CSR efforts grow in MENA as people, planet prioritised
Efforts to increase CSR among companies in the MENA region have grown in recent years, the latest MENA CSR Report 2022 finds.
Not only are more businesses in the Middle East and North Africa (MENA) region understanding and recognising the value of CSR activities, with seven in 10 executives saying engagement in CSR is ‘very important’, but almost two-thirds of regional businesses are already operating a programme.
CSR (Corporate Social Responsibility) is the concept of incorporating philanthropy, ethics, and activism into business practices to benefit both society and the company itself.
The survey, which engaged 314 C-level executives from nine counties across MENA, found the UAE to be most active in CSR, followed by Saudi Arabia. Egypt, which had previously lagged, has shown considerable improvement, the report finds.
Crucially, CSR looks to set to make further gains in 2023.
Three-quarters of MENA companies, and eight in 10 UAE companies, say they plan to increase their CSR practices over the next 12 months, with a further fifth planning to replicate their CSR activities from last year.
Also promising to discover is that hardly any companies will be scaling back CSR activities, despite challenging economic headwinds.
“In the post-2020 era, as CSR continues to grow, it is heartening to see the UAE and KSA continue their paramount lead in regional CSR efforts and countries such as Egypt and Qatar meeting regional standards of CSR engagement,” says Ahmad Itani, CEO of Cicero & Bernay Communication Consultancy, which conducted the study.
“This is a testament to the efforts of governments and businesses in these countries in prioritising social responsibility and sustainability.”
GCC Governments putting sustainability and people at heart of growth
This comes as GCC counties such as Saudi and the UAE work on diversifying their economic activities away from oil dependency, and adopt a people-centric approach to development, putting sustainability centre stage.
Vision 2030 is a sustainable vision for the future of Saudi Arabia, putting sustainability at the heart of everything the Kingdom does. While in the UAE, which has named 2023 the Year of Sustainability ahead of hosting COP28 in November, has designed the Dubai 2040 Urban Master Plan, which defines sustainable urban development as including a focus on “enhancing people’s happiness and quality of life and reinforcing Dubai as a global destination for citizens, residents and visitors over the next 20 years”.
In 2018, the UAE government issued a CSR Law, which imposes comprehensive reporting requirements, which must be met before annual trade licence renewal. While a recently introduced CSR UAE Smart Platform incentivises CSR initiatives among UAE businesses, encouraging them to create the country and culture they want to see.
And last year, the UAE Ministry of Economy established the CSR UAE Fund five-year strategy, designed to enhance the role of the UAE as a global driver responsible investment and sustainable development.
CSR leads to better engagement with employees, customers
Such initiatives and support, along with a rising regional Gen Z population, is seeing a shift in MENA region business mindsets, with CSR moving from a nice-to-have to a must-have – as companies look to deepen engagement with employees and customers alike.
Working for a company that is committed to CSR is increasingly important for UAE professionals, according to a just released report by recruitment consultancy Michael Page.
Some 78% of Emiratis said they wanted to work for a company committed to CSR, while 61% chose human rights as an important value, followed by environmental responsibility (56%) and economic responsibility (50%).
Consumers too are increasingly looking to engage with companies that show continued efforts in CSR.
And those who do are seeing results. The MENA CSR Report 2022 found 60% of UAE brands have experienced a tangible growth in consumer engagement as a direct result of increase in CSR activities and in KSA 52% believe that CSR improves consumer trust with brands.
Regional companies leading the charge on CSR
Among corporations leading the way in CSR in the region are Accenture Middle East, Tristar, Saudi Telecom Company (stc), and Bahrain-based Gulf Petrochemical Industries Company, all of which were winners in the 2022 Arabia CSR Awards.
Just last week, stc Bahrain secured the Most Socially Responsibly award at the International Finance Awards in Dubai, acknowledging its impactful role in the local community through initiatives that drive innovation, connectivity and empowers locals in Bahrain.
As part of its CSR program, stc Bahrain recently launched Jeel ICT, which will train citizens to develop the skillset of Bahraini youth in technical areas.
Riyad Bank, Zurich International Life, Engie, Acer Middle East, TotalEnergies, Holiday Inn, and DP World are also leading the CSR charge regionally.
Companies looking to raise their own levels of CSR participation and standards should look to participate in the Arabia CSR Awards, the Arab region’s home-grown awards for CSR.
Known as the ‘Green Oscars’, with awards criteria based on international benchmarks and standards, including the 10 UNGC Principles and 17 UN SDG’s, companies who apply receive a full report based on their applications, with scores and feedback that is designed to help them “understand strengths and weaknesses with respect to how they perceive their own performance and how the jury sees it”, says CEO of Arabia CSR Network, Habiba Al Mar’ashi.
“For years, organisations have utilised the outcome of their participation to improve performance and aim for benchmarks and best practices,” she says, adding that the awards have been pivotal in raising the standard of CSR practice in the region.
“[They] are viewed as the regional benchmark for CSR and sustainability best practice, helping over a thousand organisations to fit globally established principles and standards to their local contexts.”
Regional companies leading the charge on CSR
Among corporations leading the way in CSR in the region are Accenture Middle East, Tristar, Saudi Telecom Company (stc), and Bahrain-based Gulf Petrochemical Industries Company, all of which were winners in the 2022 Arabia CSR Awards.
Just last week, stc Bahrain secured the Most Socially Responsibly award at the International Finance Awards in Dubai, acknowledging its impactful role in the local community through initiatives that drive innovation, connectivity and empowers locals in Bahrain.
As part of its CSR program, stc Bahrain recently launched Jeel ICT, which will train citizens to develop the skillset of Bahraini youth in technical areas.
Riyad Bank, Zurich International Life, Engie, Acer Middle East, TotalEnergies, Holiday Inn, and DP World are also leading the CSR charge regionally.
Companies looking to raise their own levels of CSR participation and standards should look to participate in the Arabia CSR Awards, the Arab region’s home-grown awards for CSR.
Known as the ‘Green Oscars’, with awards criteria based on international benchmarks and standards, including the 10 UNGC Principles and 17 UN SDG’s, companies who apply receive a full report based on their applications, with scores and feedback that is designed to help them “understand strengths and weaknesses with respect to how they perceive their own performance and how the jury sees it”, says CEO of Arabia CSR Network, Habiba Al Mar’ashi.
“For years, organisations have utilised the outcome of their participation to improve performance and aim for benchmarks and best practices,” she says, adding that the awards have been pivotal in raising the standard of CSR practice in the region.
“[They] are viewed as the regional benchmark for CSR and sustainability best practice, helping over a thousand organisations to fit globally established principles and standards to their local contexts.”
