Corporate Social Responsibility of UAE- Based Multinational Corporations

Corporate Social Responsibility (CSR) Practice by Multinational Corporations: Focus on UAE-Based Corporations
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Corporate Social Responsibility (CSR) Practice by Multinational Corporations: Focus on UAE-Based Corporations
ABSTRACT
Corporate Social Responsibility (CSR) is undoubtedly one of the most fundamental subject matters for consideration by business enterprises the world over (Freeman et al. 2007). This is mostly because businesses are in fact part of the communities in which they exist in. this paper aims to offer pragmatic reviews and recommendations in regards to CSR practice by multinational companies or rather large corporations. As form of a case study, it focuses on four different companies based in different countries with particular emphasis being on companies based in the United Arab Emirates (UAE).
Overall, it is also important to note that not all CSR initiatives by large corporations result in realization of the set business goals and objectives. It is true however that the overall aim of CSR remains directly correlated with Public Relations (PR) and commitment to benefiting the community and stakeholders within the company environment. This has led to the development of the Global Reporting Initiative giving high priority to CSR. As such, it is important for business enterprises or rather corporations to establish and maintain sound and solid CSR strategies that hold regard for future well being of the company and wellbeing of all stakeholders as well (Smith, 2003).
This paper recognizes employees of a corporation as part of integral stakeholders. As a result, philanthropic motivation stands out as an important feature to be considered. It is also noted that corporations that engage in management by objectives go a long way in successful implementation of CSR strategies.
Table of contents
Abstract ..................................................................................................2
Introduction.............................................................................................4
CSR Analysis............................................................................................5
Al Futtaim .............................................................................................. 5
Goldman Sachs... .................................................................................... 6
British Petroleum...................................................................................... 7
Nike ...................................................................................................... 8
Recommendations.. .... ............................................................................ 9
Conclusion............................................................................................... 10
Introduction
One cannot decline to recognize the fact that businesses play an important role in regards to social aspects of a given community in addition to facilitating economic operations. Nevertheless, negative impacts posed by businesses have been witnessed from time to time. These place a weighty burden on the overall society and include aspects like pollution of the environment, employee rights violation and fraudulent practices among others. The resultant effect is a great need for fairness, integrity and reverence for all members of society from a global perspective- say to speak of the Geneva Declaration and the United Nations Global Compact Conference. In addition, there exists the SA8000 of social accountability, an initiative of the Council on Economic Priorities. This establishes standards for employment, workers rights and desired working environments, as well as other aspect of public interests.
More than any other businesses enterprises, large corporations are more often than not likely to be concerned with realization of profits to the extent of compromising on moral obligations or rather CSR owing to the fact that they exist as separate entities from the owners. As a result, governments around the world have adopted mechanisms of control over corporations keeping their corporate image in check (Smith, 2003). All the same, corporate leaders must be dedicated in ensuring that corporations are viewed as having regard
In the modern business world, the management or rather leadership of large corporations ought to recognize the need and significance of practicing goodwill as a form of CSR. They must keep in mind and acknowledge the important role played by civil rights societies as well as other nongovernmental organizations that fight to protect human rights.
Analysis of CSR as practiced by specific large corporations
Al Futtaim
The United Arab Emirates (UAE), which is a federation of seven different emirates, was established at the onset of the 1970's. Nevertheless, it has witnessed rapid and massive development programs in terms of economic growth over the past few decades to become a global business hub. This paper discusses CSR aspects of Al-Futtaim Corporation, which is one among numerous household names in business that are based in the UAE.
Al-Futtaim was founded back in the 1930s and is based in Dubai, UAE. The business operations of Al-Futtaim are nothing short of far reaching. The company deals with automobiles, real estate, engineering, technology, electronics and retail distributions as well as other general services. The fact that Al-Futtaim has many companies under one umbrella even makes the management of its CSR more challenging, considering the scope of stakeholders associated with the company. Furthermore, Al-Futtaim employs a decentralized system of management and operates on a global scale.
One of the fundamental CSR strategies of the company involves maintaining an elaborate organizational structure that allow for clear definition of the company's working culture. The fact that the company is highly decentralized also allows for increased flexibility for exercising responsibility by workers of all levels within the organization. Despite having many independent bases of operation and departments spread over the larger Middle East region, North Africa and Europe, Al-Futtaim's leadership is keen to ensure that integrity is highly upheld throughout the organization. This has in turn enabled the company to build a strong foundation concerning CSR.
In addition, Al-Futtaim aims on delivering world-class brands via its portfolio and hence places much emphasis on quality assurance and customer satisfaction. The company maintains highly competent and diverse management personnel- owing to the changing demographics of Dubai, which facilitates effective establishment and implementation of its CSR strategies. This is further supported by the fact that the company bears high employee retention and satisfaction, an important factor as far as the company's reputation in the community is concerned.
Al-Futtaim Motors, for instance, maintains a good working relationship with other companies within the UAE in terms of CSR initiatives. In 2014 for instance, ...