Dubai: Corporate social responsibility (CSR) is an important and integral part of normal business operations and a proven management tool to achieve success in an organisation, Hisham Al Shirawi second vice-chairman of the Dubai Chamber of Commerce and Industry, said Wednesday.
"CSR is not just embedding responsible and sustainable practices into business strategy without tangible outcomes, it is now evident that CSR, sustainability and profitability are inter-related and go hand-in-hand in creating [a] successful organisation," said Al Shirawi.
In an attempt to raise awareness of the importance of corporate social responsibility and the growing need for the business community to play a more prominent part in promoting and encouraging suitability, the second Dubai Dialogue conference has been organised by the Dubai Chamber and titled ‘Sustainability Matters 2010'.
Bringing CSR into the marketplace entails environmentally friendly practices, treating employees fairly and contributing positively to the community.
Recent study
A recent study, developed by the Dubai Chamber Centre, of responsible business practices showed that 66 per cent of the companies are not involved in community programmes or activities.
Moreover, the study said the lack of awareness about the community programmes or activities (56 per cent) and lack of financial resources (41 per cent) are the main obstacles that keep companies from community involvement.
The study presented that companies in Dubai are in the early stages of developing comprehensive management approaches to community involvement.
Environment
On the other hand, Mirdif City Centre in Dubai is the first shopping mall in the Middle East to receive a Gold Rating for leadership in Energy and Environmental Design (LEED) for its green designs and indoor environment quality systems of low-emitting non-toxic material.
Hamad Bu Amim, Director General of the Dubai Chamber, illustrated in his presentation during the conference that many other organisations are working towards achieving LEED standard buildings, such as the Dubai Chamber of Commerce building which is the first LEED.
He added: "Leading an international business requires the delivery of goods and services through the profitable management of activities, with a responsibility towards people and societies in which they operate. This is a legitimate aspect of business leadership."
Businesses in the Middle East are part of the global community and have an active role to play in protecting the reputation of the region and setting standards for responsible practices, Bu Amim added.
"Corporate social responsibility is not just another buzz word, but [a] proven management too that can be used to build reputation and enhance competitiveness. The reputation of each company adds to the overall reputation of the Dubai business community."
He pointed out that sustainability contributes towards enhancing the reputation of both organisations and individuals, which in turn is a key factor in successful businesses.
"Ultimately, sustainability initiatives contribute towards building [the] reputation of a sector and of individual companies."
Bu Amim is sure that the Arab world can readily close gaps in environmental policy, labour policy and governance systems, building on the momentum to adopt good practice.
According to a recent CSR survey of GCC business leaders by the Sustainability Advisory group, top business priorities even during an economic crisis include reputation.
He said: "Reputation plays a key factor in how internationally competitive the UAE is perceived to be. This affects the talent that is attracted to the region as well as the caliber of organisations that want to do business with the UAE." Number one
The UAE ranked number one in the Arab world in 2009 and with a score of 64.3 in the Arab responsible competitiveness index.
The results show that responsible business practices are strongly correlated with competitiveness, human development and innovation, Bu Amim said.
"In Dubai there's been much focus on innovating our approach to sustainability through various initiatives such as ratifying the Convention on the Rights of Persons with Disabilities (2009 - ensures equal rights for those with special needs)," he added.
