Businesses Skirt Social Obligations

Tuesday, 27 February 2007
By Sabria S Jawhar
The Saudi Gazette

MONDAY, the second day of the Jeddah Economic Forum (JEF), witnessed a quite good number of attendees, though humble compared to the first day where some were forced to stand at the back of the hall to follow the sessions.

Both the organizers and attendees seemed to be less confused and more relaxed than on the opening day. The reasons, however, were not clear to me. A sort of negative attitude was in evidence towards the media representatives that criticized the organization of the forum. Nothing new, Saudis lack the spirit for criticism.
However, the early session that covered Corporate Social Responsibility (CSR) received a noticeable attention for several reasons, among them the fact that among the speakers was Asya Al-Ashaikh, a Saudi businesswoman and researcher in the field of CSR.

When Al-Ashaikh took the stage, it was obvious that she learned the lesson from those women who were criticized three years ago for appearing in what was characterized by extremists as immodest clothing.

Her hair was fully covered and her abaya was completely closed. I cannot help but express my admiration not only for the way Asya appeared and presented herself, but also for the way she was speaking and conducting herself.

She was a good example of the Saudi businesswoman that we are all looking for. By appearing the way she did, Asya closed the doors to those who oppose the progress of Saudi women under the garb of religion. The message that Asya was indirectly conveying was that Saudi women can succeed in all fields and keep their customs and religious values intact.

She talked about the concept of CSR that states that organizations, especially commercial businesses, have a duty to care for all of their stakeholders in all aspects of their operations. This duty goes beyond their statutory obligation to comply with legislation.

CSR is closely linked to the principles of Sustainable Development, which argues that enterprises should be required to make decisions based not only on financial and economic factors but also on both the immediate and long-term social and environmental consequences of their activities.

Asya emphasized the importance of linking CSR to our strategic goals and systemizing it, especially since the economic and political atmosphere in Saudi Arabia is encouraging. The economic reform that the country is witnessing is a great boost for the implementation of such an idea, she added.

She noted a complete absence of the required consumers’ and media pressure for enforcing CSR in the Saudi private sector. We are not living in a developed society, she said, where there are clear-cut rules for the government and business sectors and where the government lays down regulations and the business sector implements them. We don’t even know that there is a third party that should be taken into consideration.

To her, the term CSR has become a catchword that many unfortunately do not understand. I do agree with Asya, as I remember that last year I was at a press conference in one of the leading banks in Saudi Arabia and when I asked officials what they had done in the field of CSR, I received a long list of charity work that clearly reflected a sort of confusion even at the highest level. It seems that many believe that it is merely donating funds to a charity of one’s choice. On the contrary, it is truly about building a long-term and sustainable platform for various programs that address the needs of the society where companies operate.

Waleed Fitaihi, a speaker and chairman of the board of directors of the International Medical Center in Jeddah, said there is a complete absence of the concept of social responsibility from the dictionary of the local banks, where billions of riyals go to only investors.

He said this money should be redirected to the community not the investors. And just where do the billions of Saudi riyals go? What is the role of local banks when it comes to corporate social responsibility? Is the government going to take a step to encourage more CSR? According to Asya, the government comes as a second step. But I disagree. As in a non-developed community, the government should take initiatives and this is what people are used to.

For instance, the government may offer more facilities, incentives and advantages for those corporations that pay enough attention to CSR. They may also announce the names of those who are active in CSR, which will open the door for competition among those establishments. The public can also play a great role if they are told what benefits they will get from the incorporation of such concepts as CSR. The more they know about those who care for and serve them, the more they will support them.

Since we are gathering to discuss and promote CSR, it is the best time to also reconsider the way we use the charity money, especially for Zakat. The way Zakat money is spent should be reviewed and redirected to more sustainable projects.