remains to be seen.