UAE, Saudi Arabia leads in regional CSR

Regional CSR – According to a new report, more than 60% of UAE brands have seen a tangible increase in consumer engagement as a direct result of increased Corporate Social Responsibility (CSR) activities.

According to Cicero & Bernay’s annual CSR Report 2022, overall efforts to increase CSR increased significantly in the UAE and the GCC compared to last year’s report, with over 90% of those polled agreeing with CSR’s definition and purpose.

Middle Eastern countries have begun to take significant steps towards fostering a culture of Social Responsibility in recent years, with the UAE and Saudi Arabia leading the way in promoting sustainable and socially responsible practises. The 2022 report also notes a shift in sentiment among some previously low-scoring countries.

The survey included 314 C-level executives from nine countries and 12 industries in the Mena region, providing a representative sample of the business community with respondents from a variety of sizes and sectors. The survey was designed to be comprehensive, covering a wide range of topics relevant to the region’s CSR landscape.

Regional CSR

Itani spoke to Khaleej Times about the critical importance of CSR in today’s business world.

Excerpts:

Where do businesses in the GCC stand in terms of CSR on a global scale?

Throughout 2022, corporate social responsibility (CSR) remained a hot topic among Mena region senior managers and executives. Nine out of ten people polled said they were aware of the concept without being asked. While roughly half of the managers polled had a strong understanding of CSR, and two-fifths had good knowledge, there is still room for improvement, with one in six indicating having little or no knowledge.

Managers in the Mena region believe their organisations place a high value on CSR, with eight out of ten saying it’s “in their DNA” or “one of their top priorities.” Furthermore, the majority of Mena companies intend to increase their CSR activities in the coming year. Companies in the UAE, Egypt, and the GCC are the most active in this field.

How has the region’s business community’s emphasis on CSR shifted?

CSR has progressed from a voluntary choice to a mandatory requirement at the regional, national, and international levels. However, many businesses have gone beyond legal requirements and incorporated the concept of ‘doing good’ into their business models. Despite these gains, global challenges are intensifying, and the region must focus more on developing and implementing solid strategies and action plans that contribute to societal prosperity.

Which countries are leading the region in CSR activities (and why)?

According to one-third of the managers polled, the UAE is the most active country in CSR. Saudi Arabia and Qatar are close behind, accounting for one-quarter and one-eighth of the population, respectively. This can be attributed to many countries’ growing recognition of the numerous benefits of incorporating CSR programmes into their operations. These advantages include increased operational efficiency and the ability to measure and evaluate the overall impact of their CSR engagement.

What is different about this year’s results (compared to last year’s)?

According to the most recent survey, the majority of Mena region companies intend to increase their CSR efforts in 2023. Three-quarters of them intend to increase their CSR activities, while a fifth intend to replicate their efforts from the previous year. According to the survey, the UAE leads the pack in terms of CSR enthusiasm, with eight out of ten companies planning to increase their CSR efforts, with Egypt and the GCC trailing closely behind.

Overall, the Mena region is progressing towards a more sustainable and socially responsible business environment. The future looks brighter as more companies recognize the importance of corporate social responsibility and take steps to increase their CSR engagement.

What effect does CSR have on employee loyalty?

Employees are more likely to stay with a socially responsible company even if they receive another job offer, according to the findings. Employees in a socially responsible company, according to managers, have a stronger sense of purpose than those in other companies. Companies that place a premium on social responsibility are more likely to attract and retain top talent, resulting in higher productivity and long-term success. As a result, businesses should consider the value of social responsibility to their employees and incorporate it into their business strategy.

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