At an Economist Group briefing on Corporate Social Responsibility (CSR) in the Middle East, held in Dubai last week, senior management from multinational and local companies in the region discussed what CSR means for their business.
CSR is the attempt by companies to improve the social and environmental impact of their operations around the world. The discipline has emerged as a corporate response to tensions caused by increased globalization as well as media and pressure group attention on corporate activity around the world.
“CSR is not about turning companies into philanthropic organizations and it's not a substitute for government,” insisted independent consultant Simon Bryceson.
CSR is a business tool for coping with the demand that companies take responsibility for more than just making profits and obeying the law. The new demands on business are a result of growing skepticism about the behavior of companies in a world defined by globalization and rocked in recent years by corporate scandals. Lack of trust does not necessarily scare away consumers directly, but it can destroy a company's reputation and its brand image.
“CSR is really a defensive mechanism for effective brand management,' said Bryceson. “Without a strategy for ensuring consistency and accountability, companies are exposed to risks that can, at best, hurt their stock price and, at worst, result in years of litigation with hostile jurors.”
In the Middle East, subsidiaries of multinational companies as well as large local companies, CSR strategies are becoming part of standard procedure. “As the region develops into an international business and financial center, it is important for companies to implement CSR practices, and adopt global standards commonly used elsewhere,” said Senior Consultant at the Economist Group, Delia Meth-Cohn. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
