| Yes they do, and the time for it is NOW
Experts continue to debate the significance of Corporate Social Responsibility (CSR) in the Arab setting. CSR is formally defined as a concept whereby organizations safeguard the interests of society by taking responsibility for the effects of their activities on both the environment and various stakeholders such as customers, suppliers, employees, shareholders, and communities. While some groups view the concept as purely an act of enforced charity, others insist that CSR will play a key role in helping the region attain its growth potential.
Whatever the opinion, it is undeniable that CSR activities have positively touched the lives of many people. Corporate initiatives have led to the building of houses, wells and schools; the employment or entrepreneurship of millions of disabled individuals; the reduction of environmental threats; and the medical treatment of the less fortunate, among others.
It is to our industry’s credit that successful life-changing CSR projects in the region have been backed by parallel Public Relations (PR) campaigns that have ensured maximum visibility and supportive public response. PR campaigns generate the much-needed interest in a particular cause and in the process help forge a strong connection between business and society. The UN Global Compact, a popular guidance standard for CSR initiatives, affirms the important link between CSR and PR, more specifically PR’s ability to ensure the clear and positive dissemination of a CSR initiative’s objectives to target stakeholders and other audiences.
Unfortunately, the adoption of CSR has generally not been progressing at the kind of pace the region needs. The problem is not a lack of willingness from local companies to participate in CSR projects, but rather the pervasive perception that such initiatives are just one-off charity events that revolve around publicized donation-giving or charity drives. On the contrary, corporate partnerships with governments and non-governmental organizations can go such along way to address vital issues such as unemployment, environmental sustainability and quality of education.
An encouraging sign, though, is the highly-visible support being given by several high-profile Arab officials and personalities for CSR. Last year, for example, H.H. Sheikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, established the Dubai Cares foundation, a program committed to the education of one million children in poor countries. H.H. encouraged businesses to organise corporate drives to donate to the foundation. This reflects both the importance placed by the region’s rules on initiatives for the betterment of the greater community and the key role of local businesses in community-centred acts of charity.
CSR proponents and implementers swear by the ability of such programs to provide numerous financial and non-financial benefits, such as reduced cost from environment-friendly practices; operational efficiency; improved employee satisfaction; and stronger brand recognition and loyalty. In fact, Niall FitzGerald, the former CEO of Unilever, once said that “Corporate Social Responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it... because it is good for our business.”
Indeed, from a business standpoint, according to the Institute of Business Ethics, companies adopting a public commitment to high standards of corporate behaviour post 18 per cent higher profits on average. A growing body of evidence shows the importance of corporate reputation and value in today’s business environment; many companies in fact attribute more than 90 per cent of their value on intangibles such as reputation, knowledge, and brand. Thus, Arab organizations that shy away from CSR miss out on the opportunity to further anchor their reputation, help in societal development, and contribute to regional growth.
Although still in its infancy, Middle Eastern CSR has nevertheless been undergoing positive growth. Environmentally-friendly designs and eco-management, for example, are being embraced by a growing number of contractors, developers and investors involved in the booming regional construction and real estate sectors. Even government programs such as Dubai’s “Green Building Initiative” are joining the fray, highlighting stronger multi-sector commitment to sustainability and community awareness issues.
CSR’s ascension as a powerful tool for concretizing best practices and social commitment has spurred regional PR professionals to further hone the creation of effective communications strategies. These strategies ensure that all stakeholders are aware of what the organization is doing to improve the human condition. Such awareness is attained through well-defined and properly communicated purpose, scope, and goals.
PR firms are increasingly gaining experience in aligning integrated CSR and PR communications campaigns with corporate brand identity and positioning the organization as a responsible corporate citizen. This compatibility, in tandem with effective communication techniques, enhances the development and impact of stakeholder relations, which is essential to ensure success and overall acceptance for a particular CSR initiative.
CSR and PR are symbiotically related; CSR needs PR to build awareness of its relevance in today’s business and society, while PR leverages CSR experience to expose itself to a new business dimension and consequently gain further expertise. And just as CSR has evolved from a simple philanthropic act of corporate giving into an effective support platform for causes and social issues that have widespread implications, so too has the role of the PR practice in ensuring that the goals of CSR activities are met.
PR practitioners have gone beyond the communication side of CSR and are now required to function as counselors who assist corporate leaders in managing the pressures of the business environment, where CSR has become as important as corporate profit and competitiveness. A friendly warning: PR professionals can be tempted to develop the entire CSR function with minimal or event no client input and involvement, which should not be the case.
The new role also poses several ethical challenges to the PR practice as well. A good PR communication plan must ensure that a company’s CSR goes beyond donations and conveying a positive image. PR firms must advise companies on a long-term strategy and not just settle for headline-grabbing events. It is also important for PR firms to be ethical in their own operations by refusing to work with dubious companies or create CSR tools that cover up non-compliance with government regulation or other unethical practices. When corporate behavior is truly socially responsible, then generating interest in the company and its causes becomes easier and credible.
The CSR-PR partnership is transforming businesses into more responsible and caring entities. By communicating CSR activities, companies and PR firms are encouraging others to join their cause and inspiring them to help others. CSR is not just about image building, it is about a company’s genuine desire to contribute to progress through sustainable economic, social, and environmental development. Now is the time to mastermind Middle Eastern CSR programs that both enhance the bottomline and concretize corporate involvement, sincerity, and commitment.
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