In the current society, the success of an organization has been attributed to its corporate social responsibility (CSR). According to Katsioloudes (2002), CSR is the duty in which an organization undertakes in an attempt to safeguard the environment and community where the organization is located. The corporate social responsibility can be expressed in the society through implementation of strategies to minimize pollution and wastes in the economy; normally in the production industries. In addition, the organization ensures that social programs and education programs are articulated by society. Maximization of the resources in order to realize maximum returns implies that the company has enhanced its social responsibility through minimization of wastes. UAE argues that CSR is vital for any competitive firm in the Middle East and globally. It is vital for the success of the company, as they are required to give back to the society.
The research objectives for the study are diverse; however, the main intent of the study is to determine the existence of any difference between males and females with respect to support and awareness of corporate social responsibility. It has been argued that gender is insensitive when analyzing the corporate social responsibility of an organization. In addition, the research aims at determining the consequential effects of policy implementation regarding CSR on the various genders in the society.
Over the past decades competition has been rampant and it has been fostered by globalization that has rocked the economy. The business environment has changed drastically, and organizations have been compelled to expand their operations beyond the domestic boundaries. In an attempt to realize its strategic goals, the organization needs to incorporate the social responsibilities. In the past competition was not rampant and the companies were not involved in intense CSR. However, in the current economy the society has experienced tremendous changes in the sector. There has been an increase in competition, drastic decline in resources, and competition in the manpower available across the society. Indeed, the management has found it necessary to articulate to the CSR in an attempt to increase the organization’s market share in the economy (Werther & Chandler, 2010).
CSR had been under scrutiny for many years, especially when international markets and businesses moved to the Middle East. Although Middle Eastern countries have been characterized by political instability and wars, foreign investments have increased and various organizations are eager to participate in economic development of these Middle Eastern countries. The companies involved in the Middle East have appreciated incorporation of CSR in their strategic plans. In order to access the citizen’s trust and support, the organizations have complied to build health and education sectors in the region. In addition, most of the organizations have issued scholarship for citizens of the Middle Eastern countries and this has enhanced their accountability to safeguarding the well-being of individuals in the society (Gonzalez, 2008).
According to… (Gonzalez???) the community demands greater contribution and involvement of the companies to eradicate poverty and enhance an individual’s standard of living. Most of the NGOs have failed to administer this basic amenity and support of the business sectors in promoting CSR will be vital in the society. In addition, customers are demanding towards explicable ethical standards and safe products, and they are willing to change their tastes and preferences for these reliable products.
The UAE Context
Since the initiation of business organizations in the UAE, various CSR initiatives have been implemented. Major positive developments have been reported across the Middle East. The significant development was the launch of UN Global Compact that discussed the positive attributes of organizations complying with the Corporate Social responsibility regulations. However, the UAE has been faced with detrimental effects, especially on the political and economic stability of its countries.
Pearl Dubai, a leading organization in the UAE, has participated in charity, cultural and economic initiatives that aim at spearheading the wider corporate social responsibility programme. Some of the initiatives undertaken by the company include the sponsorship awarded to gala cultural evening in November 2008. The event was attended by approximately 700 renowned personalities across the globe (Gonzalez, 2008).
Although Corporate Social Responsibility incorporates philanthropic giving, the scenario involves balancing of resources and interest in the society. According to Kotler & Lee (2005), Zakat is not endowed with the relevant strategies to maximize the use of its resources and balance the societal interests. However, under the context of the UAE, Zakat’s practice by an organization denotes the importance of CSR in the economy. As such, Zakat is involved with CSR across the society, but not on an individual shareholder. Ideally, organizations in the UAE are required to satisfy the society’s obligations and shareholders’ obligations. The business activities in UAE are affected immensely by these two strategies of undertaking CSR. There is a need for developing defined practices on CSR which will meet the shareholders’ interest and that of the firm. This will facilitate understanding between different international and domestic firms operating in the UAE. However, the absence of such clear understanding will necessitate future disagreements among international and local firms in the region. In addition, the Islamic influence on businesses across the UAE has enhanced a platform for establishing CSR practices and policies (Mallin, 2010).
The challenges facing CSR in the UAE region were mitigated by the government through implementation of “Emiratization” policy. This ensured that various industries were able to bind an individual business entity in an attempt to hire the UAE nationals. Indeed, the policy framework outlines the percentage of the UAE nationals that the government needs to hire in the sector. This will enhance domestic development and improve the standard of living of individuals in the region.
The survey was undertaken in numerous companies in an attempt to harness awareness on CSR. The sample is drawn from the Non-Free Zone in Dubai economy. However, distinct focus was directed to finance and constructions sectors. Some of the regions were excluded from the survey, and Dubai Free Zones was among them. The reason for this exclusion was that companies had derived their organizational endowment and equity-financing from their foreign country. The assumption, in this case, is that Free Zones companies derive their policies and practices of CSR from the parent country. However, further research can be undertaken on these Free Zones companies to ascertain their reliability and success in Dubai (Kotler & Lee, 2005).
Concerning the survey size, the research focused on the organization having between 50 and 100 employees. The assumption, in this case, was that the well-established organizations were aware of the existence of CSR. Sampling was undertaken, and in an attempt to enhance its reliability and lack of biasness the survey used information from Dubai Chamber of Commerce and Industry. Currently, the registry of companies contains more than 53,000 contacts of companies in Dubai. The sample selected includes 1,500 companies, to which a questionnaire containing 12 questions and sub-questions were sent to the respective CEOs. 207 companies responded and returned the questionnaires that were duly filled.