Statement of the Problem
It is not a new idea that companies have a social duty. However, it was not until the early 1930s that the scientific conversation started about how corporations may and should give back to the communities in which they operate. Despite the fact that there were many allusions to social responsibility in the 1930s and 1940s (Moon and Parc, 2019), he used the phrase “social responsibility” for the first time with “social duties of the businessman” in 1953 (Bowen, 1953). It has been more than 50 years since “corporate social responsibility” (CSR) was first coined by Bowen, and it is now widely accepted as a critical component of a firm’s competitive advantage for long-term sustainable development (Masoud, 2017).
Numerous CSR studies have been published in recent years, including broad reviews (Aguinis and Glavas, 2012) and more specific studies of CSR theories, the commercial case for CSR, the political CSR, and other specific topics (e.g. Parker, 2018). CSR in underdeveloped nations has been described as less structured and more charitable in the literature, although the insights and conclusions obtained through long-standing writers in regards to diagram “what is known and not regarding CSR” have been mentioned (Jamali and Karam, 2018). Because of the many concerns stated against the generalisation of frameworks and outcomes from developed nations, it is more vital than ever to do CSR research in poor countries (Idemudia, 2011). Furthermore, thorough review studies that examine numerous literature relevant to CSR activities are potentially lacking in the latter category of research. this paper will help in overcoming these limitations and addressing certain issues regarding CSR in UAE.
Purpose and Objectives
The purpose of this study is to understand the community expectations of UAE people, in the context of the CSR activities undertaken by the companies.
The objective is to:
Research Questions
The main research question is to determine whether the community expectations are actually being met by companies in UAE while undertaking CSR activities or not.
The sub-questions are:
Rationale for the Study
The rationale of this paper is to show the manner in which the CSR practices are adopted in UAE and to show the significance of the same in the context of community expectation in UAE. This is particularly important because UAE is deemed as a major business point globally, which essentially means that when the community expectation of the people of UAW is met, a global community expectation is not only reflected but also attain. The research would provide an overview of a different theoretical concept like Carroll’s CSR pyramid and Ethical theory which would help invalidate the theme of CSR being upheld in UAE thereby essentially fulfilling the community expectations. the study would also highlight the manner in which the philanthropic and altruistic aspects of CSR activities would be clarified.
Conceptual Analysis
For a long time, the discussion over CSR has been dogged by the definition of the term (Frederick, 2006). The only thing that everyone agrees on about a CSR definition is that it’s hard to come up with one. There’s no single definition or a single conceptual framework that everyone agrees on, and there isn’t even a single definition of CSR (Carroll, 1999). CSR, according to Falck and Heblich (2007), in addition to the aforementioned academics), is a voluntary business commitment that goes beyond expectations of firms’ conduct, both explicitly and implicitly, in society. As a result, businesses have come to recognise that to remain competitive and distinctive in the marketplace, they must practise being socially responsible whilst also creating wealth. According to Quazi and O’Brien (2000), CSR is a global idea, although research shows that there are regional variances (Chomvilailuk and Butcher, 2013). It is widely accepted that CSR in poor nations is more “extensive than often assumed, less incorporated into business strategy, and less politically anchored” than in most high-income nations (Visser in Jamali and Neville, 2011).
Ethical issues today play an increasingly essential part in the decision-making process, both at the individual and communal levels. Due to these societal shifts, businesses all over the globe have adopted a CSR strategy. To be sure, this approach demonstrates that this is time to shift away from a broad and commonly understood definition of CSR to its specialised application, which establishes explicit norms and performance metrics. As a result of the triple bottom line concept, companies may be really socially responsible since the framework of reporting gives quantifiable, intelligible, and transparent information They have a specific responsibility because of their access to natural resources as well as human capital, thus they must follow the triple-bottom-line strategy (Hack, Kenyon, and Wood, 2014).
However, a company’s social responsibility cannot be defined just by its adherence to the principles of CSR. Instead, the triple bottom line approach is needed to get the results that you want, not the other way around. The contrasts between CSR and the triple bottom line (TBL) explain why this assertion is valid. However, CSR is a very loosely defined and self-regulated area. However, it does not give a complete framework for assessing the organization’s influence on the social, economic, as well as environmental setting (Hack, Kenyon, and Wood, 2014).
Despite the difficulties, global corporations must use the triple bottom line strategy if they are to satisfy their ethical commitments since CSR alone does not provide the required results. It is possible to compare the performance of various sectors and nations using the triple bottom line. Multinational firms have a specific commitment to social responsibility because of the worldwide wealth distribution, which, in turn, improves their performance. To assure worldwide reach and accountability, the triple bottom line is a useful technique.
CSR Law in the UAE
The UAE Council of Ministers published a new policy (the CSR Law) on February 1, 2018. Many businesses in the UAE will be compelled to report on their corporate social responsibility policies and financial payments as part of the CSR law, while others will be permitted to do so on their own initiative. As an additional benefit, it provides a variety of incentives for employees to participate in CSR programmes. According to the CSR Law, CSR is based on voluntary principles. The CSR Law mandates that all UAE-based companies must submit a CSR report and be included on the website, notwithstanding this (Mondaq, 2020).
Prior to the yearly renewal of a company’s trade licence, the CSR Law mandates that companies use the Platform to declare their prior year’s social responsibility contributions or lack thereof. CSR contributions must contain all relevant information, including the nature and magnitude of the donation, as well as who received it, when it is made public. However, it should be noted that in order for these standards to be implemented in reality at the time of trade licence renewal, coordination is required from federal government departments involved for CSR activities (the Ministry of Economy and Fund) (Mondaq, 2020). A yearly contribution of AED 1,500 is mandated by the CSR Law as part of a UAE business’s socially responsible commitment. The Social Responsibility Mark costs AED 10,000, whereas the Social Responsibility Permission costs AED 15,000 to get.
As a consequence of the CSR Law, private companies will be compelled to begin publishing their CSR activities and charitable contributions. For the time being, on-shore enterprises in the UAE should begin examining their CSR operational processes in order to prepare for making necessary disclosures for their trade licence renewal while the relevant federal or emirate level government organisations are still implementing the relevant rules. The next section will analyse the theoretical framework which helps in identifying the different aspects of CSR.
CSR Dimensions theoretical foundations
The concept of CSR has been around since decades. Since the late 1950s and the beginning of the 1960s, many corporations and stockholders have been interested in CSR (De George, 2011). During the 1950s, Howard Bowen came up with what he thought was the first vague definition of corporate social responsibility. There are “commitments of businesspeople to adopt policies that are beneficial for the aims and values of a society,” he stated in a statement (Hack, Kenyon, and Wood, 2014).
Carroll’s CSR pyramid
Only later did this term’s significance and use become apparent. Archie Carroll’s pyramid serves as the cornerstone for CSR. Using Carroll’s four-part formula from 1979: CSR refers to a company’s actions that are profitable, legal, ethical, and beneficial to the community. As far as CSR is concerned, profitability or compliance with laws are the two most essential factors in determining how much money, time, or talent a firm contributes to society (Toolshero, 2020).
All charitable efforts and practices of corporations are part of their philanthropic responsibilities. Philanthropy isn’t a legal obligation anymore, but the public expects businesses to become involved in charitable causes. The type and the extent of these activities are mostly determined by the desire of a corporation to engage in social activities that are not often expected of companies ethically.
On this topic, he used a pyramid in 1991 to elucidate on it. A pyramid was built to show how the four-part structure is modular. Because it’s both basic and ageless, this geometric design was picked as the one to be used. To ensure a company’s long-term viability, economic responsibility was indeed a major component of the pyramid. Just as solid financial performance is necessary to fulfil the societal standards, interests of shareholders so too are long-term profitability (Toolshero, 2020).
Companies have a legal obligation to follow the established minimum standards. It is anticipated that organisations will operate and function in accordance with these guidelines. Laws and regulations enshrine society’s ethical standards in writing. Legislators on a national, regional, and municipal level set the parameters for how businesses may operate in a fairway. Responsibility in CSR is within the purview of the law:
In debates about the government’s role in shaping CSR practices, ethics is largely overlooked. Nevertheless, it is an important factor to take into account when drafting declarations of adherence to the law. As a result, this study uses a utilitarian framework to assess the ethical value of governments mandating CSR. Making corporate social responsibility (CSR) obligatory for all organisations is ethical from a utilitarian standpoint. Reducing greenwashing and increasing social and environmental achievement are mutually reinforcing goals of a broader society as opposed to a narrow national political agenda. Regulations are also in line with TBL’s objective of encouraging more environmentally friendly corporate practices. Deontology, in contrast, sees a grey area in which the duty of a government is still debatable. CSR may be seen as immoral since it tramples on individual liberty, but a democratic government has an obligation to ensure the well-being of its population, as well. Utilitarianism is part of deontological ethics since it encourages governments to play a proactive role in advocating on behalf of society’s overall welfare (Chaarlas, 2012).
As seen in the figure below, stakeholder theory is a theory that highlights the link between a firm and its many stakeholders such as customers, workers and suppliers (Brown and Forster, 2013).
A company’s actions and choices must not just benefit its shareholders, but also its stakeholders as a whole because of stakeholder theory. In order to protect the interests of all stakeholders, management should be held accountable to a broad variety of stakeholders. In the context of a company, it is effective from three angles:
Businesses must develop methods for interacting with key stakeholders in the most efficient and effective manner in order to improve long-term operational efficiency and effectiveness.
Since 1950, the United Nations estimates that the population of the United Arab Emirates has grown from 69,558 million people to 9,821,011 million people as a consequence of economic development. Due to the UAE’s small population (about 0.13 percent of the world’s total), the country has a diverse population but is also geographically isolated. The United Arab Emirates has a population of around 11.5 percent, with the rest of the population made up of expatriate workers. Workforce diversity has come from this, with people from different cultural and religious traditions moving into the workforce. Despite the presence of high-level expertise, the majority of expatriates work in low-wage occupations, whereas the majority of UAE employees are in white-collar positions. Fewer than 10% of expatriates have been in the nation for more than 15 years. The bulk of newcomers come from South Asia, where they make up 59.4% of the total (including Indians at 38.2%, Pakistanis at 9.4%, Bangladeshis at 9.5%), Egyptians at 10.2%, Filipinos at 6.1%, and others at 12.8%. The United Arab Emirates has a population of 28 percent non-citizens and women, notwithstanding the country’s huge number of male foreign workers. Social characteristics such as class, ethnicity, dialect, religion, and employment all have a role in how people connect. The UAE’s population is mostly composed of people in their mid-twenties to mid-forties (Masoud, 2020).
CSR, on the other hand, has distinct origins and manifestations in the Middle East and North Africa (MENA) area that do not necessarily reflect Western sympathies and practices (Jamali, 2014). As a result, the MENA region is following the global CSR trend as an extension of historical social-cultural practices (Shehadi et al., 2013).
While many academics feel that CSR principles are still new in this nation, they believe that the focus is shifting away from just charity and that CSR knowledge among organisations in the UAE is rising as a result (Al-Ali, 2007). In this context, the CSR of enterprises and businesses is closely related to cultural and Muslim traditions, as well as religious donations. To put it another way, Kassis and Majaj (2012) argue that the greater culture, collective dynamics or ethics of a region are influenced by local businesses rather than the other way around. As part of the effort to guarantee that sustainable development does not exacerbate already existing environmental challenges, the government and corporate organisations play an essential role in developing environmental regulations for a society that is simple to execute and successful. The Sheikh Zayed Housing Initiative is one example of a social development programme that intends to provide homes for UAE inhabitants, while the Mohammed Bin Rashid Housing Establishment attempts to offer adequate housing for citizens (Government of Dubai, 2012).
It is due of the influence of their operations in the West or their eastern headquarters that multinational corporations, both large and small, adhere to the best practises in CSR (Zorzopulos, 2006). MNCs are more inclined to participate in CSR activities because they are better able to adapt to local circumstances and because they engage in activities that are comparable to those carried out by local businesses. The CSR standards are presented in order to ensure that corporate choices and operations are consistent with ethical and socially responsible practices. Additionally, the United Arab Emirates has placed a major emphasis on CSR in order to attain the ambitious goals that drive the country’s path toward sustainability along the four pillars of economic, environmental, human, and social development.
If you want to make sure your business is doing the right thing, you should also think about the great, universal values of moral philosophy that should guide your decisions and business practises. These include justice, rights, and utilitarianism. A corporation that is committed to corporate social responsibility should aim to earn money, follow the law, participate in ethical activities and be a good corporate citizen. In practical words, this means that CSR-driven organisations should be striving for profit, obeying the law, and engaging in ethical practices. As stated by Qassim et al. (2011), despite the fact that knowledge and perception of corporate social responsibility practises and their advantages in UAE firms is rising, advertising or supporting CSR operations in society is still uncommon and inadequate. Findings show that although most companies are aware of CSR, they fall short when it comes to conventional philanthropic giving. There was a lack of employee health, safety, and remuneration, and these issues should be addressed. In other words, it signifies that companies lack the ability to implement CSR initiatives.
Research Approach
Due to the fact that this study is built on a qualitative platform, the whole project will be completed by relying on secondary sources for information. As a result of the emergence of COVID-19, the necessity to compare the timetable differences in the progress of virtual reality and the way in which it has impacted online learning platforms arose, prompting the decision to conduct the study. It was necessary to examine a number of scholarly publications in order to uncover pertinent information; specifically, works that were based on a similar topic were sought for. In order to accomplish the purposes and objectives of this study, it was necessary to interpret the findings that they had obtained and to integrate the learning of many academic organisations.
Data Collection Plan
Since the proposed study is built on secondary data, no human subjects will be included in the study. However, in order to ensure coherence and validity to the research question, it will be ensured that the studies collected for the integrative review, are based on the research question.
Plan for Piloting/Validating the Instruments
Considering the research approach and the use of secondary research in this dissertation, we are not required to plan for any piloting/validating of the instruments.
Data Analysis Plan
The proposed research will be based on the analysis of secondary data in the form of an integrative review. Secondary data chosen for the proposed study will comprise evidence-based and peer-reviewed, scholarly research journals which can be accessible from the university library without any additional costs. Hence, we have analysed the literature review and the same has been analysed for the research.
Limitations of the Study
Since the research is completely based on secondary data and peer-reviewed articles, no primary research was adopted and this has been the major limitation/drawback of the study. As the data is limited up to the extent of the literature chosen and not any real-time data and analysis using survey, interview, which if conducted would provide with more adequate results.
Ethical Consideration
The proposed research will be based on the analysis of secondary data in the form of an integrative review. Secondary data chosen for the proposed study will comprise evidence-based and peer-reviewed, scholarly research journals which can be accessible from the university library without any additional costs.
Trustworthiness and Authenticity
As the literature used in this study are renowned and published and is also accessible from the scholar, so this makes it more genuine and authentic.
The expected outcome will show that the CSR activity deployed in UAE by the companies is undertaken properly and does take care of the stakeholders of such a company. This is because of the local and global community expectations, which has led to the nation focusing on being sustainable and socially responsible.
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CSR is a controversial topic, and this study’s results show that a universal definition of CSR may not be required. However, there will be a need for a reasonable alternative that can be used to better understand CSR. CSR success may now be measured on a broader scale thanks to increased scrutiny from the CSR community and increased expectations from the social investment funds. As a starting point for discussion, this shared point of reference establishes that the CSR idea is relevant not just inside the UAE, but also beyond national boundaries.
Over time, as the UAE invests in socially responsible, CSR principles might be used to track success against the national objective. Because of this, companies and governments can set up their CSR programmes based on both global and local factors, but they can also look at how sophisticated and diverse their CSR involvement is through long-term studies, so they can keep track of their performance and keep their strategic goals in mind. Therefore, CSR is seen as an integrated collection of actions that link to business, responsibility, expectation, rights and laws via a continuous flow.
Both philanthropy and management are valued equally in the UAE, which maintains both as a part of its culture. Philanthropy is a key component of corporate social responsibility (CSR), but it is linked to a formative period in the company’s history as well as religion. There are a number of ideas and perspectives that all have an interest in the establishment of a mutually beneficial connection between company and society that CSR may facilitate. For some stakeholders, CSR connotes socially responsible conduct; for others, it connotes legal obligation or liability; and for still others, it is only a mechanism through which corporations may express a “responsibility for” message to the general public.
According to Carroll’s CSR pyramid as well as the four-part concept of CSR, organisations have the economic, legal, ethical or philanthropic and discretionary obligation to do good in the world. Shareholders want businesses to fulfil their economic responsibilities and turn a profit. The public expects firms to uphold high standards of ethical conduct. Organizations are expected and wanted by society to take on charitable or discretionary roles. For each of these four groups, the definitions may vary or develop throughout time. As a result, CSR based on stakeholder theory yields the best results in terms of social advancement, employee motivation, improved brand recognition, increased revenue and profit margins, as well as happy clients (Nikolova and Arsi, 2017). In other words, CSR is an inherent aspect of corporate responsibility that requires the cooperation of all stakeholders for its success.
Research in a variety of areas is recommended in light of the study’s findings and conclusions. The results confirm the significance of CSR activities and community expectations, particularly in the UAE. A more in-depth look at how national organisations and practitioners define and conceptualise CSR in the future is needed, however. Due to the fact that this study was done in just one developing nation, its findings cannot be extrapolated to other developing countries or other relevant literature.
In order to comply with CSR regulations, businesses must keep detailed records of their CSR donations and activities. This might become a requirement for trade licence renewal in the not-too-distant future, and it may include submitting the proper disclosures. CSR policies and reporting processes should thus be reviewed by all UAE enterprises since they will be relevant to new company establishments in Dubai and across the Emirates. Businesses, non-profits, and workers all benefit greatly from a focus on corporate social responsibility (CSR). Teamwork is at the heart of corporate social responsibility: by working together, we can do more and make a difference.
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