Corporate social responsibility Dubai refers to a business’s contribution to the country’s development through social and environmental projects and development schemes. The companies contribute to the country’s growth through the provision of goods and services, as well as financial support for social, economic, and environmental projects, and by considering the impact of their activities and decisions on society. The concept of corporate social performance (CSP) encompasses corporate social responsibility, ethical business practices, corporate social responsiveness, shareholder management, and sustainable business practices.
The purpose of corporate social responsibility guidelines is to integrate business decisions with responsible practices. The UAE places a strong emphasis on CSP to achieve its goals, which sets its path to sustainability on the principles of social, economic, environmental, and human development. Let’s examine the progress of corporate social responsibility in Dubai.
What is Corporate Social Responsibility Dubai?
Corporate social responsibility is a business concept that enables companies to take responsibility for their activities, services, and their impact on society, the environment, and the economy. The primary idea behind Corporate Responsibility (CSR) is that businesses operate to enhance the welfare of society and promote sustainable development through ethical and transparent practices.
What is the CSR UAE Fund? – Corporate Social Responsibility Dubai
The Corporate Social Responsibility (CSR) UAE Fund is a federal authority responsible for setting the framework and administering corporate social responsibility in the country. It also manages and directs contributions of the business sector towards national interest programs and awarding companies for their sustainable practices in the field of CSR. The authority serves as an enabler for relevant authorities in the country to encourage and regulate socially responsible and sustainable practices within the business sector.
The Cabinet established the CSR UAE Fund in 2018, as per Decision No. 2. On November 26, 2019, His Highness Sheikh Mohammad Bin Rashid Al Maktoum launched the CSR UAE innovative platform.
What was the Vision and Goal Behind the CSR UAE Fund?
The primary objective of launching CSR is to set the UAE as a world leader in Corporate Social Responsibility. Additionally, its goal is to develop a platform that encourages entities to engage in socially responsible practices, thereby contributing to a positive social, economic, and environmental impact in line with the UAE’s Sustainable Development Goals.
What are the Objectives of the CSR UAE Fund?
The main objectives of CSR UAE Fund are,
- Increases social responsibility in the community
- Promoting development partnerships between private and public sector
- Develop social responsibility laws to regulate and increase social responsibility.
- Creating a rewards system for business corporations and entities
- Direct corporate contributions towards projects that are sustainable and align with UAE’s sustainable priorities and projects
What are Different Types of Corporate Social Responsibility (CSR)?
The top four corporate social responsibility are,
- Ethical responsibility
- Economical responsibility
- Environmental responsibility
- Philanthropic responsibility
Let’s examine each type in detail.
Ethical Responsibility – Corporate Social Responsibility Dubai
Ethical responsibility entails operating fairly and with transparency, adhering to vehicle standards, and respecting human rights. It also involves honest labor practices, working with responsible partners and suppliers, and participating in community development—additionally, ensuring fair treatment of all stakeholders, including owners, employees, suppliers, investors, and customers.
Economical Responsibility – Corporate Social Responsibility Dubai
Being economically responsible means creating jobs, contributing to the local community, and prioritizing the well-being of employees. Additionally, it includes fair labor practices, fostering a favorable work environment, and providing employees with training. The company must not only focus on maximizing profits but also work to have a positive impact on society, people, and the environment.
Environmental Responsibility – Corporate Social Responsibility Dubai
The term involves focusing on making the company sustainable by reducing waste, saving energy, and adopting eco-friendly practices. Businesses must reduce their carbon emissions by adopting waste recycling programs, planting trees, and using sustainable materials.
Philanthropic Responsibility – Corporate Social Responsibility Dubai
It focuses on giving back to the community by donating and sponsoring events, as well as encouraging employees to participate in volunteer work. Some entities also establish their philanthropic trusts or organizations to give back to the community.
What are the Popular CSR Activities in Dubai?
There are different types of CSR activities in Dubai that address economic, social, and environmental issues. Some of the popular activities are,
- Arranging community service programs
- Contributing to the development of infrastructure that supports local communities.
- Donating to charities, NGOs, educational institutions, healthcare organizations, and other worthy causes.
- Supporting educational institutions by providing scholarships and offering other coaching programs.
- Taking necessary steps proactive measures to reduce the company’s carbon footprint, protecting natural resources, and relying on renewable and sustainable resources.
What is Corporate Social Responsibility Law in UAE?
According to the CSR law in the UAE, businesses base social responsibility on voluntary principles. CSR activities remain voluntary; the companies must file for CSR returns and list on the platform if they fall under the scope of corporate social responsibility law in the UAE. The CSR law states that the fund allows enterprises to use the social responsibility mark with stakeholders to form a list of benefits. These benefits include priority in the government tenders, reduced fees, and priority in government activities.
Furthermore, UAE companies must review their CSR activities for the renewal of their trade license. The UAE has numerous CSR and charitable initiatives that have made it more attractive among other Arab nations. Historically, philanthropy has been an essential part of corporate social responsibility (CSR), and needy people receive “zakat,” a voluntary distribution that Muslims donate to them silently.
In summary, we can say that, in addition to society’s expectations regarding ethical duties, there are also universal principles in philosophy, such as rights, justice, and the common good, that should guide business practices. All organizations must ensure the safety, health, and fair treatment of their employees, and businesses should strive to foster a positive community in the UAE.
Social Responsibility in Sharjah
The Department of Social Services of Sharjah has introduced and implemented projects to support social responsibility practices in the emirate. Government entities, public and private sector companies, and community members collaborate to implement these programs.
The department is committed to enforcing the ethical practices of the businesses and their responsibility to make a positive impact through activities that promote the welfare of their workers and the local community.
Objectives of Social Responsibility Programmes
The purpose of these programs is to,
- Increase social interaction and communication between the institutions and the community.
- Encourage corporations to balance their profits, environment protection, and community services.
- Attract new supporters and give them back on their contributions.
- Enforce social responsibility programs and projects that have a balance between corporate work and social welfare.
You can also visit the Social Responsibility Platform to contribute your ideas.
What are the Benefits of Corporate Social Responsibility Dubai?
The main benefits of CSR include the following,
- Positive reputation of business
- Better brand recognition and loyalty
- Increased sales and customer loyalty
- Business growth
- Better financial performance
- Easier access to working capital
- Operational charges savings
- Ability to attract new talent and keep employees
Bottom Line
Corporate social responsibility (CSR) is not a passing phase; it’s a necessity for businesses. With the increasing demand for ethical practices, sustainability, and adherence to local regulations, companies must implement Corporate Social Responsibility (CSR) to remain relevant and competitive in the market. By participating in social responsibility programs, businesses can not only make a positive impact on society but also achieve their long-term business objectives. CSR refers to being socially responsible, legally responsible, and having a sense of responsibility towards society.
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