March 29, 2007 - 'Contrary to early expectations that most business leaders associate CSR with just charity, there is evident recognition within the private sector of the notion that business and society are interdependent and that CSR should contribute to the development of the society in which it operates ... the challenges are in the implementations.'

This statement echoes some of key messages from the first comprehensive study by Tamkeen on Saudi companies and social responsibility. The Saudi Arabia context, the prevalent values of generosity and goodwill and the stand of local business leaders on social engagement; all provide for great opportunities to advance CSR so that it plays an effective role in the development of local society and economy. Firstly, unlike the experience of CSR in developed economies, Saudi companies are not subject to adversarial tensions that pit business against society. Saudi companies also do not experience the same supply-chain pressures as in other emerging economies, China as an example. Often these pressures have made CSR strategies reactive and sometimes cosmetic to please consumers or the media.

The Saudi Arabia experience shows that most efforts, though still trapped in charity mindset, are motivated by the desire to address the urgent challenges facing the country, chief among them creating employment opportunities for a growing young population and addressing the skills gaps needed for a diversified economy. These challenges are intimately linked to the drivers for Saudi companies’ competitiveness in light of WTO entry and opening up the country for foreign direct investments (FDI). This context should be seen as an opportunity for Saudi companies to develop CSR strategies that would support both the local community and business goals, the study concludes.

The study further asserts that for this to work, Saudi companies need to address some weaknesses in the current approaches to CR. Chief among them is the lack of systematic and organized efforts within majority of companies to assess and prioritize the social issues where they can be the most effective. Absent also are policies and organized structures for CR management and communications. On the other hand, the study points to some worrying signals on lack of recognition of the adverse impacts of business activities on the environment and health sometimes to the point of denial. What makes this even more worrying is the lack of pressures and drivers to bring attention to these issues from media, regulators, consumer groups and/or researchers.

More details in the report at www.tamkeenconsult.com/projects2.htm

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